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 no listed company or the following classes of companies excluding one person companies and small companies:- all unlisted public companies having paid up share capital of ₹ten crores or more or all private limited companies having paid up share capital of ₹fifty crores or more or 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 rupees fifty crores 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 Since in the present case the company is having paid up share capital of ₹5 crore i.e. within the threshold limit of ₹50 crores but the company have borrowing facility from a bank of ₹55 crores (i.e. exceeding the threshold limits of ₹50 crores), hence the company cannot re-appoint X as auditor.