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Section 144

Auditor not to render certain services

Text as on 16 Jul 2026In force from 1 Apr 2014Official source: India Code ↗ (opens in a new tab)

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An auditor appointed under this Act shall provide the only such other services as are approved by the or the audit committee, as the case may be, but which shall not include any of the following services (whether such services are rendered directly or indirectly to the company or its holding company or , namely:—

#(a)
accounting and book keeping services;
#(b)
internal audit;
#(c)
design and implementation of any financial information system;
#(d)
actuarial services;
#(e)
investment advisory services;
#(f)
investment banking services;
#(g)
rendering of outsourced financial services; and
#(h)
management services.
#(i)
any other kind of services as may be prescribed:
Proviso

Provided that an auditor or audit firm who or which has been performing any non-audit services on or before the commencement of this Act shall comply with the provisions of this section before the closure of the first after the date of such commencement.

Explanation

For the purposes of this sub-section, the term “directly or indirectly” shall include rendering of services by the auditor,—

#(i)
in case of auditor being an individual, either himself or through his or any other person connected or associated with such individual or through any other entity, whatsoever, in which such individual has significant influence or control, or whose name or trade mark or brand is used by such individual;
#(ii)
in case of auditor being a firm, either itself or through any of its partners or through its parent, subsidiary or associate entity or through any other entity, whatsoever, in which the firm or any partner of the firm has significant influence or control, or whose name or trade mark or brand is used by the firm or any of its partners.

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