Mr Ram is a relative of Mr Shyam chartered Accountant is holding shares of Rs 1 00 000 in M s ABC Lt...........

Explanation:

Section 141(3) (d) of the Companies Act, 2013, a person who, or his relative or partner is holding any security of or interest in the company or its subsidiary or of its holding or associate company or a subsidiary of such holding company shall not eligible for appointment as an auditor of a company. Provided that the relative may hold security or interest in the company of face value such sum as may be prescribed i.e. Rs. 1, 00,000.