21 March 2018
As per Section 139 of Companies Act, 2013, there is mandatory clause requiring rotation of auditors if the borrowings from banks in case of an unlisted public company crosses ₹ 50 crores. However, 3 years is given as transition period for rotation. In one case, the borrowings have crossed ₹ 50 crores only in FY 2016-17 for the first time. Therefore, would an auditor who has been the auditor of the company for the last twenty years be eligible for FY 2017-18 or no ? Would the transitional period of 3 years begin from the date of commencement of Act or from FY 2016-17 ?
CAclubindia
