ICAI – CARO REPORT:
ICAI in consultation with the Ministry has clarified the applicability of CARO, 2003 along with Auditors’ Report on financial statements of companies for the financial year 2014-15. The Ministry of Corporate Affairs (MCA) is working on it and has constituted a Committee for this purpose to analyse the contents of the Order to be made under section 143(11) of the Companies Act, 2013 for the Financial Year 2014-15. The Companies Act, 1956 has ceased to have effect from 01st April, 2014. As a corollary, the Companies (Auditor’s Report) Order, 2003 issued under section 227(4A) of the said Act also ceases to have effect from the said date. Accordingly, it may be noted that as when an Order is notified by the Central Government under section 143(11) of the Companies Act, 2013, the members would be required to report thereon as a part of their statutory audit reports. Until the aforesaid Order is issued, no additional reporting under section 143(11) of the Companies Act, 2013 is required by the Auditors for the financial year 2014-15.
SEBI:
SEBI has mandated that the Board of Directors of listed entities shall have an optimum combination of executive and non-executive directors with at least one woman director on the Board. Now the Stock Exchanges are advised to impose the fine starting from ₹ 50,000/- which can extent upto ₹1,42,000/- + ₹5000/- per day from October 1, 2015 till the date of compliance on listed entities for noncompliance with the requirement of Clause 49(II)(A)(1) of Listing Agreement. For any non-compliance beyond September 30, 2015, SEBI may take any other action, against the non-compliant entities, their promoters and/or directors or issue such directions in accordance with law, as considered appropriate.
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