Section 138 Companies Act 2013 (Internal Audit) and Section 134(5) (Internal Financial Controls): Under Section 134(5)(e), the directors' responsibility statement must include a statement that the directors have devised:

1. Section 134(5) Companies Act 2013 requires the Board's Report to include a DIRECTORS' RESPONSIBILITY STATEMENT covering: (a) accounting standards followed; (b) accounting policies applied consistently and reasonable judgments; (c) proper and sufficient care taken for maintenance of accounting records, safeguarding assets, detecting fraud; (d) annual accounts on going-concern basis; (e) in case of listed companies, INTERNAL FINANCIAL CONTROLS to be followed and that such controls are adequate and operating effectively; (f) PROPER SYSTEMS TO ENSURE COMPLIANCE WITH ALL APPLICABLE LAWS and that such systems were adequate and operating effectively. 2. Section 134(5)(f) was inserted by the Companies (Amendment) Act, 2017 to mandate the legal compliance system disclosure. 3. Hence option A is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 134(5)_