No. 01/33/2013-CL.V (Pt.)
Government of India
Ministry of Corporate Affairs

 

5th Floor, A Wing, Shastri Bhawan,
Dr. Rajendra Prasad Road, New Delhi – 110001
Dated:- 15th February, 2019

To,
The President,
Institute of Chartered Accountants of India,
ICAI Bhawan, Post Box No. 7112,
Indraprastha Marg, New Delhi-110002.

Sub:- ICAI’s announcement regarding clarification on Applicability of Rotation principles on a company as per Section 139 of the Companies Act, 2013-Reg

Sir,

I am directed to refer to subject cited above and to state that ICAI has issued an announcement regarding clarification on Applicability of Rotation principles on a company as per Section 139 of the Companies Act, 2013, where the company ceases to fall under the ambit of Rotation principles in subsequent years. In this connection, it is stated that the issuance of any clarification on different provisions of Companies Act falls in the domain of this Ministry, and ICAI is neither empowered nor competent to issue such clarification and especially so without prior consultation with this Ministry.

2. In view of above, you are requested to immediately withdraw the said announcement & intimate this Ministry the reasons for issuing such announcement without any authority & without the specific approval of this

3. This issues with the approval of competent authority.

Yours faithfully,
(Atma Sah)
Deputy Director
Tel:- 23386065

Copy to:-

i. CA. Debashis Mitra, Chairman, Corporate Laws & Corporate Governance Committee Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7112, Indraprastha Marg, New Delhi-110002.

ii. The Secretary, Institute of Chartered Accountants of India, ICAI Bhawan, Post Box No. 7112, Indraprastha Marg, New Delhi-110002.

Also Read- ICAI withdraws Clarification on Rotation of Auditors under Companies Act, 2013

More Under Company Law

2 Comments

  1. Narendranath Damodar says:

    Well done by MCA. This CA institute is crossing all limits in recent times. It said to supreme court that it is charitable eucational institution and eligible for Income tax exemption on its income. But it also says it is a regulator to the CA profession. Some authorities should interefere to stop this business mockery. CA institute unable to take the extreme weight of CA exams and is crumbling under pressure. Look at Bar council, Medical council etc… they are not claiming to be both Educator and Regulator at the same time. What this CA institute is doing is utter chaos and non-sense all without any authority. Beat them hard and beat them well so let them learn a lesson to conduct properly. Is it a Educator or Is it a regulator- But cannot be both. Some one please stop this double jeopardy.

    1. PRADEEPCA says:

      Dear Sir,
      Your comment is absolutely correct but if you go in for concerned laws on the issue, you can understand that CA Act 1949 and rules made thereunder itself provide for the duel role of ICAI. (for example unless the accounting standards were notified under company’s act 1956, compliance of same was only auditors responsibility and management was not at all responsible for true n fair presentation of financial statements) There is similar provision for cost accountants and company secretaries under their respective acts. On the other hand legal n medical profession are governed by separate laws. educational qualification is granted by university and profession is regulated by another authority constituted by special law. Therefore I am of strong opinion that appropriate forums of law maker ie central govt should be reached out by all business n legal community for making separate laws for education n profession of accountancy profession so that controversy be settled for good

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