as per sec.224(7) of companies act ,auditor can be removed before expiry of term only with prior approval of central govt.(except in case of casual vacancy ) .............
you have to ensure that the auditor is re appointed in the AGM, if he is re appointed and compamy send intimation to the auditor and he (auditor) file form 23B with the ROC , then prior approval of the central govt is needed, otherwise you can remove him.
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