Provision relatong to appontment of auditor

Can someone please resolve my query regarging appointment of auditor

"If Mr. X is a Chartered Accountant within the meaning of ICAI Act,1949 is Indebted to the company to the extent of Rs.700/- AND given a third party guarentee to the extent of Rs.500/- AND at the same time holding debentures of company worth Rs.1000/- is he qualified to be appointed as an auditor of that particular company as sec 226 of Companies Act,1956?"