06 April 2021
Dear Members, An unlisted public co. Borrowings crosses 50Cr as on 31st Mar,2019.Paid up capital is below the limits prescribed. An Audit firm was serving as auditor for past 10 years and is reappointed for another term of in AGM held in 2019. Kindly clarify the below issues: 1. Are the limits prescribed in Rule 5 of the Companies (Audit and Auditors) Rules,2014 to be checked “At “ the time of appointment of audit firm? 2. For the calculation of term specified in section 139(2), the period served as an auditor before the applicability of limits specified in Rule 5, be counted?