Big mistake in munish bhandari book

Final 925 views 3 replies

Subhendu S Sanyal

B.Com(C.S.) CA FINAL

666 Points Joined February 2009

Dear Friends,

I found the following mistake in Munish Bhandari Sir LAW Textbook for CA Final(January 2016 edition) applicable for MAY 16 Exams:-

In the Chapter Audit & Auditors- Section 141(3) of the Companies Act - Disqualifications for an auditor under sub clause- g (Page 3.13) its given that while computing the limit of 20 company audits per partner/person the audit of private companies shall be included for reckoning the above limit.

However MCA Notification No. F. No. 1/1 /2014-cL.V(G,S.R. 464(E) dated 05.06.2015 with regard which provides exemption for private companies states that private companies having paid-up share capital less than one hundred crore rupees will not covered under the aforesaid limit under Section 141(3)(g).

The notification further states that one person companies, dormant companies, small companies, shall also not be reckoned for reckoning above limit of 20 companies.

However, Munish Bhandari Sir book does not contain anything with regard to the same.

The notification is availble at https://resource.cdn.icai.org/37873clcgc-notification.pdf

It is to be noted that the above notification is applicable for CA Final May 2016 Exams as per BOS -ICAI

Attached File : 143506 20160220030944 37873clcgc notification.pdf downloaded: 167 times

Replies (3)

CS Ashish bhal

trainee

53 Points Joined January 2012

The answer is in your question as the audit of private limited company is included in the celinig limit u/s 141 (3)(g) if the paid up capital is more than 100 crore. notification was issued for removing this doubt only which you are mentioning in your query

Rajagopal

Accountant

110 Points Joined July 2013

A person is disqualified to be appointed as an auditor if he is holding appointment as an auditor in 20 companies.. While counting the 20 companies the following companies are excluded: Small company OPC Dormant company And Private company whose paid up capital is less than 100 crores. Hi subendu, Follow our institute resources.. For reference use other author books..