Under what circumstsances Two statutory auditor of a pvt ltd company be appointed?

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Ca Subhash Kumar

Ca Subhash Kumar (Querist)
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16 September 2025 under what circumstsances Two statutory auditor of a pvt ltd company be appointed?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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16 September 2025 Appointment of joint auditors is not mandatory for all private companies but is permitted by Section 139 of the Companies Act, 2013. In cases where joint auditors are appointed, the company may allocate audit work between them and must clearly define their areas of responsibility in the audit report.

Circumstances when two statutory auditors (joint auditors) may be appointed include:

The private company voluntarily decides to have more than one auditor, often for operational or efficiency reasons.

The Articles of Association or shareholder resolutions specify joint audits.

Certain RBI guidelines or sectoral regulations for NBFCs, banks, or entities with large asset sizes may require joint auditors, especially when asset sizes exceed prescribed limits (e.g., for large NBFCs).

To comply with requirements of rotation and independence as stipulated under Section 139 and related rules, particularly relevant when rotation of auditors applies to companies with paid-up capital or borrowings above specified thresholds (like ₹20 crore or ₹50 crore for private companies).

The key legal reference is Section 139 of the Companies Act, 2013, which allows any company, including private companies, to appoint more than one auditor if they wish.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 September 2025 Good Luck...

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