Pvt ltd company exempt as per sec 224(1b)

Please refer to teh fourth proviso to section 224(1B) whihc reads as follows highlighted in Bold below:

224. APPOINTMENT AND REMUNERATION OF AUDITORS

(1) Every company shall, at each annual general meeting, appoint an auditor or auditors to hold office from the

conclusion of that meeting until the conclusion of the next annual general meeting and shall, within seven days of the

appointment, give intimation thereof to every auditor so appointed :

Provided that before any appointment or re-appointment of auditor or auditors is made by any company at any annual

general meeting, a written certificate shall be obtained by the company from the auditor or auditors proposed to be so

appointed to the effect that the appointment or re-appointment, if made, will be in accordance with the limits specified

in sub-section (1B).

(1A) Every auditor appointed under sub-section (1) shall within thirty days of the receipt from the company of the

intimation of his appointment, inform the Registrar in writing that he has accepted, or refused to accept, the

appointment.

(1B) On and from the financial year next following the commencement of the Companies (Amendment) Act, 1974 (41

of 1974), no company or its Board of directors shall appoint or re-appoint any person 1[who is in full-time employment

elsewhere] or firm as its auditor if such person or firm is, at the date of such appointment or re-appointment, holding

appointment as auditor of the specified number of companies or more than the specified number of companies :

2[Provided that in the case of a firm of auditors, "specified number of companies" shall be construed as the number of

companies specified for every partner of the firm who is not in full-time employment elsewhere :]

Provided further that where any partner of the firm is also a partner of any other firm or firms of auditors, the number

of companies which may be taken into account, by all the firms together, in relation to such partner shall not exceed

the specified number in the aggregate.

Provided also that where any partner of a firm of auditors is also holding office, in his individual capacity, as the

auditor of one or more companies, the number of companies which may be taken into account in his case shall not

exceed the specified number, in the aggregate.

3[Provided also that the provisions of this sub-section shall not apply, on and after the commencement of the

Companies (Amendment) Act, 2000, to a private company.]