Explanation:

In terms of Section 141 (3) (d) (iii) of the companies act 2013, a person who, or his relative or partner or any of my relatives or partners has given a guarantee or provided any security in connection with the indebtedness of any third person 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 one lakh rupees as prescribed in above-said rule is not eligible to appointment as an auditor of a company.