Chirag Kansalchirag kansal asked 2 years ago
1 Answers
RaviRavi Staff answered 2 years ago

this question is asked in IPC Audit PM. this question was relevant in old caro. but then also they have included it.
you should specify
As per company act
1. Director is suppose to disclose his interest in transactions entered by company
2. Appropriate Audit Committee / BOD / Shareholder will be required as it will become related party transactions
3.He cannot vote in bod if such matter is put to vote
4.details should be recorded in sec 189 register
further clause 13 of caro says, auditor has to comment whether related party transactions are properly approved and disclosed in notes to accounts.
in above case because of non disclosure permission was not taken, records & disclosure is not appropriate so it will reported under cl 13