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Home Case Index All Cases Companies Law Companies Law + Tri Companies Law - 2018 (3) TMI Tri This

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2018 (3) TMI 1609 - Tri - Companies Law


Issues:
1. Allegations of discrepancies in audited accounts and shareholding entries.

Analysis:
The case involves a dispute regarding audited accounts and shareholding entries of a company. The petitioner's counsel argued that the auditors appointed by the Tribunal have reflected outdated shareholding positions in the audited reports despite transfer of shares and dismissal of related petitions. The auditors failed to rectify discrepancies and prepared the accounts without essential supporting documents, as highlighted by deficiencies in the audit report.

Furthermore, the auditors were criticized for not verifying bank balances, ownership documents, loan details, and lacking proper records of fixed assets, inventory, and transactions. The auditors' failure to maintain essential registers and incomplete secretarial books raised concerns about the accuracy and reliability of the audited accounts. The petitioner contended that due to these discrepancies and missing records, the audited accounts should not have been prepared.

In response, the respondent's counsels argued that the entries in question were related to investments, not shareholding, and attempted to justify the auditors' actions. However, the finality of the Kolkata Bench's order and the pending petition for rectification of the member register indicated unresolved issues regarding shareholding. The Tribunal, prima facie, agreed with the petitioner's stance that the auditors had mixed up entries and relied on outdated data for the audited report, leading to a stay on the adoption of the accounts at the Annual General Meeting (AGM) until further hearings.

The Tribunal clarified that the stay order would not affect the Directors Identification Number (DIN) status of the company's directors and the respondent company. Resolutions passed in other matters during the AGM would be subject to the final decision on the current application. The case was listed for further arguments on a specified date to address the discrepancies in the audited accounts effectively.

 

 

 

 

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