Removal of auditors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 September 2013 Please suggest:

Due to some problem between the Company and Auditor, he is not signing the Balance sheet for the FY 2012-13 or not giving his resignation.Now there is last date 30th September, 2013 for holding the AGM and for filing Income tax Return also.Now what is the solution for this.

Please also clarify to remove the Auditors in the AGM for the next FY, whether intimation is required to be given to the Auditor.It is a Private Limited Company.

Ajay Mishra

Ajay Mishra (Expert)
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28 September 2013 Hi

The Board of directors of a company has no powers to remove an auditor appointed by the company in general meeting. Accordingly, the said auditor can be removed only by the company in general meeting after receiving the previous approval of the Central Government. Powers has been delegated to the Regional Director vide Notification No. GSR 288(E), dated 31-5-1991.

An auditor can be removed before expiry of his term only by the company in general meeting after obtaining the previous approval of the Central Government (Power has been delegated to the Regional
Director).

The company shall take further action as prescribed in section 225 and make an application to the
concerned Regional Director in e-Form 24A as prescribed by the Notification No. GSR 56(E) dated 10th Feb., 2006 for his approval.

Querist : Anonymous

Querist : Anonymous (Querist)

29 September 2013 Thanks ....

I know the procedure.but in this case there is only two days time for filing the return and for convening the AGM.I am asking for any alternate so that Return can be filed and AGM can be held.

Whether we can appoint another Auditors to sign the Balance Sheet for filing purpose then after we will go with Central Government for removal of previous Auditors by giving explanations for appointment of another Auditor.

Ajay Mishra

Ajay Mishra (Expert)
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29 September 2013 If you want to appoint an other auditor to appoint in AGM then firstly you take resignation from your old auditor.

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Ankur Garg

Ankur Garg (Expert)
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29 September 2013 considering the last date, you have no other choice but to manage the same with existing auditor.

You can also file a complaint against him in ICAI and ROC. He cannot do this to the company.

Ankur Agrawal

Ankur Agrawal (Expert)
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29 September 2013 You need take appropriate step now so get solution now.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 October 2013 As regards ROC is concerned you can apply for extension after you procure the resignation from the auditor. In case of income Tax you get the tax calculated and pay it. You can file the return after you procure the new auditors report but whatever provisions are there you have to face it and at the time of assessment if place the difficulties faced by you the problem can be sorted out.