This policy outlines the framework for selecting statutory auditors (SAs) for Oriental Finstock Services Private Limited (“the Company”). It is designed in accordance with the Reserve Bank of India’s (RBI) Guidelines for the Appointment of Statutory Central Auditors (SCAs)/Statutory Auditors (SAs) for Commercial Banks (excluding RRBs), Urban Cooperative Banks (UCBs), and NBFCs (including HFCs), as detailed in RBI circular Ref.No.DoS.CO.ARG/SEC.01/08.91.001/2021-22 dated April 27, 2021, and as updated from time to time.
The Board of Directors (BOD) has adopted this policy to ensure compliance with the RBI Guidelines and the relevant sections of the Companies Act, 2013, along with the Companies (Audit and Auditors) Rules, 2014.
This policy serves as a procedural guide for determining qualifications, eligibility, and the process for appointing statutory auditors in line with applicable laws and regulations.
The Board approved this policy on September 25, 2025.
The Company will determine the number of statutory auditors required based on factors such as asset size and distribution, number of accounting and administrative units, transaction complexity, degree of computerization, availability of other independent audit resources, and identified risks in financial reporting, ensuring alignment with RBI Guidelines.
Audit firms considered for appointment must meet the eligibility criteria specified in the RBI Guidelines, including:
If an audit firm, after appointment, fails to meet any eligibility norm (due to resignation, death, regulatory action, etc.), it should promptly notify the Company with full details. The firm must take necessary steps to regain eligibility within a reasonable period and must comply with all norms before commencing the annual statutory audit for the financial year ending March 31 and until the audit is completed.
In extraordinary cases after the audit starts (such as the death of key partners or staff), the RBI may, at its discretion, allow the firm to complete the audit as a special case.
The Board of Directors or Audit Committee will monitor and assess the **independence of auditors** and manage any potential conflicts of interest, in accordance with regulatory requirements and best practices. Any concerns will be escalated to the relevant RBI office.
There must be a minimum time gap, as specified by RBI, between any **non-audit services** provided by the auditors to the Company or its RBI-regulated group entities, before or after their appointment as statutory auditors. However, during their tenure, auditors may provide services that do not typically result in a conflict of interest, as permitted by RBI Guidelines and the Companies Act, 2013.
Statutory auditors will be appointed for a continuous period of **three years**, subject to annual compliance with eligibility norms. Following completion of a full or partial term, the audit firm will not be eligible for reappointment for the minimum period specified in the RBI Guidelines.
The Policy on the remuneration of statutory auditors is determined and governed by the relevant decision-making body (typically the Board or Audit Committee) in line with regulatory requirements.