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As per the Section Rotation of Auditor is mandatory where if all companies having paid up capital of below threshold limit mentioned above, but having public borrowings from financial institutions, banks or public deposits of Rs. 50 crore or more My Query is what does "Public Borrowing" means whether it Includes Overdraft Facility Obtained by Company from Bank also or not

Section 139- Appointment of auditors.

Posted By: Chirag shah 9 year(s) ago

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Subhash Bhaskar

The Companies Act, 2013 does not provide the definition of public borrowings.But in the broader sense of the term borrowing, borrowing includes overdraft facility. For example if we use the credit card facility of a company then it shall tantamount to borrowings which we have to repay after a certain period of time even with interest. In the same manner overdraft facility amounts to borrowing.Further to avoid future legal litigation, it would safe side to consider overdraft under borrowings.

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