REGARDING AGM

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2010 DEAR EXPERTS

MY QUERY IS, A PRIVATE LIMITED CO. HAS NOT PREPARED ITS ANNUAL ACCOUNTS SINCE PAST 5 YEARS BECAUSE OF NO ACTIVITY OR ALMOST NIL ACTIVITY . NOW, THE CO. IS DOING WELL. AND DUE TO PRESSURE FROM SERVICE TAX DEPARTMENT THE COMPANY IS IN THE PROCESS OF PREPARING ALL THE FIVE YEARS ACCOUNTS. MY QUESTION IS WHAT SHOULD BE THE DATE OF AGM AND DATE OF SIGNING REPORTS, CAN WE PUT CURRENT DATE FOR THE PREVIOUS YEARS ALSO AND WHAT ARE THE CONSEQUENCES.

PLEASE ITS URGENT

Rasesh

Rasesh (Expert)
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14 June 2010 If current date is put for all the accounts, then there would be multiple non-compliances.

A better option if your auditor agrees, is to put agm dates according to the companies act only. The only penalty you will have is late filing fees. The ROC may open up the matter for prosecution. But the balance sheet is without any activity, you may take the plea that it was inadvertent and compound the offence.

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2010 Mr.Rasesh

Actually the problem is Service Tax Department knows that no balance sheets were prepared all these years. They have come to the office and seen all the papers for 2 days.
Now if we prepare back dated balance sheets than there would be problem for the auditor as the officers in the service tax department has given time for preparation of balance sheets.

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Rasesh

Rasesh (Expert)
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15 June 2010 Try to convince the service tax people. If you show that the AGM were not conducted all these years, the non-compliance gets larger.

If you are able to show that the AGM were held by only filing was not done, then the non-compliance is only to the extent of non-filing. Moreover, you can also take benefit of the current COMPANY LAW SETTLEMENT SCHEME, 2010. The penalty for late filing gets reduced to just 25%.

However, even if the auditors do not agree, then there is no way out. At the earliest, get the accounts for those years, get members approval, file the accounts under the CLSS and also file for immunity in respect of documents filed under the CLSS. The chances that immunity will be granted by ROC are very high (under this scheme)