Companies (Audit and Auditors) Second Amendment Rules, 2017

Ministry of Corporate Affairs vide its notification dated 22^nd June, 2017 brought out the Companies (Audit and Auditors) Second Amendment Rules, 2017 to amend Rule 5 of the Companies (Audit and Auditors) Rules, 2014.  

Prior to this notification Rule 5 of Companies (Audit and Auditors) Rules, 2014 read as follows:

“Class of Companies.

5. For the purposes of sub-section (2) of section 139, the class of companies shall mean the following classes of companies excluding one person companies and small companies:-

(a)  all unlisted public companies having paid up share capital of rupees ten crore or more;

(b)  all private limited companies having paid up share capital of rupees twenty crore or more;

(c)   all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.”

After this notification, clause (b) of Rule 5 shall read as follows: 

(b) all private limited companies having paid up share capital of rupees fifty crore or more;