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Section 139(2)

ANIL PASUPULETI (articled assistent) (99 Points)

08 September 2016

Dear experts please guide me in this regard section 139?(2) No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint here no listed company means if company turnover is less than as per rule 5 of audit and auditors rules 2014 . can company can appoint any number of years?

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ANIL PASUPULETI (articled assistent) (99 Points)
Replied 08 September 2016

Dear experts please guide me in this regard section 139?(2) No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint auditors .

here no listed company means ??? if company turnover is less than as per rule 5 of audit and auditors rules 2014 .

can company can appoint auditors any number of years?

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ANKUR TAH (Teacher Consultant and CA finalist.) (543 Points)
Replied 08 September 2016

You have wrongly interpreate the section 139(2).

Sec 139(2) is for term of Auditor.

As per sec 139(2) listed co. And other prescribed class or classes co shall not appoint or reappointment auditor:

An individual auditor for more than one term of 5 consecutive year.
An audit firm as an auditor for more than two term of 5 consecutive year.

Here other prescribed class mean:

All unlisted co having paid up share capital >=Rs. 10 cr
All pvt Ltd co having paid up share capital >= Rs. 20 cr
All co having paid up share capital below above mentioned limit , but having borrowing s from financial institutions, banks or public deposits of >= Rs. 50 cr.

Other than specified mentioned companies, auditor can appoint for any number of years.

ANIL PASUPULETI (articled assistent) (99 Points)
Replied 09 September 2016

Dear ANKUR TAH,

Kindly see the MCA Text as follows

No listed company or a company belonging to such class or classes of companies as may be prescribed, shall appoint or re-appoint— (a) an individual as auditor for more than one term of five consecutive years; and (b) an audit firm as auditor for more than two terms of five consecutive years:

MCA given Defination for classes of companies or prescribed companies

How can we describe unlisted company in this regard.

Thanks a Lot ANKUR TAH