[aaykarbhavan] Cl:CA holding more than 20 Cos audit on 1/4/2014 has been disqualified as auditor u/s 141 of Co Act,2013,however wait for 1-2 month for further clarification

As per Section 141,which is applicable from 1/4/2014,a person is
disqualified to be an auditor if such person or partner is at the
date of such appointment or reappointment holding appointment as
auditor of more than twenty companies;

As per General Circular 08/2014, the financial statements (and
documents required to be attached thereto), auditors report and Board
report in respect of financial years that commenced earlier than 1st
April, 2014 shall be governed by the relevant provisions/ Schedules/
rules of the Companies Act, 1956 and that in respect of financial
years commencing on or after 1* April, 2014, the provisions of the new
Act shall apply.

My comments:
Although audit report in respect of financial years that commenced
earlier than 1st April, 2014 shall be governed by the relevant
provisions/ Schedules/ rules of the Companies Act, 1956, a person will
be still disqualified to be an auditor on 1/4/2014, if he holds
appointment of more than 20 companies on 1/4/2014.There is no
relaxation for disqualification as auditor under this circular.

However, we may wait for 1-2 months more to see whether ministry issue
any notification for some relaxation as promised below:-

The Ministry of Corporate Affairs today said efforts are being made to
resolve difficulties faced by various professional entities, including
company secretaries and auditors, with regard to new companies law.

There have been discontent in some quarters related to certain rules
under the new Companies Act. Most provisions of the new legislation
came into effect from April 1.
"Auditors, company secretaries and cost accountants will have to
re-invent themselves if they are to discharge responsibilities
entrusted to them under the new law...," M J Joseph, who is the
Additional Secretary at the Ministry, said here.

He also assured that the Ministry would effectively deal with
difficulties they face and "resolve such issues at the earliest".

"We are in discussions and dialogues to address the issues," he said
while speaking at a conference.

Earlier this month, members of the Institute of Company Secretaries of
India (ICSI) had staged protest demanding changes pertaining to their
profession in the new legislation.

As per the notified rules, public companies with paid up capital of up
to Rs 10 crore as well as all private firms have been exempted from
having a company secretary. In the draft rules, the threshold was kept
at Rs 5 crore or more.

ICSI had also demanded that secretarial audit should be made
applicable to those "companies which are at least subject to internal
audit".

Meanwhile, there have been apprehensions about rotation of auditors at
companies while many sectors have been excluded from the ambit of cost
audit.
--
Warm Regards

"Team" CA.Nitesh More* | FCA, |

Visit our blog: caniteshmore.blogspot.com

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