TaxTMI 
TaxTMI 
2019 (1) TMI 338
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.... and his proprietorship firm shall not be eligible to be appointed as an auditor of any company for a period of 5 years from the date of passing of order, it terms of second proviso to section 140 (5) of the Companies Act, 2013, read with Explanation I thereto. 2. Facts of the case that the allegation raised in the complaints by Mr. Jagdip H Vaishhav were: (i) Shares are not listed on Pune Stock Exchange. (ii) Siphoning of investors' money. (iii) Company has not issued financial statement after 1995 (iv) Company changes registered office frequently (v) No company representative attends calls given by ROC Mumbai (vi) Investors are complaining about serious irregularities but do not get any response from Regulators, Investigating Agencies. 3. The relevant extract of the statement under oath from the Inspection Report dated 10.05.2018 and Supplementary Inspection Report dated 13.08.2018, recorded by the Respondent No 1 under Section 207 (3)(b) of the Companies Act, 2013, following statement was recorded:- Question No- 9: - Where is the factory/manufacturing facility of the Company is Located? Answer No 9:- I....
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....ed as statutory auditor of the Company? Answer No 22:- for the Financial year 2014-15. Question No- 23:- How long you are a statutory auditor of the company? Answer No 23:- I was appointed as the statutory auditor, for the financial year 2014-15 & 2015-16. Question No- 24:- Do you have the copy of the consent letter given to the company for appointment as Statutory auditor of the Company and the copy of appointment letter issued by the company? Answer No 24:- consent letter given to the company is annexed to my letter dated 12.03.2014. Question No- 25:- Whether an Internal Audit System was in place? Answer No 25:- No. Question No- 26:- Where are Books, of Accounts, records, papers etc., are kept? Answer No 26:- The records are with Shri Arvind Goyal, Director of the Company, I am not aware where he is keeping them. Question No- 27:- Have you called for any Books of Accounts and Statutory Registers from the Company? Answer No 27:- I have not called for any Books of Accounts and Statutory Registers from the Company. Question No- 28:- Who has submitted and coordinated the audit ....
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....rein he has stated that he has not Audited Books of Account of the company however he has signed Auditor Report of the company for the relevant period. 7. Ld. Roc, has further emphasized on the Statuary Provision under section 141(3)(b) which provides that following person shall not be eligible for appointment as an Auditor of the company namely. (d) a person who, or his relative or partner- (i) is holding any security of or interest in the company or its subsidiary, or of its holding or associate company or a subsidiary of such holding company: Provided that the relative may hold security or interest in the company of face value not exceeding one thousand rupees or such sum as may be prescribed; 9. It is further contended that R1 acted as Statuary Auditor and issued following Auditors Report that is reproduced below:- To, The Members of ZEN Shaving Limited Report on the Standalone Financial Statements We have audited the accompanying Standalone Financial Statement Zen Shaving Limited (the "Company") which comprises the Balance Sheet as at March 31, 2015, the statement of Profit Loss for the year then ended and a summary o....
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.... failed to respond to the notices issued by the Inspecting Officer. (d) The R2 Company came out with Initial Public Officer (IPO) and issued prospectus to raised public funds on 10.10.1996. There after the team of directors has completely changed. The Initial Promoters of the Company are not involved in the affairs of the Company subsequent to 29.09.2005. the R2 company is not listed on any stock exchange despite the assurances given in the Prospectus dated 10.10.1996. (e) The date of retirement of Shri Ketan A Gaglani, Managing Director who was involved in day to day affairs of the Respondent No 2 company since 18.12.19959 the company was incorporated on 07.03.1995) has retired on 29.09.2005. (f) The present directors, who took over the affairs of the R2 Company since 04.10.2014, are not traceable. (g) The present directors of the R2 Company are apparently dummy/shadow directors of Mr. Arvind Goyak Babulal, the Chairman of the R2 Company, who dodged his responsibilities to assist in the inspection. (h) All the commonly known attributes of a shell company are existing in the case of R2 Company under inspection. (i) Mr. Arvind Go....