Rule 5 of audit & auditors

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Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2014 Please tell me applicability of clause c of rule 5 of Audit & Auditors Rule 2014 of Companies Act 2013 regarding public borrowing & public deposits. Also, confirm me whether the limit of Rs. 50crore is only in respect of public deposits or it is applicable in case of borrowings from public financial institutions and banks.

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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15 December 2014 Listed company or all unlisted public companies having paid up
share capital of Rs. 10 crore or more, all private limited companies
having paid up share capital of Rs. 20 crore or more, all companies
having public borrowings from financial institutions, banks or public
deposits of Rs. 50 fifty crores or more shall not appoint or re-appoint
an individual as auditor for more than one term of 5 consecutive Years;
and an audit firm as auditor for more than two terms of 5 consecutive
years. These auditor (either individual/audit firm) can be re-appointed
after cooling off period of 5 years. Three years transition period will
be given to comply this requirement.

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