MCA:
Ministry of Corporate Affairs has notified the Companies (Auditor’s Report) Order, 2016. The reporting requirements under CARO 2016 have been increased. New reporting requirements with respect to fixed assets, loans and investment, managerial remuneration, Nidhi Company, Related party transactions, preferential allotment/private placement, Non-cash transactions have been notified. Modifications have been made in reporting of inventory, granting of loans to certain parties, default in repayment of dues, fraud reporting etc. Reporting requirements with respect to Internal control system, deposit of statutory dues, accumulated losses and incurrence of cash losses, guarantee for loans taken by others from banks or financial institutions have been deleted. CARO 2016 shall be applicable on every report made by auditor u/s 143 of Companies Act, 2013 for FY commencing on or after 1 April 2015.
MCA:
Ministry of Corporate Affairs vide Companies (Removal of Difficulties) Second Order, 2016, which shall come into force with retrospective effect, that is, 1st April 2015, has removed difficulties relation to Section 133 of the Companies Act, 2013 which is related to Constitution of National Financial Reporting Authority. In exercise of the powers conferred by sub-section (1) of section 470 of the Companies Act, 2013, the Central Government inserted the Proviso to the Section 133. With effect to this proviso, National Advisory Committee on Accounting Standards constituted under section 210 A of the Companies Act, 1956” shall remain in force until the National Financial Reporting Authority is constituted under section 132 of the Companies Act, 2013.
News from NIRC of ICSI
The Corporate Membership Scheme of NIRC of ICSI is open for the Financial Year 2016-17 and the last date for receipt of Corporate Membership fee with early bird incentive is extended upto 15.4.2016. Anyone becoming a member under the Scheme shall be entitled to attend all the paid programs (Except workshops and residential programs) organized by NIRC free of charge throughout the year. The Cheque/DD towards the Corporate Membership Fee for the requisite amount be drawn in favour of “NIRC of the ICSI”. ONLINE PAYMENT FACILITY also available.
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