When the accounts are not ready, the ROC will not normally grant extension of time for holding the AGM. Even then the AGM is to be convened and all subjects other than the subject of adoption of annual accounts are to be transacted. In such case, it means that the appointment of directors and appointment of auditors will be made. Therefore, the term of the erstwhile auditor, who audited the accounts also ends. Hence, they will not be able to sign the accounts and give the report. For the new auditors, appointed in the AGM, it may take time to take up the audit and give report. Also, the directors appointed/elected in the AGM are new. They may be hesitant to sign the accounts.
How to deal with such a situation?
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