Executive Summary:
This notification, G.S.R. 725(E), issued by the Ministry of Corporate Affairs on July 31, 2018, introduces amendments to the Companies Accounts Rules, 2014. These amendments, which take effect on the date of publication in the Official Gazette, pertain to disclosures in the Board's report and specific reporting requirements for One Person Companies and Small Companies. The amendments are made in exercise of the powers conferred by section 134 read with section 469 of the Companies Act, 2013.
Key Points / Main Content:
Amendments to the Companies Accounts Rules, 2014:
Rule 8 Amendments (Disclosures in Board's Report):
A disclosure is required on whether the maintenance of cost records is specified by the Central Government under subsection 1 of section 148 of the Companies Act, 2013, and if such accounts and records are made and maintained.
A statement is required confirming the company's compliance with provisions relating to the constitution of an Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013.
New Rule 8A (Reporting for One Person Company and Small Company):
Rule 6 does not apply to One Person Company or Small Company.
The Board's Report for One Person Company and Small Company must be based on stand-alone financial statements in an abridged form, containing:
The web address where the annual return is placed.
The number of Board meetings held.
Directors' Responsibility Statement as per subsection 5 of section 134.
Details of frauds reported by auditors under subsection 12 of section 143 (excluding those reportable to the Central Government).
Explanations or comments by the Board on auditor qualifications, reservations, adverse remarks, or disclaimers.
The state of the company's affairs.
The financial summary or highlights.
Material changes in the nature of business and their effect on the company's financial position.
Details of directors appointed or resigned during the year.
Details of significant orders by regulators, courts, or tribunals impacting the company's going concern status and operations.
The Board's Report must include particulars of contracts or arrangements with related parties as per subsection 1 of section 188 in Form AOC-2.
Impact Analysis:
Companies:
Impact: Required to comply with additional disclosure requirements in the Board's report, particularly concerning cost records, internal complaints committee, and related party transactions. One Person Companies and Small Companies have specific reporting requirements.
Action Required: Review and update reporting procedures to incorporate the new disclosure requirements. Ensure compliance with the Sexual Harassment of Women at Workplace Act, if applicable. One Person Companies and Small Companies must prepare abridged Board reports.
Auditors:
Impact: Auditors should be aware of the new reporting requirements for companies, especially One Person Companies and Small Companies, and ensure compliance during audits.
Action Required: Update audit procedures to verify compliance with the new disclosure requirements in the Board's report and the specific reporting requirements for One Person Companies and Small Companies.
Central Government:
Impact: Responsible for overseeing compliance with the amended rules and for specifying cost records under section 148 of the Companies Act, 2013.
Action Required: Monitor and enforce compliance with the amended rules through regulatory mechanisms.
Boards of Directors:
Impact: The Board of Directors is responsible for ensuring that the company's reports are compliant with all disclosure requirements.
Action Required: Implement mechanisms to ensure compliance with new and existing reporting requirements.
Key Entities Referenced
Companies Act, 2013: An act of the Parliament of India that regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company, and other related activities.
Companies Accounts Rules, 2014: Rules pertaining to company accounts, which are being amended by the current notification.
Ministry of Corporate Affairs: The Indian government ministry responsible for administration of the Companies Act 2013 and other related laws and regulations.
New Delhi: The location of the notification, Union Territory of Delhi, India
Central Government: The executive authority of India responsible for making rules and regulations under the Companies Act, 2013.
Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013: An Indian law to prevent sexual harassment of women at workplace.
One Person Company: A type of company structure allowed under the Companies Act, 2013 in India.
Small Company: A type of company defined under the Companies Act, 2013 in India based on certain criteria.
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EXTRAORDINARY
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PART II—Section 3—Sub-section (i)
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PUBLISHED BY AUTHORITY
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No. 527] NEW DELHI, TUESDAY, JULY 31, 2018/ SHRAVANA 09, 1940
ककककााााररररपपपपोोोोररररेेेेटटटट ककककाााायययय (cid:4)(cid:4) (cid:4)(cid:4)ममममं(cid:7)ं(cid:7)ं(cid:7)ं(cid:7)ााााललललयययय
अअअअििििधधधधससससचचूूचचूू ननननाााा
नई (cid:1)द(cid:3)ली, 31 जुलाई, 2018
ससससाााा....ककककाााा....ििििनननन.... 777722225555((((अअअअ)))).—सीमाशु(cid:3)क सरकार, कंपनी अिधिनयम, 2013 (2013 का 18) क(cid:13) धारा 469 के साथ प(cid:15)ठत धारा 134
(cid:18)ारा (cid:20)द(cid:21) शि(cid:23)य(cid:25) का (cid:20)योग करते (cid:28)ए कंपनी (लेखा) िनयम, 2014 का और संशोधन करने के िलए िन(cid:30)िलिखत िनयम बनाती ह,ै
अथा"त्:—
1. (1) इन िनयम(cid:25) का संि&’ नाम कंपनी (लेखा) संशोधन िनयम, 2018 ह।ै
(2) ये िनयम राजप) म* उनके (cid:20)काशन क(cid:13) तारीख से (cid:20)वृत ह(cid:25)गे ।
2. कंपनी (लेखा) िनयम, 2014 के िनयम 8 म*,
(i) उप िनयम (5) म*, खंड (viii) के बाद िन(cid:30)िलिखत खंड अंत:/थािपत (cid:1)कया जाएगा, अथा"त्:-
“(ix) (cid:20)कटीकरण, (cid:1)क 2या कंपनी अिधिनयम, 2013 क(cid:13) धारा 148 क(cid:13) उपधारा (1) के अधीन के34ीय सरकार (cid:18)ारा
िविन5द6 लागत अिभलेख(cid:25) का अनुर&ण कंपनी (cid:18)ारा करना अपेि&त ह ै या नह8 और तदनुसार ऐसे लेखा और
अिभलेख तैयार (cid:1)कए जाते ह 9और रखे जाते ह,9
(x) एक कथन (cid:1)क कंपनी ने मिहला: का काय"/थल पर ल9िगक उ<पीड़न (िनवारण, (cid:20)ितषेध और (cid:20)िततोष) अिधिनयम,
2013 [2013 का 14] के अधीन आतं (cid:15)रक िशकायत सिमित के गठन से संबंिधत (cid:20)ावधान(cid:25) का अनुपालन (cid:1)कया
ह,ै”;
(ii) उप िनयम (5) के बाद, िन(cid:30)िलिखत िनयम अंत:/थािपत (cid:1)कया जाएगा, अथा"त्:-
“(6) यह िनयम एक Aि(cid:23) कंपनी या छोटी कंपनी के िलए लागू नह8 होगा”।;
4448 GI/2018 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(iii) िनयम 8 के बाद िन(cid:30)िलिखत िनयम अंत:/थािपत (cid:1)कया जाएगा, अथा"त्:-
““““8888कककक.... एएएएकककक (cid:1)(cid:1)(cid:1)(cid:1)िििि(cid:3)(cid:3)(cid:3)(cid:3) ककककंंंंपपपपननननीीीी औऔऔऔरररर छछछछोोोोटटटटीीीी ककककंंंंपपपपननननीीीी ककककेेेे ििििललललएएएए बबबबोोोोडडडड (cid:7)(cid:7) (cid:7)(cid:7) कककक(cid:9)(cid:9)(cid:9)(cid:9) (cid:10)(cid:10)(cid:10)(cid:10)ररररपपपपोोोोटटटट(cid:7)(cid:7) (cid:7)(cid:7) मममम (cid:15)(cid:15) (cid:15)(cid:15) शशशशााााििििममममलललल ककककररररनननन ेे ेेववववाााालललल ेे ेेििििववववषषषषयययय---- (1) एक Aि(cid:23) कंपनी
और छोटी कंपनी क(cid:13) बोड" क(cid:13) (cid:15)रपोट" कंपनी के एकल िव(cid:21)ीय कथन के आधार पर तैयार क(cid:13) जाएगी जो संि&’ Dप
म* होगी और उसम* िन(cid:30)िलिखत शािमल (cid:1)कया जाएगा:-
(क) वेब पता, य(cid:1)द कोई हो, िजस पर धारा 92 क(cid:13) उपधारा (3) म* िन5द6 वाEषक (cid:15)रटन" रखा गया है;
(ख) बोड" क(cid:13) बैठक(cid:25) क(cid:13) संGया;
(ग) धारा 134 क(cid:13) उपधारा (5) म* यथािन5द6 िनदेशक का उ(cid:21)रदािय<व कथन;
(घ) जो के34ीय सरकार को (cid:15)रपोट" (cid:1)कए जाने योHय ह,ै उससे िभI धारा 143 क(cid:13) उपधारा (12) के अधीन
लेखापरी&क(cid:25) (cid:18)ारा (cid:15)रपोट" (cid:1)कए गए कपट के संबंध म* Jयौरा;
(ङ) लेखापरी&क (cid:18)ारा उसक(cid:13) (cid:15)रपोट "म* क(cid:13) गई (cid:20)<येक योHयता, आर&ण या (cid:20)ितकूल (cid:15)टMपण या इंकार पर बोड "
(cid:18)ारा (cid:1)दया गया /प6ीकरण या टीका-(cid:15)टMपणी;
(च) कंपनी के मामल(cid:25) क(cid:13) ि/थित;
(छ) िव(cid:21)ीय सारांश या मुGय िवशेषताएं;
(ज) िव(cid:21)ीय वष" समा’ होने क(cid:13) तारीख से कारबार क(cid:13) (cid:20)कृित म* मह<वपूण" प(cid:15)रवत"न और कंपनी क(cid:13) िव(cid:21)ीय
ि/थित पर उसका (cid:20)भाव;
(झ) िनदेशक(cid:25) का िववरण िज3ह* वष "के दौरान िनयु(cid:23) (cid:1)कया गया था या <याग-प) (cid:1)दया ह;ै
(ञ) िविनयामक(cid:25) या 3यायालय(cid:25) या अिधकरण(cid:25) (cid:18)ारा पा(cid:15)रत मह<वपूण" और सारवान् आदेश(cid:25) का Jयौरा,
िजनका भिवNय म* चल रही (cid:20)ाि/थित के संबंध म* और कंपनी के (cid:20)चालन पर (cid:20)भाव पड़ रहा ह।ै
(2) बोड" क(cid:13) (cid:15)रपोट "म* धारा 188 क(cid:13) उपधारा (1) म* िन5द6 संबंिधत प&कार(cid:25) के साथ संिवदा: या करार(cid:25) क(cid:13)
िविशि6यां (cid:20)Dप एएएएओओओओससससीीीी----2222 म* िनिहत ह(cid:25)गी।”।
[फा.सं.1/19/2013-सीएल-V-भाग]
के. वी. आर. मूEत, संयु(cid:23) सिचव
(cid:10)(cid:10)(cid:10)(cid:10)टटटट(cid:16)(cid:16)(cid:16)(cid:16)पपपपणणणणःःःः मूल अिधसूचना भारत के राजप) म* सा.का.िन. 239(अ) तारीख 31 माच", 2014 (cid:18)ारा (cid:20)कािशत क(cid:13) गई थी और त<पQात ्
अिधसूचना संGयांक सा.का.िन. 723(अ) तारीख 14 अ(cid:23)ूबर, 2014, सा.का.िन. 37(अ) तारीख 16 जनवरी, 2015,
सा.का.िन. 680(अ) तारीख 4 िसतंबर, 2015, सा.का.िन. 742(अ) तारीख 27 जुलाई, 2016 और सा.का.िन. 1371(अ)
तारीख 7 नवंबर, 2017 (cid:18)ारा संशोिधत (cid:1)कए गए थे।
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 31st July, 2018
G.S.R. 725(E).—In exercise of the powers conferred by section 134 read with section 469 of the
Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to
amend the Companies (Accounts) Rules, 2014, namely:-
1. (1) These rules may be called the Companies (Accounts) Amendment Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.¹Hkkx IIµ[k.M 3(i)º Hkkjr dk jkti=k % vlk/kj.k 3
2. In the Companies (Accounts) Rules, 2014, in rule 8,
(i) In sub-rule (5), after clause (viii) the following clauses shall be inserted, namely:-
“(ix) a disclosure, as to whether maintenance of cost records as specified by the Central Government
under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and
accordingly such accounts and records are made and maintained,
(x) a statement that the company has complied with provisions relating to the constitution of Internal
Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013 [14 of 2013] ,”;
(ii) after sub-rule (5), the following rule shall be inserted, namely:-
“(6) This rule shall not apply to One Person Company or Small Company”. ;
(iii) after rule 8, the following rule shall be inserted, namely:-
“8A. Matters to be included in Board’s Report for One Person Company and Small Company.- (1)
The Board’s Report of One Person Company and Small Company shall be prepared based on the
stand alone financial statement of the company, which shall be in abridged form and contain the
following:-
(a) the web address, if any, where annual return referred to in sub-section (3) of section 92 has
been placed;
(b) number of meetings of the Board;
(c) Directors’ Responsibility Statement as referred to in sub-section (5) of section 134;
(d) details in respect of frauds reported by auditors under sub-section (12) of section 143 other
than those which are reportable to the Central Government;
(e) explanations or comments by the Board on every qualification, reservation or adverse remark
or disclaimer made by the auditor in his report;
(f) the state of the company’s affairs;
(g) the financial summary or highlights;
(h) material changes from the date of closure of the financial year in the nature of business and
their effect on the financial position of the company;
(i) the details of directors who were appointed or have resigned during the year;
(j) the details or significant and material orders passed by the regulators or courts or tribunals
impacting the going concern status and company’s operations in future.
(2) The Report of the Board shall contain the particulars of contracts or arrangements with related
parties referred to in sub-section (1) of section 188 in the Form AOC-2.”.
[F. No. 1/19/2013-CL-V-Part]
K.V.R. MURTY, Jt. Secy.
Note: The principal notification was published in the Gazette of India vide G.S.R. 239(E), dated the 31st March, 2014
and subsequently amended vide notification number G.S.R. 723(E) dated the 14th October, 2014, G.S.R 37 (E)
dated the 16th January, 2015, G.S.R. 680(E) dated the 04th September, 2015, G.S.R. 742(E) dated the 27th July,
2016 and G.S.R. 1371(E) dated the 07th November, 2017.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.