13 March 2015
"BC & Co." is an Audit Firm, having partners Mr.B, Mr.C & Mr.A who is a relative of Mr. C Mr.A is holding securities of the company "MWF Ltd." having face value of Rs. 96000. Whether BC & Co. is authorised from being appointed as auditors.?
In this ques. Mr.A is a partner and relative. So, as per the limit of Rs. 1,00,000 for relative, Mr.C is not ineligible making the firm eligible, but taking Mr.A as partner the firm becomes ineligible.
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