Advise whether the auditor appointment by a private limited company with paid-up share capital of ₹30.00 Crore in the following cases are valid for the financial year 2017-18: (ii) Firm VAP & Co., who completes 10 ye

Section 139(2) read with Rule 5 of the Companies (Audit and Auditors) Rules, 2014 provides for rotation of auditors. The said provisions are applicable to a private limited company having paid-up share capital of ₹20 Crore or more. The aforesaid provisions prescribe that an individual auditor who has completed the term of five years cannot be reappointed as an auditor in the same company for five years from the completion of his term, likewise an audit firm which has completed the 2 terms of five years each cannot be eligible for re-appointment as auditor in the same Company for five years from the completion of such terms. [Section 139 (2) (i) & (ii)] In view of the given case: VAP & Co. cannot be appointed as the firm has completed the term of 10 consecutive years.