Category Archives: Chapter IX – CA2013

ACCOUNTS OF COMPANIES

AMENDMENT: Administration of CSR

Posted on February 6, 2015 | 5 comments

According to Rule 4(2) of the Companies (Corporate Social Responsiblilty Policy) Rules 2014 as discussed earlier here:

“The Board of a company may decide to undertake its CSR activities approved by the CSR Committee, through a registered trust or a registered society or a company established by the company or its holding or subsidiary or associate company under section 8 of the Act or otherwise:

Provided that—

(i) if such trust, society or company is not established by the company or its holding or subsidiary or associate company, it shall have an established track record of three years in undertaking similar programs or projects;

(ii) the company has specified the project or programs to be undertaken through these entities, the modalities of utilization of funds on such projects and programs and the monitoring and reporting mechanism.”

Now, Ministry of Corporate Affairs came out with the Companies (Corporate Social Responsiblity Policy) Rules 2015 dated 19^th January 2015. These amendments shall come into effect from date of publication. After these amendments above mentioned sub – rule (2) of Rule 4 shall be as under:

Continue reading →

5 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CorpGov, CSR, Governance and Responsibility

Tagged Companies Act 2013, Corporate Law, India, Ministry of corporate affairs, The Companies (corporate Social Responsibility Policy) Amendment Rules 2015, The Companies (corporate Social Responsibility Policy) Rules 2014

THE COMPANIES AMENDMENT BILL 2014: PART 2 OF 3

Posted on January 6, 2015 | 5 comments

The Companies Amendment Bill 2014 has been introduced and passed in Lok Sabha recently. This blog post has intention to analyse proposed changes in the Companies Act 2013.

Most important massage, this amendment prepares a best case for drafting skill development programmes in India. I am reading here this Bill clause by clause. This will be a three part series and part 2 of 3 is present here.

To amend sub-section (1) of section 123 of the said Act to include provisions for writing off past losses/depreciation before declaring dividend for the year [Clause 10 of the Amendment Bill]

A forth proviso is being added to the effect that no company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company for the current year.

Continue reading →

5 Comments

Posted in Chapter I - CA2013, Chapter IX - CA2013, Chapter VIII - CA2013, Chapter XII - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility

Tagged Companies Act 2013, Corporate Law, Depreciation, Dividend, Fraud, India, Investor Education and Protection Fund, Loan, Ministry of corporate affairs, Related Party Transactions, Resolution, The Companies Amendment Bill 2014, unclaimed dividend

Liberal Interpretation of CSR Schedule

Posted on July 3, 2014 | 5 comments

Newly born Indian Corporate Social Responsibility Law is subject to a debate too hot to have it, too tasty politically, socially and economically to avoid it.

In a recent general circular 21 of 2014 dated 18th June 2014, Government of India urged that “the entries in the said Schedule VII must be interpreted liberally so as to capture the essence of the subjects enumerated in the said Schedule.”

Continue reading →

5 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CSR, Governance and Responsibility

Tagged Circular 21/2014, Companies Act 2013, Corporate Law, CSR, India, Ministry of corporate affairs, The Companies (corporate Social Responsibility Policy) Rules 2014

General Circular 08 of 2014 and Financial Year

Posted on April 10, 2014 | 2 comments

Before discussing the circular, I will check definition of financial year in the Companies Act 1956. The clause (17) of section 2 of the Act define “financial year means, in relation to any body corporate, the period in respect of which any profit and loss account of the body corporate laid before it in annual general meeting is made up, whether that period is a year or not.”

Continue reading →

2 Comments

Posted in Chapter I - CA2013, Chapter IX - CA2013, Companies Act 2013, Governance and Responsibility

Tagged Annual Account, Annual Report, Companies Act 2013, Corporate Law, Financial Year, India, Ministry of corporate affairs

CSR Policy; Publication and Reporting

Posted on March 24, 2014 | 2 comments

CSR policy of Indian companies may have more similarities than any other thing. Section 135 read with Schedule VII of the companies Act 2013 decide four corner of CSR policy of Indian companies, which is guided by and supplementary to development vision of Government of India.

Corporate Social Responsibility committee is primary body to formulate and recommend the CSR policy and expenditure thereon. The committee also has to monitor CSR policy implementation and logically expenditure thereon. The Board of a company may approve the policy and budget allocation for different aspect of CSR initiatives.

Continue reading →

2 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CSR, Governance and Responsibility

Tagged Companies Act 2013, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Corporate Social Responsibility, CSR, CSR Policy, CSR Reporting, India, Ministry of corporate affairs, Reforms

CSR Administration in India

Posted on March 17, 2014 | 3 comments

In my recent post on CSR last week, I discussed definition and scope of Corporate Social Responsibility in India after recently notified Rules. Now, I will discuss administration of Corporate Social Responsibility in India.

The Corporate Social Responsibility Committee of the Board of the Company is responsible for administration of Corporate Social Responsibility of the company. The committee shall consist of three or more directors, out of which one shall be an independent director. This provision is equally applicable to all companies including private or small companies.

Continue reading →

3 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CSR, Governance and Responsibility

Tagged Companies Act 2013, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Corporate Social Responsibility, CSR, CSR Activities, CSR Administration, CSR approaches, CSR Expenditure, India, Ministry of corporate affairs, Reforms

Applicability of CSR Law

Posted on March 10, 2014 | 14 comments

Newly enacted CSR law is not applicable to all companies. Sub – Section (1) of Section 135 is applicable to all companies; subject to limitation based on its net worth, turnover and net profit. These threshold limits are:

Net worth rupees five hundred crore or more (Rs. 500,00,00,000/-) or rupees five arab
Turnover rupees one thousand crore or more (Rs. 10,00,00,00,000/-) or rupees ten arab
Net Profit rupees five crore of more (Rs. 5,00,00,000/-)

Continue reading →

14 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CSR, Governance and Responsibility

Tagged Companies Act 2013, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Corporate Social Responsibility, CSR, CSR Activities, CSR applicability, CSR Expenditure, India, Ministry of corporate affairs, Reforms

Defining CSR in India

Posted on March 3, 2014 | 2 comments

I discussed Corporate Social Responsibility here, when there was a pending Bill. Now, we have a full fledged corporate social responsibility law in place. Section 135 of the companies Act, 2013, redrafted Schedule VII and the Companies (Corporate Social Responsibility Policy) Rules 2014 will be effective from 1^st April 2014. I agree with V. Umakanth in India CorpLaw say, April 1 this year would mark a new era in corporate law and governance in India with companies being required to comply with the quasi-mandatory obligations regarding CSR, an approach that is fairly unique in the global context.

Continue reading →

2 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CSR, Governance and Responsibility

Tagged Companies Act 2013, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Corporate Social Responsibility, CSR, CSR Activities, CSR Expenditure, India, Ministry of corporate affairs, Reforms

BOOKS OF ACCOUNTS

Posted on November 19, 2013 | 15 comments

The Financial Statements of a company is most important document until recent past, when non – financial reporting started to gain its momentum. This is a reporting of growth in business in monetary units.

BOOK OF ACCOUNTS (SECTION 128):

Every company shall prepare and keep at its registered office books of accounts and other relevant books and papers and financial statement for every financial year. These books must give a true and fair view of the state of affairs of the company and its branch offices. These books must explain the transactions effected both at the registered office and its branches. These books shall be kept on actual basis and double entry system of accounting.

Continue reading →

15 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, Governance and Responsibility

Tagged Accounting Standards, Adjourned Annual General Meeting, Annual Filing, Annual General Meeting, Audit Report, Auditors, Balance Sheet, Books of Accounts, Branch Office, Chief Financial Officer, Companies Act 2013, Companies Bill 2012, Consolidated Financial Statements, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Directors, Financial Statements, India, Inspection of Books, Legal Reforms, Managing Director, Members, Ministry of corporate affairs, Notes to Accounts, Profit and Loss Accounts, Provisional Annual filing, Re – casting of Financial Statement, Reforms, Registered Office, Voluntary revision of Financial Statements

Corporate Social Responsibility under Companies Act 2013

Posted on July 5, 2013 | 2 comments

UPDATE: on 30^th August 2013: Companies Bill 2012 became the Companies Act, 2013 (Act 18 of 2013).

The provision related to Corporate Social Responsibility under present ~~Clause~~ Section 135 of Companies ~~Bill 2012~~ Act 2013 applies to all companies; listed, unlisted, public, private, one – person subject to limitation based on its net worth, turnover and net profit. These threshold limits are:

Continue reading →

2 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CSR, Governance and Responsibility

Tagged Accounts and Audit, Board Committee, Board of Directors, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Corporate Social Responsibility, CSR, India

INTERNAL AUDIT AND COST AUDIT

Posted on March 15, 2013 | 5 comments

(UPDATE: on 30^th August 2013: Companies Bill became the Companies Act, 2013 (Act 18 of 2013).

In this series of my blog post related to Companies Bill, 2012; I am writing this post about provision relating to internal and cost audits. The manner of appointment of auditors may affect independence of cost audit and good corporate governance. The bill addresses this issue very well.

Continue reading →

5 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility

Tagged Accounts, Accounts and Audit, Appointment of Auditor, Auditor, Auditor Remuneration, Causal Vacancy, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Corporate Law, Cost Audit, Disqualification of Auditor, India, Internal Audit, Legal Reforms, Ministry of corporate affairs, Profession, Reforms, Removal of auditor, Resignation of Auditor

AUDITOR AND AUDITOR’S REPORT: DUTIES, POWER, PENALTIES.

Posted on March 8, 2013 | 12 comments

(UPDATE: on 30^th August 2013: Companies Bill, 2012became the Companies Act, 2013 (Act 18 of 2013). )

In my last blog post auditor under companies Act, 2013: from appointment to removal, I discussed auditor his appointment, remuneration resignation and removal along with other incidental matters. In this post I will discuss power, duties and penalties related to auditors and audit report.

Continue reading →

12 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility

Tagged Accounting, Accounting Standard, Accounts and Audit, Audit, Audit Report, Auditor, Branch Audit, CA, Chartered Accountant, Companies Act 2013, Companies Bill 2012, Comptroller and Audit General of India, CorpGov, CorpLaw, Corporate Governance, Corporate Law, General Meeting, Government Companies, ICAI, India, Institute of Chartered Accountants of India, Legal Reforms, Ministry of corporate affairs, Profession, Reforms, Statutory Audit

AUDITOR UNDER COMPANIES ACT 2013: FROM APPOINTMENT TO REMOVAL

Posted on March 1, 2013 | 13 comments

(UPDATE: on 30^th August 2013: Companies Bill 2012 became the Companies Act, 2013 (Act 18 of 2013).

Corporate Governance is a fundamental structure of all recent companies’ laws globally. True and fair Audits are core concern for corporate world and its regulators. While I was writing my earlier blog post “Footsteps of Corporate Governance in Companies Bill 2012 Companies Act, 2013”, I noticed that the Companies Bill, 2012 Act, 2013 has special concern for quality of audits. In my post “National Financial Reporting Authority” you may feel the depth of concern of our law makers about audits, which have already been forced accounting and auditing regulator, the Institute of Chartered Accountants of India, for introspection.

In this series of my blog post related to Companies Bill, 2012 Act, 2013; I am writing about provision relating to auditors. The manner of appointment of auditors may affect independence of audit. The bill Act addresses this issue very well.

Continue reading →

13 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility

Tagged Accounts, Accounts and Audit, Auditor, Causal Vacancy, Chartered Accountant, Companies Bill 2012, CorpGov, CorpLaw, Corporate Governance, Disqualification of Auditor, First Auditor, ICAI, India, Institute of Chartered Accountants of India, Profession, Reforms, Removal of auditor, Resignation of Auditor, Statutory Audit

NATIONAL FINANCIAL REPORTING AUTHORITY

Posted on February 15, 2013 | 6 comments

(UPDATE: on 30^th August 2013: Companies Bill became the Companies Act, 2013 (Act 18 of 2013). Post updated accordingly)

One of the foremost step for improving corporate governance since birth of concept of corporate governance is improving quality of accounting and auditing of companies. Audit Committee is one of these measures, which has been taken to improve standard of financial reporting. But concerns related to quality of financial reporting are not new. We can trace these concerns in earlier legislation, all earlier versions of the Companies Act in general and the Chartered Accountants Act, 1949. Without going deep in these laws, we simply say; what was otherwise need to enact such Act to regulate a profession of accounting and auditing, standardizing whole process of accounting and auditing.

The National Financial Reporting Authority is a quasi – judicial body to regulate matters related to accounting and auditing. With increasing demand of non – financial reporting, I may safely predict, a National Business Reporting Authority to regulate standards of all kind of reporting, financial as well as non – financial, from companies in near future.

Continue reading →

6 Comments

Posted in Chapter IX - CA2013, Companies Act 2013, CorpGov, Governance and Responsibility

Tagged Accounting Standards, Accounts, Accounts and Audit, Appellate Authority, Auditor, CA, Chartered Accountants, Companies Act 2013, Company Bill 2013, CorpGov, Corporate Governance, Corporate Law, ICAI, India, Institute of Chartered Accountants of India, National Financial Reporting Authority, NFRA, Profession, Reforms

Category Archives: Chapter IX – CA2013

General Circular 08 of 2014 and Financial Year

BOOKS OF ACCOUNTS

INTERNAL AUDIT AND COST AUDIT

AUDITOR AND AUDITOR’S REPORT: DUTIES, POWER, PENALTIES.

AUDITOR UNDER COMPANIES ACT 2013: FROM APPOINTMENT TO REMOVAL

NATIONAL FINANCIAL REPORTING AUTHORITY

Want update

Our Social Network

Copyright

Do Not Copy

Blog Stats

Use RSS Feed

Top Posts

My Hindi Blog: गहराना

क्षमा पत्र -प्रदूषण जी के नाम

नमक की कमी

प्रेपी के पत्र

इत्ती सी मिठास

हिन्दी साहित्य क्षेत्र में एक निंदा प्रस्ताव

उच्चतम न्यायालय में उर्दू विवाद

“भाषा” “वाद” और “अजेंडा”

अदालती दलाल सूची

यवन – मेरा एक प्रश्न

वन्या – मनीषा कुलश्रेष्ठ

AishMGhrana – Milestones