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CS Executive · Company Law and Practice · Accounts and Auditors

Veda Textiles Ltd has a branch office in Surat. The branch accounts were audited by a separate branch auditor appointed under the Companies Act, 2013. Under section 143, what must the branch auditor do with the report on the branch accounts?

The branch auditor must prepare a report on the branch accounts and send it to the company's auditor. The company's auditor then deals with that report in his own audit report in whatever manner he considers necessary, as provided in section 143(8).

  1. AFile it directly with the Registrar of Companies
  2. BPrepare a report and send it to the company's auditor, who deals with it in his report in the manner he considers necessaryCorrect
  3. CPlace it before the annual general meeting as a separate report
  4. DSend it to the Central Government for approval

Explanation

Under section 143(8), the branch auditor prepares a report on the branch accounts examined and sends it to the company's auditor. The company's auditor then deals with it in his own report as he considers necessary. Filing with the Registrar or sending it to the Central Government is not required by this provision.

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