- Ministry of Corporate Affairs (MCA) has issued Removal of Difficulties order u/s 470(1) of the Companies called as the Companies (Removal of Difficulties) First Order, 2016
Ø
The said order is effective from 10th
April, 2015
Ø The
order clarifies that till the time National Financial Reporting Authority is
constituted Central government may constitute committee chaired by an officer
of the rank of Joint Secretary or equivalent in the MCA and the representatives
from the Institute of Chartered Accountants of India and Industry Chambers and
also special invitees from the National Advisory Committee on Accounting
Standards and the office of the Comptroller and Auditor-General to
prescribe class or description of
companies that the auditor’s report shall also include a statement on such
matters as may be specified therein.
Ø
The necessary clarification has inserted
in the form of proviso u/s 143(11) which is as follows:
“Provided that
until the National Financial Reporting Authority is constituted under section
132, the Central Government may hold consultation required under this
sub-section with the Committee chaired by an officer of the rank of Joint
Secretary or equivalent in the Ministry of Corporate Affairs and the Committee
shall have the representatives from the Institute of Chartered Accountants of
India and Industry Chambers and also special invitees from the National
Advisory Committee on Accounting Standards and the office of the Comptroller
and Auditor-General”.
Ø
The Removal of Difficulty order can be
downloaded from the following link:
- MCA has also issued Removal of Difficulties Second order called as the Companies (Removal of Difficulties) Second Order, 2016.
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The said order is effective from 1st
April, 2015
Ø The
order clarifies that till the time National Financial Reporting Authority is
constituted Central government may prescribe the accounting standards as
recommended by the Institute of Chartered Accountants of India in consultation
with and after the examination of the recommendations made by National Advisory
Committee on accounting standards constituted u/s 210A of the Companies Act,
1956.
Ø
The necessary clarification has inserted
in the form of proviso u/s 133 which is as follows:
“Provided that
until the National Financial Reporting Authority is constituted under section
132of the Companies Act, 2013 (18 of 2013) the Central government may prescribe
the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered
Accountants of India, constituted under section 3 of the Chartered Accountants
Act, 1949(38 of 1949), in consultation with and after the examination of the
recommendations made by National Advisory Committee on accounting standards
constituted u/s 210A of the Companies Act, 1956.
Ø
The Removal of Difficulty order can be
downloaded from the following link:
- MCA in supersession of the Companies (Auditor’s Report) Order, 2015, the central government after consultation with the committee constituted under proviso to section 143(11) has issued Companies (Auditor’s Report) Order, 2016.
Ø The
said order is effective from the financial year 2015-16
Ø The
Order is applicable to every Company including a foreign company as defined in
clause (42) of section 2 of the Companies Act, 2013 except
- a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);
- an insurance company under the Insurance Act,1938 (4 of 1938);
- a company licensed to operate under section 8 of the Companies Act;
- a One Person Company as defined under clause (62) of section 2 of the Companies Act and a small company as defined under clause (85) of section 2 of the Companies Act; and
- a private limited company, not being a subsidiary or holding company of a public company, having a paid up capital and reserves and surplus not more than rupees one crore as on the balance sheet date and which does not have total borrowings exceeding rupees one crore from any bank or financial institution at any point of time during the financial year and which does not have a total revenue as disclosed in Scheduled III to the Companies Act, 2013 (including revenue from discontinuing operations) exceeding rupees ten crore during the financial year as per the financial statements.
Ø The Companies (Auditor’s Report) Order, 2016 can be
downloaded from following link:
- MCA has issued notification as Companies (Accounting Standards) Amendment Rules, 2016 and vide this following Accounting Standards have been amended and substituted:
Ø
The notification is effective from the
date of its publication in official gazette
1.
Accounting Standards (AS) 2 Valuation of
Inventories
2. Accounting Standards (AS) 4
Contingencies and events Occurring after Balance Sheet Date
3. Accounting Standards (AS) 10 Property,
Plant and Equipment
4. Accounting Standards (AS) 13 Accounting
for Investments
5. Accounting Standards (AS) 14 Accounting
for Amalgamation
6. Accounting Standards (AS) 21
Consolidated Financial Statements
7. Accounting Standards (AS) 29 Provisions,
Contingent Liabilities and Contingent Assets
Ø Accounting
Standard 6 on Depreciation Accounting is omitted.
Ø The
Notification can be downloaded from the following link:
- MCA has issued notification amending the Companies (Share Capital and Debentures) Rules, 2014
Ø
The notification is effective from the
date it is published in Official Gazette
Ø The
said amendment allows the offer period for buyback to be less than 15 (Fifteen)
days if the all the members of the company agree.
Ø
The amendment has been inserted in the
form of proviso under rule 17(5) which is as follows:
“Provided that
where all the members of the Company agree, the offer for buy back may remain
open for a period less than fifteen days.”
Ø
The Notification can be downloaded from
the following link:
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