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CS Professional · Compliance Management, Audit and Due Diligence · Secretarial Audit

During the audit of Kaveri Agro Ltd, the practising company secretary finds that the finance team is delaying access to the statutory registers and minute books, saying they are busy with year-end closing. Which provision of the Companies Act, 2013 is the auditor best placed to rely on in asking for access?

The auditor can rely on the statutory duty of the company to give all assistance and facilities to the company secretary in practice for auditing its secretarial and related records. Neither Audit Committee approval nor a notice period is required for access.

  1. AThe company has a duty to give all assistance and facilities to the company secretary in practice for auditing its secretarial and related recordsCorrect
  2. BThe auditor may seize the registers under the Board's authority
  3. CThe Audit Committee must approve each request for records before access is allowed
  4. DThe company need provide records only if the auditor gives advance notice of one month

Explanation

Section 204(2) places a duty on the company to give all assistance and facilities to the company secretary in practice for auditing the secretarial and related records. There is no requirement of Audit Committee approval or a one-month notice, and the auditor has no seizure power.

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