Clarification under Section 224 (1) of the Companies Act, 1956

No. 35/1/90-CL.III

Government of India, Ministry of Industry

Department of Company Affairs

Shastri Bhawan, 5^th Floor, “A” Wing

New Delhi

Dated: 2^nd March 90

To

The President,

The Institute of Cost and Works Accountants of India

12, Sudder Street, Calcutta-700 016

Sub: Clarification under Section 224 (1) of the Companies Act, 1956.

Sir,

I am directed to refer to your letter no. CLC/79/89 dated 8^th January, 1990 on the subject mentioned above and to say that while giving a certificate in terms of provision to sub-section 224 of the Companies Act, 1956, the auditor or auditors will not take into account the actual appointments as auditors in the companies but also their proposed appointment in companies for which they have given their consent.

Yours faithfully,

K.M. Gupta

Under Secretary to the Govt. of India