In case private limited companies having paid up share capital of Rs. 20 crore or more, and having public borrowings from financial institutions, banks or public deposits of Rs. 50 fifty crores or more shall not appoint or re-appoint an individual as auditor for more than one term of 5 consecutive Years;and an audit firm as auditor for more than two terms of 5 consecutive years.
These auditor (either individual/audit firm) can be re-appointed after cooling off period of 5 years. Three years transition period will be given to comply this requirement.
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