auditing

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shashi (Querist)
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29 July 2009 Can a CA be appointed as a Statutory Auditor of the bank of whose he is Holding a CREDIT CARD whoes credit limit is Rs.500000.

Ankur Garg

Ankur Garg (Expert)
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29 July 2009 Hi,

I don't think there is legally any issue. However it is advisable to avoid such appointment.

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Regards

shashi

shashi (Querist)
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29 July 2009 Sir, thanks for the reply. but is he not diqualified under company Act. As he is owing to the bank a sum 0f Rs. 1000.

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shashi

shashi (Querist)
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29 July 2009 sorry in excess of Rs 1000.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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29 July 2009 No, if a person had overdraft balance with bank or has credit card due, for more then 1000 he is disqualified for appointment as auditor of such company u/s 224.

shashi

shashi (Querist)
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30 July 2009 thanks for the reply. but suppose he did not use his credit can he b appointed

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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30 July 2009 If he didn't use the credit card then he can be apponted . The C' act permits the same