we are auditor of pvt Ltd company which is 100% subsidiary of listed company.
when will rotation of auditor will be applicable....??? 5 years are already over .. paidup capital is 36cr
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Rotation of auditor of 100 subsidiary
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Quick Summary
It is as per norms
Rotation for a subsidiary of a listed company:
• Rule 5 of the Companies (Audit and Auditors) Rules covers: listed companies; unlisted public companies with paid-up capital of Rs 10 crore or more; private companies with paid-up capital of Rs 50 crore or more; companies with public borrowings of Rs 50 crore or more.
• A private company that's a 100% subsidiary of a listed company is still a private company (unless deemed public under Sec 2(71) proviso: a private company that's a subsidiary of a public company is deemed a public company for the Act). So it's deemed public. Rotation applies if its paid-up capital is Rs 10 crore or more, or borrowings are Rs 50 crore or more.
• If below these thresholds, no rotation. Otherwise, an audit firm can serve 2 terms of 5 years (10 years), an individual 1 term of 5 years, then a 5-year cooling off.
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