In exemptions to relatives there is small controversy: – if you read language carefully then as per literal interpretation you will notice that relatives can hold securities only in “that company” and not subsidiaries, associate.
But as per reasonable interpretation if holding is allowed in that company where audit is being conducted other companies such as subsidiaries and associate should be covered.
I will suggest give both the point of views in exams.
If you follow literal interpretation, in above case ca is not disqualified before but in latter case he will be disqualified
So as per reasonable interpretation it is absolutely fine if relative holds shares of face value 99,000 in subsidairy