AGM delay – Compounding requirement where UDIN generated by another CA

[Sanney Sharma]

Dear Professionals,

Seeking your expert guidance on a practical compliance issue involving AGM delay and UDIN constraints.

In our case, the statutory auditor has not been changed; however, due to practical constraints, the UDIN for the audited financial statements was generated by another CA, without any revision to the financial statements.

We have been advised that revised balance sheets cannot be signed, and only the original audited balance sheet can be signed. Further, as per ICAI norms, UDIN can be generated only for documents dated within the previous 60 days.

Additionally, under Section 96 of the Companies Act, 2013, the AGM should have been held on or before 30th September, at which the audited financial statements ought to have been approved. Since the AGM could not be held within the prescribed timeline, we have been informed that compounding of offence is required under secretarial practice.

In this context, I request your views on the following:

1. Whether compounding is mandatory solely due to delay in holding AGM, irrespective of the auditor / UDIN situation.

2. Whether generation of UDIN by another CA (without change of statutory auditor) has any additional compliance or legal implication.

3. Any practical experience or precedents on handling such matters with the ROC / Regional Director.

Your guidance and practical insights will be highly appreciated.