If a person had appointed as auditor on 16.8.15(agm) for f.y. 15-16.
And auditor owed ₹510000 to the company on 1.4.15.
Auditor had repaid the amount on 10.8.15.
Then the should have vacated the office because he was disqualified on 1.4.15 itself.
If he is eligible for reappointment then auditors can take debt more than 5 lacs and repay in the same year for being eligible to be reappointed for next f.y.
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Disqualification of auditor u/S 141(3)(d)(ii)
Replies (6)
where u got this one
Audit PM
the disqualification had to be seen on date of appointment
Pragya, provision under section 141(3) providing safeguard against financial threat to Independence.hence while appointment & during term of appointment auditor or his partner should not be indebted to the company or group companies beyond the prescribed amount.
Hence in dis case if auditor or his partner or his relatives indebted to company which has been settled before appointment. Hence it won't attractant disqualification. But during appointment term indebted to company for more than 500000,have to. Vacate office as per section 141(4)
the disqualification had to be seen on date of appointment
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