First auditors
This query is : Resolved
09 October 2013
in first auditors appointment 23B compulary file or not give provision regarding its.....
and first auditors count under section 224(1B) OR not give provision regarding its......
and first auditors count under section 224(1B) OR not give provision regarding its......
09 October 2013
Hi
It is required for both. The Provision of filing of Form-23B withe ROC is apply to both, first as well as subsequent appointment.
When you file your first Form-23AC they demand SRN of Form-23B, in that case you will give the details of your first auditor.
So, as per requirement of Form-23AC, form 23B is mandatory for all appointments.
It is required for both. The Provision of filing of Form-23B withe ROC is apply to both, first as well as subsequent appointment.
When you file your first Form-23AC they demand SRN of Form-23B, in that case you will give the details of your first auditor.
So, as per requirement of Form-23AC, form 23B is mandatory for all appointments.
09 October 2013
Yes, every appointment of auditor in a eligible company will covered under section 224(1B) of the Companies Act, 1956.
09 October 2013
Written certificate from auditor regarding eligibility must be obtained before appointment of auditor at the annual general meeting by a public limited company:
The company shall, before making any appointment or re-appointment of auditor(s) at any annual general meeting, obtain a written certificate to the effect that the appointment or re-appointment, if made,
shall be in accordance with the limits specified in section 224(1B) of the Act. A company or its Board of directors shall not appoint or re-appoint any person who is in full time employment elsewhere or firm as its auditor, if such person or firm is, at the date of such appointment or re-appointment, holding appointment as auditor of the specified number of
companies or more than the specified number of companies. [Section 224(1B)]. Following are the provisions as to "specified number of companies":—
(a) First proviso to section 224(1B) provides that in the case of a firm of auditors, "specified number of companies" shall be construed as the number of companies specified for every partner of the firm who is not in full-time employment elsewhere.
(b) Second proviso to section 224(1B) provides that where any partner of the firm is also a partner of any office, firm or firms of auditors, the number of companies which may be taken into account by
all the firms together, in relation to such partner, shall not exceed the specified number in the aggregate.
(c) Third proviso to section 224(1B) provides that where any partner of a firm of auditors is also holding office, in his individual capacity, as the auditors of one or more companies, the number of companies which may be taken into account in his case shall not exceed the specified number in
the aggregate.
(d) Fourth proviso to section 224(1B) provides that the provisions of this sub-section shall not apply, on and after the commencement of the Companies (Amendment) Act, 2000, to a private company.
(e) The expression 'specified number' means—
(i) in the case of a person or firm holding appointment as auditor of a number of companies each
of which has a paid-up share capital of less than rupees twenty-five lakhs, twenty such
companies;
(ii) in any other case, twenty companies, out of which not more than ten shall be companies each
of which has a paid-up share capital of rupees twenty-five lakhs or more.
In computing the specified number of companies in respect of which or any part of which any
person or firm has been appointed as an auditor, whether singly or in combination with any other
person or firm, shall be taken into account in computing the specified number as defined in
Explanation I of section 224(1C).
The following types of companies shall be excluded from reckoning specified limits, in terms of
share capital:—
(a) Guarantee companies
(Department's Letter No. 8/12/(224)/74-CL-V, dated 28-9-1974)
(b) Foreign companies (Circular No. 21 of TSF No. 35/3/75-CL-III, dated 24-9-1975)
As mentioned above, as per the Companies (Amendment) Act, 2000 private companies will not be taken into account for counting the 20 number of companies audit as specified as per sub-section (1B) of
section 224.
The company shall, before making any appointment or re-appointment of auditor(s) at any annual general meeting, obtain a written certificate to the effect that the appointment or re-appointment, if made,
shall be in accordance with the limits specified in section 224(1B) of the Act. A company or its Board of directors shall not appoint or re-appoint any person who is in full time employment elsewhere or firm as its auditor, if such person or firm is, at the date of such appointment or re-appointment, holding appointment as auditor of the specified number of
companies or more than the specified number of companies. [Section 224(1B)]. Following are the provisions as to "specified number of companies":—
(a) First proviso to section 224(1B) provides that in the case of a firm of auditors, "specified number of companies" shall be construed as the number of companies specified for every partner of the firm who is not in full-time employment elsewhere.
(b) Second proviso to section 224(1B) provides that where any partner of the firm is also a partner of any office, firm or firms of auditors, the number of companies which may be taken into account by
all the firms together, in relation to such partner, shall not exceed the specified number in the aggregate.
(c) Third proviso to section 224(1B) provides that where any partner of a firm of auditors is also holding office, in his individual capacity, as the auditors of one or more companies, the number of companies which may be taken into account in his case shall not exceed the specified number in
the aggregate.
(d) Fourth proviso to section 224(1B) provides that the provisions of this sub-section shall not apply, on and after the commencement of the Companies (Amendment) Act, 2000, to a private company.
(e) The expression 'specified number' means—
(i) in the case of a person or firm holding appointment as auditor of a number of companies each
of which has a paid-up share capital of less than rupees twenty-five lakhs, twenty such
companies;
(ii) in any other case, twenty companies, out of which not more than ten shall be companies each
of which has a paid-up share capital of rupees twenty-five lakhs or more.
In computing the specified number of companies in respect of which or any part of which any
person or firm has been appointed as an auditor, whether singly or in combination with any other
person or firm, shall be taken into account in computing the specified number as defined in
Explanation I of section 224(1C).
The following types of companies shall be excluded from reckoning specified limits, in terms of
share capital:—
(a) Guarantee companies
(Department's Letter No. 8/12/(224)/74-CL-V, dated 28-9-1974)
(b) Foreign companies (Circular No. 21 of TSF No. 35/3/75-CL-III, dated 24-9-1975)
As mentioned above, as per the Companies (Amendment) Act, 2000 private companies will not be taken into account for counting the 20 number of companies audit as specified as per sub-section (1B) of
section 224.
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