Non filing of form 23b by re-appointed auditor

Appointment of auditors is from one AGM to the next AGM and not for a financial year.  You can take resignation letter from the existing auditors and the vacancy can be filled by the company in general meeting u/s 224(6).

Dear Sheetal,

1. Form 23B is statutory form, and by filing it fixes the responsibility of any wrong or false statement which he signs.

2. Sec.224(1A) made it mandatory to file form 23B by using the word "shall" 

3. Hence you have to follow the following procedure:

a. Ask the company to file form 23B.

b. Take resignation from the existing auditor 

c. And then appoint auditor under sec.224(6) and proviso to sec224(6)(a) says where casual vacancy is caused by the resignation of an auditor, the vacancy shall only be filled by the company in general meeting.

d. Otherwise you may also advise the company to file eform 23B by not accepting (click no to point 7 in the form) the appointment  by the auditor.