Appointment of Auditor

[Bimal Kumar Choraria]

A & co Chartered Accountants were appointed as Auditors for 5 years in AGM held on 30/09/15. They audited the accounts for FY 2015-16 and expressed their unwiilingess to be re-appointed .

What steps the Company and A & Co has to take. Is it to be treated as resignation. Please enlighten.

CA CS B.K.Choraria

[CA. Dhvani Shah]

Sir,

The auditors need to file their resignation in Form ADT-3 and give their resignation letter along with the ADT-3 challan to the company.

After receiving company may fill the casual vacancy by calling an EGM and file ADT-1 for the same..

Thanks
CA. Dhvani Shah

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[Anurag Sharma]

Dear Mr. Choraria,

Since the Auditors were appointed for 5 years on 30/09/2015, there is no question of their appointment or reappointment for the next 4 years.

In case they do not wish to be continue as Auditors, they have to send a resignation letter stating the reason. They would have to file ADT-3 with a month of their resignation.

This will  result in a casual vacancy caused by resignation of Auditors and will have to filled up through an AGM/EGM depending whether they resigned just after auditing the accounts and before the AGM or after the AGM. If appointed in AGM, the new Auditor can be appointed for 5 years. If appointed in EGM, the appointment would be for 1 year and at the next AGM, the new Auditor  can be appointed for 5 years. After AGM/EGM, ADT-1 should be filed by the Company within 15 days after which additional fees would apply.

Regards,

CA. Anurag Sharma

M: 9831581824

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Thanks & regards,

CA. Anurag Sharma

Kolkata
M: 9831581824

[Kalidas Ramaswami]

As the Auditors have been appointed by the shareholders for five years and since they are unwilling to continue mid stream during their tenure, in my view it tantamounts to resignation.The Auditors should form ADT3 in compliance with the requirements of Section 140(2) and the company should comply with the procedure laid down under Section 140(4) for appointing the new auditors.

Regards

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From: 'Bimal Kumar Choraria' via forum4ca <foru...@googlegroups.com>
Sent: Tuesday, October 25, 2016 10:48 AM
To: Divesh Goyal
Cc: Forum4ca
Subject: [CA RUNGTA PD] Appointment of Auditor

 

A & co Chartered Accountants were appointed as Auditors for 5 years in AGM held on 30/09/15. They audited the accounts for FY 2015-16 and expressed their unwiilingess to be re-appointed .

What steps the Company and A & Co has to take. Is it to be treated as resignation. Please enlighten.

CA CS B.K.Choraria

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[Peer Mehboob]

That unwillingness for reappointment will require notice of his unwillingness and  if he is giving notice of his unwillingness  to be reappointed for the next financial year, that notice will still be considered as resignation. Such auditor still has to file ADT-3 and in AGM wherein he had shown unwillingness, company will appoint another auditor for 5 years and file ADT-1.

If an auditor was appointed, he can not orally say his unwillingness to be appointed as auditor for next financial year, he has to give his unwillingness in writing and such written unwillingness will be his resignation.

[manojkumar agarwal]

 

W.r.t auditors resignation and appointment, following is the action point:-

 

1)      Get the resignation letter from the previous auditor

2)      Company will send in a letter asking for certificate of eligibility and consent letter from the new auditor

3)      New auditor shall take NOC from the previous auditor

4)      After that the new auditor will send his consent letter

5)      Thereafter, form ADT-3 will be filed for resignation of the auditor

6)      In the AGM, the appointed shall be made and form ADT 1 shall be filed for the new auditors

7)      Intimation letter shall be given to the new auditors confirming their appointment.

Regards,

 

CA Manoj Agarwal

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[Dipjyoti Majumdar]

Forum

Here I have a question.

If the members in AGM do not ratify the appointment ,say, in 2nd or 3rd year of the term of office, will this be treated as 'removal' of auditor.

Regards

CA Dipjyoti Majumdar
Kolkata

From: Peer Mehboob <peerme...@gmail.com>
Sent: Wed, 26 Oct 2016 13:49:52
To: foru...@googlegroups.com
Subject: Re: [CA RUNGTA PD] Appointment of Auditor
 

That unwillingness for reappointment will require notice of his unwillingness and  if he is giving notice of his unwillingness  to be reappointed for the next financial year, that notice will still be considered as resignation. Such auditor still has to file ADT-3 and in AGM wherein he had shown unwillingness, company will appoint another auditor for 5 years and file ADT-1.

 

If an auditor was appointed, he can not orally say his unwillingness to be appointed as auditor for next financial year, he has to give his unwillingness in writing and such written unwillingness will be his resignation.

On 25 October 2016 at 11:51, CA. Dhvani Shah <cadh...@gmail.com> wrote:

Sir,

The auditors need to file their resignation in Form ADT-3 and give their resignation letter along with the ADT-3 challan to the company.

After receiving company may fill the casual vacancy by calling an EGM and file ADT-1 for the same..

Thanks
CA. Dhvani Shah

On 25-Oct-2016 11:44 am, "'Bimal Kumar Choraria' via forum4ca" <foru...@googlegroups.com> wrote:

A & co Chartered Accountants were appointed as Auditors for 5 years in AGM held on 30/09/15. They audited the accounts for FY 2015-16 and expressed their unwiilingess to be re-appointed .

What steps the Company and A & Co has to take. Is it to be treated as resignation. Please enlighten.

 

CA CS B.K.Choraria

 

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[Madhu Sudan Sharma]

 

 

 

Forum

 

I have another question ,

 

Auditor was appointed till the conclusion of next general meeting  , and the company wants to change the auditor without giving any special notice to the existing auditor ,

 

What will happen to the ADT  1 filed  in that case  for new auditor  .

 

 

Regards

 

CA madhusudan sharma

[Anurag Sharma]

yes.

[Madhu Sudan Sharma]

Forum

 

I have another question ,

 

Auditor was appointed till the conclusion of next general meeting  , and the company wants to change the auditor without giving any special notice to the existing auditor ,

 

What will happen to the ADT  1 filed  in that case  for new auditor  .

 

 

Regards

 

CA madhusudan sharma

 

 

 

From: dip...@rediffmail.com [mailto:dip...@rediffmail.com]

Sent: 27 October 2016 07:02

[Madhu Sudan Sharma]

Forum

 

There is a case   where auditor was changed  at annual general meeting because he was appointed till the conclusion of next general meeting .......

 

 

1...But no resignation was taken from the previous auditor / no  notice  was served by the company regarding change before the annual general meeting

 

2  auditor did not attend the annual general meeting because no notice was served to him

 

3  New auditor did not take noc from the previous auditor .

 

4  ADT 1 was submitted for new auditor

 

 

So what should be our advice to the company  and the issue can be resolved

 

 

 

Regards

 

CA madhusudan sharma

 

From: Madhu Sudan Sharma [mailto:madhu...@vsnl.in]
Sent: 27 October 2016 17:19
To: 'foru...@googlegroups.com'
Subject: RE: [CA RUNGTA PD] Appointment of Auditor

 

Forum

 

I have another question ,

 

Auditor was appointed till the conclusion of next general meeting  , and the company wants to change the auditor without giving any special notice to the existing auditor ,

 

What will happen to the ADT  1 filed  in that case  for new auditor  .

 

 

Regards

 

CA madhusudan sharma

 

 

 

From: dip...@rediffmail.com [mailto:dip...@rediffmail.com]

Sent: 27 October 2016 07:02

[Kalidas Ramaswami]

My views on the above are as follows:

under Section 139(4) a special notice is required for a resolution at the AGM for appointing as Auditor a person other than the retiring auditor.The company should have obtained a special notoce from a member proposing the appointment of the new auditor and upon receipt of the same , it should have circulated the same to the members and the resolution for the appointment of the new Auditors should have stated that the appointment is being done pursuant to the receipt of the special notice.

a copy of the special notice ought to have been provided to the retiring auditors so that they would have had a right of representation at the Meeting.

As the above procedure is fundamental to the appointment of the new audiotors, the appointment made is irregular and not sustainable.

It is pertinent to note that Section 139(4) in the new Act corresponds to Section 225(1) of the 1956 Act.

It may be noted  the ICAI in its compendium of opinions Volume XIV ,1995 Edition page no.117 has opined in the context of Section 225 of the 1956 Act that where the company had appointed the new auditor at its AGM without complying with the requirements of Section 225 of the 1956 Act, namely without a special notice required for a resolution appointing as a auditor a person other than the retiring auditor, then the resolution passed for appointing the new auditor would be illegal and ineffective.

To my mind the form filed for the appointment of the new auditor is not valid in the absence of the required procedure.  The appointment is therefore nullified under law.

Regards,

Kalidas

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From: foru...@googlegroups.com <foru...@googlegroups.com> on behalf of Madhu Sudan Sharma <madhu...@vsnl.in>
Sent: Friday, November 4, 2016 6:05 PM

[sanjay kumar dey]

Dear all,

Please note that the without getting NOC from the existing auditor the new auditor cannot give the consent as new auditor. With the consent of the new auditor ADT 1 can be filed.

Regards
CA Sanjay Dey

On Mon, 31 Oct 2016 11:33:03 +0530 "Madhu Sudan Sharma" wrote
> Forum I have another question ,Auditor was appointed till the conclusion of next general meeting  , and the company wants to change the auditor without giving any special notice to the existing auditor , What will happen to the ADT  1 filed  in that case  for new auditor  .Regards CA madhusudan sharma From: dip...@rediffmail.com [mailto:dip...@rediffmail.com]

[kandra...@yahoo.com]

exterior dusmanos (cu viscol albastru si lupi care urla) simbolizeaza lumea contempora