ROC Vijayawada penalized auditor for failing to qualify or comments or give opinion in the audit report
Recently, an statutory Auditor penalized for failing to qualify or comments or give opinion in the audit report. Even though the company did not charge depreciation on its machinery and building, thereby violation of Sec 143(3) of the Companies Act, 2013.
In the case of M/s. Sapphire Blossom Rocks Private Limited, the Statutory Auditor penalized for failing to qualify or comments or give opinion on the audit report. Even though the company did not charge depreciation on its machinery and building, thereby violation of Sec 143(3) of the Companies Act, 2013.
During the inquiry, it was observed that, company have machinery and building but did not charge depreciation on these assets. The statutory auditor’s report for FY ended 31‑03‑2021 did not include any qualification or remark regarding the non-charging of depreciation by company.
As Per Section 143(3)(f) and (h) of the Companies Act, 2013, Auditor is required to state observations/comments on matters that may adversely affect the functioning of the company, and report any qualifications, reservations, or adverse remarks relating to the maintenance of accounts and other connected matters.
ROC Vijayawada has imposed a penalty of ₹10,000 on Mr. Sudarsanam Naidu Pemmasani, partner of statutory audit firm M/s PMR Associates.
The order copy is attached herewith for reference.
The copy of the order is as under:
