16 September 2016
Dear Sir, We are a private Limited company with a total capital of less than Rs 10 crores. Kindly advise us if we have to mandatorily appoint auditors for a period of 5 years. I do not think we come under Section 139 (2) provision because we are not listed company, we are not having any bank borrowings or public borrowings . Kindly confirm if my understanding of the provisions for appointment of auditors for 5 years is correct. Since we do not come under the provision I feel there is no requirement for appointment for 5 years in one AGM. Thanks for your reply in advance. Ranganathan.
19 September 2016
Dear Amrita, Thank You for your reply. Wanted to confirm if this is mandatory for companies with Capital of less than 10 crores. My understanding is that for such companies this appointment need not be for 5 years . If the provision is for all companies then every small private Limited companies with Capital less than 10 crore will also have to mandatorily appoint auditor for 5 years. Just wanted to confirm on this point. Thanks
CAclubindia
