(CA Inter)May26/Sep26

11 Unicorn Steel Private Limited is incorporated as on 02.06.2022, board of directors of the company held board meeting as on 15.06.2022 to appoint Jain Ajmera & Associates as a first auditor of the companyfor a term of 5 years. As per section 139(6) of the Companies Act, 2013, the board shall appoint first director within 30 days from the date of registration of the company. Evaluate the legal validity;

10 Which of the non-financial matter, Statutory auditor is required to report in his report: (a) Whether employees appointed during the period covered by audit meet the requisite educational/professional qualification at the time of appointment. (b) Whether every page of minute book of General meetings bears full signature of Chairman as per provisions of Companies Act, 2013. (c) Whether the incorporation documents are managed properly. (d) Whether any director is disqualified from being appointed as a director under section

9 NTW Ltd is listed on National Stock Exchange and has a turnover of INR 4500 crores. NTW Ltd has 12 subsidiaries, 3 associate companies and 5 joint venture companies (collectively referred to as NTW Group). AKW & Co LLP is the statutory auditor of NTW Ltd. NTW Ltd wants to appoint AKW as the statutory auditors for entire NTW Group. In respect of this, please advise the management of NTW Group. (a) AKW & Co LLP can be appointed as statutory auditors for only 10 companies of NTW Group. (b) AKW & Co LLP can be appointed as statutory auditors for only 20 companies of NTW Group. (c) AKW & Co LLP can be appointed as statutory auditors for all the companies of NTW Group. (d) AKW & Co LLP can be appointed as statutory auditors for all the companies of NTW Group provided they meet the limits requirements as per the Companies Act 2013

8 BSP Ltd appointed XPP & Co LLP as their statutory auditors for the year ended 31 March 2018 on 18 June 2018, as per Section 139(8) of the Companies Act 2013, to fill the casual vacancy caused by resignation of previous statutory auditors to hold office till the conclusion of next Annual General Meeting (AGM) of BSP Ltd. BSP Ltd is listed with Bombay Stock Exchange and National Stock Exchange. BSP Ltd is covered under auditors rotation requirements and wants to re-appoint XPP & Co LLP at their next AGM. Please advise (a) XPP & Co LLP can be re-appointed for a term of five consecutive years at the AGM and after that can be considered for re-appointment for another five consecutive years. (b) XPP & Co LLP can be re-appointed for a term of four consecutive years at the AGM and after that can be considered for re-appointment for another five consecutive years. (c) XPP & Co LLP can be re-appointed for a term of five consecutive years at the AGM. (d) XPP & Co LLP cannot be re-appointed at the AGM.

7 Advise whether the auditor appointed by a private limited company with paid up capital of Rs.30.00 Crore, in the following cases are valid for the financial year 2017-18:- (a) Amanpreet (an Individual auditor) who has been the auditor since the Financial Year 2011-12 (b) Firm MGA & associates was appointed as auditor in the Financial Year 2011-12. (c) Firm MGA & associates, who completed 10 years continuously as auditor in company. Now company wants to appoint VGA & associates wherein Mr. V is a partner who is also partner is MGA & Associates. (d) The provisions of rotation of auditor are not applicable on private companies