Zen Pvt. Limited had a paid up share capital of ₹35 crore in the previous year. The Company Secretary advises the Company that it is mandatory to appoint the auditor as per the requirements of Sec. 139 (2) of the Compani

Provisions of section 139 (2) of the Companies Act 2013 and Rule 5 of the Companies (Audit and Auditors) Rules, 2014, as amended, deals with applicability of mandatory term / rotation in the appointment of auditor and the said provision is applicable to the following class of companies: (a) All unlisted public companies having paid up share capital of Rupees 10 crore or more; (b) All private limited companies having paid up share capital of Rupees 50 crore or more; (c) All companies having paid up share capital below the threshold limit mentioned in (a) and (b) above but having public borrowings from financial institutions, banks or public deposits of 50 crore or more. Accordingly, Zen Pvt. Limited will get be covered as per provision (c) above and therefore, it is mandatorily required to rotate the Auditor as per the provisions of Section 139 (2) of the Companies Act, 2013.