Urgent Query - Casual Vacancy in office of Auditor - Due to Death

[Dimple Chawla]

Respected All, 

Can anyone please tell me what procedure needs to be followed in case of vacancy caused in the office of Auditor due to death. 

Please reply at the earliest. 

Regards,

Dimple Chawla

[Dimple Chawla]

Respected All, 

Can anyone please tell me what procedure needs to be followed in case of vacancy caused in the office of Auditor due to death. 

Please reply at the earliest. Its urgent

Regards,

Dimple Chawla

[Durga Bansal]

Dear Dimple,

The appointment of Auditor in case of casual vacancy is very simple.

In your case, the vacancy is caused in the office of Auditor due to death. In this case the vacancy will be filled in Board of Directors Meeting. Simply call a Board Meeting and talk to an Auditor/ firm of Auditors to get appointed for the F.Y. 2015-16 (if Balance Sheet is not signed by the Previous Auditor yet), Get his eligibility & consent letter under section 141 on or before the Date of Board Meeting, Call the Board Meeting and Pass a Resolution for Appointment of Auditor, after passing the resolution issue the appointment letter to the Auditor, fill form ADT-1 (No need to file form ADT-3 or MGT-14) and file the same with ROC within a period of 15 days from the date of such BOARD MEETING.

Hope it is cleared to you.

Thanks & Regards

CS DURGA BANSAL

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D*Bansal*

[Dimple Chawla]

Dear Ma'am,

Thank You for your reply. But in our case it was an Auditor's Firm and the Balance Sheet is not signed yet. Can I get the Balance Sheet signed from some other partner of the firm.

And simply for next year while drafting this year's AGM Notice should I write the name of some other firm??

Regards,

Dimple Chawla

[Durga Bansal]

If the auditor is a firm. Then there is no need to appoint another auditor for F.Y. 2015-16, as any of the partner who is capable of signing the Balance Sheet may sign the same. 

Further, if you wish the same firm to continue its statutory auditor for the next years too then there is no need to appoint a fresh if the firm has already been appointed in the previous year for a period of 5 years.

[Dimple Chawla]

No Ma'am, The appointment was for only 1 year and we wish to change the Auditor Firm.

So thats why I am confirming from you that should I only change the Auditor Firm this year by mentioning in the Notice of AGM.

Or I need to inform the previous Auditor also??

Regards,

Dimple Chawla

[Durga Bansal]

Dear Dimple,

The solution for your problem is get signed the Balance Sheet for F.Y. 2015-16 from any partner of the existing Auditors firm. Next,  the Board of Directors of the Company can't remove an auditor in their Meeting. If the Company is willing to appoint another auditor other than the retiring Auditor then either the Company has to go for the cumbersome procedure for removal of auditor in which the approval of Central Govt. through REGIONAL DIRECTOR is necessary, the whole process is time consuming and also costs a lot, so, most of the Companies request the Existing Auditor to give resignation letter after signing of the Current Balance Sheet but before the date of AGM. In this case, the Company can appoint another auditor in its AGM citing the reason of "Auditors unwillingness to get another term as statutory auditors of the Company". Ordinary resolution will be passed in AGM for appointment of another auditor.

[Jagan Mohan Gobburi]

In Case a CA Firm was appointed as Statutory Auditors and 1 Auditor expired, it does not come under Casual Vacancy caused by Death of a Partner.

Further this is to bring to your kind notice that ADT-3 should also be filed by attaching a resignation

I had a Similar Case recently and on discussing with Senior CS's and ROC personnel, We conducted a BM, EGM and appointed New Auditors

(Filed ADT-1 and ADT-3 respectively)

Thanks & Regards

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[Dimple Chawla]

Dear Sir,

In our case Auditor Firm was appointed only for 1 year. So, I should get the Financial Statements for the year 2015-16 from some other Auditor.

Further, I donot wish to keep the same Auditors Firm. We want to same. 

According to me when the appointment was only for 1 year why should I get the resignation done??

I should only mention in this year's Notice of AGM about the new Auditors being appointed.

Then I would fill the Form ADT 1

Is it correct?? 

Regards,

Dimple Chawla

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