Ocean Pvt. Ltd. appointed CA Randhir as statutory auditor of the Company at the last AGM held on 28.9.2016. The next AGM convened on 28.9.2017, after consideration of other business, was adjourned due to non-adoption of

Pursuant to section 139 of the Companies Act, 2013 every company shall at each annual general meeting (AGM) ratify the appointment of an auditor or auditors to hold office from the conclusion of that meeting till the conclusion of next AGM. As per explanation to Rule 3(7) of the Companies (Audit and Auditors) Rules, 2014, if the appointment is not ratified by the members of the company, the Board of Directors shall appoint another individual or firm as its auditor or auditors after following the procedure laid down in this behalf under the Act. In view of the above, if for any reason, the AGM is adjourned to a later date subsequent to the date, the Board shall appoint another auditor only if office of auditor is not ratified by the members at AGM and thus, he shall continue to hold office till the conclusion of the adjourned AGM. However, if a new auditor has been appointed in the original meeting in his place, and the meeting is adjourned the, new auditor can function as statutory auditor only from the conclusion of the original meeting. Thus, in the instant case, the office of CA Randhir shall be valid up to the date of the adjourned AGM. However, if a new auditor was appointed in his place in the AGM held on 30th September, 2017, the office of CA Randhir shall be ceased to have effect w.e.f. the appointment of new auditor.