This notification outlines new rules related to audit and auditors under the Companies Act 2013. Some key points:
- It specifies the process for selecting and appointing auditors, including the role of the audit committee and requirements for auditor qualifications.
- It defines classes of companies required to mandatorily rotate auditors to maintain independence. The rules specify maximum periods an individual or firm can serve as auditor before rotation is required.
- Requirements are provided for removing an auditor before the end of their term, auditor resignation, and disqualifications.
- The duties of auditors are elaborated, including requirements to report any fraud to the central government within 60 days of knowledge.
- Guidance
The document discusses the roles and responsibilities of a company auditor. It provides definitions of a company auditor and outlines their statutory qualifications. It describes the professional qualities expected of an auditor including knowledge, impartiality, and maintaining confidentiality. The document also outlines the appointment, reappointment, rotation and casual vacancy processes for company auditors. It discusses an auditor's rights, duties, and potential liabilities in performing their role.
This document summarizes key provisions around the appointment and removal of auditors under Section 139-140 of the Companies Act 2013. It discusses the periods of appointment for individual and audit firm auditors, requirements around rotation of auditors and filling casual vacancies. It also outlines the process for reappointing retiring auditors, circumstances allowing removal of auditors before the end of their term, requirements for auditor resignation, and removal of auditors by the central government.
This document discusses the appointment, removal, and resignation of auditors under the Companies Act 2013. It covers the eligibility, qualifications, and disqualifications of auditors. Key points include:
- Only chartered accountants can be appointed as auditors. A firm can be appointed if the majority of partners are practicing in India.
- Certain persons are disqualified from being auditors such as employees of the company, relatives of employees/directors, those with financial interests in the company, etc.
- The first auditor is appointed by the board or members within a specified time period. Subsequent auditors are appointed at the AGM for a 5 year term, subject to rotation requirements for listed/
This document provides an overview of key sections (139-148) related to auditors under the Companies Act 2013. It summarizes the eligibility, appointment, resignation and removal of auditors. Some key points include:
- Auditors must be chartered accountants (individuals) or have a majority of CA partners (firms).
- Appointment is done by shareholders at the AGM for an initial period of 5 years.
- The same auditor cannot be appointed for more than one term of 5 years (individual) or two terms of 5 years (firm).
- Resignation of auditors requires notice to the company and ROC. Removal requires a special resolution of shareholders.
Presentation on Inspection and Investigation under the Companies Act 2013Jaladhi Shukla
The document discusses provisions related to inspections and investigations under the Companies Act 2013. It provides an overview of the need for inspections due to issues like corporate scams and accounting malpractices. It outlines the powers of the Registrar of Companies, Inspector and SFIO to conduct inspections and investigations. Practical aspects like selection criteria for companies, documents to be inspected, and common observations from balance sheet scrutiny are also covered. The document appears to be a presentation on inspections and investigations for participants of an ICSI chapter meeting.
U/S 224(7) Companies Act, 1956 outlines the process for removing an auditor before the expiration of their term. An auditor appointed at an AGM can only be removed via a shareholder resolution at an EGM with the previous approval of the Central Government. The steps include: giving 14 days notice by a shareholder, obtaining eligibility certification for a new auditor, passing board resolutions, intimating the auditor in writing, holding an EGM to pass removal and appointment resolutions, applying to the Regional Director with supporting documents, and notifying the new auditor upon approval.
Only chartered accountants can be appointed as auditors of a company. An individual or audit firm holding any securities in the company being audited would be disqualified from being appointed. The first auditor is appointed by the board of directors within 30 days for other companies and by the Comptroller and Auditor General of India within 60 days for government companies. The auditor holds office for a term of 5 years until the conclusion of the sixth annual general meeting and their appointment must be ratified annually. The same auditor cannot be appointed for more than one term of 5 consecutive years for listed companies or more than two terms of 5 consecutive years for audit firms.
The document discusses the provisions relating to the appointment of first auditors under the Companies Act 2013. It states that for companies other than government companies, the first auditor is to be appointed by the Board of Directors within 30 days of registration, failing which the members can appoint the auditor within 90 days in an EGM. For government companies, the first auditor is to be appointed by the Comptroller and Auditor General of India within 60 days of registration, failing which the Board can appoint within 30 days, and if they fail, the members can appoint within 60 days of an EGM. Two case studies are provided to illustrate these provisions.
The document discusses the roles and responsibilities of a company auditor. It provides definitions of a company auditor and outlines their statutory qualifications. It describes the professional qualities expected of an auditor including knowledge, impartiality, and maintaining confidentiality. The document also outlines the appointment, reappointment, rotation and casual vacancy processes for company auditors. It discusses an auditor's rights, duties, and potential liabilities in performing their role.
This document summarizes key provisions around the appointment and removal of auditors under Section 139-140 of the Companies Act 2013. It discusses the periods of appointment for individual and audit firm auditors, requirements around rotation of auditors and filling casual vacancies. It also outlines the process for reappointing retiring auditors, circumstances allowing removal of auditors before the end of their term, requirements for auditor resignation, and removal of auditors by the central government.
This document discusses the appointment, removal, and resignation of auditors under the Companies Act 2013. It covers the eligibility, qualifications, and disqualifications of auditors. Key points include:
- Only chartered accountants can be appointed as auditors. A firm can be appointed if the majority of partners are practicing in India.
- Certain persons are disqualified from being auditors such as employees of the company, relatives of employees/directors, those with financial interests in the company, etc.
- The first auditor is appointed by the board or members within a specified time period. Subsequent auditors are appointed at the AGM for a 5 year term, subject to rotation requirements for listed/
This document provides an overview of key sections (139-148) related to auditors under the Companies Act 2013. It summarizes the eligibility, appointment, resignation and removal of auditors. Some key points include:
- Auditors must be chartered accountants (individuals) or have a majority of CA partners (firms).
- Appointment is done by shareholders at the AGM for an initial period of 5 years.
- The same auditor cannot be appointed for more than one term of 5 years (individual) or two terms of 5 years (firm).
- Resignation of auditors requires notice to the company and ROC. Removal requires a special resolution of shareholders.
Presentation on Inspection and Investigation under the Companies Act 2013Jaladhi Shukla
The document discusses provisions related to inspections and investigations under the Companies Act 2013. It provides an overview of the need for inspections due to issues like corporate scams and accounting malpractices. It outlines the powers of the Registrar of Companies, Inspector and SFIO to conduct inspections and investigations. Practical aspects like selection criteria for companies, documents to be inspected, and common observations from balance sheet scrutiny are also covered. The document appears to be a presentation on inspections and investigations for participants of an ICSI chapter meeting.
U/S 224(7) Companies Act, 1956 outlines the process for removing an auditor before the expiration of their term. An auditor appointed at an AGM can only be removed via a shareholder resolution at an EGM with the previous approval of the Central Government. The steps include: giving 14 days notice by a shareholder, obtaining eligibility certification for a new auditor, passing board resolutions, intimating the auditor in writing, holding an EGM to pass removal and appointment resolutions, applying to the Regional Director with supporting documents, and notifying the new auditor upon approval.
Only chartered accountants can be appointed as auditors of a company. An individual or audit firm holding any securities in the company being audited would be disqualified from being appointed. The first auditor is appointed by the board of directors within 30 days for other companies and by the Comptroller and Auditor General of India within 60 days for government companies. The auditor holds office for a term of 5 years until the conclusion of the sixth annual general meeting and their appointment must be ratified annually. The same auditor cannot be appointed for more than one term of 5 consecutive years for listed companies or more than two terms of 5 consecutive years for audit firms.
The document discusses the provisions relating to the appointment of first auditors under the Companies Act 2013. It states that for companies other than government companies, the first auditor is to be appointed by the Board of Directors within 30 days of registration, failing which the members can appoint the auditor within 90 days in an EGM. For government companies, the first auditor is to be appointed by the Comptroller and Auditor General of India within 60 days of registration, failing which the Board can appoint within 30 days, and if they fail, the members can appoint within 60 days of an EGM. Two case studies are provided to illustrate these provisions.
The document discusses the Serious Fraud Investigation Office (SFIO) under the Companies Act of 2013 in India. It establishes SFIO as the agency responsible for investigating corporate fraud. The SFIO is headed by a director and consists of experts from fields like banking, taxation, and law. It has powers to investigate company affairs, examine witnesses, and impose fines. Upon completion of investigations, SFIO submits interim and final reports to the central government, which may then direct prosecution. Fraud is punishable by imprisonment between 6 months to 10 years along with fines under Section 447 of the Companies Act. The SFIO aims to better coordinate fraud prosecution and has more independence than under the previous Companies Act
The document discusses the appointment, remuneration, removal, qualifications, disqualifications, powers, rights and duties of auditors of companies in Pakistan according to the Companies Act 2017. It states that the first auditor is appointed by company directors within 60 days of incorporation to hold office until the first AGM. Subsequent auditors are appointed at each AGM to hold office until the next AGM. It outlines the qualifications required for an auditor, cases for disqualification, and their rights to access company documents and attend shareholder meetings. Auditors have a duty to make reports on company accounts and additional matters if directed.
Companies Act, 2013 - Chapter X - Audit and AuditorsSASPARTNERS
A detailed presentation prepared by SAS Partners Team which gives an insight into the provisions of Chapter X relating to Audit & Auditors. This Chapter has undergone a sea of changes with new concepts introduced. This presentation will prove to be beneficial for the Corporate, Professionals & Students and will give a birds eye view of the provisions and concepts.
This document summarizes the key provisions around auditor eligibility, qualifications, disqualifications, and appointment under the Companies Act 2013 in India. It discusses who is eligible to be an auditor, what qualifications they must have, situations that would disqualify them, and the process and timelines for appointing auditors for new and existing companies, including filling casual vacancies and auditor rotation requirements. It also covers the auditor's remuneration and the process for removing an auditor before the end of their term.
The document summarizes key aspects of auditors and the audit process under the Companies Act 2013 in India. It outlines eligibility requirements for auditors, the appointment and removal process, auditor rotation rules, duties and powers of auditors, and penalties for non-compliance. Some highlights include that only chartered accountants can serve as individual auditors or partners in audit firms. Auditors are appointed by shareholders but require approval from the audit committee and board of directors. They must be independent and cannot provide non-audit services to the company.
Secretarial audit is a newly introduced compliance mechanism under the Companies Act 2013 that requires certain companies to undergo an audit of their compliance with applicable laws conducted by a practicing company secretary. It involves the secretarial auditor checking compliance with various laws and regulations and reporting any non-compliance or observations. Secretarial audits must be conducted for listed companies as well as other public companies meeting certain criteria regarding paid-up capital or turnover.
This document discusses the role and responsibilities of a company auditor according to the Companies Act in India. It covers the qualifications required to be an auditor, their appointment and removal process, rights and duties, and liabilities. Some key points:
1. A company auditor must be a member of the Institute of Chartered Accountants of India or hold a restricted auditor's certificate. They are appointed annually at the AGM by shareholders.
2. The auditor's main duties are to audit the company's accounts and present an audit report. They must have access to all books/records and obtain information/explanations.
3. An auditor can face civil and criminal liabilities for negligence in their duties or mis
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The document discusses key concepts related to company audits under the Companies Act of 1956 in India. It covers the appointment and remuneration of auditors, qualifications of auditors, disqualifications of auditors, powers and duties of auditors, and the audit report. It also discusses special provisions for government-owned companies and the power of the central government to order special audits. Key points include:
- Auditors must be appointed at the annual general meeting and remuneration must be fixed.
- Only chartered accountants can serve as auditors.
- Auditors have rights to access company documents and attend general meetings.
- Duties include inquiring about loans and transactions
Important Questions of Appointment of AuditorAnkit Agarwal
The document discusses various questions related to the appointment of auditors under the Companies Act. It addresses whether certain individuals like a director, internal auditor, or tax auditor can be appointed as the auditor of a company. It also discusses issues like auditor independence, recovering audit fees, and the maximum number of audits a chartered accountant firm can take on. The responses provide references to relevant sections of the Companies Act and guidelines from regulatory authorities like ICAI to answer each question.
The document is a case brief for Bennett Coleman v. Union of India. It summarizes that the respondents challenged a judgment reconstituting the board of directors of Bennett Coleman company. The court had to determine if the appeal was maintainable. It analyzed sections 408 and 402 of the Companies Act of 1956 to distinguish the powers of the government and courts. The court ultimately pronounced that when acting under sections 398 and 402, the court has wide powers to pass orders and give directions without violating section 255.
The document discusses the applicability of Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015. It provides details on the classes of companies that must comply with Ind AS, including listed companies, unlisted companies based on net worth thresholds, subsidiaries and associates of these companies, and non-banking financial companies. It specifies the accounting periods from which different classes of companies must begin preparing financial statements in accordance with Ind AS.
This document is a project report submitted by a student named Vivek Shriram Mahajan to the University of Mumbai for their M.Com program. The report includes an introduction to auditing, the history of auditing, principles of auditing, types of audits, features of company accounts, objectives of a company audit, and a conclusion. It covers topics like the definition of auditing, principles like integrity and independence, types of audits, requirements for company financial statements, and the purpose of a company audit.
To be an auditor in Malaysia, one must:
1. Be a member of the Malaysian Institute of Accountants for at least 1 year and be a Chartered Accountant
2. Have at least 5 years of audit experience, including 3 years of audit work and 1 year in an audit supervisory role
An auditor can be appointed by company directors before the first annual general meeting. After that, auditors are appointed at each annual general meeting until the next one. Directors can also fill casual vacancies. Auditors can be removed by shareholder resolution with special notice, but otherwise they serve until the next AGM. If an auditor resigns, directors must call a general meeting to appoint a replacement.
This document provides information on company auditors, including their appointment, qualifications, rights, duties, and removal. It defines auditing as the systematic examination of a company's books and records to verify financial operations. An auditor must be independent, have integrity, be objective, and have communication skills. Their rights include access to records and attendance of shareholder meetings. Duties include complying with standards, reporting fraud, and signing audit reports. Auditors are typically appointed by directors or shareholders and can be removed before their term with proper notice and representation rights.
National Financial Reporting Authority Rules 2018Raman Khanna
The document summarizes key aspects of the National Financial Reporting Authority (NFRA) in India, including:
1) NFRA was established under the Companies Act 2013 to regulate accounting and auditing standards and investigate misconduct by auditors.
2) Key functions of NFRA include recommending accounting and auditing standards, monitoring compliance, overseeing audit quality, and investigating auditor misconduct.
3) NFRA has powers similar to a civil court and can impose penalties on auditors for misconduct ranging from fines to practice suspensions.
The document summarizes key provisions around the appointment, eligibility, duties, and reporting responsibilities of auditors according to the Companies Act 2013 in India. It discusses requirements for appointing auditors such as obtaining prior consent, filing notices, and auditor rotation. It also outlines auditor qualifications and disqualifications, powers to access company information, services auditors cannot provide, requirements for audit reports, and auditors' attendance at shareholder meetings.
Guidance notes on audit and auditor under companies act, 2013Amit Kumar
1. The document outlines the provisions related to appointment, eligibility, qualifications, duties and liabilities of auditors under the Companies Act 2013. It discusses the process for appointment and removal of auditors for both government and non-government companies.
2. The duties and powers of auditors are specified which include examining books of account, requiring information from company officers, and reporting on financial statements. Services which auditors cannot provide to their client companies are also listed.
3. The eligibility criteria and disqualifications for auditors are defined. Penalties for companies, officers and auditors for non-compliance with auditor-related provisions are also mentioned.
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013Manoj Singh Bisht
In this presentation, i have tried my best to discuss various facets of provisions contained in Chapter X of the Companies Act, 2013. In few places, only relevant part of a particular section is quoted.
These are my personal views.
For feedback - you can reach out to me at csmanojsbisht@gmail.com
This document outlines various compliance requirements and deadlines for filing forms under the Companies Act, 2013. It lists 23 different forms that must be filed for events like changes to a company's registered office, allotment of securities, annual returns, financial statements, appointment of directors, and more. The deadlines for filing these forms range from 15 days to 60 days after the relevant event occurs. Failure to meet these deadlines to file the required forms can result in penalties for the company.
Here, LegalDelight present its new PPT on the topic of Appointment of Statutory Auditor. Under this PPT, a reader would get to know about the What is Appointment of Auditor, Appointment of First Auditor, Appointment of Subsequent Auditor, Term of Auditor, Pre Conditions for Appointment of Auditor, Qualification of Auditor, Disqualification of Auditor, Role of Audit Committee, and Forms to be filed for Appointment of Auditor.
The document summarizes key sections of the Companies Bill 2012 related to accounting and auditing standards. It discusses requirements for companies to maintain books of accounts and prepare financial statements according to accounting standards. It also covers constitution of the National Financial Reporting Authority to set accounting and auditing standards and oversee compliance. The summary establishes that companies will have increased compliance responsibilities and reporting requirements around their financial statements, books of accounts, and audits.
The document discusses the Serious Fraud Investigation Office (SFIO) under the Companies Act of 2013 in India. It establishes SFIO as the agency responsible for investigating corporate fraud. The SFIO is headed by a director and consists of experts from fields like banking, taxation, and law. It has powers to investigate company affairs, examine witnesses, and impose fines. Upon completion of investigations, SFIO submits interim and final reports to the central government, which may then direct prosecution. Fraud is punishable by imprisonment between 6 months to 10 years along with fines under Section 447 of the Companies Act. The SFIO aims to better coordinate fraud prosecution and has more independence than under the previous Companies Act
The document discusses the appointment, remuneration, removal, qualifications, disqualifications, powers, rights and duties of auditors of companies in Pakistan according to the Companies Act 2017. It states that the first auditor is appointed by company directors within 60 days of incorporation to hold office until the first AGM. Subsequent auditors are appointed at each AGM to hold office until the next AGM. It outlines the qualifications required for an auditor, cases for disqualification, and their rights to access company documents and attend shareholder meetings. Auditors have a duty to make reports on company accounts and additional matters if directed.
Companies Act, 2013 - Chapter X - Audit and AuditorsSASPARTNERS
A detailed presentation prepared by SAS Partners Team which gives an insight into the provisions of Chapter X relating to Audit & Auditors. This Chapter has undergone a sea of changes with new concepts introduced. This presentation will prove to be beneficial for the Corporate, Professionals & Students and will give a birds eye view of the provisions and concepts.
This document summarizes the key provisions around auditor eligibility, qualifications, disqualifications, and appointment under the Companies Act 2013 in India. It discusses who is eligible to be an auditor, what qualifications they must have, situations that would disqualify them, and the process and timelines for appointing auditors for new and existing companies, including filling casual vacancies and auditor rotation requirements. It also covers the auditor's remuneration and the process for removing an auditor before the end of their term.
The document summarizes key aspects of auditors and the audit process under the Companies Act 2013 in India. It outlines eligibility requirements for auditors, the appointment and removal process, auditor rotation rules, duties and powers of auditors, and penalties for non-compliance. Some highlights include that only chartered accountants can serve as individual auditors or partners in audit firms. Auditors are appointed by shareholders but require approval from the audit committee and board of directors. They must be independent and cannot provide non-audit services to the company.
Secretarial audit is a newly introduced compliance mechanism under the Companies Act 2013 that requires certain companies to undergo an audit of their compliance with applicable laws conducted by a practicing company secretary. It involves the secretarial auditor checking compliance with various laws and regulations and reporting any non-compliance or observations. Secretarial audits must be conducted for listed companies as well as other public companies meeting certain criteria regarding paid-up capital or turnover.
This document discusses the role and responsibilities of a company auditor according to the Companies Act in India. It covers the qualifications required to be an auditor, their appointment and removal process, rights and duties, and liabilities. Some key points:
1. A company auditor must be a member of the Institute of Chartered Accountants of India or hold a restricted auditor's certificate. They are appointed annually at the AGM by shareholders.
2. The auditor's main duties are to audit the company's accounts and present an audit report. They must have access to all books/records and obtain information/explanations.
3. An auditor can face civil and criminal liabilities for negligence in their duties or mis
CA NOTES ON COMPNAY ACCOUNTS AND AUDITS
FREE AFFIDAVITS AND NOTICES FORMATS
FREE AGREEMENTS AND CONTRACTS FORMATS
FREE LLB LAW NOTES
FREE CA ICWA NOTES
FREE LLB LAW FIRST SEM NOTES
FREE LLB LAW SECOND SEM NOTES
FREE LLB LAW THIRD SEM NOTES
FREE LLB LAW FOURTH SEM NOTES
FREE LLB LAW FIFTH SEM NOTES
FREE LLB LAW SIXTH SEM NOTES
FREE CA ICWA FOUNDATION NOTES
FREE CA ICWA INTERMEDIATE NOTES
FREE CA ICWA FINAL NOTES
KANOON KE RAKHWALE INDIA
HIRE LAWYER ONLINE
LAW FIRMS IN DELHI
CA FIRM DELHI
VISIT : https://www.kanoonkerakhwale.com/
VISIT : https://hirelawyeronline.com/
The document discusses key concepts related to company audits under the Companies Act of 1956 in India. It covers the appointment and remuneration of auditors, qualifications of auditors, disqualifications of auditors, powers and duties of auditors, and the audit report. It also discusses special provisions for government-owned companies and the power of the central government to order special audits. Key points include:
- Auditors must be appointed at the annual general meeting and remuneration must be fixed.
- Only chartered accountants can serve as auditors.
- Auditors have rights to access company documents and attend general meetings.
- Duties include inquiring about loans and transactions
Important Questions of Appointment of AuditorAnkit Agarwal
The document discusses various questions related to the appointment of auditors under the Companies Act. It addresses whether certain individuals like a director, internal auditor, or tax auditor can be appointed as the auditor of a company. It also discusses issues like auditor independence, recovering audit fees, and the maximum number of audits a chartered accountant firm can take on. The responses provide references to relevant sections of the Companies Act and guidelines from regulatory authorities like ICAI to answer each question.
The document is a case brief for Bennett Coleman v. Union of India. It summarizes that the respondents challenged a judgment reconstituting the board of directors of Bennett Coleman company. The court had to determine if the appeal was maintainable. It analyzed sections 408 and 402 of the Companies Act of 1956 to distinguish the powers of the government and courts. The court ultimately pronounced that when acting under sections 398 and 402, the court has wide powers to pass orders and give directions without violating section 255.
The document discusses the applicability of Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015. It provides details on the classes of companies that must comply with Ind AS, including listed companies, unlisted companies based on net worth thresholds, subsidiaries and associates of these companies, and non-banking financial companies. It specifies the accounting periods from which different classes of companies must begin preparing financial statements in accordance with Ind AS.
This document is a project report submitted by a student named Vivek Shriram Mahajan to the University of Mumbai for their M.Com program. The report includes an introduction to auditing, the history of auditing, principles of auditing, types of audits, features of company accounts, objectives of a company audit, and a conclusion. It covers topics like the definition of auditing, principles like integrity and independence, types of audits, requirements for company financial statements, and the purpose of a company audit.
To be an auditor in Malaysia, one must:
1. Be a member of the Malaysian Institute of Accountants for at least 1 year and be a Chartered Accountant
2. Have at least 5 years of audit experience, including 3 years of audit work and 1 year in an audit supervisory role
An auditor can be appointed by company directors before the first annual general meeting. After that, auditors are appointed at each annual general meeting until the next one. Directors can also fill casual vacancies. Auditors can be removed by shareholder resolution with special notice, but otherwise they serve until the next AGM. If an auditor resigns, directors must call a general meeting to appoint a replacement.
This document provides information on company auditors, including their appointment, qualifications, rights, duties, and removal. It defines auditing as the systematic examination of a company's books and records to verify financial operations. An auditor must be independent, have integrity, be objective, and have communication skills. Their rights include access to records and attendance of shareholder meetings. Duties include complying with standards, reporting fraud, and signing audit reports. Auditors are typically appointed by directors or shareholders and can be removed before their term with proper notice and representation rights.
National Financial Reporting Authority Rules 2018Raman Khanna
The document summarizes key aspects of the National Financial Reporting Authority (NFRA) in India, including:
1) NFRA was established under the Companies Act 2013 to regulate accounting and auditing standards and investigate misconduct by auditors.
2) Key functions of NFRA include recommending accounting and auditing standards, monitoring compliance, overseeing audit quality, and investigating auditor misconduct.
3) NFRA has powers similar to a civil court and can impose penalties on auditors for misconduct ranging from fines to practice suspensions.
The document summarizes key provisions around the appointment, eligibility, duties, and reporting responsibilities of auditors according to the Companies Act 2013 in India. It discusses requirements for appointing auditors such as obtaining prior consent, filing notices, and auditor rotation. It also outlines auditor qualifications and disqualifications, powers to access company information, services auditors cannot provide, requirements for audit reports, and auditors' attendance at shareholder meetings.
Guidance notes on audit and auditor under companies act, 2013Amit Kumar
1. The document outlines the provisions related to appointment, eligibility, qualifications, duties and liabilities of auditors under the Companies Act 2013. It discusses the process for appointment and removal of auditors for both government and non-government companies.
2. The duties and powers of auditors are specified which include examining books of account, requiring information from company officers, and reporting on financial statements. Services which auditors cannot provide to their client companies are also listed.
3. The eligibility criteria and disqualifications for auditors are defined. Penalties for companies, officers and auditors for non-compliance with auditor-related provisions are also mentioned.
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013Manoj Singh Bisht
In this presentation, i have tried my best to discuss various facets of provisions contained in Chapter X of the Companies Act, 2013. In few places, only relevant part of a particular section is quoted.
These are my personal views.
For feedback - you can reach out to me at csmanojsbisht@gmail.com
This document outlines various compliance requirements and deadlines for filing forms under the Companies Act, 2013. It lists 23 different forms that must be filed for events like changes to a company's registered office, allotment of securities, annual returns, financial statements, appointment of directors, and more. The deadlines for filing these forms range from 15 days to 60 days after the relevant event occurs. Failure to meet these deadlines to file the required forms can result in penalties for the company.
Here, LegalDelight present its new PPT on the topic of Appointment of Statutory Auditor. Under this PPT, a reader would get to know about the What is Appointment of Auditor, Appointment of First Auditor, Appointment of Subsequent Auditor, Term of Auditor, Pre Conditions for Appointment of Auditor, Qualification of Auditor, Disqualification of Auditor, Role of Audit Committee, and Forms to be filed for Appointment of Auditor.
The document summarizes key sections of the Companies Bill 2012 related to accounting and auditing standards. It discusses requirements for companies to maintain books of accounts and prepare financial statements according to accounting standards. It also covers constitution of the National Financial Reporting Authority to set accounting and auditing standards and oversee compliance. The summary establishes that companies will have increased compliance responsibilities and reporting requirements around their financial statements, books of accounts, and audits.
1) The document discusses the provisions around the appointment, disqualification, removal and resignation of auditors under the Companies Act 2013. It covers topics like appointment of the first auditor, appointment of subsequent auditors, eligibility and disqualifications of auditors, removal of auditors, and resignation of auditors.
2) Key details include that the first auditor must be appointed by the board within 30 days for most companies and 60 days for government companies, and subsequent auditors are appointed at the AGM. Auditors can be removed only by special resolution and with approval of the central government.
3) Upon resignation, an auditor must file a statement within 30 days indicating the reasons for resignation with the company and registr
Analysis of audit provision under income tax & companies actAmit Mahipal
The document analyzes provisions of the Companies Act 1956 and Income Tax Act 1956 relating to audit of accounts. Section 44AB of the Income Tax Act requires audit of accounts if total sales exceed Rs. 60 lakhs or gross receipts exceed Rs. 15 lakhs. It must be conducted before September 30th. Failure to do so can result in a penalty of Rs. 150,000 under Section 271B. Section 210 of the Companies Act requires companies to present audited financial statements at the AGM. The penalty for non-compliance is a fine up to Rs. 10,000 and possible imprisonment of up to 6 months.
The document summarizes key provisions around independent directors, women directors, related party transactions, corporate social responsibility committees, and other committees under the Companies Act 2013 in India. It outlines requirements for independent directors, qualifications for independent directors, their term and appointment process. It also discusses provisions around having a woman director, defining related parties and transactions with them, and mandatory committees around corporate social responsibility, audits, nominations and remuneration, and stakeholders' relationship.
The notification provides rules for companies to obtain the status of a dormant company under the Companies Act, 2013. Key points:
- A company can apply to the Registrar for dormant status by filing Form MSC-1 along with fees. It must pass a special board and shareholder resolution.
- To be eligible, the company cannot have any ongoing legal proceedings, defaults, loans or assets/liabilities. It must have no business operations or transactions for the past 2 years.
- The Registrar can grant a certificate in Form MSC-2 confirming dormant status. A dormant company must file an annual return and have a minimum of 1-3 directors depending on company type
Auditors' role Companies Act, 2013- Aadhit B BalajiAadhit B
At outset of Companies act, 2013, provisions related to Auditor‟s appointment, role and responsibility has given a significant shape comparatively to the previous act (Companies act, 1956). This presentation has focused on the provisions related to Auditors and the impact of the same in present scenario, which is applicable from 1st April, 2014.
Project_Secretarial Audit-Tool for Corporate GovernanceCS Vikas Mehta
The document discusses secretarial audits for companies in India. It provides details on:
- What a secretarial audit is and its objectives of ensuring legal compliance and protecting stakeholder interests.
- The regulatory requirements for secretarial audits for listed companies and large public companies.
- The process of conducting secretarial audits, including examining documents, applicable laws, and reporting requirements.
- Qualification and disqualification criteria for secretarial auditors, who must be practicing company secretaries.
- Consequences for non-compliance with secretarial audit requirements, including penalties for companies and auditors.
- The importance of secretarial audits for boosting corporate compliance and governance standards in India
The document provides an overview of the audit process for insurance companies in India. It discusses key aspects that must be audited including premiums, claims, commissions, operating expenses, investments, cash and bank balances, outstanding premiums, and agents' balances. It also outlines the legislation and guidelines that apply, the composition and role of the audit committee, eligibility requirements for appointing statutory auditors, and the internal control system. The objectives of the audit are to ensure compliance with relevant laws and regulations and adherence to sound accounting practices.
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- Statutory auditors have rights to company information and attendance at meetings. They
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Every company has to mandatorily appoint statutory auditors for examining the true and fair view of the financial statements and to express an opinion on such financial statements. Apart from statutory auditors, there are other types of auditors to be appointed for monitoring the statutory compliances, risk / fraud management system, internal control system and for reviewing the overall performance of the management and various functions in an organisation. The webinar covers the aspects of provisions relating to appointment of statutory auditors/ internal auditors, qualification and eligibility criteria for appointment, statutory compliances and judicial precedents.
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Appointment of auditors under Singapore Companies Act
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Powers and duties of auditors
Remuneration of auditors
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Analytical procedures are techniques used in financial auditing and analysis to evaluate financial information through comparison and analysis. They can be used at different stages of an audit, including planning, interim review, and final review. Analytical procedures help auditors gain insights into an organization's financial performance and identify potential financial statement issues, improving audit efficiency and quality of financial reporting. They also help assess risks of material misstatements and provide valuable information to management and stakeholders.
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The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive functioning. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
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Red Chillies Ltd is a leading global Indian film entertainment company incorporated in Mumbai. It is engaged in co-producing, acquiring, and distributing Indian language films worldwide. The company has over 20 subsidiaries and aims to be the top company in the global Indian film industry through innovation and good governance. It is issuing shares to raise funds for acquiring more films and for general corporate purposes. Key financial information and the issue structure are provided.
appointment of directors to be voted individually (Sec. 162 chapter xi) ACS Shalu Saraf
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1) Section 162(1) states that directors must be appointed individually by a vote at a company's General Meeting rather than by a single resolution.
2) Section 162(2) notes that any resolution in contravention of 162(1) will be considered void, regardless of whether any objections were raised at the time.
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The document discusses rules related to forming a One Person Company (OPC) according to the Companies Act of 2013. It states that an OPC can be formed by one person, who must be an Indian citizen resident in India. It also outlines rules for nominating another person who would become the member in case of the subscriber's death or incapacity. This includes filing consent forms with the registrar and notifying them of any changes to the nominee. Penalties for contravening these OPC rules include fines up to Rs. 10,000 plus Rs. 1,000 per day for continued violations.
The document is a general circular from the Ministry of Corporate Affairs in India providing clarification regarding section 180 of the Companies Act of 2013. It states that any resolutions passed under section 293 of the previous Companies Act of 1956 before September 12, 2013 regarding borrowings or security within prescribed limits will be considered sufficient compliance with section 180 for one year from the notification date. The circular was addressed to regional directors, registrars of companies, and all stakeholders on the subject of clarification for section 180.
This document provides amendments to the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996. Some key points:
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सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
1. 1
[To be published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-Section (i)]
Government of India
Ministry of Corporate Affairs
NOTIFICATION
New Delhi, the ……….2014
G.S.R….(E).- In exercise of powers conferred by sub-sections (1),
(2) and (4) of section 139, sub-sections (1) and (2) of section 140, sub-
section (3) of section 141, sub-sections (2), (3), (8) and (12) of section
143, sub-section (3) of section 148 read with sub-sections (1) and (2) of
section 469 of the Companies Act, 2013 (18 of 2013) and in supersession
of the Companies (Central Government’s) General Rules and Forms, 1956
in so far as they relate to matters covered under these rules, except as
respects things done or omitted to be done before such supersession, the
Central Government hereby makes the following rules, namely:-
1. Short title and commencement.- (1) These rules may be called as
the Companies (Audit and Auditors) Rules, 2014.
(2) They shall come into force on the 1st day of April, 2014.
2. Definitions.- (1) In these rules, unless the context otherwise
requires,-
(a) “Act” means the Companies Act, 2013 (18 of 2013);
(b) “Annexure” means the Annexure enclosed to these rules;
(c) “fees” means fees specified in the Companies (Registration Offices and
Fees) Rules, 2014.
(d) “Form” or “e-Form” means a form set forth under these rules which
shall be used for the matter to which it relates;
2. 2
(e) “section” means section of the Act.
(2) The words and expressions used in these rules but not defined and
defined in the Act or in the Companies (Specification of definitions details)
Rules, 2014 shall have the meanings respectively assigned to them in the
Act or in the said rules.
3. Manner and procedure of selection and appointment of
auditors.- (1) In case of a company that is required to constitute an
Audit Committee under section 177, the committee, and, in cases where
such a committee is not required to be constituted, the Board, shall take
into consideration the qualifications and experience of the individual or
the firm proposed to be considered for appointment as auditor and
whether such qualifications and experience are commensurate with the
size and requirements of the company:
Provided that while considering the appointment, the Audit
Committee or the Board, as the case may be, shall have regard to any
order or pending proceeding relating to professional matters of conduct
against the proposed auditor before the Institute of Chartered
Accountants of India or any competent authority or any Court.
(2) The Audit Committee or the Board, as the case may be, may call for
such other information from the proposed auditor as it may deem fit.
(3) Subject to the provisions of sub-rule (1), where a company is required
to constitute the Audit Committee, the committee shall recommend the
name of an individual or a firm as auditor to the Board for consideration
and in other cases, the Board shall consider and recommend an individual
or a firm as auditor to the members in the annual general meeting for
appointment.
(4) If the Board agrees with the recommendation of the Audit Committee,
it shall further recommend the appointment of an individual or a firm as
auditor to the members in the annual general meeting.
3. 3
(5) If the Board disagrees with the recommendation of the Audit
Committee, it shall refer back the recommendation to the committee for
reconsideration citing reasons for such disagreement.
(6) If the Audit Committee, after considering the reasons given by the
Board, decides not to reconsider its original recommendation, the Board
shall record reasons for its disagreement with the committee and send its
own recommendation for consideration of the members in the annual
general meeting; and if the Board agrees with the recommendations of
the Audit Committee, it shall place the matter for consideration by
members in the annual general meeting.
(7) The auditor appointed in the annual general meeting shall hold office
from the conclusion of that meeting till the conclusion of the sixth annual
general meeting, with the meeting wherein such appointment has been
made being counted as the first meeting:
Provided that such appointment shall be subject to ratification in
every annual general meeting till the sixth such meeting by way of
passing of an ordinary resolution.
Explanation.- For the purposes of this rule, it is hereby clarified that, if
the appointment is not ratified by the members of the company, the
Board of Directors shall appoint another individual or firm as its auditor
or auditors after following the procedure laid down in this behalf under
the Act.
4. Conditions for appointment and notice to Registrar.- (1) The
auditor appointed under rule 3 shall submit a certificate that -
(a) the individual or the firm, as the case may be, is eligible for
appointment and is not disqualified for appointment under the Act, the
Chartered Accountants Act, 1949 and the rules or regulations made
thereunder;
(b) the proposed appointment is as per the term provided under the Act;
4. 4
(c) the proposed appointment is within the limits laid down by or under
the authority of the Act;
(d) the list of proceedings against the auditor or audit firm or any partner
of the audit firm pending with respect to professional matters of conduct,
as disclosed in the certificate, is true and correct.
(2) The notice to Registrar about appointment of auditor under fourth
proviso to sub-section (1) of section 139 shall be in Form ADT-1.
5. Class of Companies.- For the purposes of sub-section (2) of section
139, the class of companies shall mean the following classes of companies
excluding one person companies and small companies:-
(a) all unlisted public companies having paid up share capital of
rupees ten crore or more;
(b) all private limited companies having paid up share capital of
rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold limit
mentioned in (a) and (b) above, but having public borrowings from
financial institutions, banks or public deposits of rupees fifty crores or
more.
6. Manner of rotation of auditors by the companies on expiry of
their term.- (1) The Audit Committee shall recommend to the Board, the
name of an individual auditor or of an audit firm who may replace the
incumbent auditor on expiry of the term of such incumbent.
(2) Where a company is required to constitute an Audit Committee, the
Board shall consider the recommendation of such committee, and in other
cases, the Board shall itself consider the matter of rotation of auditors
and make its recommendation for appointment of the next auditor by the
members in annual general meeting.
5. 5
(3) For the purpose of the rotation of auditors-
(i) in case of an auditor (whether an individual or audit firm), the period
for which the individual or the firm has held office as auditor prior to the
commencement of the Act shall be taken into account for calculating the
period of five consecutive years or ten consecutive years, as the case may
be;
(ii) the incoming auditor or audit firm shall not be eligible if such auditor
or audit firm is associated with the outgoing auditor or audit firm under
the same network of audit firms.
Explanation. I - For the purposes of these rules the term “same
network” includes the firms operating or functioning, hitherto or in future,
under the same brand name, trade name or common control.
Explanation. II - For the purpose of rotation of auditors,-
(a) a break in the term for a continuous period of five years shall be
considered as fulfilling the requirement of rotation;
(b) if a partner, who is in charge of an audit firm and also certifies the
financial statements of the company, retires from the said firm and joins
another firm of chartered accountants, such other firm shall also be
ineligible to be appointed for a period of five years.
Illustration explaining rotation in case of individual auditor
Illustration 1:-
Number of consecutive
years for which an individual
auditor has been functioning
as auditor in the same
company [in the first AGM
held after the
commencement of
provisions of section
139(2)]
Maximum number of
consecutive years for
which he may be
appointed in the same
company (including
transitional period)
Aggregate period which
the auditor would
complete in the same
company in view of
column I and II
6. 6
I II III
5 years (or more than 5
years)
3 years 8 years or more
4 years 3 years 7 years
3 years 3 years 6 years
2 years 3 years 5 years
1 year 4 years 5 years
Note: 1. Individual auditor shall include other individuals or firms whose
name or trade mark or brand is used by such individual, if any.
2. Consecutive years shall mean all the preceding financial years for
which the individual auditor has been the auditor until there has been a
break by five years or more.
Illustration explaining rotation in case of audit firm
Illustration 2:-
Number of consecutive
years for which an audit
firm has been functioning as
auditor in the same
company [in the first AGM
held after the
commencement of
provisions of section
139(2)]
Maximum number of
consecutive years for
which the firm may be
appointed in the same
company (including
transitional period)
Aggregate period which
the firm would
complete in the same
company in view of
column I and II
I II III
10 years (or more than 10
years)
3 years 13 years or more
9 years 3 years 12 years
8 years 3 years 11 years
7 years 3 years 10 years
6 years 4 years 10 years
5 years 5 years 10 years
4 years 6 years 10 years
7. 7
3 years 7 years 10 years
2 years 8 years 10 years
1 year 9 years 10 years
Note:1. Audit Firm shall include other firms whose name or trade mark or
brand is used by the firm or any of its partners.
2. Consecutive years shall mean all the preceding financial years for
which the firm has been the auditor until there has been a break by five
years or more.
(4) Where a company has appointed two or more individuals or firms or a
combination thereof as joint auditors, the company may follow the
rotation of auditors in such a manner that both or all of the joint auditors,
as the case may be, do not complete their term in the same year.
7. Removal of the auditor before expiry of his term.- (1) The
application to the Central Government for removal of auditor shall be
made in Form ADT-2 and shall be accompanied with fees as provided for
this purpose under the Companies (Registration Offices and Fees) Rules,
2014.
(2) The application shall be made to the Central Government within thirty
days of the resolution passed by the Board.
(3) The company shall hold the general meeting within sixty days of
receipt of approval of the Central Government for passing the special
resolution.
8. Resignation of auditor.- For the purposes of sub-section (2) of
section 140, when an auditor has resigned from the company, he shall file
a statement in Form ADT-3.
9. Liability to devolve on concerned partners only.- In case of
criminal liability of any audit firm, the liability other than fine, shall
devolve only on the concerned partner or partners, who acted in a
8. 8
fraudulent manner or abetted or, as the case may be, colluded in any
fraud.
10. Disqualifications of auditor.- (1) For the purpose of proviso to sub-
clause (i) of clause (d) of sub-section (3) of section 141, a relative of an
auditor may hold securities in the company of face value not exceeding
rupees one lakh:
Provided that the condition under this sub-rule shall, wherever
relevant, be also applicable in the case of a company not having share
capital or other securities:
Provided further that in the event of acquiring any security or
interest by a relative, above the threshold prescribed, the corrective
action to maintain the limits as specified above shall be taken by the
auditor within sixty days of such acquisition or interest.
(2) For the purpose of sub-clause (ii) of clause (d) of sub-section (3) of
section 141, a person who or whose relative or partner is indebted to the
company or its subsidiary or its holding or associate company or a
subsidiary of such holding company, in excess of rupees five lakh shall
not be eligible for appointment.
(3) For the purpose of sub-clause (iii) of clause (d) of sub-section (3) of
section 141, a person who or whose relative or partner has given a
guarantee or provided any security in connection with the indebtedness of
any third person to the company, or its subsidiary, or its holding or
associate company or a subsidiary of such holding company, in excess of
one lakh rupees shall not be eligible for appointment.
(4) For the purpose of clause (e) of sub-section (3) of section 141, the
term “business relationship” shall be construed as any transaction entered
into for a commercial purpose, except -
9. 9
(i) commercial transactions which are in the nature of professional
services permitted to be rendered by an auditor or audit firm under
the Act and the Chartered Accountants Act, 1949 and the rules or
the regulations made under those Acts;
(ii) commercial transactions which are in the ordinary course of
business of the company at arm’s length price - like sale of products
or services to the auditor, as customer, in the ordinary course of
business, by companies engaged in the business of
telecommunications, airlines, hospitals, hotels and such other
similar businesses.
11. Other matters to be included in auditors report.- The auditor’s
report shall also include their views and comments on the following
matters, namely:-
(a) whether the company has disclosed the impact, if any, of
pending litigations on its financial position in its financial statement;
(b) whether the company has made provision, as required under
any law or accounting standards, for material foreseeable losses, if
any, on long term contracts including derivative contracts;
(c) whether there has been any delay in transferring amounts,
required to be transferred, to the Investor Education and Protection
Fund by the company.
12. Duties and powers of the company’s auditor with reference to
the audit of the branch and the branch auditor.- (1) For the
purposes of sub-section (8) of section 143, the duties and powers of the
company’s auditor with reference to the audit of the branch and the
10. 10
branch auditor, if any, shall be as contained in sub-sections (1) to (4) of
section 143.
(2) The branch auditor shall submit his report to the company’s auditor.
(3) The provisions of sub-section (12) of section 143 read with rule 12
hereunder regarding reporting of fraud by the auditor shall also extend to
such branch auditor to the extent it relates to the concerned branch.
13. Reporting of frauds by auditor.- (1) For the purpose of sub-
section (12) of section 143, in case the auditor has sufficient reason to
believe that an offence involving fraud, is being or has been committed
against the company by officers or employees of the company, he shall
report the matter to the Central Government immediately but not later
than sixty days of his knowledge and after following the procedure
indicated herein below:
(i) auditor shall forward his report to the Board or the Audit
Committee, as the case may be, immediately after he comes to
knowledge of the fraud, seeking their reply or observations within
forty-five days;
(ii) on receipt of such reply or observations the auditor shall forward
his report and the reply or observations of the Board or the Audit
Committee alongwith his comments (on such reply or observations
of the Board or the Audit Committee) to the Central Government
within fifteen days of receipt of such reply or observations;
(iii) in case the auditor fails to get any reply or observations from
the Board or the Audit Committee within the stipulated period of
forty-five days, he shall forward his report to the Central
Government alongwith a note containing the details of his report
that was earlier forwarded to the Board or the Audit Committee for
which he failed to receive any reply or observations within the
stipulated time.
11. 11
(2) The report shall be sent to the Secretary, Ministry of Corporate Affairs
in a sealed cover by Registered Post with Acknowledgement Due or by
Speed post followed by an e-mail in confirmation of the same.
(3) The report shall be on the letter-head of the auditor containing postal
address, e-mail address and contact number and be signed by the auditor
with his seal and shall indicate his Membership Number.
(4) The report shall be in the form of a statement as specified in Form
ADT-4.
(5) The provision of this rule shall also apply, mutatis mutandis, to a cost
auditor and a secretarial auditor during the performance of his duties
under section 148 and section 204 respectively.
14. Remuneration of the Cost Auditor.- For the purpose of sub-
section (3) of section 148,-
(a) in the case of companies which are required to constitute an audit
committee-
(i) the Board shall appoint an individual, who is a cost accountant in
practice, or a firm of cost accountants in practice, as cost auditor on the
recommendations of the Audit committee, which shall also recommend
remuneration for such cost auditor;
(ii) the remuneration recommended by the Audit Committee under (i)
shall be considered and approved by the Board of Directors and ratified
subsequently by the shareholders;
(b) in the case of other companies which are not required to constitute an
audit committee, the Board shall appoint an individual who is a cost
accountant in practice or a firm of cost accountants in practice as cost
auditor and the remuneration of such cost auditor shall be ratified by
shareholders subsequently.
_
12. 12
FORM NO. ADT-1
[See rule 4(2) of the Companies (Audit and Auditors) Rules, 2014]
Notice of appointment of auditor by the company
1.(a) Corporate identity number (CIN) or foreign company registration
number (FCRN) of the company
(b) Global Location Number (GLN) of company
2. (a) Name of the company:
(b) Address of the registered office or of the principal place of business
in India of the company:
(c) E-mail ID of the company
3. Date of meeting at which the auditor appointed _____________
4. Category of Auditor Individual Firm
5.(a) Income Tax PAN of Auditor or auditor’s firm
(b) Name of the Auditor or Auditor’s firm
(c ) Membership Number of Auditor or auditor’s firm’s registration number
(d) Address of the Auditor or auditor’s firm
(e) City
(f) State
(g) Pin code
(h) Email id of the auditor or auditor’s firm
Place:
Date:
13. 13
Verification
I am authorised by the Board of Directors of the Company vide resolution
no…………. dated…………… to sign this form and declare that all the requirements
of Companies Act, 2013 (18 of 2013) and the rules made thereunder in respect
of the subject matter of this form and matters incidental thereto have been
complied with. I also declare that all the information given herein above is true,
correct and complete including the attachments to this form and nothing
material has been suppressed.
To be digitally signed by
Designation (to be given)
DIN of the person signing the form.
Note:
This eform has been taken on file maintained by the Registrar of companies
through electronic mode and on the basis of statement of correctness given by
the filing company. Attention is also drawn to provisions of section 448 of the
Act which provide for punishment for false statement.
14. 14
FORM NO. ADT-2
Application for removal of auditor(s) from his/their office
before expiry of term
[See rule 7(1) of Companies (Audit and Auditors) Rules, 2014]
1. (a) Corporate identity number (CIN) or foreign company registration
number (FCRN) of the company:
(b) Global Location Number (GLN) of company:
2. (a) Name of the company:
(b) Address of the registered office or of the principal place of
business in India of the company:
(c) E-mail ID of the company:
3.(a) Service request number of relevant special resolution
(b) date of filing the form
(c) date of passing the special resolution
(d) date of the annual/extraordinary general meeting
4. Details of the application clearly indicating the grounds for seeking
removal of auditor
5. Whether the accounts have been qualified during last three years (if
yes, give details)
15. 15
6. Details of opportunity given to auditor concerned for being heard
7. Whether any civil or criminal proceedings are pending between the
company and the concerned officers. ___ Yes ____ No. If yes, give
complete details.
8. Date of appointment of the concerned auditor and SRN of notice of
his appointment and period for which the auditor was appointed.
9. Whether any special notice has been received for removal of
auditors. Yes or No. If yes, the date of receipt of notice and the
percentage of capital held by the members giving such notice or
percentage of the number of members in case of company limited by
members.
10. Whether all due audit fee has been paid to the concerned auditors.
If no mention the amount of arrears.
11. Details of other services been rendered by such auditors to the
company.
12. Pendency of Audit i.e, number of financial years for which audit is
pending.
13. Stage of accounts of the company for each of such financial year
i.e, yet to be approved by the Board or approved by the Board but yet
to be handed over to auditors or approved by the Board, handed over to
auditors but audit not yet completed or audit completed, draft report not
yet given by the auditors.
14. Whether there is any dispute with regard to the Books of Accounts in
the possession of auditors but not delivered back to the company. Yes
or No.
16. 16
Verification
I am authorized by the Board of Directors of the Company vide
resolution no…………. dated…………… to sign this form and declare that all
the requirements of Companies Act, 2013 and the rules made
thereunder in respect of the subject matter of this form and matters
incidental thereto have been complied with. I also declare that all the
information given herein above is true, correct and complete including
the attachments to this form and nothing material has been suppressed.
To be digitally signed by
Designation (to be given)
DIN of the person signing the form
Attachments:
1. Copy of the special resolution
2. Details of the grounds for seeking removal of auditor
3. Minutes of the annual general meeting or extraordinary general
meeting
4. Optional attachments, if any
_________________________________________________________
Note:
Attention is also drawn to provisions of Section 448 and 449 which
provide for punishment for false statement and punishment for false
evidence respectively.
_________________________________________________________
___
For office use only: E-form Service Request Number (SRN)……………… E-
form filing date….
Digital signature of the authorizing officer
This e-form is hereby approved/rejected
Date of signing
17. 17
FORM NO. ADT-3
[See rule 8 of Companies (Audit and Auditors) Rules, 2014]
Notice of Resignation by the Auditor
1.(a) Corporate identity number (CIN) or foreign company registration
number (FCRN) of the company:
(b) Global Location Number (GLN) of company:
2.(a) Name of the company:
(b) Address of the registered office or of the principal place of
business in India of the company:
(c) E-mail ID of the company:
3. Category of Auditor Individual Firm
4.(a) Income Tax PAN of auditor or auditor’s firm
(b) Name of the auditor or auditor’s firm
(c ) Membership Number of auditor or auditor’s firm’s registration number
(d) Address of the auditor or auditor’s firm
(e) City
(f) State
(g) Pin code
(h) Email id of the auditor or auditor’s firm
5. Reasons for resignation
6. Whether letter of resignation is attached Yes/No
7. Any other facts relevant to the resignation
Verification
18. 18
I hereby confirm that the information given in this form and its
attachments is correct and complete.
I am duly authorised to sign and submit this form.
To be digitally signed by
Auditor / Partner of the audit firm
Whether Associate or Fellow:
____ Associate _____ Fellow
Membership Number:
Attachments:
1. Resignation letter, if attached
2. optional attachments, if any.
19. 19
Form No.ADT-4
REPORT TO THE CENTRAL GOVERNMENT
(See rule 13(4) of the Companies (Audit and Auditors) Rules, 2014)
Date:
Subject: Report under sub- section (12) of section 143 of the Companies
Act, 2013 on suspected offence involving fraud being committed or having
been committed
1) (a)Name of the Company
(b) CIN:
(c) Address of the Registered Office:
2) (a) Name of the auditor or auditor’s Firm
(b) Membership Number
(c) Address
3) Date of the annual general meeting when the Auditor was appointed
or reappointed
4) SRN and date of filing
5) Address of the office or location where the suspected offence is
believed to have been or is being committed
6) Full details of the suspected offence involving fraud (attach
documents in support)
7) Particulars of the officers or employees who are suspected to be
involved in the commission of the offence, if any:
a) Name(s) :
b) Designation
c) If Director, his DIN
20. 20
d) PAN
8) Basis on which fraud is suspected:
9) Period during which the suspected fraud has occurred
10) Date of sending report to the Board or Audit committee as per rule
13(1)
11) Date of reply received from Board or Audit committee, if any and if
so received, attach copy thereof and give gist of the reply
12) Whether the auditor is satisfied with the reply of the Board or Audit
committee. Yes _____ No _____.
13) Estimated amount involved in the suspected fraud;
14) Details of steps , if any, taken by the company in this regard;
(Furnish full details with references)
15) Any other relevant information.
VERIFICATION
I, ………………, Proprietor/Partner of ……………………………, Chartered
Accountants do hereby declare that the information furnished above is
true, correct and complete in all respects including the attachments to
this form.
(Name, Signature and
Seal of the Auditor)
Attachments:
1 Optional attachments
________________________________________________________
21. 21
Note: The report on this form along with attachments thereto is to be
given in a sealed cover to the Secretary, Ministry of Corporate Affairs in
the manner provided in Rule 13.
[File No. 1/33/2013-CL-V]
(Renuka Kumar)
Joint Secretary to the Government of India