Sanjay, a Chartered Accountant, is the financial controller of Sonik Industries (Pvt.) Ltd. for the last five years. The company now wants to appoint him as the statutory auditor of the company. Examining the provisions

Advice on Appointment of Sanjay as Statutory Auditor To determine whether Sonik Industries (Pvt.) Ltd. can appoint Sanjay as its statutory auditor, we need to examine the provisions of the Companies Act, 2013, regarding the eligibility of auditors. Relevant Legal Provision: Section 141(3)(b) of the Companies Act, 2013, specifies certain disqualifications for the appointment of an auditor. It states that: "An officer or employee of the company" is not eligible for appointment as an auditor of that company. Application to the Case: In the given scenario: Mr. Sanjay is a Chartered Accountant. He is currently working as the Financial Controller of Sonik Industries (Pvt.) Ltd. A Financial Controller is considered an 'officer' and an 'employee' of the company. Since Mr. Sanjay is an officer and employee of Sonik Industries (Pvt.) Ltd., he falls directly under the disqualification criteria mentioned in Section 141(3)(b) of the Companies Act, 2013. Conclusion: Therefore, Sonik Industries (Pvt.) Ltd. cannot appoint Mr. Sanjay as its statutory auditor. His position as Financial Controller makes him ineligible for such an appointment.