DCS/COMP/04/2016-17 June 01, 2016
Dear Sir/Madam,
Sub: Disclosure of the Impact of Audit Qualifications by the Listed Entities
This is with reference to Notification No. SEBI/LAD-NRO/GN/2016-17/001 dated May 25, 2016 and Circular No. CIR/CFD/CMD/56/2016 dated May 27, 2016 issued by the Securities and Exchange Board of India (SEBI), which inter-alia :
· Dispensed with the existing requirement of filing Form A or Form B for audit report with unmodified or modified opinion respectively
· Prescribed that for audit reports with unmodified opinion, listed entities should submit a declaration to the stock exchange(s) alongwith the annual audited financial results
· Prescribed that for audit reports with modified opinion, a statement showing impact of audit qualifications should be filed with the stock exchanges in the mandated format
The operational details for implementing the aforesaid provisions of Regulations 33 and 52 of the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 ('Listing Regulations') shall be as under:
1. The listed entities that have already submitted Form A (in case of audit reports with unmodified opinion(s)) for the period ended March 31, 2016 shall be considered as sufficient compliance with the aforesaid amendments.
2. The listed entities that have NOT submitted Form A (in case of audit reports with unmodified opinion(s)) for the period ended March 31, 2016 shall be required to submit the declaration as mentioned in SEBI Circular CIR/CFD/CMD/56/2016 within 30 days from the date of this circular duly signed by either CEO / Managing Director / CFO / Chairman of the Audit Committee
3. In the case of audit reports with modified opinion (s) for the period ended March 31, 2016, all the listed entities (including those which have submitted Form B prior to the date of this circular)) shall be required to submit the ‘Statement on Impact of Audit Qualifications’ within 60 days from the date of this circular in the format specified in Annexure I of SEBI Circular No. CIR/CFD/CMD/56/2016 dated May 27, 2016 (attached).
4. For all the subsequent annual filings of audited financial results, submission of Form A / Form B as the case may be, shall be dispensed with. Consequently, all listed entities shall be required to submit either declaration in case of audit report with unmodified opinion(s) duly signed by either CEO / Managing Director / CFO / Chairman of the Audit Committee or ‘Statement on Impact of Audit Qualifications’ in the prescribed format, within the timelines applicable for submission of annual audited financial results.
Listed Companies are required to take note of the said circular and comply accordingly.
Netra Sahani Arpita Joshi
DGM-Listing Compliance Associate Manager – Listing Compliance |