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Urgent help for appointment of stat auditor.

sumit sehrawat (student) (70 Points)

29 February 2012

Dear All

I want to take help of all professionals here. There was some dispute between the two directors of a private limited company. New director has been appointed and all formalities has been done. But now the problem is that old director is not providing the details of the accounts, itr and the previous auditor. Now the company want to appoint new auditor for fy 2010-11 yes it is already late and late penalty will be there everywhere, in mca, incometax etc. So what are the procedures so that company can make accounts of fy 2010-11( as no data is available of fy2009-10) and procedure for appointment of new auditor if previous auditor is not traceable and no resignation has been obtained from previous auditor.

waiting for an early reply from my seniors. and thanks in advance.

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3 Replies

sumit sehrawat (student) (70 Points)
Replied 03 March 2012

frnds plz help its really urgent plz.

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Aniruddha Chauhdary (CA) (26 Points)
Replied 05 March 2012

CA regulations do not provide any excuse for not communicating with previous auditors hence; you have to obtain the certified copies of financial statements of the company for fy 08-09 from the ROC by paying fees. From those statements you will get the name of the auditors & his membership number. Based on those statements you can easily trace his address with the help of member’s directory.

You can also get the copy of the old ITR from the income tax department if a proper application is made by the company.

You can get the bank statements & other relevant documents & build the fresh set of books based on incomplete records. Take necessary resolutions in the board meeting, put all relevant correspondence on record & mention references to those in the resolution. Shift all the burden of not providing accounting details to old director officially & close the meeting. Let the new auditor qualify the balance sheet with these facts. Pass the same in General meeting & file with ROC.

This procedure is accepted widely & you can find references to it in number of cases. Refer A. Rammaya Edition. Please feel free to contact. 9922961931

CA.D.RAGAVAN (CHARTERED ACCOUNTANTS) (219 Points)
Replied 05 March 2012

Take Actions explained by CA Aniruddha Chauhdry which will help you to overcome the penal actions initiated by the Income Tax Authorities. It will serve as a Reasonable Cause.