Question: What is the reaon for the error: "psect "fnauto" exceeds address limit: 0204h > 0200h"?
Response: This error means that "fnauto" program section which is used to all auto variables and function arguments has exceeded the limit specified (0200h in this example).
In order to remove this error, variables which are local to the functions can be declared as global. In this particular case, declaring variables whose collective size is atleast 4 bytes as global will help in removing this error.
Doing this the variables won't occupy the space in "fnauto" psect and thus remove the errors.