Provision for Audit Fees

This query is : Resolved

Lilesh Prabhu Nasnodkar (Querist)
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05 April 2010 A Company is yet to appoint statutory auditors for F.Y. 2009-10. As on 31st March 2010, does the Company require to provide for audit fees for F.Y. 2009-10 in its books?
If the Company closes its books on a monthly basis, is it required to provide for audit fees proportionately on a monthly basis?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 April 2010 NO. THE PROVISION SHOULD BE MADE ON 31ST MARCH.

Lilesh Prabhu Nasnodkar

Lilesh Prabhu Nasnodkar (Querist)
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06 April 2010 However when no service is rendered, how is the provision justified. Please explain.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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06 April 2010 YOU SHOULD HAVE APPOINTED YOUR AUDITOR BY NOW. YOU HAVE TIME TILL 31ST MAY TO MAKE PROV AND DEDUCT TDS.

DEEPIKA GOEL

DEEPIKA GOEL (Expert)
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06 April 2010 Statutory auditors of the company was appointed the shareholders in the AGM for the year in advance. So if the company is not appointing the statutory auditors in
AGM, the company is violating the provisions of the Companies Act, 1956. The company is required to provide for the provision of audit fees for F/Y 2009-10.