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Appointment of auditors

K. Aparna (STUDENT) (43 Points)

29 September 2014

We have incorporated a private limited company on 08.11.2013 but the auditors are not appointed till now. Since, one of my friend is an auditor, the account fot the year 2013-14 are audited, but he is not appointed officially and the relevant form 23b has also not been filed with ROC.My queries...

1.When can we appoint the Auditor and how?

2.What is the procedure for filing the form 23b with ROC and the penalties thereof?

3.As a company, we are supposed to give only the auditor appointment letter or are we supposed to file form 23b? ( Who has to file Form 23b)

Thanks.

Please help me sort out the issue soon since the returns are to filed and the company does not fall under tax audit case..

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2 Replies

Madhu Koundinya (student) (225 Points)
Replied 29 September 2014

hi aparna,

As per sec 224(5) of companies act 1956, Auditor should be appointed within 30 days of incorporation of Company. If the BOD fails to do so, then the power is transferred to Shareholders.

Shareholders shall appoint the 1st auditor by calling a EGM and such auditor shall hold the office until conclusion of 1st AGM.

So,

1. The Auditor can be appointed by shareholders through EGM.

2. The normal fees for form 23B to be filed is Rs. 200 for capital upto 100,000. However if delay in filing the form 23B attracts late fee penalty.

The penalty is:

Upto 30days: 2 times the normal fees

From 30 to 60 days : Four times the normal fees

From 60 to 90 days : Six Time the normal Fees

More than 90 Days : Nine times the normal filing fees

However the maximum penalty can not exceed the 10 times of normal fees.

It is compulsory for auditors to file the form 23B, since the SRN of 23B is asked in annual filing forms.

3. Further 23B is should be filed by auditor not by the company. The penalities listed above needs to be paid by the auditor if there's a delay in filing of 23B extending more then 30 days and so on....

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Chetan Patankar (Company Secretary) (269 Points)
Replied 29 September 2014

23B is not required to be filed in case of appointment of First Auditor at BM. Also it is not required to be filed when appointed at AGM. Ref: S. 224 (1A)