Corporate Laws

1. Disclosure of SBNs in the financial statements and auditor’s report made mandatory:

a. Disclosure to be made by companies:

b. Disclosure In Auditor Report:

“(d) whether the company had provided requisite disclosures in its financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and if so, whether these are in accordance with the books of accounts maintained by the company.”

2. MCA has come out with the Companies (Acceptance of Deposits) Second Amendment Rules, 2015 on 15th September 2015:

A private company can accept unsecured loans even from RELATIVES of a director of the company without any limit. The RELATIVE concerned has to provide a declaration in writing that the amount given is not out of funds borrowed by him/her.

The disclosure of the details of money so accepted is required in Board’s Report.

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3. ICAI Guidance Note on Accounting for Expenditure on CSR:

The objective of this Guidance Note is to provide guidance on recognition, measurement, presentation and disclosure of expenditure on activities relating to corporate social responsibility.

The Guidance Note does not deal with identification of activities that constitute CSR activities but only provides guidance on accounting for expenditure on CSR activities in line with the requirements of the generally accepted accounting principles including the applicable Accounting Standards.

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4. Reporting on Internal Financial Controls System and its operating effectiveness:

Reporting on Internal Financial Controls System and its operating effectiveness by Company’s Statutory Auditors u/s 143(3)(i) of the Companies Act, 2013 has been deferred by one year i.e. upto 31.03.2015.

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