auditor reappointment by rotation

Is Auditor rotation clause applicable to Private companies?
Replies (2)

Yes subject to section 139 (2), read with rule 5 of Companies (Rotation of auditors) rules 2014, every private Company having paid up share capital of 50 crores or more or having the aggregate loans or borrowings from banks or financial isntitutions in excess of 50 crore rupee or more have to mandatory comply with the provisions of rotation of auditor. Means no individual shall hold the office for more than the period of five years and no audit firm shall hold the office for more than 10 years. and the same individual or audit firm cannot  do audit in same Company for period of five years from date of expiration of the current term.

The aforementioned rule are not applicable for small companies. it means that we can appoint individual auditor for more than one tern of five yeah and in case of firrm we can appt for more than 2 term of five year

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