Rajesh & Ramesh Co., Chartered Accountants, are the statutory auditor of FDE Textiles Pvt. Ltd. DEF Products Ltd., the holding company of FDE Textiles Pvt. Ltd., is considering to allot assignment of designing of fin
CS Professional · Advanced Company Law and Practice · PYQS · December 2017
Rajesh & Ramesh Co., Chartered Accountants, are the statutory auditor of FDE Textiles Pvt. Ltd. DEF Products Ltd., the holding company of FDE Textiles Pvt. Ltd., is considering to allot assignment of designing of financial information system to Rajesh & Ramesh Co. Comment and advise the Board of directors of DEF Products. Ltd. on the above.
Answer & Explanation:
Section 144 of the Companies Act, 2013 provides that an auditor appointed under this Act shall provide to the company only such other services as are approved by the Board of Directors or the audit committee, as the case may be, but which shall not include specified services, whether those services are rendered directly or indirectly to the company or its holding company or subsidiary company. Specified services include design and implementation of any financial information system. Thus, applying the provision into the given case, Rajesh & Ramesh Co., Chartered Accountants, shall not accept the said assignment, if proposed to be given by DEF Products Ltd, holding company of FDE Textiles Pvt. Ltd.
Topics: Auditors and Audit
Related Questions in this Topic
- Draft specimen of a resolution appointing auditor of the company to fill vacancy caused by resignation.
- Write notes on the following : (i) NFRA
- PQR Textiles Ltd., a listed company covered under the relevant Rules and Section 148 of the Companies Act, 2013 for appo...
- SKD an employee of Moreh Ltd. met with an accident and died. The accident occurred when SKD was on Company's duty. He he...
- Mr. M, a member, appointed Mr. P as his proxy for the annual general meeting of a company in the form as set out in Form...