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CHAPTER - X

CHAPTER - X. AUDIT & AUDITORS (Section 139 – 148). Applicability : . The Auditor should be appointed for the period of 5 Years at a time and will be eligible for reappointment and condition of rotation of auditor is not applicable in the following cases :

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CHAPTER - X

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  1. CHAPTER - X AUDIT & AUDITORS (Section 139 – 148)

  2. Applicability : • The Auditor should be appointed for the period of 5 Years at a time and will be eligible for reappointment and condition of rotation of auditor is not applicable in the following cases : a) all private limited companies having paid up share capital of Rs. 20 Crore or Less AND b) all unlisted public companies having paid up share capital of Rs. 10 Crore or Less AND c) all Unlisted Public Companies & Private Companies having public borrowings from financial institutions, banks or public deposits of Rs. 50 crores or less.

  3. APPOINTMENT OF AUDITORS (S.139):

  4. APPOINTMENT OF AUDITORS (S.139):

  5. Content of certificate ( BY AUDITOR): • Auditor is eligible for appointment and is not disqualified for appointment under the Act. • Proposed appointment is as per the term provided under the Act • Proposed appointment is within the limits laid down by or under the authority of the Act • list of proceedings against the auditor or audit firm or any partner of the audit firm pending with respect to professional matters of conduct • File notice of appointment of auditor with the Registrar of Companies within 15 days in Form ADT-1.

  6. Rotation of individual auditor:

  7. Rotation of audit firm:

  8. Removal of the auditor :

  9. Resignation of Auditor On resignation, an auditor shall file a statement (indicating reasons & facts) in Form ADT-3with ROC in 30 days from date of resignation.

  10. additional CONTENTS OF AUDITOR’S REPORT • Report on the accounts of any branch office of the company audited is considered. • The observations or comments of the auditors on financial transactions • Any director is disqualified from being appointed as a director under sub-section (2) of section 164; • whether the company has disclosed the impact, if any, of pending litigations on its financial position in its financial statement; • whether the company has made provision, as required under any law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivative contracts; • whether there has been any delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.

  11. AUDITOR NOT TO RENDER CERTAIN SERVICES (S. 144): Auditor Shall not render following services DIRECTLY or INDIRECTLY to the COMPANY/IT’S HOLDING / IT’S SUBSIDIARY: - • Accounting and book keeping services; • Internal audit; • Design and implementation of any financial information system; • Actuarial services; • Investment advisory services; • Investment banking services; • Rendering of outsourced financial services; • Management services; and • Any other kind of services as may be prescribed:

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