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 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. An audit firm which has completed its term shall not be eligible for re-appointment as auditor in the same company for five years from the completion of such term: Provided further that as on the date of appointment no audit firm having a common partner or partners to the other audit firm, whose tenure has expired in a company immediately preceding the financial year, shall be appointed as auditor of the same company for a period of five years. In view of the above the firm of Chartered Accountants will not be eligible for the reappointment for five years on the completion of the term.