06 August 2016
As per Sec.139(2) of Companies Act,2013 read with Rule of Companies(Audit and Auditors) Rules, 2014, rotation of auditors apply even to the Pvt. Ltd. Companies if their paid-up capital is 20 crores or more.
So for example, a Pvt. Ltd. Company is incorporated on 01/04/2014 and is having the same auditor (an individual) right from incorporation and it increases its paid-up capital to 21 crores on 31/07/2019. Can it appoint the same auditor for 5 more years or only for 1 year?
To put it simply, applicability of provisions pertaining to rotation of Auditor starts only from the year in which the condition is satisfied or even the previous period in which a person is an auditor needs to be counted?
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