Regarding disclosure requirement and reporting requirement in the Auditor’s Report that the company has provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016.
We would like to inform you that the Ministry of Corporate Affairs has issued a Notification regarding amendment in Schedule III to the Companies Act 2013, wherein it has been mentioned that every company shall disclose the details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016. The Notification may be accessed at the link: https://taxguru.in/company-law/companies-disclose-details-bank-notes-balance-sheet-audit-report.html
Further, the Ministry of Corporate Affairs has amended the Rules pertaining to Chapter X of the Companies Act, 2013, wherein it has been provided that the auditor of a company is required to disclose in the Auditor’s Report “whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.”
The Amendment Notification may be accessed at the link: https://taxguru.in/company-law/auditors-report-disclose-dealings-bank-notes-demonetisation.html
We request you to please note the amendment and take care in your professional capacity for disclosure requirements and reporting requirements while accounting/ auditing the financial statements for the year 2016-2017.
With Regards
Chairman, Corporate Laws & Corporate Governance Committee
The Institute of Chartered Accountants of India
Where such disclosure is shown in the balance sheet?