The Ministry of Corporate Affairs, recently notified the amendment to the Companies (Audit and Auditors) Rules, 2014 wherein it amended Auditors’ rules with respect to the limits specified for “Class of Companies”.
As per the notification, the Rule the word “twenty” mentioned in Rule 5(b) has been replaced by the word “fifty”.
Consequently, private limited companies, whose paid up share capital does not touch Rs 50 Cr or above, are not required to comply with Section 139(2) of Companies Act, 2013.
As per Section 139(2) of Companies Act, 2013, listed companies and certain class of companies are required to do rotation of their statutory auditor. Rule 5 of the Auditors’ Rules specifies a few categories of the Class of Companies which are required comply with this provision.
As per this, all private limited Companies having paid up share capital of Rs 20 Cr or more belongs to a separate category for which, the present Notification increases the limit to Rs 50 Cr.
Read the full text of the Notification below.
