Disqualification of Auditor

Yes both can be appointed. Refer Section 141(3)(d)(ii) and (iii)read with Rule 10 of chapter 10 states disqualification applicable in case if indebtedness is more than of 5 lac rupees.

Mrs. Y can be appointed as an auditor of that company.

Mr. X cannot be appointed an an auditor because it's more than the threshold value i.e. 1Lakh.

Only x is disqualified for the appointment ofauditor in pvt ltd because

In case of mr x - he is provide guarante of 3 lakh which is exceed the limit of 3 lakh so he is disqualified

Incase of mrs y - her relative( i.e mr x) provide guarante for her (i. E she is not third-party for mx x )) so she is not disqualified for appointment

Note - in act it has been clearly mentioned 3 party