Cl: Argument given against limit of 20 Co. Audit & Rotation, Sec 185 by CA Nitesh More:AN AUDITOR OF JAMMU CAN NOT BE APPOINTED TO AUDIT SMALL CO OF KANYAKUMARI AS IT WILL NOT BE COST EFFECTIVE, sec 185 is anti business etc:MY proposal to exempt less than 25 crores paid up capital from limit of 20 audit limit & rotation & exemption of sec 185 for PVT Ltd has been sent to law ministry by mca: More than 10000 comments on audit chapter has been received

1)    Issue of limit of 20 Co. Audit & Rotation:

a)  

 They told me that there are enough no of auditor for 20 co audit/ CA. I argued with them that even if there are enough no of auditor in total, there is deficit in citywise audit & auditor. AN AUDITOR OF JAMMU CAN NOT BE APPOINTED TO AUDIT SMALL CO OF KANYAKUMARI AS IT WILL NOT BE COST EFFECTIVE. 

b) Again, all CA in practice are not in auditing profession.

c) Again, ca will leave ca profession as a ca gets audit fees as low as 5000 / company as audit fees for small company. There annual income will decrease without proportionate increase in risk (risk under new companies act increased drastically). 

2) Issue of Sec 185: I told that sec 185 is anti business. This sec will restrict the growth of forming pvt ltd co in India as group companies can not give loan, give guarantee for each other, which is usual practice in India.

3) Let me thank you to post in huge no on Audit chapters on MCA link. Out of 26000 comments on all chapters, more than 10000 comments on audit has been received. Most of comments were the same which I suggested.

4

)      My proposal to exempt

:

private ltd company hav

ing

 paid up capital of less than 25 crores from 

"

limit of 20 company audit

 "

 

& rotation, Sec 185 for Pvt Ltd Co 

has been sent to law ministry by including in Rules

.