Filing of form 23b

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Sushant Mahajan (Querist)
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11 June 2013 Is the filing of 23B form compulsory for an auditor of a newly incorporated company .i.e. the first auditor also appointed by Board of Directors?

Since, in the circular which mandated the compulsory filing of form 23b, its stated that 23b form should be filed by an auditor appointed in the AGM, I m confused whether its compulsory for first auditor of the company because he was not appointed in an AGM.

If its not mandatory, then what will we fill in 23AC form for that period in the column of SRN of 23B?

Ganeshbabu K

Ganeshbabu K (Expert)
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11 June 2013 Appointment if First auditor:

Sec.224(5)
First auditors are appointed by board of directors in board meeting with in one months from the date of incorporation.

So auditor is not required to intimate to ROC about appointment

But For e-filing Form 23 AC SRN of E-form 23B is required.

So how to file 23AC:-

Please refer 23AC e-form help kit ponit 10.

http://www.mca.gov.in/MCA21/dca/downloadeforms/eformTemplates/1008-Form23AC_help.zip

"If the SRN of form-23B not available or in case information by auditor to ROC in form-23B is not required to filed, you may enter Z9999999"

Thanks& regards
Ganesh babu k

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Sushant Mahajan

Sushant Mahajan (Querist)
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11 June 2013 Sir,

Thanks a tonne for the help but some experts had advised in some earlier discussions on caclubindia that it would be better to file it for first auditor also since, the form 23ac might get rejected without a valid SRN.

Ganeshbabu K

Ganeshbabu K (Expert)
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11 June 2013 Yes,.

We can file Form - 23B and can generate SRN and the same can be used for filing form 23AC..

it is recommended to do file but we can avoid it basing e-form help kit instruction 10.

Choose one amongst..
if there is no additional fee

better do file e-form 23B..

Sushant Mahajan

Sushant Mahajan (Querist)
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11 June 2013 The problem is that the company was incorporated in october,2012 an now the penalty is 9 times the original fees.

If the auditor is appointed on 30th March, 2013 through an EGM, the penalty would be reduced to a certain extent, what do you say?

Ganeshbabu K

Ganeshbabu K (Expert)
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11 June 2013 yes, if BOD fails to appoint first auditor company in EGM can appoint auditor.

But do check is it okay to appoint in EGM after 4 months as per companies act..and in this case whether directors become defaulters..i am not clear on this please do confirm..

Regarding additional fee:

Yes..4 times additional fee can be levied in such case

try with mca fee caluculator

http://www.mca.gov.in/DCAPortalWeb/dca/enquireFeeActionWithoutLogin.do?method=LLPNoneFormFeeSelection&sessioncheck=yes

Thanks & regards
Ganesh babu k

Sushant Mahajan

Sushant Mahajan (Querist)
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11 June 2013 Please tell me the penalty leveable on the directors....

Ganeshbabu K

Ganeshbabu K (Expert)
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11 June 2013 As i told you in my above reply

1) i am not aware on whether any penalty will be applicable if directors defaulted in appoint first auditor and so that i cannot comment on it.

so do consult some company secretary experts by PM to them..

You have two choices,

1)file e-form 23b with additional fee.
2)file e-form 23AC stating SRN of E-form 23B as "Z99999999" as it is also suggested in instruction kit provided by MCA21.

Thanks & regards
Ganesh babu k

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Sushant Mahajan

Sushant Mahajan (Querist)
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18 June 2013 Thank you Sir

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