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Government of India Notification New Delhi, dated the 14th December, 20l5 C.S.R. (E). - In exercise of the powers conferred by sub-section (12) of section l4:l read with sub-section (l) of section 469 of the Companies Act' 2013 (18 of2013)' the Central Government hereby makes the following rules further to amend the Companies (Audit and Auditors) Rules, 2014 namely:- 1. (1) These rules may be called the Companies (Audit and Auditors) Amendment Rules, 2015. (2) They shall come into force on the date of their publication in the Official Gazette 2. In the Companies (Audit and Auditors) Rules, 2014 (hereinafter referred to as the principal rules),- (i) For rule 13, the following rule shall be substituted' namely:- "13. Reporting of frauds by auditor and other matters: (1) lf an auditor of a company, in the course of the performance of his duties as statutory auditor, has reason to believe that an offence of fraud, which involves or is expected to involve individually an amount of rupees one crore or above, is being or has been committed against the company by its officers or employees, the auditor shall report the matter to the Central Government. (2) The auditor shall report the matter to the Central Government as under:-
(a) the auditor shall report the matter to the Board or the Audit Committee, as the case may be, immediately but not later than two days of his knowledge of the fraud seeking their reply or observations within forty-five days; (3) In case of a fraud involving lesser than the amount specified in sub-rule (1), the auditor shall report the matter to Audit Committee constituted under section 177 or to the Board immediately but not later than two days of his knowledge of the fraud and he shall report the matter specifying the following:-
(a) Nature of Fraud with description; (4) The following details of each of the fraud reported to the Audit Committee or the Board under sub-rule (3) during the year shall be disclosed in the Board’s Report:-
(a) Nature of Fraud with description; (5) The provision of this rule shall also apply, mutatis mutandis, to a Cost Auditor and a Secretarial Auditor during the performance of his duties under section 148 and section 204 respectively.";
(ii) In the principal rules, after rule 14 and before FORM NO. ADT-1, insert the word "Annexure";
(A) in line 3, for the word, figures and brackets “rule l3(4)” the word, figures, letter and brackets "rule 13(2)(f)" shall be substituted; and [F. No. 1/33/2013-CL-V]
(Amardeep Singh Bhatia)
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