MCA vide notification dated 22nd June, 2017 issued Companies (Audit and Auditors) Second Amendment Rules, 2017, effective immediately from the above date. The amendment pertains to corresponding rule for Section 139(2), regarding rotation of auditors in the Company.
The amendment has extended further relaxation to private companies. Rotation of auditors will be applicable only for private companies if the paid up capital or public borrowings is rupees 50 crore or above (Earlier Rs. 20 Crores or more).
Rule 5 – Post Amendment
For the purposes of sub-section (2) of Section 139, the following class of companies excluding one person companies and small companies has to rotate the auditor:-
(a) All unlisted public companies having paid up share capital of rupees ten crore or more; OR
(b) All private limited companies having paid-up share capital of rupees fifty crore or more; OR
(c) All companies having paid-up share capital of below threshold limit mentioned in (a) and (b) above, but having public borrowings from financial institutions, banks or public deposits of rupees fifty crores or more.