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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Legislative Framework of Corporate Governance in India

Aarav Pharma Ltd's company secretary notes that the standards of accounting are to be prescribed on the recommendation of one institute. Under Section 133, which body's recommendation forms the basis of the standards prescribed by the Central Government?

The Central Government prescribes accounting standards as recommended by the Institute of Chartered Accountants of India, which was constituted under the Chartered Accountants Act, 1949. Section 133 names the ICAI as the recommending body, not ICSI, SEBI or the Institute of Cost Accountants.

  1. AInstitute of Company Secretaries of India
  2. BInstitute of Chartered Accountants of India, constituted under the Chartered Accountants Act, 1949Correct
  3. CSecurities and Exchange Board of India
  4. DInstitute of Cost Accountants of India

Explanation

Section 133 says the standards are prescribed as recommended by the ICAI, constituted under section 3 of the Chartered Accountants Act, 1949. ICSI, SEBI and the cost accountants' institute are not named as the recommending body.

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