Parimal is indebted to Intense Finance Solutions Ltd. for ₹ 95,000. Intense Finance Solutions Ltd. is the holding company of Xplore Financial Services Ltd. Parama is sister of Prateek. Prateek is employed as General Mana

The conditions governing the appointment of debenture trustee or trustees is prescribed under Rule 18(2)(c) the Companies (Share Capital and Debenture) Rules, 2014. A person shall not be appointed as a debenture trustee, if he- i. beneficially holds shares in the company; ii. is promoter, director or key managerial personnel or any other officer or an employee of the company or its holding, subsidiary or associate company; iii. is beneficially entitled to moneys which are to be paid by the company otherwise than as remuneration payable to the debenture trustee; iv. is indebted to the company, or its subsidiary or its holding or associate company or a subsidiary of such holding company; v. has furnished any guarantee in respect of the principal debts secured by the debentures or interest thereon; vi. has any pecuniary relationship with the company amounting to two per cent. or more of its gross turnover or total income or fifty lakh rupees or such higher amount as may be prescribed, whichever is lower, during the two immediately preceding financial years or during the current financial year; vii. is relative of any promoter or any person who is in the employment of the company as director or key managerial personnel. In view of the above, Parimal cannot be appointed as debenture trustee in Xplore Finance Services Ltd. by virtue of restriction under iv above. However, Parama can be appointed as debenture trustee due to the fact that Prateek is not a KMP/Director/Promoter in the organisation. Further, she is neither an officer of the company nor the employee of the company. Here amount of indebtedness is not important.