Auditor Appointment- ROC

The following class of Companies shall not appoint or reappoint:-

(a) an individual as auditor for more than one term of five consecutive years and

(b) an audit firm as auditor for more than two terms of five consecutive years:

The class of companies shall mean the following classes of companies excluding one person companies and small companies:-

• All unlisted public companies having paid up share capital of Rs. 10 crore or more
• All private limited companies having paid up share capital of Rs. 20 crore or more
• all companies having paid up share capital of below threshold limit mentioned in (a) and (b) above, but having public borrowings from financial institutions, banks or public deposits of Rs. 50 crores or more

In case of specified companies in previous FAQ, cooling period shall be 5 years. It means once an auditor/auditing firm completes tenure of 5/10 years in a specified company, such auditor/auditing firm cannot be appointed as auditor for next 5 years in the same company

ADT-1 form needs to be filed within 15 days of the conclusion of meeting in which new auditor are appointed

Yes it can be filed by paying applicable additional fee

A casual vacancy means a vacancy owing to death, disqualification or resignation of the auditor

Non Government Company:

• If casual vacancy is due to resignation or other causes, the BOD shall fill the vacancy within 30 days of such vacancy. Then, the members of the company shall approve the appointment of auditor in a general meeting within 3 months of the recommendation of the BOD
• The auditor so appointed shall hold office until the conclusion of the ensuing AGM

Government Company:

• CAG will fill the vacancy within 30 days of the date of vacancy. If CAG fails to fill vacancy, the BOD shall fill the vacancy within next 30 days
• The auditor so appointed holds office until the conclusion of the ensuing AGM