Appointment of 1st auditors of pvt ltd

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Reshma (Querist)
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09 November 2015 Dear all, 1st auditors of the company has to appoint within 30 days of incorporation by BOD or on failure of appointment of auditor with prescribed time, within 90 days hold EGM and appoint Auditors. as per section 139(6) . My query is, if board as well as members failed to appoint 1st auditors within time limit, then when can a company appoint 1st auditor and how to proceed.

Charu Srivastava

Charu Srivastava (Expert)
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09 November 2015 It would be better if you appoint him on the firt BM which should be held within 30 days. Since no ROC intimation is required in case of first appointment. you can make back dated entry provided your auditor agrees to such arrangement.

Please note that back dated entry is not the perfect solution, but in this particular case i can think of this.

Other views are solicited.

Reshma

Reshma (Querist)
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09 November 2015 Thank you Srivastava sir, but we have to file form ADT-1 for appointment of 1st Auditors as per section 139(6). please let me know whether I am correctly understood the section.

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Reshma

Reshma (Querist)
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09 November 2015 and if client is not agreeing for back dated appointment. In that case, is there any penalty for not complying section or the company has to go compounding the same. Please let me know how to proceed.