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

Vihaan Textiles Ltd, a listed company, held nine Board meetings in the year. Its Board's report states the number of meetings but omits the Directors Responsibility Statement, saying the financial statements already show a true and fair view. Under Section 134 as given, what is the position?

The Directors Responsibility Statement is compulsory content of the Board's report under Section 134(3)(c). It cannot be dropped because the accounts show a true and fair view, and it does not depend on a qualification or on the company being unlisted.

  1. AThe omission is acceptable because the true and fair view in the accounts makes the statement redundant
  2. BThe Directors Responsibility Statement is a mandatory content of the Board's report and cannot be omittedCorrect
  3. CThe statement is needed only if the auditor has qualified the report
  4. DThe statement is needed only for unlisted public companies

Explanation

Section 134(3)(c) lists the Directors Responsibility Statement as a required part of the Board's report. The proviso allows reference to disclosures already in the financial statements, but it does not cover the DRS as a substitute for the true and fair view. The other options add conditions that the text does not contain.

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