[ 3r661 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD FRIDAY, THE TWENTY THIRD DAY OF FEBRUARY TWO THOUSANDAND TWENry FOUR PRESENT THE HONOURABLE SRl JUSTICE T.VINOD KUMAR COMPANY APPLICATION NO:lOF m24 IN o 2oF 995 IN THE MATTER OF THE COMPAN lES ACT. 1956 AND IN THE MATTE OF M/S. A.P STE LTD D Rto MPANI s IN s LIQN, Between: The Official Liquidator, for the State of Telangana and Andhra pradesh. ...APPLICANT _^-^ CoTp3ly Apptication _Under Section 457 & 462 of the Companies Act, 1956 re€d with Rutes 298, 3OO, 302, 304, 306 & 3O9.ri trrtn ,.,"il.*ilirEi; of the Companies (Court) Rutes, 1959 prr,ing thrtih[ ffon,Uf. Corrt'rr/G pleased to lL take this affidavit and facts stated herein on record. gpprove the allocation of i24 Companies (in liqn) as per Annexure _A to 3 Chartered Accountants viz,,1). M/s. nf rrtny-*O'i"nth, Chartered Accountant, Hyderabad 2). !il/s.-padmanaOdhio ,nJ Co., Chartered Accountant, ..Hyderabad 3). M/s. k-BS. '&;;"", chartered Accountant, Hyderabad proportionately ti.e.if companies to 2 auditors ag 12 j9 one auditor or pass such ,iuier broeiaJinis non,ore court may oee.m tit and proper for the audit of Half yearly Accounts for the period from 01.04.2023 to 30.09.2023. permit the- Officiat Ljquictator^to j.glF- lrgit leport of the Half yearty accounts for. the period trom O1.04.2023 to 30.09.2023-in respect of 124 Cornpanies_ in liquidation before this ffonOfe C-ourt within 60 days from the date of receipt of the same from the ct a.teieJ' nccountanb, so allotted. . tv VI v[. Dispense -with the filing of half yearly accounts and audit thereof in respect of 10 Companies as there is no transaction of "receipts and payments" for the period 01.O4.2023 to 30.09.2023 (as stated at para No.5) 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.Bl2O22 in RCC No.2/1995. Permit the officiar Liquidator payment of fee to the said Auditors out of the funds of the respective Companies in liquidation and in case of companies where suflicient funds are not available, it may be permitted to pay from the funds of the Estate and Establishment Fund Account of the Official Liquidator, subject to reimbursement of the same from the funds of such Companies upon realization of assets of those Companies, if any. Order that the cost of this application and miscellaneous cost do come out of the funds of the respective Companies in liquidation. .. This. Applicatiol -coming on for Orders, upon reading Judge,s summons and the affidavit dated 29-12-2023 and filed by sri U.N. sahoo, Sfficiat Liquidator in :tDort of the Application and upon hearing the arguments of Sri J. SiIEENATH REDDY, Standing Counsel for Officiat Liquidator foi the Applicant. The Court made the following: ORDER THE HON'BLE SRI JUSTICE T. VINOD KUMAR COMPANY APPLIATION No.l of 2024 IN R.C.C .No.2 of I995 ORDER: This application is filed under Sections 457 and 462 of the Companies Act, 1956 read with Rules 298,300,302,304,309 and 309 and lurther read with Rule 9 of the Companies (Court) Rules' 1959, for the following reliefs: i) Take this ffitlavit and .facts stated herein above on racord. ii) Approve the ollocation of t24 Companies (in Liqn) (as pei Anncxure-A) lo lhe 3 Chartered Accountants viz' l) 'iul/s.Murthy & Kanth, Chartered Accountant, Hyderabad, 2) lv!/s. Padmanabha Rao & Co., Chartered Accountant' Hyderahad and 3) M/s.K.B.S. Associates, Chartered Accountant, Hyderobad proporlionately (i.e. 41 t'omponie.s 2 ouditors and 12 to one auditor) or pass such other ordar us this llon ble Courl may deem Jit and proper for audit of Hatf Yearly Accounts for the period .from 01.04.2023 to 30.09.2023 Permit the Official Liquidator tci file the Audit Report on the Hatf Yearly accounts for the period from 01.04.2023 to 30.09.2023 in respect of 124 Companies in Liquifulion be.[orc this lktn'hle Courr u'ithin 60 days from the date of receipl oJ the same .from thc C:hurtered Accounlanls. Dispense with the fling o/ half yearly accounts and audit thereof in respect ol l0 companies as there is no transaction of 'receipts and Payments' for the period from 0 t.04.2023 to 30.09.2023 (os stated in para No'5)' Pcrmit the Oficial Liquidator to pay the fees to the said Chartered Accountanls in accordance with lhe order of this Hon'ble Court dated 08-01.2022 made in C.A.No.8/2022 in RCC No.2/],995- Permit the Official Liquidator pdyment of fee to the Auditors out of the funds to the said Auditors out of the iii) iv) v) vi) 2 fitnds of the respcctive ('ompanies-in- Liquidut.ion und in 'ir* it Companies where sufrtcie^nt f',nd: u," ^,1!' ioitait", it may be Permitted to pay liom thc luttds,ol tne Er,ri" ,ia Estabtiihment Fund Accounr tf thc oficial l,qluiaoror' subject to reimbursemenl of tha same from rhe funds of such Companies upon realization oI assets of those ComPanies, if anY' viil order that the Cost ofthis application and rnisccllaneous i.t,- a, ,i^, out of tie lunds of the respective Crtmpantes in liquidation; and viii) Pass such further or olher orrler or orders as this Hon'ble Court may deem ft and Proper in the Circumstances of the case' " 2.HeardSriJ.SrinadhReddy,leamedStandingCounselforthe Official Liquidator, and perused the record' 3. Having regard to the reasons stated in the accompanytng affidavit and also having regard to the order dated 08-04-2022 passed by this Court in C'A'No'8/2022' this Coutt is of the view that the audit work for the period 0l-04-2023 to 30-09-2023 is required to be done by the auditors in respect of 124 companies' whether or not there are transactions' and in case there are no transactions in the account of a particular company' the auditors' work may be less compared to others' However' for the purpose of the work to be carried out' in the considered vieu' of this Court' the total number of companres i'e' 124 companies are to be distributed equally between the three auditors' ' ' --- i /' 4. The Official Liquidator, therefore, is permitted to seek the assistance of three auditors' firm as listed in para-3 of the affidavit by allotting to them proportionately i.e. 41 companies 2 auditors and 42 companies to one auditor as shown in the annexures appended to the affidavit and pay fee to the Auditors out of the funds of the respective companies in liquidation, and submit the audited accounts before this Court lor approval. 5. The other incidental prayers set-out in the application are also granted 6. Accordingly, this application is ordered. No costs. A ,TTRUE COPY// Sd,. M. VIJAYA BHASKER JOINT REGTSTRAR (,, t6N SECT OFFICER To, 1. The Official Liquidator attached to the High Court at Hyderabad' ln the mafter of M/s. A.P. Steels Ltd and various compan-ies (in liqn), office at 1"t floor Gorporate Bhawan, Nagole, Bandlaguda Thattiannaram Mllage Hayathnagar Mandal, Ranga Reddy District, Telangana State Pin Code 500 680' 2. The Registrar of Companies, Ministry of Corporate Affairs' Govemment of lndia 2d floor Corporate Bhawan' Nagole' Bandlaguda' Thattiannaram Mllage Hayathnagar Mandal, Ranga Reddy District' Telangana State Pin Code 500 680. 3. The Regional Director, South Eastern Region' Ministry of Corporate Affairs,3d floor corporate Bhawan' Nagole' Bandlaguda' Thattiannaram Village Hayathnagar Mandal, Ranga Reddy District Telangana Stab' Pin Code 5OO 680. 4.onecctosriJ.SreenadhReddy,CornselfortheofficialLiquidator,High Court br at Hyderabad. 5. The S.O. O.S. Section , High Court at Hyderabad' for the State of Telangana' 6. Two C.D.CoPies *&%i I HIGH COURT DATED:2310212024 ORDER COMPA.No.I ot 2024 IN R.C.C.No.2 OF 1995 ORDERING THE APPLICATION IHE ST4 14: ( o 1 5 AP8 202{ )(f,( ; 4d * t ,'A r CticO dot dJ s\erl 49