Compounding reqd for non-compliance of accounting standard

SANTOSH SHAH (Company Secretary) (749 Points)

20 March 2012

Dear Members

Please advice , if there is any non-compliance of Accounting Standard reference to Section 211 (3C), and the same is disclosed in Audit Report , do the company need to go for Compounding under 621A ??

Section 211 states that any deviation from Accounting Standard needs to be disclosed, and the same is taken care in Audit Report,

Its a Private Limited Company and while proposing for name change ROC Authorities have raised objection on this point and have asked for Compounding.

Is there any exit route apart from Compounding. ??

Please advice.

regards

Santosh Shah

Reply Follow

2 Replies

N Giridar (ACA, CS Final Student) (151 Points)
Replied 24 March 2012

The offence can only be compounded by application to Regional Director. No other way out.

SANTOSH SHAH (Company Secretary) (749 Points)
Replied 13 April 2012

Originally posted by : SANTOSH SHAH

Dear Members

Please advice , if there is any non-compliance of Accounting Standard reference to Section 211 (3C), and the same is disclosed in Audit Report , do the company need to go for Compounding under 621A ??

Section 211 states that any deviation from Accounting Standard needs to be disclosed, and the same is taken care in Audit Report,

Its a Private Limited Company and while proposing for name change ROC Authorities have raised objection on this point and have asked for Compounding.

Is there any exit route apart from Compounding. ??

If compounding is done, that should be backed up by violation of specific section, where as we have not violated any section.

Members, Please advice.

regards

Santosh Shah