SEBI UPDATE

Disclosure of the Impact of Audit Qualifications by the Listed Entities

SEBI has put in place a mechanism to review the audit qualifications contained in the audit reports of the listed entities. The detailed procedure for the same has been prescribed in Schedule VIII read with Regulation 33 and Regulation 52 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 ('Listing Regulations') and SEBI circular no. CIR/CFD/CMD/15/2015 dated November 30, 2015. 2.

In consultation with SEBI Advisory Committees, 'ICAI', SEs and IBs, it has been decided to streamline the existing process as follows:

(i) to make the listed entities disseminate the cumulative impact of all the audit qualifications in a separate format, simultaneously, while submitting the annual audited financial results to the stock exchanges. This will ensure that the information is available to the investors, without delay, enabling them to take well informed investment decisions;

(ii) to dispense with the existing requirement of filing Form A or Form B for audit report with unmodified or modified opinion respectively;

(iii) to dispense with the existing requirement of making adjustment in the books of accounts of the subsequent year