Statutory Auditor Appointment_Tenure Less than 5 years

1,195 views
Skip to first unread message

harish choursiya

unread,
Jun 30, 2023, 12:39:50 AM6/30/23
to CSMysore
Respected Members,

While referring provision for Appointment of statutory Auditor, it is stated the one term of 5 years....

Is it mandatory to appoint for 5 years at one shot?

Kindly share your views.

  

karan vij

unread,
Jun 30, 2023, 12:51:07 AM6/30/23
to csmy...@googlegroups.com
NO YOU CAN APPOINT FOR A PERIOD LESS THAN 05 YEARS 

--
--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
---
You received this message because you are subscribed to the Google Groups "CSMysore" group.
To unsubscribe from this group and stop receiving emails from it, send an email to csmysore+u...@googlegroups.com.
To view this discussion on the web visit https://groups.google.com/d/msgid/csmysore/3f8c404a-f2e9-483b-849e-5ae189ba9c99n%40googlegroups.com.


--

Thanks & Regards
Karan Vij
Mobile No: +91 8076218320

“Please take care of the environment, print only if necessary

CS Subrat Sahoo

unread,
Jun 30, 2023, 12:54:58 AM6/30/23
to csmy...@googlegroups.com

Agreed..!!!



CS Subrat Sahoo
[LLB, M.Com, Company Secretary]
Assuring you of my best and prompt services at all times.

 https://www.facebook.com/subrat.sahoo.7568  https://www.linkedin.com/in/cs-subrat/  https://twitter.com/subrat_cs  


“Please consider the Environment before printing this E-Mail”

The information contained in this communication is intended solely for the use of the individual/ entity to whom it is addressed and others authorized to receive it. It may contain confidential or legally privileged information. If you are not the intended recipient you are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by responding to this email and then delete it from your system. The sender is neither liable for the proper and complete transmission of the information contained in this communication nor for any delay in its receipt.


Rajesh

unread,
Jun 30, 2023, 12:57:21 AM6/30/23
to csmy...@googlegroups.com

My Interpretation is that the Statutory Auditor shall be appointed for a period of 5 years and not less than that.

Other views solicited.



harish choursiya

unread,
Jun 30, 2023, 12:58:36 AM6/30/23
to csmy...@googlegroups.com
Thanks for sharing your understanding.

can you please share any material which can substantiate this understanding 

On Fri, Jun 30, 2023 at 10:24 AM CS Subrat Sahoo <cs.subr...@gmail.com> wrote:

Rajesh

unread,
Jun 30, 2023, 1:00:57 AM6/30/23
to csmy...@googlegroups.com

The word used in Section 139 is SHALL, so it is mandatory.  My take.


Vineet Maheshwari

unread,
Jun 30, 2023, 2:57:00 AM6/30/23
to csmy...@googlegroups.com
It should be for 5 years only. 

If there is an option for any no. of years, then no company would go for min. 5 years. 

Khusbu Agarwal

unread,
Jun 30, 2023, 4:00:04 AM6/30/23
to csmy...@googlegroups.com
Appointment would be 5 years only not less than as views solicited by other professionals.



Regards
Khusbu Agrawal
PCS and Registered Valuer
M-7003255822



--
Thanks & Regards
CS Khusbu Agrawal
Proprietor
Khusbu & Co.
FCS, MCOM and MJMC
IBBI Registered Valuer (SFA) and PCS
ICSI Unique Code: S2016WB431000
Peer Review Certificate No. 2374/2022

Please print only if you consider it necessary - save the environment.

Disclaimer: The information contained in this communication is for use by the intended recipient and contains information that may be privileged, confidential or copyrighted under law. It should not be read, copied, used and retained by anyone other than the intended recipient. If you have received this message in error, please immediately notify us at the above co-ordinates, preserve its confidentiality and delete it from your system. This e-Mail does not constitute consent to the use of sender's contact information for direct marketing purposes or for transfers of data to third parties. Thank you.

swathi reddy

unread,
Jun 30, 2023, 4:09:37 AM6/30/23
to csmy...@googlegroups.com
It should be 5 years..becz we received notice from roc for appointing for one year.

CS Aman Kesarwani

unread,
Jun 30, 2023, 5:50:18 AM6/30/23
to csmy...@googlegroups.com
The extract of Section 139 

"_______________ every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting ____________________"

I have highlighted the words that need to be considered while determining the period of appointment
1. Shall: It means mandatory, not recommendary. 
2. first annual general meeting: Appointment to be made in the First AGM 
3. till the conclusion of its sixth AGM: Appointment to be made till the sixth AGM
4.every sixth meeting: Subsequent appointments will be again for 5 years. 

The provisions clearly states every appointment shall be made till the expiry of sixth AGM.   

Regards,
CS Aman Kesarwani


Aman Kesarwani & Associates
Mobile: 7532923631

Save the Earth, Go paperless...

The information and/or the attachment contained in this e-mail is private & confidential and may also be legally privileged to the intended receiver of this email. While the information and/or the attachment in this email is solely for the assistance or guidance of the intended recipient, the same should not be Considered  as a substitute for professional, technical or legal advice; unless the same is being duly signed by the proprietor of our firm in hard copy. If you are not the intended recipient of this mail, please notify us, preferably by reply to this e-mail or as a separate email; and we request that if you are not the intended recipient of this Email do not read, copy or disclose the contents of this message to anyone. E-mail communications cannot be guaranteed to be secure or error free, as information can be corrupted, intercepted, lost or contain viruses. We do not accept liability for such matter or their consequences.



harish choursiya

unread,
Jun 30, 2023, 7:57:11 AM6/30/23
to csmy...@googlegroups.com
Thanks to all the respected members 
and my humble appreciation to Mr. Aman Sir for highlighting with bold remarks to ease with the provisions.




Juhi Singh

unread,
Jun 30, 2023, 8:21:46 AM6/30/23
to csmy...@googlegroups.com
Yes, an auditor shall be appointed for a period of 5 years and not less than that

It is clearly stated in section 139 that shall hold office from the conclusion of the agm till the conclusion of its sixth annual general meeting and thereafter till the conclusion of Every sixth meeting.


Regards,
Juhi Singh | Manager - Secretarial  | M.+91-8013532731



Rajesh

unread,
Jul 1, 2023, 11:10:07 PM7/1/23
to csmy...@googlegroups.com

Swathiji, did the ROC impose any penalty for appointing the Statutory Auditor for one year ???

swathi reddy

unread,
Jul 1, 2023, 11:16:53 PM7/1/23
to csmy...@googlegroups.com
Actually, we received notice for another issue in which one of the point they raised is auditor appointment and asked to explain how company appointed auditors for one year and further roc  levied penalty as well but i don't remember the exact bifurcation of that penalty.

Rajesh

unread,
Jul 1, 2023, 11:20:13 PM7/1/23
to csmy...@googlegroups.com

Ok.  Thank You Swathiji.  

Reply all
Reply to author
Forward
0 new messages