Mr Mihir is a relative of Mr Shyam chartered Accountant in a partnership firm is indebted of Rs 7 00...........

Companies Act-Phase (I & II) Audit and auditors

Mr. Mihir is a relative of Mr. Shyam (chartered Accountant), in a partnership firm, is indebted of Rs. 7, 00,000 in M/s ABC Ltd. which is a subsidiary company of M/s XYZ Ltd. Whether Mr. Shyam is eligible to appoint as auditor in M/s XYZ Ltd.?

Yes

Partly Yes

Partly No

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Explanation:

Section 141(3) (d) of the Companies Act, 2013, a person who, or his relative or partner is indebted to the company or its subsidiary, or its holding or associate company or a subsidiary of such holding company, in excess of Rs. 5,00,000 shall not eligible for an appointment as an auditor of a company.