Section 144 of the Companies Act, 2013

[Nutan Thakkar]

Dear Sir / Madam 

Statutory Auditor of the Company providing investment advisory services to entity who having significant influence holding 40% of paid up share capital of the Company and also entity classified as promoter of the Company. 

Entity not holding Company or subsidiary of the Company however entity is classified as promoter of the Company and having significant influence including holding 40% paid up share capital of the Company. 

In this case kindly let me know whether Section 144 prohibit statutory auditor to provide investment advisory services to aforementioned entity.   

Whether this will be treated as statutory auditor providing investment advisory services indirectly to the Company.

Thank you. 

Regards 

Nutan Thakkar

   

[CS V Kartik]

According to me the same is not allowed as per Sec 144 even if the same is being done directly or indirectly

[BINDU MADHAVA]

Here is a tricky point

Investment advisory services to

The Company - no,

Holding company based on shareholding of 40 per cent - no, but control need to be checked,

Subsidiary - no

On Sun 2 Sep, 2018, 8:31 PM CS V Kartik, <karv...@gmail.com> wrote:

According to me the same is not allowed as per Sec 144 even if the same is being done directly or indirectly

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[Nutan Thakkar]

Thank you for your replies

In financial statements entity not indentified as Holding Company or Subsidiary Company considering entity holding only 40% of shareholding of the Company.

However in financial statements in related party transactions part the entity indentified as "entity having significant influence" and in Annual return entity identified as Promoter of the company.

Statutory auditor of the Company provided investment advisory services to aforementioned entity

Hence kindly let me know in this case whether it is trated as statutory auditor provided indirectly investment advisory services to the Company considering same is provided to promoter of the company or entity having significant influence.

Thank you once again

Regards
Nutan Thakkar