EC No. 50 /D0S- 12/2020 02 March 2020
Ref. No. NB. DoS. Pol. HO/ 3477 /Pol-J-1/2019-20
All Regional Rural Banks
Consolidated Financial Statements – Limited Review of Financial Results by RRBs – Implementation of SEBI Guidelines
We invite your attention to SEBI circular No. CIR/CFD/CMD 1/44/2019 dated 29 March 2019 (copy enclosed). As per the new Sub-Regulation 8 inserted in Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, the Statutory Auditor of a listed entity shall undertake a limited review of the audit of all entities/companies whose accounts are to be consolidated with the listed entity as per Accounting Standards (AS) 21 in accordance with the Guidelines issued by the Board on this matter.
2. We also draw your attention to para 13.7 of our circular No.86/DoS-19/2009 dated 16 June 2009 (on Disclosure in Financial Statements – Notes on Accounts) whereby the RRBs were advised to put in place a system of half-year review through their SCA. In continuation thereof, we now advise that RRBs may henceforth undertake quarterly audit through their Statutory Auditors to enable the Statutory Auditor of their Sponsor Banks to undertake a limited review of the quarterly audit and facilitate submission of consolidated financial statements to SEBI.
3. A copy of the quarterly financial statements (audited) may be uploaded by way of Off-site returns (OSR) in ENSURE portal of NABARD. RRBs may also furnish a copy of Audit Report to their sponsor banks and Institutional Development Department, NABARD, Head Office, Mumbai.
4. Please acknowledge the receipt of this circular to our Regional Office concerned.
Chief General Manager