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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures

Kaveri Pharma Ltd, a listed company, is finalising its Board's report. The statutory auditor has made a qualification in the audit report, and the secretarial auditor, a company secretary in practice, has also made an adverse remark. What must the Board's report contain on these?

The Board's report must contain the Board's explanations or comments on every qualification, reservation, adverse remark or disclaimer made both by the statutory auditor in the audit report and by the company secretary in practice in the secretarial audit report.

  1. AExplanations or comments by the Board on the auditor's qualification only
  2. BExplanations or comments by the Board on the qualifications of both the auditor and the secretarial auditorCorrect
  3. COnly a reference to the audit report, with no comments
  4. DExplanations on the secretarial auditor's remark only

Explanation

Section 134(3)(f) requires the Board's report to include explanations or comments on every qualification, reservation, adverse remark or disclaimer made by the auditor in the audit report and by the company secretary in practice in the secretarial audit report. Limiting it to one report is therefore wrong.

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