In a recent judgement, the Andhra Pradesh High Court allows applications for half-yearly accounts in liquidation under Section 462 of the Companies Act, citing the absence of adverse comments in the audit report.
Vijetha Agro Farms Ltd, the applicant filed the Company Application under Section 462 of the Companies Act, 1956 read with. Rules 298 and Rule 306 of the Companies (Court) Rules, 1959. The applicant prayed to take the half-yearly accounts of the subject company (in liquidation) for the period from 01.04.2022 to 30.09.2022, along with the Auditor Report submitted by M/s. KBS & Associates, Chartered Accountants on record and permission may be accorded to pay the audit fee of Rs.500 Plus GST.
The applicant, in the affidavit filed in support of the application, stated that the half-yearly accounts for the period from 01-04-2022 to 30-09-2022 had been duly audited by the auditor. M/s. KBS & Associates, Chartered Accountants, appointed pursuant to the order of this Court, dated 27.07.2023, in C.A.No.7 of 2023. It was further stated that the auditor had submitted the audit report, dated 02.12.2023, in respect of the above company (in liquidation) on 05.12.2023.
Justice B S Bhanumathi allowed the company application and directed to take the half-yearly accounts of the subject company (in liquidation) for the period from 01-04-2022 to 30-09-2022 along with Auditor Report dated 06-12-2023 submitted on 08-12-2023 by M/s. KBS & Associates, Chartered Accountants, on record and permission may be accorded to make the payment of audit fee of Rs.500 plus GST.
Further held that “cost of this application and any miscellaneous expenses may be permitted to be met out by the Official Liquidator from the available funds of the company (in liquidation) or Estate and Establishment Fund Account if no fund is available in the company’s account.
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