Accounts of a pvt co not audited..effects on agm

yashsr (CA) (2285 Points)

20 January 2012  


Please give me answers on the given below scenario:

Regarding: A pvt ltd co with a share capital(both authorised and paid-up) of 1 lac, 2 directors who are also the only shareholders witha turn over of under Rs.2 lacs

Issue: The company's accounts were finalised but not audited before 30th Sept 2011 due to previous auditor's negligence. The AGM was called on 29th Sept 2011 but obviously the accounts were not adopted since they were not audited. (Or can non-audited accounts be adopted?)

The audit will now be completed by a new auditor in the month of January or February and obviously he will file forms like 23B, 23AC, 23ACA and 20B. However, what are the penal consequences of accounts not being audited at the AGM in September?

And what should the previous auditor have done to minimize the penalty? Obviously, not calling an AGM would have lead to more penal consequences hence calling the AGM and not adopting the accounts was better, correct?