(1) Subject to sections 32A and 32B, if -
(a) the directors of a private company are of opinion that the company will satisfy the conditions specified in subsection (3) in respect of a financial year and decide that the company should avail itself of the exemption in that year (and they record that decision in the minutes of the meeting concerned), and
(b) unless that financial year is the first financial year of the company, the company satisfied the said conditions in respect of the preceding financial year,
then -
(i) without prejudice to section 35, section 160 of the Principal Act (which requires the appointment of an auditor to a company) shall not apply to the said company in respect of that financial year, and
(ii) unless and until -
(I) circumstances, if any, arise in that financial year which result in one or more of the said conditions not being satisfied in respect of that year, or
(II) circumstances otherwise arise by reason of which the said company is not entitled t