Anshika gupta asked 3 years ago
If a company which is not covered in applicabilty of rotation and appoint a audit firm and firm shall continue it tenure more than 10 AGM and subsequently in future if it paid up capital increased to 10 cr or more ie rotation apply to it then in such a situation cooling period shall apply on firm or the firm continue further 10 AGM ???
Ravi Staff answered 3 years ago
First of all appointments are done for 5 AGMs not directly for 10 AGMs, So CA Firms can be appointed for 2 terms of 5 AGMs.
Now if capital crosses limit, rotation will get applicable and all the years before limit crossed will be counted and considered, if 2 terms of 5 AGMs are over cooling period will get applicable, they will not get extra 10 years
Ravi Staff answered 3 years ago
Further if rotation gets applicable in middle of the term, they can complete there present term, even if it is crossing 10 years. But they cannot reappoint such auditors who have completed 10 years or more.
See in rotation, company is prohibited to appoint auditors after prescribed tenure, once appointment has happened they can complete term.