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Signing of Auditors Report of Company

Section 145 of the Companies Act 2013 says: 

The person appointed as an auditor of the company shall sign the auditor’s report or sign or certify any other document of the company in accordance with the provisions of sub-section (2) of section 141.

It also says the qualifications, observations or comments on financial transactions or matters, which have any adverse effect on the functioning of the company mentioned in the auditor’s report shall be read before the company in general meeting and shall be open to inspection by any member of the company.


Date of signing Auditors Report: Only after the approval of Final Accounts with Directors Report by the Board of Directors and sign thereto, the Auditors sign the Auditors Report. As to the General practice, both the Annual Accounts and the Auditors report are signed by the Auditors and Directors on the same day.

Notes:
Earlier similar provisions were prescribed under Section 229 of the Companies Act 1956.

1 comment:

  1. Sir, in many cases, small private companies do not file their annual accounts and annual returns in time and the same are filed even after three years' delay. However, in the Annual Accounts and Returns it is shown that the Directors have prepared their report in time (i.e. on or before 30th sept of particular year) and the auditors also sign the same in back date and the same are placed before the members at AGM held in time, though it is not the case in reality. Is it legal? Can the AGM be said to have been held in/on time in such cases?

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