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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Sustainability Audit, ESG Rating and Emerging Mandates from Government and Regulators

Sagar Shipping Ltd, a listed company, is preparing its annual report. A director asks which Companies Act, 2013 mandate requires the board's report to describe energy conservation, technology absorption and foreign exchange earnings and outgo. Where does this requirement sit?

The disclosure on energy conservation, technology absorption and foreign exchange earnings and outgo is required in the board's report under section 134(3)(m) of the Companies Act, 2013 read with the Companies (Accounts) Rules, 2014. CSR, audit committee and independent director provisions do not govern it.

  1. ASection 134(3)(m) read with the Companies (Accounts) Rules, 2014 on the board's reportCorrect
  2. BSection 135 on CSR committees
  3. CSection 177 on audit committees
  4. DSection 149 on independent directors

Explanation

Section 134(3)(m) requires the board's report to include conservation of energy, technology absorption and foreign exchange earnings and outgo, as prescribed in the Accounts Rules. Section 135 deals with CSR, section 177 with audit committee functions, and section 149 with board composition and independent directors, so none covers this disclosure.

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