Saran Kumar (Staff Accountant) (71 Points)
31 May 2012HI,
Can any one let me know is it necessary to give Audit report on AGM.
My Question When an Auditor has to give his report?
Is it any time befor Board Meeting(BM) ? or
Is it any time after Board Meeting (BM)? or at the time Audit Commitee Presentation?
Or any time other than above.
It is appreciable to wanna having the answer with reference to section number of any Act.
Thanks in advance
Regards,
Saran Kumar
Payal Gupta
(article-trainee)
(69 Points)
Replied 10 June 2012
hi as in AGM there are four ordinary business to be adopted as per sec173 of co. act 1956 and out of them one is adoption of audited financial a/c and audit report and also according to co. act auditor has to submit their report before AGM
and please correct me if i wrong anywhere
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 18 June 2012
Hi Saran,
Auditor will dates his Audit Report after the date of Board Meeting and date of Audit Committee. This is because :-
Auditor (theoretically) starts Audit after approval of Fin Statements in Board Meeting.
Audit Committee (as per Clause 49 of Listing Agreement and Sec. 292A of Co Act) has to arrange at least TWO meeting with Stat Auditor viz. one before commencement of Stat Audit and second after completion of it but before FINALIZATION of Audit Report.
Hence, Auditor generally dates his Audit Report after aforesaid two meetings but before the date of AGM (at least 23 days before AGM).
Kindly rectify me if Im wrong.
Saran Kumar
(Staff Accountant)
(71 Points)
Replied 21 June 2012
You are absolutely right Mr.Yogesh shah.
Do u have any idea, why every auditor signs on Board meeting date?????
Refer Page112 of RIL Annual Report from below link.
https://www.ril.com/rportal1/DownloadLibUploads/1337076407252_AR08052012R.pdf
Its not for those on this tread..
Its for every one
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 23 June 2012
Hi Saran,
If you see my earlier reply, you will notice that I used the word 'theoretically' .. In practice, many CAs dates their Audit Report the same as that of Board Meeting (plz note that this is even NOT WRONG) .. Even I have handled many cases (including one public co.) where signature date is of Board Meeting. SO, in practice is it OK.
Now I move to Reliance issue .. In case of such HUNKS i.e. such Big Companies, Auditors don't wait till last moment. Their Audit goes on throughout the year. They take periodic reviews even. Hence, at 31st March i.e. year end, 90% of Audit generally gets over. What remains is just a closing entries and other formalities. Hence, their Audit Report gets complete before Board Meeting and they dates their Report the date of BoD meeting.
This is my opinion. Other views are welcome.
CAclubindia
