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CS Executive · Company Law and Practice · Accounts and Auditors

Veda Textiles Ltd keeps some of its vouchers at a godown in Surat, away from its registered office in Mumbai. The auditor wants to inspect them. Under Section 143(1), what is the auditor's position?

The auditor can inspect the books and vouchers at all times wherever they are kept. Section 143(1) gives the right of access whether the records are at the registered office or at any other place, so the Surat godown is covered.

  1. AHe may access the books and vouchers at all times, wherever they are keptCorrect
  2. BHe may access them only at the registered office
  3. CHe may access them only with prior Board permission
  4. DHe may access them only during the audit period

Explanation

Section 143(1) gives every auditor a right of access at all times to the books of account and vouchers, whether kept at the registered office or at any other place. The location of the godown therefore does not limit the right. Restricting access to the registered office is wrong.

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