October 21, 2019
Summary of Circular and notifications issued in the SEBI(LODR), Regulations 2015 and Companies Act, 2013 respectively are listed below:
1. Resignation of statutory auditors from listed entities and their material subsidiaries dated 18/10/2019:
Through this Circular, SEBI prescribes the action required by the statutory auditor in the event of their resignation.
i. Where the Auditor resigns within 45 days from the end of a quarter, the auditor shall, before resigning issue the limited review/ audit report for such quarter.
ii. Where the Auditor resigns after 45 days from the end of a quarter, then the auditor shall, before such resignation issue the limited review/ audit report for such quarter as well as the next quarter.
iii. Where the auditor has signed the limited review/ audit report for the first three quarters of a financial year, then the auditor shall, before such resignation, issue the limited review/ audit report for the last quarter of such financial year as well as the audit report for that financial year.
iv. In the event the auditor has not received information from management, the audit shall report Disclaimer in Audit Report as required by the Standards of Auditing.
The Board has also prescribed a format for the information to be obtained from the statutory auditor on their resignation.
Administrative changes:1. The Companies (cost records and audit) Amendment Rules, 2019 dated 15/10/2019 w.e.f., 1/04/2018:
MCA has amended the e-Forms CRA-1 and CRA-3 to make it more comprehensive.
The amended rules shall not apply to the companies who have already filed their Cost Audit Report in form CRA-4 for the financial year 2018-19 with the Central Government before the publication of this notification.
2. Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Amendment Rules, 2019:
MCA has substituted Annexure III i.e., the XBRL taxonomy to file the cost audit report and other related documents.