144. Auditor not to render certain services.—An auditor appointed under this Act shall provide to
the company only such other services as are approved by the Board of Directors 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 subsidiary company, 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;
―(12) Notwithstanding anything contained in this section, if an auditor of a company in the course of the performance of his
duties as auditor, has reason to believe that an offence of fraud involving such amount or amounts as may be prescribed, is being
or has been committed in the company by its officers or employees, the auditor shall report the matter to the Central Government
within such time and in such manner as may be prescribed:
Provided that in case of a fraud involving lesser than the specified amount, the auditor shall report the matter to the audit
committee constituted under section 177 or to the Board in other cases within such time and in such manner as may be
prescribed:
Provided further that the companies, whose auditors have reported frauds under this sub-section to the audit committee or
the Board but not reported to the Central Government, shall disclose the details about such frauds in the Board‘s report in such
manner as may be prescribed.‖.
(g) rendering of outsourced financial services;
(h) management services; and
(i) any other kind of services as may be prescribed:
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 financial year 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 relative 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.
