Auditor signing date and UDIN compliance

IS IT MANDATORY TO SIGN FINANCIALS BY AUDITORS BEFORE 06.09.2019?

There is confusion in mind of professionals and corporate in respect of date of signing of financial statement of Companies for F.y. ended 31.03.2019. Question: Whether auditor can sign the auditor report and financial statement after 06.09.2019?

I. Provision of Holding of AGM:

As per provisions of Section 101, A general meeting of a company may be called by giving not less than clear 21 days notice either in writing or through electronic mode.

II. Shorter Notice:
A General Meeting May Be Called After Giving Shorter Notice Than That specified in this sub-section if consent, in writing or by electronic mode, is given by not less than 95% of the members entitled to vote thereat;

Note: If a Company received consent of 95% of the member entitled to vote then they can hold Board Meeting even on 29.09.2019 and call AGM on 31.09.2019.
III. Date of Signing of Balance Sheet:

As per guidelines of ICAI Auditors have to generate UDIN at the time of signing of Auditor Report and Financial Statement.

Therefore,
· If auditor Sign Financial statement on or before 06.09.2019 then on same date Company can issue clear 21 days notice to shareholders of Company;
· However, if auditor signs financial statement after 06.09.2019 then company can hold AGM only on short notice.

Note: If company hold AGM on shorter notice then consent of Members as mentioned above is mandatory.

Therefore, one can opine that as per Section 101, 129 of Companies act, 2013 read with ICAI guidelines of UDIN;
A Statutory auditor can sign the auditor report and financial statement even after 06.09.2019 and up to 29.09.2019 without any non compliance of law and simultaneously company can hold AGM by consent of shareholders of Company.

CS Divyesh Goyal is the author of above article. We have reproduce here for the benefit of members at large.

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