Rotation of auditor

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l.narasimha rao (Querist)

07 October 2017 Sir,

I Rotation of auditor is applicable to all the companies irrespective of one person company, private ltd company and public ltd company as per companies act 2013

please suggust sir

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

09 October 2017 As per Section 139(2) read with Rule 5, Mandatory Rotation of Auditors has been brought into force. The same shall be applicable on the following entities:
• Listed Company
• Unlisted Public Companies having Paid-up share capital of Rs. 10 crores or more
• Private Companies having Paid-up share capital of Rs. 50 crores or more
• Companies Other than above having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more
• One Person Companies are specifically excluded

l.narasimha rao

l.narasimha rao (Querist)

10 October 2017 Thank you sir, so as per the above provision U/s 139(2) read with Rule 5,
1)for private companies (haveing paid up capital less than Rs.50 crores & Company not having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more) if it has to file ADT-1, for how many years it has to appoint the auditor sir.
2) we have a public ltd company (closely held) with paid up capital of Rs.6.25/- crores
, convertable debentures by a forigne subsitary company of Rs.62 Lakhs INR, in this case will rotation of auditor apply sir.

Thanking you sir,

Best regards,

Narasimha

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

10 October 2017 1. Auditor is to be appointed for 5 year term subject to ratification at every AGM
2. Provisions of Rotation of auditor will not apply

l.narasimha rao

l.narasimha rao (Querist)

10 October 2017 Thank you Mr.CS Mitesh Mehta sir,

Sir as per my understanding every companies for which provision U/s 139(2) read with Rule 5, is not applicable.

They can appoint the same auditor but should be re-appointed for every 5 years subject to ratification at every AGM.

In that case while filling the ADT-1 should we need to disclosing the total number of years he/she was the auditor since the company incorporation or since Form no.23B is filed sir?

Their will not be any porblem in such disclosure sir?

Best regards,

Narasimha

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