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Govt Relaxes 20 Audit Ceiling Limit on Statutory Audits

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 :-

(g) a person who is in full time employment elsewhere or a person or a partner of a firm holding appointment as its auditor, if such persons or partner is at the date of such appointment or reappointment holding appointment as auditor of more than twenty companies other than one person companies ,dormant companies, small companies and private companies having paid-up share capital less than one hundred crore rupees.

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)

Categories: Company Law

View Comments (12)

  • Big Fishes eat small fishes. Nobody is worrying about small firm and fresher.

  • Will central council general guidelines be applicable? Ca can take up 20 audits following the exception but subject to 30 audits of ccgg 2008..?

  • 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?

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