Institute of Chartered Accountants of India (ICAI) issues Advisory on Exhibit B3 of SEBI’s Circular (29 March 2019) stressing on the procedures and formats of the review/audit reports of all the listed institutions and the institutions whose accounts are to be merged with the listed ones.
SEBI in its circular released on 29 March 2019 stated the procedures and format of the limited review/audit reports of the institutions and those whose accounts are consolidated with the listed institutions.
Exhibit B3 of the circular applies to “Independent Auditor’s Review Report on Review of Consolidated Unaudited Quarterly and Year to date Financial Results for banks”. 7th and 8th points of the Exhibit B3 needs absolute derivations of total assets, total net profit/loss after deducting tax, net cash flows in outlets of banks.
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Adhering to the norms of Exhibit B3 appears to be quite challenging for ICAI’s associate members as reporting of net profit and loss after tax deduction and the net cash flows of bank branches is relatively unachievable. This arising hindrance was taken to SEBI to which the authority ordered ICAI to issue necessary guidelines for associate members related to the situation.
On the other hand, ICAI’s associate members are suggested that while reporting in adherence with Exhibit B3 they need not report on net profit/(loss) after tax deduction and cash flows of bank branches if such is not described in the financial statements.
This Advisory will be effective on an immediate basis.
