Tag Archives: Audit

NODAL OFFICER

Posted on September 27, 2019 | Leave a comment

Originally, neither the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 nor the Companies Act, 2013 have any mention of Nodal Officer except Form IEPF – 5. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 first time bring this term in main rules. Now the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 strengthen and formalized the office of Nodal Officer. New Provision came into effect with effect from 20^th August 2019.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Form IEPF – 2, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, tagged Corresponding New Bank, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend

REFUND OR RECLAIM FROM IEPF

Posted on September 20, 2019 | 1 comment

Ministry of Corporate Affairs amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2019 rules published in Official Gazette on 14^th August 2019. In this post, we will discuss amended provisions related to refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority. Amendment relevant to this post comes into effect with effect from 20^th September 2019 except fraudulent claim and deceitful impersonation related provisions under Rule 7(11) which came into effect on 20^th August 2019.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Corresponding New Bank, Form IEPF – 5, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend

EFFECT OF TRANSFER OF SHARES TO IEPF

Posted on September 13, 2019 | 2 comments

Sub – Section (6) of Section 124 mandates transfer of all shares in respect of which dividend has not been paid or claimed for seven consecutive years or more in the name of Investor Education and Protection Fund along with a statement containing such details as prescribed. Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. We discussed procedure amended with effect from 20^th August 2019 in the last post here. In this post, we will discuss the post-transfer effects and procedures.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Corresponding New Bank, Form IEPF – 1, Form IEPF – 4, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend

CREDIT OF CERTAIN AMOUNTS TO IEPF

Posted on August 30, 2019 | 1 comment

Section 124 of the Companies Act, 2013 and other provisions of laws mandates credits of certain amounts to the Investor Education and Protection Fund (IEPF). Rule 5 of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 prescribe the manner of such credit. The procedure is now amended with effect from 20^th August 2019. We will discuss the updated process which is more logical and easy to comply.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Form IEPF -1A, Form IEPF – 1, Form IEPF – 2, IEPF Rules, Investor Education and Protection Fund, Investor Education and Protection Fund Authority, Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Second Amendment Rules 2019, unclaimed dividend, Unpaid Dividend

Curious Case of IEPF – 7

Posted on June 8, 2018 | Leave a comment

Ministry of Corporate Affairs on 22nd May 2018 notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Third Amendment Rules, 2017 to amend Rule 6 of principal Rules and to insert Form IEPF – 7. The nomenclature of these amendments charily indicates that thought process to introduced Form IEPF -7 was started during the year 2017 but somehow delayed. Let us discuss these amendments.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, declaration of dividend, Dividend, Form IEPF - 7, Form IEPF – 1, Form IEPF – 4, IEPFA, Section 124, Section 125, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, Transfer and Refund) Third Amendment Rules 2017

Transfer of Shares related to Unpaid Dividend

Posted on October 20, 2017 | Leave a comment

Ministry of Corporate Affairs recently amended Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Second Amendment Rules, 2017 published in Official Gazette on 13^th October 2017 and came into force on the same date. We discussed original rules here and earlier amended rules here. In this post, we will discuss amended law related transfer of shares related to unpaid dividend to the Investor Education and Protection Fund Authority.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Form IEPF – 4, IEPF, Investor Education and Protection Fund, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, unclaimed dividend, Unpaid Dividend

Specified Banks Notes – Amendment in Companies Law

Posted on April 7, 2017 | Leave a comment

Ministry of corporate affairs inserted a clause (d) in rule 11 of the Companies (Audit and Auditors) Rules, 2014. The Companies (Audit and Auditors) Amendment Rules, 2017 was published in official gazette on 30^th March 2017 and came into force from that date.

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Posted in Chapter X - CA2013, Companies Act 2013, Truth of Our Time

Tagged Audit, Auditor's Report, demonetization, Schedule III, Specified Bank Notes, The Companies (Audit and Auditors) Rules 2014

Refund to claimant from IEPF

Posted on March 17, 2017 | 2 comments

Ministry of Corporate Affairs amended the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. The Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 rules published in Official Gazette on 28^th February 2017 and came into force on even date. In earlier post here and here(original)/here(amended), we discussed transfer of amounts of unpaid and unclaimed dividends etc to the Investor Education and Protection Fund Authority Fund and transfer of shares in respect of which dividend is remain unpaid and unclaimed for continuous seven years. In this post, we will discuss amended provisions related to refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority.

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Posted in Chapter VIII - CA2013, Companies Act 2013, Governance and Responsibility, Investor Education, Truth of Our Time

Tagged Audit, Form IEPF – 5, IEPF, Investor Education and Protection Fund, Refund Claim, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Amendment Rules 2017, Transfer and Refund) Rules 2016, unclaimed dividend, Unpaid Dividend

Transfer of Shares related to Unpaid Dividend

Posted on March 10, 2017 | 4 comments

Ministry of Corporate Affairs recently amended Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Amendment Rules, 2017 published in Official Gazette on 28^th February 2017 and came into force on same date. We discussed original rules earlier here. In this post, we will discuss amended law related transfer of shares related to unpaid dividend to the Investor Education and Protection Fund Authority.

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Posted in Chapter VIII - CA2013, Companies Act 2013, Investor Education

Tagged Audit, Form IEPF – 4, IEPF, Investor Education and Protection Fund, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, unclaimed dividend, Unpaid Dividend

Refund to claimant from IEPF

Posted on December 9, 2016 | 1 comment

Ministry of Corporate Affairs recently issued Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules published in Official Gazette on 5^th September 2016 and came into force on 7^th September 2016. In earlier post here and here, we discussed transfer of amounts of unpaid and unclaimed dividends etc to the Investor Education and Protection Fund Authority Fund and transfer of shares in respect of which dividend is remain unpaid and unclaimed for continuous seven years. In this post, we will refund of such amount and shares related to unpaid dividend transferred to the Investor Education and Protection Fund Authority.

UPDATE – provisions in this post are redundant from 28^th February 2017 due to amendment in relevant Rules. Please click here to know new provisions.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Form IEPF – 5, IEPF, Investor Education and Protection Fund, Refund Claim, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, unclaimed dividend, Unpaid Dividend

Transfer of Amount of Unpaid Dividend

Posted on November 25, 2016 | 2 comments

Ministry of Corporate Affairs recently issued Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules published in Official Gazette on 5^th September 2016 and came into force on 7^th September 2016. In this post, we will discuss transfer of amount of unpaid dividend to the Investor Education and Protection Fund Authority.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Form IEPF – 1, IEPF, Investor Education and Protection Fund, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, unclaimed dividend, Unpaid Dividend

Reporting of Unpaid Dividend

Posted on November 18, 2016 | 3 comments

At peak time of dividend declaration, Ministry of Corporate Affairs gifted Indian companies, the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016. These rules published in Official Gazette on 5^th September 2016 and came into force on 7^th September 2016. In this post, we will discuss reporting of unpaid dividend to the Investor Education and Protection Fund Authority.

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Posted in Chapter VIII - CA2013, Companies Act 2013

Tagged Audit, Form IEPF – 2, IEPF, Investor Education and Protection Fund, the Investor Education and Protection Fund Authority (Accounting, Transfer and Refund) Rules 2016, unclaimed dividend, Unpaid Dividend

That Audit Report

Posted on October 23, 2015 | 2 comments

Indian corporate world was shocked and corporate governance became a question when on 20^th October 2014, M/s. R. H. Modi & Co., Chartered

Public Notice by Auditors

Public Notice by Auditors

Accountants, auditor of C. Mahendra Exports Limited published a public notice in newspaper. It was alleged that the company “in a complete illegal and malafide manner filed, uploaded and circulated the Annual Report with the financial results of the company for financial year 2014 – 15 and the auditor report dated 7^th September 2015 purported that the financial statements have been audited and Auditors Report signed by us (M/s. R. H. Modi & Co., Chartered Accountants).

The auditor in this public notice claimed that these financial statements have not been finalised and audited by them. The auditor claimed that despite their strong objection to the passing of company’s account in their present form, the same have been passed by the shareholders of the company in annual general meeting held on 26^th September 2015.

The company filed its clarification before stock exchanges, which is available in site of Bombay Stock Exchange here and site of National Stock Exchange here. The company not only stated facts from their side but also raised several questions on point of law.

According to facts mentioned by the company, Managing Director and Statutory Auditors did not sign the financial statements and Auditors Report. The company presented following interesting queries:

Can the auditor refuse to sign the auditor’s report due to dispute between the promoters?
Can the Auditor not sign the Audit Report if the MD does not sign the accounts?

Fully clarification written by the company is worth academic reading.

This blog does not want to discuss on the matter which may soon go to inquiry by relevant professional bodies and regulators. However, development on this matter may be of academic interests.

Reply by Company P.1

Reply by Company P.1

Reply by Company P.2

Reply by Company P.2

Reply by Company P.3

Reply by Company P.3

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

Tagged Audit, Auditor's Report, Financial Statements, The Companies (Audit and Auditors) Rules 2014, The Companies Act 2013

Counter Puzzle of Auditor Appointment

Posted on October 13, 2015 | 4 comments

No doubt the Companies Act, 2013 is not a law but collection of legal puzzle. Compliance of its provisions became hell. This is not just because of poor drafting of law but poor reading of law. We student of the Companies Act, 2013 need to unlearn the Companies Act, 1956 first and finally. We need to know, learn, understand and educate ourselves that the Companies Act, 1956 is now only for reference purpose only.

In last post, we discussed puzzle of ADT – 1 here but every coin have second side also. In that post we start reading form the charging sub – section and in this post we will start reading form the compliance required by the Ministry i.e. ADT – 1 itself.

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

Tagged Appointment of Auditor, Audit, Auditor, Form ADT – 1, India, MCA, Ministry of corporate affairs, Registrar of Companies, The Companies Act 2013

Puzzle of Auditor Appointment (ADT – 1)

Posted on October 11, 2015 | 13 comments

No doubt the Companies Act, 2013 is not a law but collection of legal puzzle. Compliance of its provisions became hell. This is not just because of poor drafting of law but poor reading of law. We student of the Companies Act, 2013 need to unlearn the Companies Act, 1956 first and finally. We need to know, learn, understand and educate ourselves that the Companies Act, 1956 is now only for reference purpose only.

In this post we will try to solve puzzle of ADT – 1, Rule 4 and Section 139.

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

Tagged Appointment of Auditor, Audit, Auditor, Form ADT – 1, India, MCA, Ministry of corporate affairs, Registrar of Companies, The Companies Act 2013

Amendment in Section 143(5)

Posted on September 24, 2014 | 2 comments

Section 143(5) of the Companies Act 2013, as discussed earlier here originally read as under:

In the case of a Government company, the Comptroller and Auditor-General of India shall appoint the auditor under sub-section (5) or sub-section (7) of section 139 and direct such auditor the manner in which the accounts of the Government company are required to be audited and thereupon the auditor so appointed shall submit a copy of the audit report to the Comptroller and Auditor-General of India which, among other things, include the directions, if any, issued by the Comptroller and Auditor-General of India, the action taken thereon and its impact on the accounts and financial statement of the company.

On 4th September 2014 Ministry of Corporate Affairs came out with the Companies (Removal of Difficulties) Seventh Order, 2014. Which come it force from date of its publication which is 4^th September 2014. According to this order, Section 143(5) now read as under:

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

Tagged Audit, Auditor, Comptroller and Audit General of India, Government Companies

Representation before Stakeholders on Companies Rules 2014

Posted on April 4, 2014 | 2 comments

Dear Stakeholders of Corporate India,

As a most vibrant corporate community of the world, you are aware or recent unwelcome development related to corporate India like Satyam, Sahara and Saradha. These developments raised strong concern among us and Parliament of India as well. This reflects in core principles of the Companies Act, 2013. India has some of the best corporate governance and social responsibility norms in the world.

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Posted in Companies Act 2013, Company Secretary, CorpGov, Governance and Responsibility, Institute of Company Secretaries of India - ICSI

Tagged Audit, Companies Act 2013, Companies Rules 2014, Company Secretary, CorpGov, Corporate Governance, Pre - certification, Secretarial Audit

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.

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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

Introducing: AishMGhrana Governance Professional

Posted on May 25, 2012 | Leave a comment

The Institute of Company Secretaries of India has its Continuing willingness to present itself as a world leader as professional body of Corporate Governance professionals. This is a welcome transformation of Company Secretary from a mere clerk to Corporate Governance professional. The ICSI said as a member of CSIA it will ask the World Trade Organization (WTO) to include corporate governance and related areas in its mode of business classification.

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Posted in Governance and Responsibility, Truth of Our Time

Tagged Audit, CBDT, CBEC, CCI, Cess, Chartered Accountants, CLB, Company, Company Secretaries, Company Secretary, Corporate, Corporate Governance, Corporate Social Responsibility, Customs, DGFT, DIPP, Director, Environment, Exchange, Excise, FCRA, FEMA, FIPB, FSSAI, ICAI, ICSI, IFRS, IICA, India, Institute of Company Secretaries of India, Investment, IRDA, Law, Listing, MCA, Ministry of corporate affairs, Profession, RBI, Reforms, Regulation, Rules, SEBI, Share, Stakeholders, Sustainability, Tax, Trade, TRAI, Whistle blower, XBRL