Appointment of auditor

If the company is covered by provision of rotation of auditors [Sec.139(2)] - it can appoint auditor for less than 5 years.  However, it will be treated as one 'term' under the Section.  In case of individual auditor, he cannot be reappointed for another term.  In case of firm, it can be reappointed for another term (max.5 years).

If the  company is not covered by provision of rotation of auditors,  it  will be covered u/s 139(1) and accordingly, will have to appoint auditor in first AGM till 6th AGM (i.e. 5 years or so).  No other option has been provided in the Section.