New Limited, a listed entity, passed a resolution in its Board meeting for the appointment of Verma & Associates, Chartered Accountants, as the…

New Limited, a listed entity, passed a resolution in its Board meeting for the appointment of Verma & Associates, Chartered Accountants, as the statutory auditor of the company. The company obtained written consent from Verma & Associates and placed this recommendation before the Annual General Meeting (AGM) of shareholders, where it was duly approved. After securing approval, New Limited informed the firm of their appointment and filed a notice of appointment with the Registrar of Companies within the prescribed time. Verma & Associates has three partners: A Verma, B Verma, and C Verma. The firm also take services of two persons, Dev Verma and Mia Verma, who work on a case-to-case basis and are not on a fixed salary. It is also informed that prior to this appointment, Agrawal Verma & Associates was serving as the statutory auditor of New Limited. This firm had six partners: Shrey Agrawal, Alam Agrawal, Vishal Agrawal, Vyom Agrawal, Dev Verma, and Mia Verma. Notably, Dev Verma and Mia Verma were common members in both Verma & Associates and Agrawal Verma & Associates. While working with New Limited, Verma & Associates started facing severe disagreements with the management regarding certain financial reporting matters and governance issues. As a result of these persistent disputes, the firm decided to resign as the statutory auditor. Meanwhile, New Limited was also required to hold its Annual General Meeting (AGM) within the prescribed period, ensuring compliance with the legal provisions regarding financial reporting, auditor appointments, and shareholder approvals. However, due to internal conflicts and auditor resignation, the company faced challenges in adhering to these timelines. Additionally, New Limited decided to shift its registered office from Mumbai to Bengaluru for operational efficiency. The company passed a Board resolution for the change and later obtained shareholder approval in the AGM. However, due to an oversight, the filing of the notice of change of registered office with the Registrar of Companies was delayed. As a result, several important communications, including regulatory notices and shareholder correspondence, were being sent to the Mumbai office, causing disruptions in company operations. On the basis of above facts and by applying applicable provisions of the Companies Act, 2013 and the applicable Rules therein, choose the correct answer (one out of four) of the following Multiple Choice Questions (MCQs 1-5, of 2 marks each) given herein under: