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CS Executive · Company Law and Practice · Accounts and Auditors

Aarav Industries Ltd has a branch in Pune audited by a separate branch auditor. Under Section 143(8), what must the branch auditor do?

The branch auditor prepares a report on the branch accounts and sends it to the company's auditor. The company's auditor then deals with it in his own report in whatever manner he considers necessary, as the proviso to Section 143(8) provides.

  1. APrepare a report on the branch accounts and send it to the company's auditor, who deals with it as he considers necessaryCorrect
  2. BFile the report directly with the Registrar of Companies
  3. CSend the report to the shareholders, bypassing the company's auditor
  4. DGive the report to the Board, which must adopt it unchanged

Explanation

The proviso to Section 143(8) requires the branch auditor to prepare a report on the branch accounts and send it to the company's auditor, who deals with it in his report in the manner he considers necessary. Filing with the Registrar is not provided.

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