ceiling limit

Save Share

This query is : Resolved

Guest

Guest (Querist)

08 February 2010 Law wording is:

Explanation I : For the purposes of sub-sections (1B) and (1C), "specified number" means, -
(a) 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;
(b) 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

Here, "co." is mentioned so why limit is counted as for "public co."
the limit of 20 should be for both public and pvt.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)

08 February 2010 As per the fourth proviso added to sub-section (1B) by the Companies (Amendment) Act, 2000, private companies have been excluded from the existing ceiling of 20 audits per partner and sub-ceiling of 10 audits for companies having a paid up capital of Rs. 25 Lacs or more. Thus, apart from 20 audits of public companies, an auditor may conduct audit of private companies without any ceiling.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now