CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Board Disclosures and Website Disclosures
The statutory auditor of Bharat Polymers Ltd, a listed company, qualified the audit report on inventory valuation. The company secretary in practice also made an adverse remark in the secretarial audit report on a delayed filing. What must the Board's report contain?
The Board's report must give explanations or comments on both. Section 134(3)(f) covers every qualification, reservation, adverse remark or disclaimer by the statutory auditor and by the company secretary in practice in the secretarial audit report.
- AExplanations or comments on the auditor's qualification only, since secretarial audit remarks are for the shareholders
- BExplanations or comments on both the auditor's qualification and the secretarial auditor's adverse remarkCorrect
- COnly a statement that the remarks are self-explanatory in the notes to accounts
- DExplanations on the secretarial auditor's remark only, as the auditor's remark is dealt with in the audit report
Explanation
Section 134(3)(f) requires Board explanations or comments on every qualification, reservation, adverse remark or disclaimer made by the auditor in his report and by the company secretary in practice in the secretarial audit report. Both are therefore covered.
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