24 October 2024
AN INDIVIDUAL AUDITOR IS ELIGIBLE FOR ONLY 5 CONSECUTIVE YEARS FOR BEING STATUTORY AUDITOR IN A PRIVATE LIMITED COMPANY. SO, IF AN INDIVIDUAL AUDITOR IS BEING APPOINTED AS FIRST AUDITOR IN A PRIVATE LIMITED, THEN CAN THE SAME INDIVIDUAL AUDITOR BE APPOINTED AS SUBSEQUENT AUDITOR FOR NEXT 5 CONSECUTIVE YEARS IN THE SAME PRIVATE LIMITED. WILL THE PERIOD OF FIRST AUDITORSHIP WILL BE CONSIDERED FOR CEILING LIMIT OF 5 CONSECUTIVE YEARS ?
24 October 2024
For listed companies and specified class of companies cooling period of 5 years is mandatory. Specified class or classes of the Companies are as follows: All unlisted public companies having paid up share capital of rupees 10 crore or more; Every private company having paid up share capital of rupees 50 crore of more; All companies having public borrowings from bank, financial institutions or public deposit of rupees 50 crore or more.
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