M s B amp K Pvt Ltd Private Company having paid up capital ge 10Cr desires to appoint Gudhate and fi...........

Companies Act-Phase (I & II) Audit and auditors

M/s B& K Pvt. Ltd., Private Company having paid up capital ≥ 10Cr, desires to appoint Gudhate and firm (Audit Firm) as an auditor of the company. For how many years company shall appoint Mr. Shan as an auditor of the company?

1 Year

5 Years

10 Years

Any number of years without any restriction

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Explanation:

As per section 139 (2) and the Companies (Audit and Auditor) Rules, 2014

Following companies can not appoint an individual as auditor for more than one term of Five consecutive years and an audit firm as auditor for more than 2 terms of 5 consecutive years(i.e. for 10 years)

a) Listed Compnies

b) all Unlisted public company having paid up share capital of rupees 10 crore or more

c) all private limited companies having paid up share capital of rupees 50 crore or more

d) all companies having public borrowings from Financial institutions, banks or public deposit of rupees 50 cores or more

As in the given question M/s B& K is a Pvt. Ltd., Private Company having paid up capital ≥ 10Cr, desires to appoint Gudhate and firm (Audit Firm) as an auditor of the company. So there is not limit for them they can appoint auditor for any number of years without any restriction