Company Registration
Company Registration

Producer Company Audit Check List

Producer Company

Producer Company shall carry out an internal audit at such interval specified in the article by a Chartered accountant. In this article, we will discuss the audit requirement for the producer company.

What is Producer Company?

Producer Company means a body corporate which have objects and activities specified in Section 581B and who has registered as producer Companies under this Act.

The conditions need to be fulfilled by Producer condition:

  • The owner shall give to the person who is engaged in an activity connected or related to primary production.
  • The Members need to be a primary producer.
  • Producer Companies can be termed as “Companies with Limited Liability”. The liability of the members will be limited to a number of unpaid shares.
  • Name of the company shall end with the words “Producer Company Limited”
  • The producer company can be treated as Private Limited Company for the purpose of application of law and administration of the company.
  • The limit of the maximum number of members is not applicable to these Companies.

Audit and Auditors of the Producer Company:

All Producer Companies shall place annual account along with auditors report before the annual general meeting.

Producer Company shall appoint Auditor at its Annual General Meeting.

Producer Company shall conduct an internal audit of its accountant the interval specified in articles of the Company. The internal audit shall be carried out by the Chartered accountant defined in clause (b) of subsection 2 of Section 2 the Institute of Chartered Accountants Act 1949.

Duties of Auditor:

  • Auditor shall without prejudice the provisions of Section 227 the following matter shall report to Auditors report;
  • Any due debt and bad debt of the Company.
  • Verification of Cash Balance and securities
  • Details of assets and liabilities
  • Any transaction contrary to the provisions of the Act
  • The details of loan given to directors by the producer company.
  • The details of donations and subscriptions are given by the producer company
  • Any other matters as may be considered necessary by the Auditor.

Every Producer Companies shall attach independent auditor report by a chartered accountant. Any qualification of the auditor shall be duly mentioned in the report.

Preparation of Annual Return of Producer company :

Every producer Companies shall prepare annual return which shall contain the following:

Audited balance sheet and profit and loss accounts

Director’s Report

Independent Auditor Report

Certificate from Auditor.

Filing of annual Return of producer company:

Every Producer Companies shall file Annual General Meeting proceeding along with Director’s Report, the audited Balance sheet, and the profit and loss account along with Auditors report with Registrar within sixty (60) days of the date of Annual General Meeting of the producer Company.

The above shall be filed with an annual return along with the required fees.

Penalties:

Any below-mentioned default by Directors of the Producer Company amount to the penalty:

  • handing over the custody of the books of account
  • fails to convene annual general meetings or other general meetings

The company may be punishable by the fine Rupee 1 Lakh. If the default is in the nature of continuance than the everyday penalty of rupees 10,000 is levied till the default continues.

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

Business Plan Consultant

Trending Posted

Our Awards Our Awards

Top 100 Companies in Asia - Red Herring
Top 100 Companies in Asia - Red Herring

Red Herring Top 100 Asia enlists outstanding entrepreneurs and promising companies. It selects the award winners from approximately 2000 privately financed companies each year in the Asia. Since 1996, Red Herring has kept tabs on these up-and-comers. Red Herring editors were among the first to recognize that companies such as Google, Facebook, Kakao, Alibaba, Twitter, Rakuten, Salesforce.com, Xiaomi and YouTube would change the way we live and work.

Top 25 in India - Consultants Review

Researchers have found out that organization using new technologies in their accounting and tax have better productivity as compared to those using the traditional methods. Complying with the recent technological trends in the accounting industry, Enterslice was formed to focus on the emerging start up companies and bring innovation in their traditional Chartered Accountants & Legal profession services, disrupt traditional Chartered Accountants practice mechanism & Lawyers.

Top 25 in India - Consultants Review

In the news