Amended Audit Report for the FY 2021-22 : MCA

Ministry of Corporate Affairs (MCA) vide its notification dated March 24, 2021 amended the Companies (Audit and Auditors) Rules, 2014 (“The Audit Rules”), Companies (Accounts) Rules, 2014 (“The Account Rules”) and Schedule III to the Companies Act, 2013 (“the Act”). These amendments are effective from 01 April 2021.

Consequent to the amendment to the Audit Rules, the auditors are now additionally required to report in their auditor’s report on certain additional matters under section 143(3)(j) of the Act under the section “Report on Other Legal and Regulatory Requirements” which is given below:

  • Whether the management has represented that other than those disclosed in the notes to accounts,
    • no funds have been advanced or loaned or invested by the company to or in any other person(s) or entities, including foreign entities (“Intermediaries”), with the understanding that the intermediary shall whether directly or indirectly lend or invest in other persons or entities identified in any manner by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like on behalf of ultimate beneficiaries.
    • no funds have been received by the company from any person(s) or entities including foreign entities (“Funding Parties”) with the understanding that such company shall whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or provide guarantee, security or the like on behalf of the Ultimate beneficiaries.

Based on the audit procedures performed, auditor is required to report nothing has come to their notice that has caused them to believe that the above representations given by the management contain any material mis-statement.

  • Compliance of section 123 of the Act with respect to dividend declared/paid during the year