A Pvt. Ltd. company has not filed its accounts with ROC for non payment of requisite fees. Thus its accounts are not on website of MCA. The banks have enhanced guarantees limit on the basis of non filed documents by obtaining copies of audited accounts from the company. I would like to know whether the guarantees given by the banks to the company are binding on the Auditors and any civil/criminal liabilities arises on the auditors for revocation of guarantees on failure of the company to meet its liabilities? The accounts are not on public domain and any action by the banks are proper against the auditors?
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It is not clear how auditors could be responsible for the guarantee issued by the Bank. Co. must have given counter-guarantee to the Bank. In case of default Bank has every right to recover money from the company. It has no connection with filing or non-filing of accounts with ROC. Non-filing accounts with ROC is an offence under Companies Act.
Tthe company shall be treatd as defaulter and not the auditor as auditor has done his part by giving the report alongwith accounts and it is now the company which has not filed its accounts and hence in case of default of guarantee payment to the bank by the company, in no case auditor shall be responsible.
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