Singh & Associates LLP, a firm of practicing chartered accountants, being statutory auditors of Decent Industries Ltd., a listed entity since last 4 years. The auditors have proposed for hefty increase in their audit

As per Regulation 30 of SEBI (LODR) Regulations, 2015 read with Schedule III thereof, in case of resignation of the auditor of a listed entity, detailed reasons for resignation of auditor, as given by the said auditor, shall be disclosed by the listed entities to the stock exchanges as soon as possible but not later than 24 hours of receipt of such reasons from the auditor. Further, as per Regulation 18(3) of SEBI (LODR) Regulations, 2015 read with Schedule II thereof, recommendation for appointment, remuneration and terms of appointment of auditors of a listed entity falls within the role of the Audit Committee. In the given case, it has been informed that while the intimation to the Stock Exchange was done, the information regarding resignation of auditor was not placed before the Audit Committee and the Board. However, the proposal for appointment of New Auditors in casual vacancy was placed before the Audit Committee and Board. Accordingly, the provisions of the SEBI (LODR) Regulations, 2015 seems to have been complied with respect to intimation to Stock Exchange, however. Further, it would have been a better practice on part of the Company Secretary to also keep the Audit Committee and the Board informed about the resignation of the Statutory Auditors forthwith on intimation to Stock Exchange.