Share capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2010 A company has the share capital of Rs. 110,000,000, therefore as per section 383A of the companies act. It is under the compulsion to appoint a whole time CS. But the same has not been appointed till date. In that case as an Auditor we should qualify the report or not.

Please reply, i'm awaiting.Thx

Abhishek

Abhishek (Expert)
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04 June 2010 No, it is not in the scope of statutory audit

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2010 Thanks Buddy!!

But it is a violation of companies act.

Plz reply.
Thx!!

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Ankur Garg

Ankur Garg (Expert)
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04 June 2010 Dear Friend,

Agree it is out of the scope of statutory audit but at the same time it is a serious violation of company law which is very apparent from the records.

According to me it is duty of the auditor to suitable inform management regarding this issue through audit report or through any other method.

Proper evidence must be kept by auditor showing that management was informed by the auditor regarding this violation.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2010 Thx for the reply!!

i'm agreered.

but the same time, can you give me any reference in this regards.

Thx!!