Government amendment No. 41: In page 346, to delete lines 6 to 41, and in page 347, to delete lines 1 to 23 and substitute the following:“Main conditions for audit exemption — non-group situation358. (1) Subject to subsection (3) and the other provisions of this Chapter, section 360 (audit exemption) applies to a company in respect of its statutory financial statements for a particular financial year if the company qualifies as a small company in relation to that financial year. (2) For the purposes of this section, whether a company qualifies as a small company shall be determined in accordance with section 350(2), (3), (5), (7), (8), (9) and (10). (3) Section 360 does not apply to a company in respect of its statutory financial statements for a particular financial year during any part of which the company was a group company (within the meaning of section 359) unless the group qualifies, under section 359, as a small group in relation to that financial year (and the other relevant provisions of this Chapter are complied with). (4) In subsection (3) “group”, in relation to a group company, shall be read in accordance with section 359(1)(b). (5) Nothing in this section prejudices the operation of Chapter 16 (special audit exemption for dormant companies).”.