| The sub-divisional judicial magistrate of Nawarangpur in Orissa has issued process to Rajendra Singh Lodha, his two sons, Lodha & Co and Parshotam Lal Vadera on the basis of a complaint filed by a shareholder of Mangalam Timber Products, a BK Birla group company, and asked them to appear on August 17.
|
| |
| The complaint was filed by Satyanarayan Sadangi on the ground that although Lodha & Co comprises three partners namely, Rajendra Singh Lodha, Aditya Lodha and Harsh Vardhan Lodha, in their disclosure to the Institute of Chartered Accountants of India, it was said that the firm comprised 14 partners including the said Parshotam Vadera.
|
| |
| P K Khaitan, lawyer of Mangalam Timber, said, according to income-tax returns filed for 2002-03 and the partnership deed dated April 1, 2002, Lodha & Co had only three partners.
|
| |
| The Lodha side said the matter was being examined by the Institute of Chartered Accountants of India (ICAI) on the basis of a similar complaint filed in 2005, and added that the latest legal action sought to create confusion about partners who received a share of profits and partners who received fixed remuneration as outlined in form no.18 of ICAI.
|
| |
| According to Khaitan, the appointment of chartered accountants as statutory auditors in public limited companies was subject to the provision contained in Section 224 (1B) and Section 224 (1C) of the Companies Act, 1956.
|
| |
| Khaitan claimed that Lodha & Co had conducted the statutory audit of more than 150 companies in the financial year 2002-03, including that of Mangalam Timber Products, which was in gross violation of the Companies Act. |
| |
|
| |
Content Guide
