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: (iii) Firm Ajay & Co., in which Vijay is

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. Also, if two or more audit firms have common partner, and one of these firms has completed two terms of five consecutive years, none of such audit firms shall be eligible for reappointment as auditor in the same company for 5 years from completion of such term. In view of the given case: Ajay & Co. also cannot be appointed as it has a common partner with VAP & Co. which is not eligible of reappointment.