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TMI BlogChapter X - Draft Rules under Companies Act, 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... d and pending proceedings against the auditor before the Institute of Chartered Accountants of India or the National Financial Reporting Authority or Tribunal or any Court of law. (2) Subject to the provisions of sub-rule (1) above, where a company has constituted an audit committee, the audit committee shall recommend the name of an individual or a firm as auditor to the Board. In other cases, the Board shall consider and recommend an individual or a firm as auditor to members in the annual general meeting for appointment. (3) If the Board is satisfied with the recommendation of the audit committee, it shall consider and recommend the appointment of an individual or a firm as auditor to the members in the annual general meeting. (4) If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll companies. Manner in which the companies to rotate their auditors on the expiry of term 10.4 For the purpose of sub-section(4) of Section 139: (1) The audit committee of a company, constituted under Section 177 of the Act shall recommend to the Board, the name of individual auditor or the audit firm who may be rotated in the place of the present incumbent on the expiry of his or their term. (2) Where a company has constituted an audit committee, the Board shall consider the recommendation of the audit committee, and in other cases, the Board shall itself consider the matter of rotation of auditors. Thereafter, it shall propose to the members for consideration in general meeting, the names of outgoing and incoming auditor or audit fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accompanied by such fees as specified in Annexure C. RESIGNATION OF AUDITOR 10.6. For the purposes of sub-section (2) of section 140, when an auditor has resigned from the company, he shall file a statement in Form No. 10.2. Disqualifications of auditor 10.7 (1)For the purpose of proviso to sub-clause (i) of clause (d) of sub-section (3) of section 141, a relative of an auditor may hold securities of face value or interest in the company not exceeding rupees one lakh. (2) For the purpose of sub-clause (ii) of clause (d) of sub-section (3) of section 141, a person who or whose relative or partner is indebted to the company or its subsidiary or its holding or associate company or a subsidiary of such holding company, in excess of rupees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch auditor 10.9 (1) For the purposes of sub-section (8) of section 143, the duties and powers of the company's auditor with reference to the audit of the branch and the branch auditor, if any, shall be as contained in sub-sections (1) to (4) of section 143. (2) The branch auditor shall submit his report to the company's auditor. (3) The provisions of sub- section (12) of section 143 read with rule 10.10 hereunder regarding reporting of fraud by auditor shall also extend to such branch auditor to the extent it relates to the concerned branch. Reporting of Frauds by auditor 10.10 (1) For the purpose of sub-section (12) of section 143, in case the auditor has sufficient reason and information to believe that an offence involving fraud wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he report shall be on the letter-head of the Auditor and be signed by the Auditor with his seal and shall indicate his Membership Number. (7) The report shall be in the form of a statement as given in Form No. 10.3: Remuneration of the Cost Auditor 10.11 For the purpose of sub-section (3) of section 148, (1) In the case of companies which are required to constitute an audit committee- (a) the audit committee shall take into consideration the qualifications and experience of the person appointed by the Board as cost auditor and recommend to the Board a suitable remuneration to be paid to the cost auditor; and (b) the remuneration recommended by the Audit Committee shall be considered and approved by the Board of Directors and ratified ..... X X X X Extracts X X X X X X X X Extracts X X X X
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