Explanation:

In terms of Section 141 (3) (d) (ii) of the companies act 2013, a person who, or his relative or partner or any of my relatives or partners are not indebted to the company or its subsidiary or its holding or associate company or a subsidiary of such holding company where the Firm acts as the Statutory Auditors, in excess of rupees five lacs as prescribed in the above said rule is not eligible to appointment as an auditor of a company.