Bandhan Limited is a Public Limited Company which was incorporated in year 2014. The paid up share capital and bank borrowing of the company for the year ended on 31 st March, 2023 is ₹ 9 crore and ₹ 60 crore respectivel

Section 139(2) of the Companies Act, 2013 read with Rule 5 of the Companies (Audit and Auditors) Rules, 2014 provides that an unlisted public company having paid up share capital of ₹10 crore or more or public company having paid up share capital below the threshold limit but having public borrowings from financial institutions, banks or public deposits of ₹50 crore or more, cannot appoint or re-appoint an individual as an auditor for more than one term of five consecutive years. In view of the above provision, an individual auditor who has completed his term of five consecutive years shall not be eligible for re-appointment as an auditor in the same company for another consecutive term of five years on the completion of his first term without observing the cooling off period of five years. In the given case as the bank borrowing of Bandhan Limited, a public limited company, is more than ₹50 crore, (in the present case it is ₹60 crore) Mr. X, an individual auditor, cannot be re- appointed as the statutory auditor of the same company for another term of 5 years after completion of first term of 5 years.