Introduction- Companies Amendment Act 2017

Before discussing companies (Audit and Auditors) Amendment Rules, 2018 let’s see a brief about companies act 2017.

On 3rd January 2018 Companies Amendment Act, 2017 receives the approval from the President. Since the Ministry of Corporate Affairs has notified many sections of the Companies Amendment Act 2017 in the phased manner. MCA vide notification dated: 05th July 2018 has amended many rules of Companies Act, 2013 to support notified 75 sections of Companies Amendment Act 2017.

Companies Amendment Rule 2018

The MCA (Ministry of corporate affairs) recently alter the Companies (Audit and Auditors) Rules 2014 with the new Companies (Audit and Auditors) Amendments Rules 2018. This rules came on 17th May 2018.

Not only The Companies (Audit and Auditors) Amendment Rules, 2018, but there are other rules also. The following rules are amended, they are:-

  • Companies (Acceptance of Deposits) Amendment Rules, 2018 [Rule 4, Rule 5, Rule13, Rule 14(1)(K)]
  • Companies (Registration of Charges) Amendment Rules, 2018 [Rule 8 and Rule 12]
  • Companies (Registration Offices and Fees) Third Amendment Rules, 2018
  • Companies (Prospectus and Allotment of Securities) Amendment Rules, 2018 [Rule 3, Rule 4, Rule 5, Rule 6]
  • Companies (Appointment and Qualification of Directors) Second Amendment Rules, 2018 [ Rule 5]
  • Companies (Meetings of Board and its powers) Amendment Rules, 2018 [Rule 4, Rule 6, Rule 13]
  • Companies (Audit and Auditors) Amendment Rules, 2018 [Rule 3, Rule 9, Rule 10A, Rule 14]
  • Companies (Share Capital and Debentures) Amendment Rules, 2018 [ Rule 5]
  • Companies (Registration offices and Fees) Second Amendment Rules, 2018 [ Rule 10]

In this article, we will be discussing the Companies (Audit and Auditors) Amendment Rules, 2018.

Companies (Audit and Auditors) Amendment Rules, 2018

G.S.R. 432 (E) :- In exercise of the powers conferred by sections 139, 143, 147 and 148 [sub-sections (I) and (2)] of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government makes the following rules to amend the Companies (Audit and Auditors) Rules, 2014. These rules are:-

  1. Short title and commencement.-
    • Now, these rules are called the Companies (Audit and Auditors) Amendment Rules, 2018.
    • These rules come into force on the date of their publication in the Official Gazette.
  2. In the Companies (Audit and Auditors) Rules, 2014, in rule 3:-
    • The explanation shall be omitted
    • The proviso to sub-rule (7) shall be omitted.
  3.  Rule 9 shall be omitted In the Companies (Audit and Auditors) Rules, 2014.
  4.  In the Companies (Audit and Auditors) Rules, 2014, word’ “adequate internal financial controls system”, the words “internal financial controls with reference to financial statements” will be substituted
  5. In the Companies (Audit and Auditors) Rules, 2014, in rule 14,-
    • In clause (a), in sub-clause (i), for the words, “who is a cost accountant in practice”, the words “who is a cost accountant” shall be substituted.
    • In clause (b) for the words “who is a cost accountant in practice”, the words “who is a cost accountant” shall be substituted.

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Note: The principal rules were published in the Gazelle of India, Extraordinary. Part Tl, Section 3, Sub-section (i) vide number G.S.R. 24(i(E). dated {31 Sl March 2014 and subsequently amended as follows:-

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Introduction- Companies Amendment Act 2017

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