TMI BlogResignation of statutory auditors from listed entities and their material subsidiariesX X X X Extracts X X X X X X X X Extracts X X X X ..... ting Obligations and Disclosure Requirements) Regulations, 2015 ( SEBI LODR Regulations ), the Audit Committee of a listed entity, inter alia, has to make recommendations for the appointment, remuneration and terms of appointment of auditors of a listed entity. Under Sub-clause (7), the Audit Committee is also responsible for reviewing and monitoring the independence and performance of auditors and the effectiveness of the audit process. 3. Further, Sub-clause (7A) inserted under Clause A in Part A of Schedule III under Regulation 30(2) of SEBI LODR Regulations requires detailed reasons to be disclosed by the listed entities to the stock exchanges in case of resignation of the auditor of a listed entity as soon as possible b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otwithstanding the above, if 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 such financial year. B. Other conditions relating to resignation shall include: (i) Reporting of concerns with respect to the listed entity/its material subsidiary to the Audit Committee: a. In case of any concern with the management of the listed entity/material subsidiary such as non-availability of information / non-cooperation by the management which may hamper the audit process, the auditor shall approach the Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... auditor. In case the auditor has already been appointed, the terms of appointment shall be suitably modified to give effect to 6(A) and 6(B) above. The practicing company secretary shall certify compliance by a listed entity with 6(A) and 6(B) above in the annual secretarial compliance report issued in terms of SEBI Circular no. CIR/CFD/CMD1/27/2019 dated February 08, 2019. C. Obligations of the listed entity and its material subsidiary: (i) Format of information to be obtained from the statutory auditor upon resignation: Upon resignation, the listed entity / its material subsidiary shall obtain information from the Auditor in the format as specified in Annexure A to this Circular. The listed enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me into force with immediate effect. 10. In case the auditor is rendered disqualified due to operation of any condition mentioned in Section 141 of the Companies Act, 2013 , then the provisions of this Circular shall not apply. 11. The Circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 read with regulations 18(3) , 30(2) and 36(5) of the SEBI LODR Regulations and shall be in addition to the provisions of Companies Act, 2013. 12. The circular is available on SEBI website at www.sebi.gov.in under the category - 'Legal Circulars'. Pradeep Ramakrishnan General Manager Compliance and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpact on the financial statements/results. c. Whether the auditor has performed alternative procedures to obtain appropriate evidence for the purposes of audit/limited review as laid down in SA 705 (Revised) d. Whether the lack of information was prevalent in the previous reported financial statements/results. If yes, on what basis the previous audit/limited review reports were issued. 7. Any other facts relevant to the resignation: Declaration 1. I/ We hereby confirm that the information given in this letter and its attachments is correct and complete. 2. I/ We hereby confirm that there is no other material reason other than those provided above for my ..... X X X X Extracts X X X X X X X X Extracts X X X X
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