Companies (Audit and Auditors) Second Amendment Rules, 2017
Ministry of Corporate Affairs vide its notification dated June 22, 2017 has made an amendment to the Companies (Audit and Auditors) Rules, 2014 whereby a relaxation has been provided to the Private Companies with regard to the appointment of Statutory Auditor.
Prior to this amendment, all private limited companies having paid up share capital of rupees twenty crore or more were not allowed to appoint an individual as auditor for more than one term of five consecutive years or an audit firm as auditor for more than two terms of five consecutive years.
Pursuant to the aforesaid notification, the limit of paid up share capital of rupees “twenty crore or more” has been revised to “rupees fifty crore or more” subsequent to which the private companies having paid up share capital of less than rupees fifty crore (Rs. 50 crore) shall not be required to comply with the provisions of Section 139(2) of the Companies Act, 2013 regarding rotation of auditors.
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