Dear All,
As per new Act requirement, it is applicable for our Company to rotate auditors and it is audit firm so has to be rotated after completion of 10 years (two terms of five consecutive years).
Now it is mentioned in sec. 139 that - Provided also that every company, existing on or before the commencement of this Act which is required to comply with provisions of this sub-section, shall comply with the requirements of this sub-section within three years from the date of commencement of this Act.
That means we have to comply this within 31.03.2017 ie. within 3 years from 01.04.2014.
The Audit firm has already completed 3 years in our Company and eligible for re-appointment for more 7 years (2015 to 2023) as per act.
Therefore, please let me know whether i can appoint audit firm in this AGM till next AGM (2015) and in next year till next AGM (2016) and from 2017 to 2023 in next AGM. By this i would be complying with the requirement of section 139 of rotation of auditors within 3 years of commencement of Act.
Please confirm.
Thanks & Regards,
Ranjani V
CAclubindia
