The weekly messenger | Edition 02.23

January 2023

This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.

Auditing news

SSAE 3000 Assurance Engagements on Sustainability Information- 10 January 2023

Given the link between the climate change and corporate performance, many entities are reporting their sustainability performance for internal management purposes and are making external disclosure to various stakeholders, by preparing reports such as Business Responsibility and Sustainability Reporting (BRSR), Sustainability/ ESG Report, Integrated Report, Task Force on Climate-Related Financial Disclosures (TCFD) Report etc. This is primarily on account of regulatory disclosure regime or informing investors and other stakeholders on a voluntary basis.

Considering the aforesaid reporting requirements, the Sustainability Reporting Standards Board of the ICAI has issued the Standard on Sustainability Assurance Engagements (SSAE) 3000, ‘Assurance Engagements on Sustainability Information’.

The effective date of application of the aforesaid Standard shall be as follows:

  • On voluntary basis for assurance reports covering periods ending on 31 March 2023;
  • On mandatory basis for assurance reports covering periods ending on or after 31 March 2024.

For more information, click here.

Regulatory news

Clarification of holding of AGM through Video Conference or Other Audio-Visual Means – 28 December 2022       

The Ministry of Corporate Affairs (MCA) has once again decided to allow the companies whose Annual General Meetings (AGMs) are due in 2023 to conduct the same through Video Conference or Other Audio-Visual Means on or before 30 September 2023 in accordance with the requirements provided in paragraphs 3 and 4 of the Circular dated 5 May 2020.

It has been further clarified that the said Circular shall not be construed as conferring any extension of time for holding of AGMs by the companies under the Companies Act, 2013 and the companies which have not adhered to the relevant timelines shall be liable to legal action under the appropriate provisions of the Companies Act, 2013.

For more information, click here.

Relaxation from compliance with certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 – 5 January 2023
The MCA vide its Circular dated 28 December 2022 has extended the relaxations from dispatching of physical copies of financial statements (including Board’s report, Auditor’s report or other documents required to be attached therewith) to the shareholders for the AGMs conducted till 30 September 2023.

Pursuant to the aforesaid relaxation provided by MCA, the Securities and Exchange Board of India (SEBI) has also decided to provide relaxation w.r.t. the following requirements of the Listing Regulations till 30 September 2023:

  • Requirement of sending physical copies of statement containing salient features of all the documents, as prescribed in Section 136 of Companies Act, 2013 (financial statements, Board’s report, Auditor’s report etc.) to those shareholders who have not registered their email addresses.
  • The requirement of sending of proxy forms to the holder of the securities in case the meetings are held through electronic mode.

Similar relaxations have also been provided for the entities with listed non-convertible securities.
For Circular 1, click here.

 For Circular 2 (Issuers who have listed Non-convertible Securities), click here.