MCA releases Companies (Audit and Auditors) Second Amendment Rules, 2021



Quick Summary
The Ministry of Corporate Affairs (MCA) has introduced the Companies (Audit and Auditors) Second Amendment Rules, 2021. These new rules, which came into effect on 1st April 2021, further amend the existing Companies (Audit and Auditors) Rules of 2014. A significant change involves an amendment to rule 11, clause (g), specifying a new condition for financial years commencing on or after 1st April 2022.

The Ministry of Corporate Affairs has released the Companies (Audit and Auditors) Second Amendment Rules, 2021 in order to further make amendments to the Companies (Audit and Auditors) Rules, 2014. Read the official notification below:

[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 1st April, 2021 

G S R (E).- In exercise of the powers conferred by sections 139, 143, 147 and 148 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Audit and Auditors) Rules, 2014, namely:-

Companies (Audit and Auditors) Second Amendment Rules, 2021 Released

1. (1) These rules may be called the Companies (Audit and Auditors) Second Amendment Rules, 2021.

(2) They shall come into force with effect from the 1st day of April, 2021. 

2. In the Companies (Audit and Auditors) Rules, 2014, in rule 11, in clause (g), for the words "Whether the company", the words, figures and letters "Whether the company, in respect of financial years commencing on or after the 1st April, 2022," shall be substituted. 

[F. No.1/33/2013.CL-V (Part)] 

K.V R. Murty, 
Joint Secretary to the Government of India 

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 246(E), dated the 31st March, 2014 and were last amended vide G.S.R. 206(E) dated the 24th March, 2021. 

FAQ :

These are new rules released by the Ministry of Corporate Affairs that further amend the Companies (Audit and Auditors) Rules, 2014.

The Companies (Audit and Auditors) Second Amendment Rules, 2021, came into force on the 1st day of April, 2021.

The amendment modifies rule 11, clause (g) of the principal rules, introducing a new condition for financial years commencing on or after 1st April 2022.

These rules are made in exercise of the powers conferred by sections 139, 143, 147 and 148 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013.

The principal rules were published in the Gazette of India on 31st March 2014.




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