Wednesday, April 16, 2014

Mandatory rotation (As per the Rules)



  • Transition Period- 3 years
  • Auditor/Audit firm in case of listed companies (or such class* or classes of companies as may be prescribed) should mandatory rotate after completion of 5/10 years tenure.
  • An audit firm cannot be re-appointed for more than two five-year terms. (i.e. 10 years).

the class of companies mean the following (excluding PCs and small companies):-
  • all unlisted public companies having paid up 
    share capital of ` 10 crore or more;
  • all private limited companies having paid up share capital of ` 20 crore or more;
  • all companies not included above, but having public borrowings from financial institutions, banks or public deposits of ` 50 crores or more.

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