An audit firm comprising of 2 partners holds office as auditor of 40 private companies out of which paid up capital of 20 companies exceeds 50 lakhs. such audit firm wants to be appointed as an XYZ pvt. ltd. Decide whether this is in consonance with the appicable law.
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Ceiling limit for auditors
Replies (1)
As per MCA Notification dated 05.06.2015, following companies shall be omitted/disregared for purpose of determining limitation of appointment of auditor of twenty Companies:
1. One Person Companies (OPC)
2. Dormant Companies
3. Small Companies
4. Private Companies having paid up share capital less than 100 crores.
Hence they can be appointed as auditors in XY Company.
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