Applicability of Section 139(2)
Posted By :
CS Shiriti /
Published on :
27-Jan-2020 05:37 AM /
View :
216 /
Comment :
0
Dear Friends,
I need your inputs on the following:
1. Existing auditors completing 5 years term on the date of AGM - 30.06.2019.
2. Total tenure of their office is more than 10 years.
3. Section 139(2) w.r.t rotation of auditors was not applicable to them.
4. Currently, there is a chance that the borrowings may exceed 50 crore anytime during the year attracting Section 139(2).
5. Can existing auditors be appointed for another 5 years? As on the date of AGM Section 139(2) is not applicable.
6. What are the implications if the Section becomes applicable after reappointment for 5 years.? Can they continue for entire tenure?
7. Can they be appointed just for one year? I do not think so.
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