Sitting fees

This query is : Resolved

ajinkya (Querist)
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04 September 2013 Dear Sir,

I am presently doing an Audit of Private Limited Company. Its turnover is around Rs. 20 Crore. And Share Capital including Reserve is less than Rs. 5 Crores. One of the director is being paid the sitting fees of Rs. 17500/- during the year. Is that eligible?

Thanks in Advance

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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04 September 2013 check the sitting fees given to other directors and compare , if the diff is huge then ask them the reason for the same and investigate this may be a clue for fraud commited or mismanagement for safety purpose.

also check the appointment letter and internal policies of the co dealing with the remuneration of the directors and issued related to them.