Now, rotation of auditors is mandatory for all listed companies and only those unlisted and private companies which meet the prescribed criteria..
1. Unlisted Public companies with a paid up share capital of Rs. 10 crore or more;
2. Private Limited companies with a paid up share capital of Rs. 20 crore or more; and
3. Companies with public borrowings from financial institutions, banks or from the public (by way of deposits) of Rs. 50 crore or more..
Prior period is to be taken into account: For the purpose of the rotation of auditors, the period for which the individual or the firm has held office as auditor prior to the commencement of the Act shall also be taken into account.
Rotation among ‘network firms’ or associate or affiliates of an existing audit firm has also been prohibited.
.
