Reappointment of statutoy auditor

[SUNNY MALHOTRA]

Whether for an existing private limited company having the paid up capital of around 5 crore, it is mandatory to re appoint the statutory auditor for 5 years ? Can auditor be appointed for one year ? My company accounting years ends on 31st Dec 2014.

Sent from my Windows Phone

[Vivek Hegde]

Dear Friend,

Yes. Irrespective of paid up capital appointment should be for 5 years. It can not be done for one year. Refer starting lines of Section 139 where the word "shall" has been used.

Warm Regards

CS Vivek Hegde,B.com, FCS, CWA

Vivek Hegde & Co.
Company Secretaries
No. 2034, 26th Cross, K.R.Road
Banashankari II Stage, Behind 

Sevakshetra Hospital

Bangalore-560070
Mob : 09900898223

Off: 080 26710667

On Mon, Feb 16, 2015 at 7:16 PM, SUNNY MALHOTRA <sunnyma...@gmail.com> wrote:

Whether for an existing private limited company having the paid up capital of around 5 crore, it is mandatory to re appoint the statutory auditor for 5 years ? Can auditor be appointed for one year ? My company accounting years ends on 31st Dec 2014.

Sent from my Windows Phone

--
--
************************************************
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.
For more options, visit https://groups.google.com/d/optout.

[VIJAY DAKSHINI]

Appointment should be for a period of 5 years, if your company is falling under prescribed class of companies as mention under sec.139(2) and rules made there under then you have been given a period of 3 years to comply with provision for appointment of auditor for 5 years, even then within that period you need to comply with provision.

Thanks & Regards 

[CS Nagaraj K V]

Hi,

As per my knowledge..only the companies which are falling under Section 139(2) needs to appt the Auditors for a period of 5 years...other companies can do it for one year.....in some of the cases whr Section 139(2) criteria is not applicable, have filed ADT-1 by mentioning the appt as for one year & the same has been approved by the ROC.

Please correct me if i am wrong.....!

Regards

Nagaraj K V

On Monday, February 16, 2015 at 7:16:30 PM UTC+5:30, Sunny wrote:

[CS.Omkar]

Good morning!

I agree with the views of CS Vivek Hegde. Language of Sec 139(1) mandates company to appoint Auditor for a term of 5 years with ratification in every subsequent AGM and going by words of this section, companies have no option but to appoint auditor for term of 5 years only even when rotation of auditors is not applicable to the company. Section 139(1) and 139(2) are independent requirements and language of both the sections do not interrelate/correlate each other.  

Legislative intent of fixing maximum term for Auditors is ensured via Section 139(2) and it appears that Section 139(1) intends to ensure continuity/some consistency of auditor and to control management/members from arbitrarily changing auditors as per their 'wish' or to their 'convenience'. Apart from Section 139(1), Rule 3(7) of the Companies (Audit and Auditors) Rules, 2014 reiterates the requirement to appoint auditor for a term of 5 years, which I feel, in a way, supports the intention of legislature to mandate a term of 5 years for auditors.

​Unless the ministry clarifies on appointing auditor for less than 5 years term by companies not covered under Section 139(2), taking this stand (appointing auditor for less than 5 years term) seems more aggressive and may not be upheld during judicial scrutiny.     ​

​Contrary views, if any, solicited.​

Regards...Omkar

--

[Sunny]

Dear All,

 

Sec 139(1) talks about first AGM. Whether it means it is applicable to new compaines only ? Whether an existing company ( exlcuding specified companies in ec 139(2)) can reappoint auditor for less than 5 years.  Please revert

 

Moreover sec 139(2) talks about maximum period for specified class of companies. Can auditor be appointed for lessere period in those companies  ?

 

Regards

Sunny Malhotra

9999596366

 

 

On Monday, February 16, 2015 at 7:16:30 PM UTC+5:30, Sunny wrote:

[CS Simranjeet Singh]

Dear Sunny

an existing pvt ltd other than speciifed also need to appoint auditor for 5 years

and you are right in 139(2) auditor can be appointed for lesser period than 5 years

 

 

With Best Regards?

Simranjeet Singh

Associate Company Secretary

"To know, is to know that you know nothing. that is the meaning of true knowledge."

 

   

--