Books of accounts to be audited by first auditor

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CA NAVEEN SINGLA (Querist)
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22 December 2014 Sir,

As the First auditor would hold the Period up to 1st AGM. For which Period First Auditor would audit the Books

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 December 2014 suppose he is appointed in agm of 14-15 till next agm for 14-16 then he will audit books of accounts of FY 14-15

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Querist)
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22 December 2014 Sir,

I am taking about First Auditor who is to b e appointed by Board or Members before AGM as per section 139(6)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 December 2014 Whichever auditor you saying under normal situation he will conduct audit for that period only.

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Querist)
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22 December 2014 Ok Fine. Got the Answer But Suppose a co. incorporate in a F.y but dont commence business in such F.y. Not open a Bank Account too. Can First auditor of such co. would not do audit for the 1st F.Y of such co. in which business has not been commenced

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 December 2014 If oyu refer to wordings of sec 139 for appointment of auditors..it applies to all companies whether business have commeneced or not.

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Querist)
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22 December 2014 Ok but how Balance Sheet would be Draw as Co. incorported on 21.03.14. No Bank Account opened up to 31.03.14 and no Cash Deposited by the Members in respect of Shares of Rs. 1 lac issued to them. What is the solution.

Definately we should go through the Law but law is also based on practical situations.

Sir plz advise Whether it is possible to draw Bal Sheet for F.Y 2014-15 onwards. Or there is a remedy for same.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 December 2014 if there are no transactions then the balance sheet and p n l shall remain nil only nothing wrong in it as that is practical situation.

CA NAVEEN SINGLA

CA NAVEEN SINGLA (Querist)
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22 December 2014 Thank a Lot Sir for your answer.Is there is need to take advise from somebody else or no need as I am also convinced with the same.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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22 December 2014 even if you take other advise the ans will be same so this is final solution in your case.

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