Section 141:-Eligibility, qualifications and disqualifications of auditor

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Mohit Sharma

Student CA Final

49 Points Joined July 2015

whether the limit of Rs.5 lakhs under section 141(3)(d) is checked separately for each company (separately for holding co, separately for subsidiary co, separately for associate co) or in aggregate ?

and whether the limit of Rs.5 lakhs is checked separately for individual, separately for his relative and separately for his partner or in aggregate ?

Replies (3)

shankar

chennai

130 Points Joined September 2011

As per sec 141(3)(d)(ii) and Rule 10(2) of Companies (Audit and Auditors) Rules, 2014

A person who is indebted to the company or it's subsidiary, or it's holding or associate company or a subsidiary or such holding company, for an amount exceeding Rs.5lakhs.

It should be calculated individually for any of the companies as it is mentioned "or" it's holding co, "or" subsidiary, "or" holding co. In case if it is provision must contain a word aggregate..

To my knowledge, Relatives of any partner of the firm holding security of or interest in the company of face value exceeding RS.1lakh and not 5lakhs. (Correct me if I'm wrong)

(Sec 141(3)(d)(i) and Rule 10(1) of Companies (Audit and Auditors) Rules, 2014.

It must be concluded individually and not in aggregate.