Corporate Updates – 29-06-2016


The Accounting Standards Board of the Institute of Chartered Accountants of India has issued FAQs clarifying the preparation of Consolidated Financial Statements. It clarified that a Company needs to consolidate the accounts of a Limited Liability Partnership and a Partnership Firm if it is its Subsidiary as Indian Accounting Standard (AS 110) requires a Company to consolidate the accounts of all the controlled entities and the word entity, hereby, includes a company as well as LLPs and partnership firms. Also, under Accounting Standard (AS) 21, an enterprise controlled by the parent is required to be consolidated and the term ‘enterprise’ includes a company and any enterprise other than a company. It further clarified that a Company which has no Subsidiaries but has investment in an associate company and a joint venture, it is required to prepare consolidated financial statements for its associate and joint venture in accordance with the applicable Accounting Standards, viz, AS 23, Accounting for Investments in Associates in Consolidated Financial Statements and AS 27, Financial Reporting of Interests in Joint Ventures.


The "Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 has prescribed the Prudential Norms Directions. In terms of the extant instructions, all NBFCs are required to submit a certificate from their Statutory Auditors every year to the effect that they continue to engage in the business of NBFI requiring it to hold a CoR under Section 45-IA of the RBI Act. With a view to ensure consistency in the manner in which the information is received from the Auditors, it has been decided to introduce a uniform Format of Statutory Auditors’ Certificate (SAC) to be submitted by NBFCs. The NBFC would need to fill in the information, as applicable, in COSMOS. Thereafter, the SAC needs to be scanned and uploaded in COSMOS.

News from NIRC of ICSI

1. NIRC of ICSI has decided to start fortnightly "PCS HELPLINE" to provide guidance / counseling in respect of problems and difficulties being faced by our members. IN this series, NIRC of ICSI is organizing "PCS HELPLINE” programme on 29th June, 2016, to resolve the queries over telephone regarding Technical / Procedural / Interpretation issues relating to Secretarial Standards – I & Secretarial Standards – II. CS Ranjeet Pandey, (PCS), Council Member – ICSI and Member of Secretarial Standards Board-ICSI, will be available to answer the queries telephonically, tomorrow 29th June, 2016 from 4.00 PM to 5.30 PM at 011-4934 3001.

2. NIRC – ICSI announces niro and also through signed hard copy addressed to The Chairman, NIRC of ICSI, ICSI-NIRC Building, Plot No.4, Prasad Nagar Institutional Area, Near Rajendra Place, New Delhi – 110005). Three best entries shall be awarded with a Citation, Trophy, Cash Prize & Publications.

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