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

Sagar Foods Ltd's financial year ended 31 March. The Board report is dated 20 July. A major plant was destroyed by fire on 10 June, materially affecting the company's financial position. Meanwhile, the CSR policy is hosted on the website. Which treatment of the Board's report complies with the Act?

The fire must be disclosed as a material change affecting financial position between the year-end and the report date, and the CSR policy may be covered by its salient features in brief plus the web address where the full policy is available. Both requirements are met only by this treatment.

  1. ADisclose the fire as a material change affecting financial position between year-end and report date, and for the CSR policy give its salient features in brief with the web addressCorrect
  2. BIgnore the fire as it occurred after year-end and attach the full CSR policy
  3. CDisclose the fire only in the next year's report and omit the CSR policy
  4. DDisclose the fire only in the auditor's report and give no CSR reference

Explanation

Section 134(3)(l) requires material changes and commitments affecting financial position between year-end and the date of the report. The second proviso lets a website-hosted policy under clause (o) be covered by brief salient features and the web address. The other options omit one or both requirements.

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