Applicability Of  Auditor  report

Every report made by the auditor under section 143 of the Companies Act for the financial year commencing on or after 1st April, 2014 will be made according to the Companies (Auditor’s Report) Order, 2015. The order applies to every company except the companies which are excluded, including a foreign company as defined in section 2(42) of the Companies Act, 2013.

Companies excluded from Companies (Auditor’s Report) Order, 2015

(i) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949;

(ii) an insurance company as defined under the Insurance Act,1938 ;

(iii) a company licensed to operate under section 8 of the Companies Act;

(iv) a One Person Company as defined under section 2(62) of the Companies Act and a small company as
defined under section 2(85) of the Companies Act;

(v) a private limited company –

– with a paid up capital and reserves not more than rupees fifty lakh and

– which does not have loan outstanding exceeding rupees twenty five lakh from any bank or financial institution and

– does not having a turnover exceeding rupees five crore at any point of time during the financial year.