Question ID : 801

Indebtness Causes disqualification to become Auditor Under Section 226(3)(d)

Extract from the Act,1956
Section 226(3)(d)
a person who is debted to the company for an amount exceedg one thousand rupees, or who has given any guarantee or provided any security connection with the debtedness of any third person to the company for an amount exceedg one thousand rupees

Quion :
1)Whether the debtedness is anytime durg the fancial year or due at the end of the fancial year.

2)Whether advances given agast expenses for out of pocket expenses etc, are termed as debtedness.
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