Corporate Updates – 20-10-2014


MCA has issued clarification on matters relating to consolidated Financial Statement which is required to be prepared under Schedule III to the Companies Act, 2013(Act). It is clarified that Schedule lll to the Act read with the applicable Accounting Standards does not envisage that a company while preparing its CFS merely repeats the disclosures made by it under stand-alone accounts being consolidated. In the CFS, the Company would need to give all disclosures relevant for CFS only.


RBI has made amendments in Foreign Exchange Management Act, 1999 (FEMA) and Foreign Exchange (Compounding Proceedings) Rules, 2000 (the Rules) with respect to Compounding of Contraventions under FEMA, 1999. It has been decided to delegate further powers to Regional Offices with regard to delay in submission of form FC-TRS on transfer of shares from Resident to Non-Resident & vice-versa and taking on record transfer of shares by investee company, in the absence of certified form FC-TRS. The powers to compound the contraventions have been delegated to all Regional Offices (except Kochi and Panaji) and FED, CO Cell, New Delhi respectively without any limit on the amount of contravention. The above modifications will come into force with immediate effect. All other instructions on compounding shall remain unchanged.

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