Dear All,
Please inform whether companies not falling in the Class of Companies identified in Audit Rules can appoint Auditors for a period of 5 years even if he has completed more than 5 years in that company as auditor.
And whether Sec 139(2) is applicable to such companies.
If Sec.139(2) is not appplicable, then whether rotation of auditors after 5 years period is applicable to such companies?
First you should check whether rotation of auditors is applicable to you u/s 139(2). If yes, term should be as specified in the Rules. If not, appointment should be upto 6th AGM u/s 139(1).
Dear Ajay,
If your company does not fall under prescribed companies to retire auditor by rotation, your company can appoint existing auditor for period of five year in ensuing annual general meeting even though auditor has already completed 5 year, since retire by rotation is not applicable for your company.
CAclubindia
