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139(2) of companies act
An unlisted public company was not falling under this class as on 1st april 2014 but after increasing it's share capital more than 10 crores in 2018 it was covered under this class. The same audit firm has been conducting audit since 1st april 2012 upto 31st march 2022 I.e. now 10 years. So from when to calculate the total term of 10 years for the applicability of this section. From 2012 or from 2018 when the share capital was raised? Can anyone guide. Thank you.
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Quick Summary
The total term should be calculated from 2012.
As per section 139 read with Companies (Audit and Auditors) Rules 2014, Rule 6 (3)(i):
in case of an auditor (whether an individual or audit firm), the period for which the individual or the firm has held office as auditor prior to the commencement of the Act shall be taken into account for calculating the period of five consecutive years or ten consecutive years, as the case may be;
Rule 6 talks about commencement of companies act ,2013 including transition provision ,mean to say retro effect happen only when at the inception of Act of 2013 ,company was meeting the threshold criteria , which is not in this case and here tenure for 5/10 Yrs will be reckoned from FY 18-19 itself ..
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