THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA COMPANY APPLICATION NO.10 OF 2025 IN C.P.No.34 OF 1985 ORDER: 1. This company application is filed under Sections 457 & 462 of the Companies Act, 1956 read with Rules 298, 300, 302, 304, 306 & 309 and Rule 9 of the Companies (Court) Rules, 1959, claiming the following reliefs: i. Take the affidavit and facts stated on record. ii. Approve the allocation of 35 companies (in liqn) as per Annexure-B to 3 Chartered Accountants viz., 1) M/s. Murthy & Kanth, Chartered Accountant, Hyderabad 2) M/s. Padmanabha Rao & Co., Chartered Accountant, Hyderabad 3) M/s. K.B.S. Associates, Chartered Accountant, Hyderabad proportionately (i.e., 12 companies each to two auditors at Sl.No.1 & Sl.No.2 and 11 companies to one auditor at Sl.No.3) or pass such other order as this Hon’ble Court may deem fit and proper for the audit of Half Yearly Accounts for the period from 01.04.2023 to 30.09.2023. NV,J C.A.No.10 of 2025 2 iii. Permit the Official Liquidator to file the Audit Report of Half Yearly accounts for the period from 01.04.2023 to 30.09.2023 in respect of 35 Companies in liquidation before the Hon’ble Court within 60 days from the date of receipt of the same from the Chartered Accountants, so allotted. iv. Dispense with the filing of half yearly accounts and audit thereof in respect of 11 companies as there is no transaction of “receipts and payments” for the period from 01.04.2023 to 30.09.2023 (as stated at Para No.7) v. Permit the Official Liquidator to pay the fees to the said Chartered Accountants in accordance with the order of this Hon’ble Court dated 08.04.2022 made in C.A.No.8/2022 in RCC No.2/1995. vi. Permit the Official Liquidator payment of fee to the said Auditors out of the funds of the respective Companies in liquidation and in case of Companies where sufficient funds are not available, it may be permitted to pay from the funds of the Estate and Establishment Fund Account of the Official Liqudiator, subject to reimbursement of the same from the funds of such Companies upon realization of assets of those Companies, if any. NV,J C.A.No.10 of 2025 3 vii. Order that the cost of this application and miscellaneous cost do come out of the funds of the respective Companies in liquidation 2. Learned counsel for the Official Liquidator has annexed copy of the order passed by this Court appointing auditors to audit the half yearly accounts of various companies in liquidation including the modalities for fees to be paid with respect to companies under audit by categorizing the companies with respect to the number of transactions in each company. He also further submits that the order dated 08.04.2022 in C.A.No.8 of 2022 in RCC No.2 of 1995 annexed to the application squarely covers the subject matter and requested that the similar order may be passed in this case. 3. In view of the above facts and circumstances and similar order being passed by this Court and also on consideration of the report of the Official Liquidator, I find that audit work for the period 01.04.2023 to 30.09.2023 is required to be done by the auditors is similar with respect to each company, whether or not there are transactions, and in case, if there are no transactions in the accounts of particular company, the auditors’ work may be less compared to others. NV,J C.A.No.10 of 2025 4 However, for the purpose of the work to be carried out, in my view, the total number of companies i.e. 35 companies are to be distributed equally between the three auditors. 4. The Official Liquidator, therefore, is permitted to seek assistance of the three auditors/Chartered Accountant firms viz., 1) M/s. Murthy & Kanth, Chartered Accountant, Hyderabad 2) M/s. Padmanabha Rao & Co., Chartered Accountant, Hyderabad 3) M/s. K.B.S. Associates, Chartered Accountant, Hyderabad allotting to them 12 companies each as shown in the annexures appended to the affidavit and pay to each auditor a fee quantified @ Rs.500/- (Rupees Five Hundred only) plus GST per company and submit the audited accounts to the court for approval. 5. The Company Application is, accordingly, ordered. Miscellaneous petitions pending, if any, shall stand closed. ______________________________________ JUSTICE VENKATESWARLU NIMMAGADDA Date:23.12.2025 SP NV,J C.A.No.10 of 2025 5 THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA COMPANY APPLICATION NO.10 OF 2025 IN C.P.No.34 OF 1985 Date: 23.12.2025 W SP