Ajay Pendse (Service) (86 Points)
11 September 2014Dear All,
Please inform whether companies not falling in the Class of Companies identified in Audit Rules can appoint Auditors for a period of 5 years even if he has completed more than 5 years in that company as auditor.
And whether Sec 139(2) is applicable to such companies.
If Sec.139(2) is not appplicable, then whether rotation of auditors after 5 years period is applicable to such companies?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 11 September 2014
First you should check whether rotation of auditors is applicable to you u/s 139(2). If yes, term should be as specified in the Rules. If not, appointment should be upto 6th AGM u/s 139(1).
prakash
(Company Secretary)
(1352 Points)
Replied 12 September 2014
Dear Ajay,
If your company does not fall under prescribed companies to retire auditor by rotation, your company can appoint existing auditor for period of five year in ensuing annual general meeting even though auditor has already completed 5 year, since retire by rotation is not applicable for your company.
CAclubindia
