MCA, vide Notification dated 22nd June, 2017, has amended the Companies (Audit and Auditors) Rules, 2014. By this notification, the word “twenty” mentioned in Rule 5(b) has been substituted by the word “fifty”.
Pursuant to Section 139(2) of Companies Act, 2013, listed companies and certain class of companies are required to do rotation of their statutory auditor. Rule 5 of the Auditors’ Rules specifies certain categories of the Class of Companies which are required comply with this provision.
One of the categories of class of companies is “all private limited companies having paid up share capital of Rs 20 Cr or more”. For this category, now the limit has been increased to Rs 50 Cr.
Therefore, now, all private limited companies, whose paid up share capital does not touch Rs 50 Cr or above, are not required to comply with Section 139(2) of Companies Act, 2013.