MCA on Sunday, the 27th March, 2016, came out with the Companies (Auditor’s Report) Order, 2016.
The said order becomes applicable to the Financial Years commencing on or after 1st April, 2015. The Order shall not apply to the Auditors’ Report on Consolidated Financial Statements:
It shall apply to every company including a Foreign Company as defined in Clause (42) of Section 2 of the Companies Act, 2013 (18 of 2013) “the Companies Act”. Except :
- Banking company;
- Insurance company;
- One Person Company and small
- Private limited company –
- Not being a subsidiary or holding company of a public company, having a Paid up capital + Reserves and Surplus not more than Rupees 1 crore as on the balance sheet date and
- which does not have total borrowings exceeding Rupees 1 crore from any bank or Financial institution at any point of time during the financial year and
- which does not have a total revenue as disclosed in Scheduled III to the Companies Act, 2013 (including revenue from discontinuing operations) exceeding Rupees 10 crore during the financial year as per the financial statements.
The said order can be accessed at the following link: Order_S.O. (E)_Companies Auditors Report Order, 2016_29.03.2016