Illustration explaining rotation in case of audit firm

Illustration 2:-

Number of consecutive years for which an audit

firm has been functioning as auditor in the same company [in the

first AGM held after the commencement of provisions of section

139(2)]

Maximum number of consecutive years for which the

firm may be appointed in the same company (including transitional

period)

Aggregate period which the firm would complete in

the same company in view of column I and II

I

II

III

10 years (or more than 10 years)

3 years

13 years or more

9 years

3 years

12 years

8 years

3 years

11 years

7 years

3 years

10 years

6 years

4 years

10 years

5 years

5 years

10 years

4 years

6 years

10 years

3 years

7 years

10 years

2 years

8 years

10 years

1 year

9 years

10 years

Note:1. Audit Firm shall include other firms whose name or trade mark or brand is used by the firm or any of its partners.