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

Krishna Logistics Ltd has a branch in Dubai. CS Meera Nair is its secretarial auditor and wants to inspect books at the head office at any time and seek explanations from officers. Which statement correctly reflects the right available under section 143 as applied to her?

She may access the books of account and vouchers at all times, wherever they are kept, and require such information and explanation from officers as she considers necessary. Section 143(1), applied to secretarial auditors by section 143(14)(b), imposes no consent or timing restrictions.

  1. AShe may access the books of account and vouchers at all times, wherever kept, and require necessary information and explanation from officersCorrect
  2. BShe may access books only during the annual audit window fixed by the Board
  3. CShe may access books only with the written consent of the managing director each time
  4. DShe may inspect books but cannot ask officers for any explanation

Explanation

Section 143(1) gives an auditor a right of access at all times to the books of account and vouchers, whether kept at the registered office or elsewhere, and to require information and explanation from officers considered necessary. Section 143(14)(b) applies this to the secretarial auditor with the necessary changes. The other options add conditions the section does not contain.

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