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CS Professional · Drafting, Pleadings and Appearances · Art of Advocacy and Appearances

During the hearing of a complaint against Lotus Pharma Ltd, the applicant alleges the Board's report was silent on an auditor's qualification in the audit report. The company's counsel must show compliance with which requirement of section 134(3)?

Counsel must show the Board's report explains or comments on every qualification, reservation, adverse remark or disclaimer by the auditor and by the practising company secretary in the secretarial audit report, as section 134(3)(f) requires. There is no exception for unquantified or disputed remarks.

  1. AThe Board's report must give explanations or comments on every qualification, reservation, adverse remark or disclaimer by the auditor, and also by the practising company secretary in the secretarial audit reportCorrect
  2. BOnly qualifications that the Board agrees with need be mentioned
  3. COnly the secretarial auditor's remarks need be explained, not the statutory auditor's
  4. DExplanations are needed only if the qualification is quantified in rupees

Explanation

Section 134(3)(f) requires explanations or comments on every qualification, reservation, adverse remark or disclaimer made by the auditor and by the company secretary in practice in the secretarial audit report. It is not limited by agreement, source, or quantification.

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