CA PCC AUDIT PAPAER

All concerning abt qestion 7(a)

The resolution passed by the AGM authorising borad to fill the vacancy is not valid as declination to accept the appointment does not amount to casual vacancy under section 224(6)..Board is authorised to fill up the vacancy only in case of casual vacancy arising other than resignation..in this case there is no appointment as to auditor B and the company has to make a notice to CG within 7 days of the conclusion of the meeting and then such a vacancy shall be filled by the Cg as per section 224(3) & (4)..

Can anyone tell me the answer to 2(b) about that goodwill wala question..i didnt get it entirely

Audit paper with solution

/share_files/files_display.asp?files_id=19886