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Query related u/s 139 of companies act, 2013.

sunitashaw (Company Secretaries) (76 Points)

18 July 2016

We are a Pvt. Ltd. Co. and has appoined partnership firm consisting of two partners as auditors of the Company at the AGM held on 30/09/2014 for a period of 5 years (from 01/04/2014 to 31/03/2019. Now, one of them, who signs our Balance Sheets and do all the works of our company wants to ceases to be a partner and willing to form a sole proprietorship firm and will continue as auditor of our company.

Is this situation giving rise to casual vacancy?

There would be no casual vacancy and we just have to file new ADT-1 by new resolution in the upcoming AGM and the number of financial years to which appointment relates will be the same as earlier, i.e. from 01/04/2014 to 31/03/2019?

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3 Replies

Charu Srivastava (Company Secretary) (4210 Points)
Replied 19 July 2016

Since the patnership firm is appointed as an Auditor and the existing auditor representing the same is planning to discontinue with the firm, which thereby disqualifies him continue as an Auditor. In view of the above circumstances the casual vacancy is created caused due to disqualification.

In such situation the new firm should be appointed in the Board Meeting within 30 days of convening the meeting. Inform auditor about his appointment.File form ADT-1 for its appointment.

other views are solicited.

Thanks

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Ankush Lawate (Company Secretary) (295 Points)
Replied 22 July 2016

In my opinion company has appointed Partnership firm as Auditor and not the specific Partner as auditor.

If Partnership firm is continuing its business even after the specified partner leaves the firm, there is no need to file fresh form ADT-1.

Anjali Gupta (Training at CS Firm jayshri Tulsyan And Associates) (49 Points)
Replied 14 October 2016

I think the company have to file a new ADT-1 for appointment of sole proprietorship auditor firm as the FRN of the auditor firm is also changed. and I wanted to ask that the new appointment should be for the remaining years or new 5 years.?