According to Sec 139(2) of COMPANIES Act, 2013 read with Rule 5 of COMPANIES Rules, 2014(Audit and Auditors) the following class of COMPANIES shall not appoint or reappoint its an individual auditor for more than one term of 5 consecutive years and in case of audit firm for more than 2 terms of 5 consecutive term. Class of COMPANIES required to comply with rotation provisions:
i) Listed companies
ii) Prescribed companies
a) Public companies. having share capital Rs. 10crores or more.
b) Private companies. having share capital Rs. 20 crores or more.
c) Private/Public cos borrowings from BANKS, financial institutions or public deposits is Rs. 50crores or more.
Further, there should be a gap of at least 5 years for the re-appointment of individual auditor/audit firm after the completion of maximum period of 5/10 years.