M Pvt. Ltd. was registered in the year 2001 as a Private Limited Company and continuing with the same status. It is having a paid-up share capital of ₹65 crore as on 31st March, 2019. The present company's auditor, X, Ch

Section 139(2) of the Companies Act, 2013 read with Rule 5(b) of the Companies (Audit and Auditors) Rules, 2014 provides that: all private limited companies having paid up share capital of rupees fifty crore or more shall not appoint or re-appoint an individual as auditor for more than one term of five consecutive years; and an audit firm as auditor for more than two terms of five consecutive years. Also, an individual auditor who has completed his term of five consecutive years shall not be eligible for re-appointment as auditor in the same company for five years from the completion of his term. In view of the above as the paid up share capital of the company is more than ₹50 Crore, Mr. X cannot be appointed as Statutory Auditor for the second term.