One of the Directors of Marksmen Ltd. leaked an insider information in the market for personal profit. A, auditor of the company, in the course of performance of his duties finds out this offence which involves the amoun

Section 143(12) read with the Companies (Audit and Auditors) Rules, 2014 provides that if an auditor of a company in the course of the performance of his duties as 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, the auditor shall report the matter to the Central Government. The auditor shall report the matter to the Central Government as under:- The auditor to report the matter to the Board or the Audit Committee, as the case may be, immediately but not later than 2 days of his knowledge of the fraud, seeking their reply or observations within 45 days; On receipt of such 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 days from the date of receipt of such reply or observations; In case the auditor fails to get any reply or observations from the Board or the Audit Committee within 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 sent to the Secretary, Ministry of Corporate Affairs in a sealed cover by Registered Post with Acknowledgement Due or by Speed Post followed by an e-mail in confirmation of the same. The report shall be on the letter-head of the auditor containing postal address, e-mail address and contact telephone number or mobile number and be signed by the auditor with his seal and shall indicate his Membership Number; and The report shall be in the form of a statement as specified in Form ADT-4. In case, the auditor does not comply with the provisions of section 143(12) of Companies Act, 2013, he shall be punishable with fine which shall not be less than one lakh Rupees but which may extend to twenty-five lakh rupees.