I am just completing the accounts for a ltd. It has a VERY negative balance sheet and the director has declared dividends during the year well in excess of the reserves (seeing as it is negative).
The company has a lot of liabilites - including factoring.
I have spoken with the director and raised these concerns and he is adamant that the company is still a going concern and actually it is applying for further credit.
So aside from the negative balance sheet note - divis in excess of distributions etc - director has completed documentation to assure us it is a going concern. What else do i need to do? Does an AML report need to be completed for the company with the suspicion that wrongful trading is taking place in that the director is supporting his lifestyle on credit of the company basically?
Should a seperate letter to HMRC be sent ? Or will notes within the full accounts suffice?
The dividend paperwork is in place and have been included in the bookkeeping - so these can't just be scrapped can they and will need to go on the directors tax return.
Any support would be great - thank you