Mr Ram is a partner of Mr Shyam chartered Accountant in a partnership firm is indebted of Rs 4 50 00...........

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

Mr. Ram is a partner of Mr. Shyam (chartered Accountant), in a partnership firm, is indebted of Rs. 4, 50,000 in M/s ABC Ltd. Whether Mr. Shyam is eligible to appoint as auditor in M/s ABC Ltd.?

Yes

Partly Yes

Partly No

छोटे Courses बड़े Results

Master Audit and auditors

Prepare through Micro-courses

Try Now

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.