Give your views on the following issues:
a) The 15th AGM of Sagarmatha Gems (P) Ltd. (SGPL) held on 15 Magh 2060 appointed Hari Krishna Neupane FCA, sole proprietor of KKN & Co., as statutory auditor for FY 2060/. H.K. Neupane immigrated to Los Angeles, USA on 15 Baisakh 2061 on diversity visa. Before his departure to USA, HK Neupane converted his sole proprietorship firm into partnership firm admitting Shyam Prasad Chattaroy as a partner of the newly registered firm HKN &Co. The SGPL did not allow S.P Chattaroy to audit the books of accounts of the company stating that the firm was not appointed as auditors of the company the AGM.
The AGM of Sagarmatha Gems (P) Ltd. (SGPL) had appointed Hari Krishna Neupane FCA, sole proprietor of HKN & Co. as the statutory auditor for FY 2060/61. HK Neupane converted his sole proprietorship firm HKN & Co. into a partnership firm with the same name taking SP Chattaroy FCA as his partner, before his immigration to the Los Angeles, USA, with the objectives of retaining the audit. As SGPL had appointed HK Neupane as the sole practitioner and not as partner of the newly registered firm HKN & Co. the company has every right or refuse audit the partnership firm not appointed as auditors the AGM. It would, therefore, be proper for HK Neupane to refuse the audit stating his inability to carry out the audit in view of his intention to immigrate to the USA on diversity visa.