Appointment & Rotation of Auditors

  • Act/Rule/Legislation

  • Online Link to Act/Rule/Legislation

  • Initial Setup or Ongoing Maintenance

    Ongoing compliance requirement

  • Filing and Maintenance Requirements

    The Companies Act of 2013 makes provision for rotation of auditors in the following class of companies
    (a) all listed companies;
    (b) all unlisted public companies having paid up share capital of Rs. 10,00,00,000 (Rupees Ten Crores only) or more;
    (c) all private companies having paid up share capital of 20 crore or more;
    (d) all companies having paid up share capital of below Rs. 10,00,00,000 (Rupees Ten Crores only), but having public borrowings from financial institutions, banks or public deposits of Rs. 50,00,00,000 (Rupees Fifty Crores only) or more.

    An individual cannot be appointed as auditor for more than one term of five (5) consecutive years . An audit firm cannot be appointed as auditor for more than two (2) terms of five (5) consecutive years .

  • Penalty

    The company shall be punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to one year or with fine which shall not be less than ten thousand rupees but which may extend to one lakh rupees, or with both.

  • Application Guidelines / Responsible Persons / Comments

    Not available