Decide whether the following persons are qualified to be appointed as statutory auditor of the Girija Ltd: Mohan, a qualified chartered accountant, holds equity shares of nominal value of ₹200000 of Nirja Ltd, which is a

Provisions of the Companies Act, 2013: Section 141(3)(d)(i) of the Companies Act, 2013, states that a person shall not be eligible for appointment as an auditor of a company if he, or his relative or partner is holding any security of or interest in the company or its subsidiary, or of its holding or associate company or a subsidiary of such holding company. However, a relative may hold security or interest in the company of face value not exceeding ₹1,00,000. Application to the given case: Mohan holds equity shares of nominal value of ₹2,00,000 in Nirja Ltd. Nirja Ltd. is an associate company of Girija Ltd. Mohan himself holds the shares, not his relative. Conclusion: Mohan is **disqualified** from being appointed as the statutory auditor of Girija Ltd. because he holds security in an associate company of Girija Ltd., and the exemption for relatives holding security up to ₹1,00,000 does not apply to the auditor himself.