AdvocateKhoj
Login : Advocate | Client
Home Post Your Case My Account Law College Law Library
    

Companies (Branch Audit Exemption) Rules, 1961


3. Exemption based on quantum of activity

Where a company carrying on any manufacturing, processing or trading activity has a branch office whose average of the quantum of activity during the relevant financial year does not exceed rupees two lakhs or two per cent of the average of the total turnover of the company including all its branches and other offices and the earnings from services rendered and from any other source during the same period whichever is higher, the branch office shall be exempt from the provisions of section 228:

 

Provided that in any such case, the auditor of the company shall have the rights  referred to in sub-section (2) of section 228 in relation to the accounts of the branch office.

 

Explanation.-For the purposes of this rule, the average quantum of activity shall be taken to be-

 

(a) the average of the quantum of activity during the three financial years immediately preceding the relevant financial year, or

 

(b) if three financial years have not been completed since the establishment of the branch office, the average of the quantum of activity during the two financial years, or, as the case may be, the quantum of activity during the year, immediately preceding the relevant financial year, or

 

(c) in other cases, the quantum of activity during the relevant financial year.





Companies   (Branch Audit Exemption) Rules, 1961 Back






Client Area | Advocate Area | Blogs | About Us | User Agreement | Privacy Policy | Advertise | Media Coverage | Contact Us | Site Map
powered by nubia  |  driven by neosys