MCA has vide Notification dated 05/06/2015 has exempted from Statutory Audit ceiling limit of 20 company audit limit the following Companies :-
a) other than one person companies
b) dormant companies,
c) small companies and private companies having paid-up share capital less than one hundred crore rupees.
So now the Limit of 20 Companies includes:-
a) Public Companies
b) Private Companies having paid up capital of Rs. 100 crore or more
Revised Clause (g) of Section 141 of Companies Act is as follows :-
Its a welcome step by government as provision contained in the Companies Act, 2013 relating to cap of number of audits of 20 was creating genuine difficulties to the corporates and the auditors.
Following Other Exemptions Notification were issued by MCA on 05/06/2015
1) Exemptions to Section 8 (Non-Profit) under section 462 of CA 2013
2) Exemptions to Private Companies under section 462 of CA 2013
3) Exemptions to Nidhis under section 462 of CA 2013
4) Exemptions to Government Companies under section 462 of CA 2013.
(Compiled by Taxguru Team)
Government companies are also to be considered for the ceiling onnumber of audit.?
This amendment is applicable only to private companies right? MCA Notification 5th June 2016 provides for exemptions or modifications to a private company only.
Does it mean that while computing limit of 20 for a public company these exceptions would not apply?
Is foreign companies included in ceiling limit as per 141(3)(g)..
Please mention..!
Will central council general guidelines be applicable? Ca can take up 20 audits following the exception but subject to 30 audits of ccgg 2008..?
ICAI must think about freshers
Big Fishes eat small fishes. Nobody is worrying about small firm and fresher.
Dear friends how its welcome move …how the fresher CA and small firms will survive.How msny companies having 100 crore paid up capital. No one think about freshers and Smaller firms.
good step , like this so many small issues to be solved
Move is good.
lot many things like this which are to be redressed. As well as compliance of statutory provisions is need of the hours by each and every company.
WHAT ABOUT ADVOCATES RIGHT TO PRACTICE TAXATION LAW.ONCE CA BREAK THE LAW THEY MAKE IT LEGAL SO THAT IN FUTURE IT WILL NOT COUNT AS ILELAGAL. IS ADVOCATE HAVING RIGHT TO PRACTICE TAXATION RIGHT.IF YES THEN HOW BECAUSE NOT A SINGLE POWER IS GIVEN TO ADVOCATES TO PRACTICE TAXATION. SO PLEASE TAKE STEP AHEAD REGARDING THIS ALSO.
This welcome amendment so far small company and their auditor are concerned.
This happen only in india. First change law then nullify it.
Good .