MCA has filed the petition in Mumbai bench of NCLT under section 140(5) of Companies Act. NCLT Mumbai today heard the petition of the MCA and directed for issuing notices to the auditor and directors of the company.
Continuing its actions against auditors who fail to perform their duty, Ministry of Corporate Affairs (MCA) has sought disqualification and 5 year ban on statutory auditor of a Pune-based Chit fund company Netwealth Agrotech India. MCA has filed the petition in Mumbai bench of NCLT under section 140(5) of Companies Act. NCLT Mumbai today heard the petition of the MCA and directed for issuing notices to the auditor and directors of the company.
In NCLT, MCA argued that the auditor has signed the balance sheets for the last 5 years without verifying the books of accounts and records of the company. MCA further informed to the NCLT bench that the statutory auditor has also admitted that his digital signature was issued by his assistant. As per MCA the “Netwealth Agrotech India was not maintaining any books of accounts, vouchers, bills or statutory registers etc nor any meetings were held by the company for finalizing results and audits, the above fact was admitted by all the directors of company”. Despite this “the statutory auditor Dattatray Maruti Khune conducted the audit and prepared two sets of balance sheets”.
MCA’s Director Prosecution Sanjay Shourie alleged that statutory auditor Dattatray Maruti Khune is involved in fraud along with the directors of the company and has filed two sets of Balance Sheets for the Financial years 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 which are false and misleading information and has no previous year’s figures nor any documentary evidences.
Also, the said balance sheets are filed on the MCA portal only in the month of April, 2018. MCA claimed the statutory auditor, to cover-up these issue has prepared and filed 2nd set of Balance Sheet for the FY 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17 were prepared only in the month of November, 2018. MCA argued that auditor failed to exercise reasonable care and compliances of various auditing and assurance standards issued by the ICAI.
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