Section 139(2) of the companies act, 2013
This query is : Resolved
03 November 2014
Dear Sir,
My Question is When I file form ADT-1 for Appointment of Auditors and in form Whether company is falling under any class of companies as per section 139(2). My question is if the company is private company whether it is following under 139(2) of the company Act, 1956
My Question is When I file form ADT-1 for Appointment of Auditors and in form Whether company is falling under any class of companies as per section 139(2). My question is if the company is private company whether it is following under 139(2) of the company Act, 1956
Nikhil Kaushik
(Expert)
03 November 2014
please refer Rule 5 of Companies (Audit and Auditors) Rules, 2014.
the private companies falling under following categories shall be included in 139(2):
(a) all unlisted public companies having paid up share capital of rupees ten crore or more;
(b) all private limited companies having paid up share capital of rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having
public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.
the private companies falling under following categories shall be included in 139(2):
(a) all unlisted public companies having paid up share capital of rupees ten crore or more;
(b) all private limited companies having paid up share capital of rupees twenty crore or more;
(c) all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having
public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.
Message likes :
11 times
Nikhil Kaushik
(Expert)
03 November 2014
you may refer https://www.mca.gov.in/Ministry/pdf/NCARules_Chapter10.pdf
Message likes :
2 times
04 November 2014
Thanks Nikhil,
In case of Rotation of Individual Auditors, if the Individual Auditors can complete their tenure of continuous 5 years in the same company without break. whether he shall be eligible for appointment in the same company after the completion of the expiry of the term of 5 consecutive years.
When I read rules 6 of Companies (Audit & Auditors Rules 2014) I see the table and I see he may appointed for anthor 3 year.
Please give me advice whether he is appointer for the auditors in the same company for the 3 years after the completion of the tenure of 5 years.
In case of Rotation of Individual Auditors, if the Individual Auditors can complete their tenure of continuous 5 years in the same company without break. whether he shall be eligible for appointment in the same company after the completion of the expiry of the term of 5 consecutive years.
When I read rules 6 of Companies (Audit & Auditors Rules 2014) I see the table and I see he may appointed for anthor 3 year.
Please give me advice whether he is appointer for the auditors in the same company for the 3 years after the completion of the tenure of 5 years.
Message likes :
1 times
Ashok Reddy Chapa
(Expert)
26 March 2016
Mr Aditya,
An individual auditor cannot act as auditor for more than 5 consecutive years.After completion of his tenure company have to appoint one more auditor in his place. And first auditor eligible only after 5 years completion of his tenure as auditor in that company.
Ex: Mr Bindhesh is an auditor of X pvt ltd from Apr'14.
Ans: So as per above provisions bindhesh can be act as auditor till March 2019. After 2019 company should change the auditor(He must not be bindhesh). And Bindesh will be eligible as auditor in the same company after 5 years of completion of his tenure ( From Apr'2024).
An individual auditor cannot act as auditor for more than 5 consecutive years.After completion of his tenure company have to appoint one more auditor in his place. And first auditor eligible only after 5 years completion of his tenure as auditor in that company.
Ex: Mr Bindhesh is an auditor of X pvt ltd from Apr'14.
Ans: So as per above provisions bindhesh can be act as auditor till March 2019. After 2019 company should change the auditor(He must not be bindhesh). And Bindesh will be eligible as auditor in the same company after 5 years of completion of his tenure ( From Apr'2024).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Tax on Amount transferred in HUF Account
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- Capital gains in IT returns
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Intimation under section 245
- IMS (import of goods) ITC related
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
