Rule 4 - Grant of exemption in other cases. - Companies (Branch Audit Exemption) Rules, 1961

Grant of exemption in other cases. 04. (1) The Central Government on application made to it in this behalf may, after making such inquiry as it may think fit, by order in writing, exempt the branch office of a company from the provisions of section 228 on any of the following grounds, namely (a) that a company carrying on activities other than those of manufacturing or processing or trading has made satisfactory arrangements for the scrutiny and check at regular intervals, of the accounts of the branch office by a responsible person who is competent to scrutinize and check accounts; (b) that a company has made arrangements for the audit of the accounts of the branch office by a person otherwise qualified for appointment as branch auditor, even though such person is an employee of the company; (c) that, having regard to the nature and the quantum of activity carried on at the branch office or for any other reason, a branch auditor is not likely to be available at a reasonable cost; and (d) that, for any other reason, the Central Government is satisfied that exemption may be granted. (2) An order made under sub-rule (1) shall be in force to such extent, for such period and subject to such conditions, if any, as may be specified in the order. (3) A copy of every order of exemption shall be communicated to the company which shall forthwith transmit a copy thereof to the auditor of the company and shall also cause it to be read before the next general meeting. (4) Where, under this rule, an exemption has been granted to a branch office of a company, 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.