21 December 2016
As per the provisions of section 139, there is a grace period of three years for existing companies under transition period. Whereas, Rule 5 of Companies (Audit and Auditors) Rules, 2014 specifies the class of companies that are covered under this act. Now, the question is while applying the provisions of rule 5, which financial position to be considered? whether at the commencement of the act i.e. April 1, 2014 or after completion of three grace years i.e. April 1 , 2017?
22 December 2016
Kindly refer to Section 139(2) third proviso which states "..............within three years from the date of commencement of this Act". You have to see when was this section made applicable and calculate three years from that date.
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