I have earlier written about why you should be wary of your doctor and lawyer.
https://mouthshut.com/diary/hadcnotum/Safeguards-against-Doctors-and-Lawyers
Now, let me share my experiences about the Chartered Accountant and Company Secretary.
Our family managed a small private limited company that was doing no business, yet due to obligations in law, we were forced to go through the annual accounting, ROC filing etc processes. We therefore decided to voluntarily "wind up" the company u/S.560 Companies Act, sometime in Dec. 2007, and completed all the accounts and filings as per the advice of our Auditor and CS.
Six months passed, when we queried, the CS said it usually takes a long time, dont worry. Eight months passed, again the CS said it is very routine. We then decided to surrender our PAN card. One year and 3 months later, we got an email from ROC saying that there was a discrepancy in the filing. When we tried to check through the MCA website, it said access denied. Their helpline advised us to visit the ROC office. When we went there, the very helpful lady advised that the Indemnity Bond which we had filed was of Rs100 whereas it was required to be of Rs 200. [Our CS who ought to have known, had told us to execute only a Rs100 Bond]. Anyway she told us how to rectify it and we did so. She also told us that the message had gone to the CS who had done the filing, more than 8 months previously, but obviously he could not be bothered to let us know!
Barely 2 weeks after resubmitting the bond, we got another e mail from MCA advising that our application is rejected. Again, access was denied to us on the MCA website, so we returned to ROC, where the helpful lady told us to see the AROC. This gentleman, also very helpful told us that our application was rejected because the Balance Sheet was not a Nil B/S as required for winding up. Our Chartered Accountant who ought to have known, as well as the CS, had not bothered to advise us correctly. The AROC felt pity for us, obviously realising that the mistake was due to these so called professionals, and told us to resubmit the entire filings as soon as possible, which he assured he would pass.
Almost 2 years was wasted just because the so called professional Auditor and Company Secretary obviously did not know their job. Neither of them was apologetic when we pointed out their mistakes, instead they blamed the AROC for sticking to rules!
Now we had the added burden of filing one more years accounts. Because of compulsory e filing for Companies, we had to chase the CA and CS again for their signatures. The CS assured he would file the new submissions and he took our digital keys for this, and after a few weeks he gave us the challan.
We took the challan back to the AROC, he told us to get it marked as urgent from the ROC himself. Fortunately we managed this too. When the AROC checked on his computer he told us that the new Balance Sheet is not attached to the 560 application. We were horrified as it had been given on CD to our CS who had obviously not bothered to attach it. As we had a print copy with us, we showed it to the AROC who again feeling pity for us, suggested that we immediately scan it and give it to him on pen drive. As our office was close by, we managed this too within one hour, which the AROC then uploaded and passed.
When we asked our CS about this lapse, he was not at all apologetic. This too after he had charged a handsome fee and we had done all the running around.
This made me recall another incident where our Society paid much higher income tax than was required merely because of computation mistake by the CA cum accountant. Again, there was no apology.
The moral of the story is, do not trust any so called professional person even for the most routine business. Do not take for granted that they know their business. Always check the legal requirements for whatever you are doing, and make sure that the professionals you engage comply correctly and completely in all aspects.
