1. If unissued shares or debentures of the company are to be applied in the purchase of a business, a report made by accountants (who shall be named in the statement) upon -
(a) the profits or losses of the business in respect of each of the 5 financial years immediately preceding the delivery of the statement to the registrar; and
(b) the assets and liabilities of the business at the last date to which the accounts of the business were made up.
(1) If unissued shares or debentures of the company are to be applied directly or indirectly in any manner resulting in the acquisition of shares in a body corporate which by reason of the acquisition or anything to be done in consequence thereof or in connection therewith will become a subsidiary of the company, a report made by accountants (who shall be named in the statement) upon the profits and losses and assets and liabilities of the other body corporate in accordance with subparagraph (2) or (3), as the case requires,