In the recent case,the Andhra Pradesh High Court approved the payment of audit fees for a company in liquidation,citing a clean audit report by M/s. Padmanabha Rao and Company and denied the request for miscellaneous expenses due to lack of detailed evidence.
Samvidha Chit Funds Pvt Limited,the assessee, is a company in liquidation. The company, during the process of winding up its operations, had its half yearly accounts for the period from April 1,2022 to September 30,2022 audited by M/s. Padmanabha Rao and Company, Chartered Accountants.
The Official Liquidator, filed an application under Section 462 of the Companies Act, 1956, along with Rule 298 and Rule 306 of the Companies ( Court ) Rules, 1959 seeking the following reliefs:
The affidavit is filed by the Official Liquidator in support of the application for various reliefs related to the company in liquidation. It stated that the half-yearly accounts were audited by M/s. Padmanabha Rao and Company, as appointed by the court order dated July 27, 2023.The audit report submitted on December 8, 2023, contains no adverse comments or observations on the company’s statement of accounts in liquidation.
A single bench of Judge B S Bhanumathi stated that the accounts and audit fee are approved but denies miscellaneous expenses due to lack of evidence and no costs are awarded.
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