Appointment of new auditors in egm: possibilities

yashsr (CA) (2285 Points)

09 March 2012  

A Pvt Ltd Company held its AGM for Accounting Year 2009-10 on 15th Nov 2010(we will leave aside the fact that it should have been done upto 30th Sept 2010). Say a CA Firm M/s ABC was appointed in the AGM. Now, there was an EGM on held on 25th July 2011 and a new auditor was appointed say a CA Firm M/s XYZ. Consequently, the Company sent an intimation to the new auditor firm on 28th July 2011.

M/s XYZ then obtained a NOC from previous auditor on 11th Aug 2011 and completed the audit on 25th Sept 2011. AGM was called on 27th Sept 2011.

Now, my questions to the above situation are as follows:

1) Can an auditor be appointed in EGM as it has been done in the above case? Is there any problems in doing so?


2) If an auditor is removed prior to his term, prior approval of Central Govt is obtained. The term is usually until the conclusion of next AGM. But in this case, it was an EGM. So does the prior approval of CG has to be obtained? And does it matter if this hasn't been obtained but the Auditor has(like in the above case) given his NOC to the new auditor?


3) Appointment of auditor is usually done for a period and not for any financial year. So just wanted to confirm that in the above case the auditor appointed in July 2011 can audit for financial year ended 31st March 2011. In other words, want to confirm that despite the auditor wasn't in office for any day in the financial year for which the books are being audited but can still audit??