M Ltd. appointed S & Co., Chartered Accountants, as statutory auditors for the financial year 2025-26. During the audit, the statutory auditors noticed fake and duplicate expenses reimbursement of ₹1.10 crore to the

As per section 143 (12) read with rule 13 to the Companies (Audit and Auditors) Rules, 2014, if an auditor of a company, in the course of the performance of his duties as statutory auditor, has reason to believe that an offence of fraud, which involves or is expected to involve individually an amount of rupees one crore or above, is being or has been committed against the company by its officers or employees, the auditor shall report the matter to the Central Government as per the procedure given below: Report to Board & Audit Committee: The Auditor shall report the matter to the Board of directors or the audit committee as the case maybe, immediately but not later than 2 days of his knowledge of the fraud, seeking their reply or observations within 45 days. Report to Central Government on receipt of reply: On receipt of reply or observations, the auditor shall forward his report and the reply or observations of the board or the audit committee along with his comments (on such reply or observations of the board or the audit committee) to the Central Government within 15 fifteen days from the date of receipt of such reply or observations. Report to Central Government if no reply received: In case the auditor fails to get any reply or observations from the board or the audit committee within the stipulated period of 45 days, he shall forward his report to the Central Government along with a note containing the details of his report that was earlier forwarded to the board or the audit committee for which he has not received any reply or observations. The report shall be filed electronically in form ADT-4.