The Ministry of Corporate Affairs vide its notification dated 24th March 2021 has published the Companies (Audit and Auditors) Amendment Rules, 2021 which shall come into force from 1st April 2021.
The Amendment is brought under rule 11 which specifies the matters to be included in auditors report in which a new clause 11(e) has been inserted as follows:
The auditor’s report shall also include their views and comments on the following matters, namely:
Whether the management has represented that, to the best of it’s knowledge other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested by the company to or in any other person(s) or entity(ies), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company.
Further the report shall contain dividend declared or paid during the year by the company is in compliance with section 123 of the Companies Act, 2013.
