The Securities and Exchange Board of India (‘SEBI’), has issued a circular on May 27, 2016, for streamlining the existing process of disclosure of the impact of audit qualifications by listed companies under the SEBI (Listing and Other Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’). Listed companies are required to disclose the cumulative impact of all audit qualifications in a separate format for the period ending on or after March 31, 2016, simultaneously, while submitting the annual audited financial results to the stock exchanges. SEBI has now dispensed with the requirement of filing Form A or Form B for audit report with unmodified or modified opinion and the requirement of making adjustment in the books of accounts of the subsequent year, and the management of the listed entity will have the option to explain its views on the audit qualifications. If the impact of the audit qualification is not quantified by the auditor, the management must provide an estimate and if the management is unable to provide an estimate, it must state reasons for the same. In both instances, the auditor is required to review and provide comments.