MCA Vide Order dated 30th September, 2016 has constituted expert group to examine the issues arose to the Audit Firm due to structuring of certain audit firm and to make suitable recommendation to the government on this. The expert group consist of Shri. Ashok Chawala as Chairman, Shri.Hari S. Bhartia and Shri. N.S. Vishwanathan as member of the expert group. The expert group have to complete the project within 2 months.
For more details..follow the link of the order:
MONEY MARKET & ITS INSTRUMENTS
MCA vide Notification dated 30th June, 2016 has notified the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016 amending Rule 3, 5(1) and 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
Due to
this amendment:
1.
Return of appointment of a “Chief Executive
Officer (CEO), Company Secretary, Chief Financial Officer (CFO)” is not
required to be filled with the Registrar in Form No. MR-1.
2.
Listed Company is no more required to disclose
the following matters in its Board’s report:
i) the explanation on the relationship between
average increase in remuneration and company performance;
ii)
comparison of the remuneration of the Key
Managerial Personnel against the performance of the company;
iii)
variations in the market capitalisation of the
company, price earnings ratio as at the closing date of the current financial
year and previous financial year and percentage increase over decrease in the
market quotations of the shares of the company in comparison to the rate at which
the company came out with the last public offer in case of listed companies,
and in case of unlisted companies, the variations in the net worth of the
company as at the close of the current financial year and previous financial
year;
iv) comparison of the each remuneration of the Key
Managerial Personnel against the performance of the company;
v)
the key parameters for any variable component
of remuneration availed by the directors;
vi)
the ratio of the remuneration of the highest
paid director to that of the employees who are not directors but receive
remuneration in excess of the highest paid director during the year.
3.
The board’s report shall include a statement
showing the name of top ten employees in terms of remuneration drawn and the name
of every employee, -
(i) if employed throughout the financial year, was in receipt of
remuneration for that year which, in the aggregate, was not less than one crore
and two lakh rupees;
(ii) if employed for a part of the financial year, was in receipt
of remuneration for any part of that year, at a rate which, in the aggregate,
was not less than eight lakh and fifty thousand rupees per month;
(iii) if employed throughout the financial year or part thereof,
was in receipt of remuneration in that year which, in the aggregate, or as the
case may be, at a rate which, in the aggregate, is in excess of that drawn by
the managing director or whole-time director or manager and holds by himself or
along with his spouse and dependent children, not less than two percent of the
equity shares of the company.
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Section 148 of Companies Act, 2013 read with the Companies (Cost Records and Audit) Rules, 2014
Application of Cost Records
- The companies, including foreign company engaged in the production of the goods or providing services as specified and having overall turnover from all its goods and services of Rs. 35 Crores or more during immediately preceding financial year, shall include cost records for such products or services in their books of accounts.
- The specified company has been divided into 2 groups namely:
(a) Regulated sectors
(b) Non-Regulated sectors
REGULATED SECTORS
- - Telecommunication services
- - Generation, transmission, distribution and supply of electricity
- - Petroleum products
- - Drugs and Pharmaceuticals
- - Fertilisers
- - Sugar and industrial alcohol.
NON-REGULATED SECTORS
- - Machinery and mechanical appliances used in defence, space and atomic energy.
- - Turbo jets and turbo propellers
- - Arms and ammunitions
- - Propellant powders, safety fuses, detonating fuses, percussion or detonating caps, igniters and electric detonators
- - Radar apparatus, radio navigational aid apparatus and radio remote control apparatus
- - Tanks and other armoured fighting vehicles
- - Port services
- - Aeronautical services
- - Steel
- - Roads and other infrastructure projects as per Sch. VI of Companies Act, 2013
- - Rubber and allied products
- - Coffee and tea
- - Railway or related instruments/ services
- - Cement
- - Ores and minerals products
- - Mineral fuels, mineral oils, etc
- - Base metals
- - Inorganic Chemicals, organic or inorganic compounds
- - Jute and jute products
- - Edible oil
- - Construction Industry as per para no. (5)(a) of Sch. VI of the Companies Act, 2013
- - Health services
- - Education services
- - Milk powder
- - Insecticides
- - Plastics and polymers
- - Tyres and tubes
- - Paper
- - Textiles
- - Glass
- - Other machinery
- - Electricals or electronic machinery
- - Production, import and supply or trading of specified medical services.[This shall not apply to foreign companies having only liaison offices]
- The provision of cost audit is not applicable to a company classified as a micro enterprise or a small enterprise including as per the turnover criteria under sub-section (9) of section 7 of the Micro, Small and Medium Enterprises Development Act, 2006.
 |
Applicability of Cost Audit
- Every company falls under regulated sectors shall have to get its cost records audited if from its products and services :
Overall turnover ≥ Rs. 50 cr.
AND
Aggregate turnover of ≥ Rs. 25 Cr.
individual products/ services
- Every company falls under non-regulated sectors shall have to get its cost records audited if from its products and services :
Overall turnover ≥ Rs. 100 cr.
AND
Aggregate turnover of ≥ Rs. 35 Cr.
individual products/ services
- The company which are required to maintain cost records shall not required to get its records audited, if
(a) revenue of the company from exports, in foreign exchange, exceeds 75% of its total revenue; or
(b) the company is operating from SEZ.
Maintenance of Records
- Cost records shall be maintained on regular basis in such a manner as to facilitate calculation of per unit cost of production or cost of operations, cost of sales and margin for each of its products and activities for every financial year on monthly or quarterly or half-yearly or annual basis.
- The cost records shall be maintained in such manner so that it helps in optimum utilization of resources.
Cost Audit
- The company shall appoint Cost Auditor within 180 days of the commencement of the financial year.
- Company shall inform the Cost Auditor of his appointment and file a notice of such appointment to the Central Government within 30 days of the Board meeting in which appointment is made or 180 days of the commencement of the financial year, w.e. earlier through e-form CRA- 2.
- Every Cost Auditor shall continue in such capacity till the expiry of 180 days from the closure of the financial year or till he submits the Cost Audit Report for the financial year for which he has been appointed.
- Any casual vacancy (resignation/ death/ removal) in the office of a Cost Auditor shall be filled by the Board of Directors within 30 days and the company shall inform the Central Government in e-Form CRA-2 within 30 days of such appointment of cost auditor.
- Cost Auditor shall forward his report along with reservation or qualification or observation or suggestion, if any in Form CRA-3 to the Board of Directors of the company within 180 days from the closure of the financial year.
- The Board shall examine and consider the report and file a copy to the Central Government within 30 days of the receipt of the report through e-form CRA-4 along with the full information and explanation on every reservation or qualification contained in the report.
Note:
- The cost audit shall be conducted by a Cost Accountant in practice.
- Cost Auditor is appointed by the Board of Directors.
- Cost Auditor and statutory shall not be same.
- Cost Auditor shall comply with the Cost Accounting Standards.
- Fine & penalty is same as provided in Section 147 read with the Rule 9 of the Companies (Audit and Accounts) Rules, 2014.
VARIOUS FORMS UNDER COMPANIES ACT,
2013
Forms of Chapter II
INC-1 –Application for
reservation of name
INC-2- Form for
Incorporation and nomination (One Person Company)
INC-3- Form for consent of
nominee of One Person Company
INC-4- Form for change in
member/nominee of One Person Company
INC-5- Form for intimation
of exceeding threshold of One Person Company
INC-6- Application for
Conversion
INC-7- Application for
Incorporation of Company (Other than One Person Company)
INC-8- Declaration from the
professional as to compliance
INC-9 – Affidavit from
subscribers
INC-10- Form for
verification of signature of subscribers by witness.
INC-11 – Certificate of
Incorporation
INC-12 – Application to C.G
by Section 8 Company for not using the word “Limited” in its name
INC-13- Memorandum of
Association
INC -14 & INC-15 –
Declaration regarding section 8 Company
INC-16 & 17- Licence
under Section 8 Company
INC-18- Application to
Regional Director for conversion of section 8 company into any other kind of company
INC-19 – Notice by
applicant under Section 8
INC-20 - Intimation to
Registrar of revocation or surrender of license issued under section 8
INC-21- Declaration prior
to the commencement of business
INC-22- Notice of situation
or change of situation of registered office and verification
INC-23- Application to
Regional director for approval to shift the registered office from one state to another state or from
jurisdiction of one registrar to another within the state
INC-24- Application for
approval of Central Government for change of name
INC-25- Certificate of
incorporation pursuant to change of name
INC-26 – Advertisement to
be published in newspaper for licence for existing companies
INC-27- Conversion of
public company into private company or private company into public company
INC-28- Notice of order of
the Court or other authority
INC-29- Integrated form for
the incorporation of companies except section 8 company.
Forms of Chapter III
PAS 1-
Advertisement giving the details of special resolution varying the terms of
contract referred in the prospectus.
PAS 2-
Information Memorandum
PAS 3- Return of
allotment
PAS 4- Private
placement offer letter
PAS 5- Record of
private placement offer
Forms of Chapter IV
SH 1 – Share Certificate
SH 2- Register of renewed
or duplicate share certificates.
SH 3- Register of Sweat
equity shares.
SH 4- Securities transfer
form
SH 5- Notice for transfer
of partly paid-up shares
SH 6 – Register of Employee
Stock Option
SH 7- Notice to Registrar
for alteration of share capital
SH 8- letter of offer
SH 9- Declaration of solvency
SH 10 – Register of Securities bought
back
SH 11- Return in respect of buy back of
securities
SH 12- Debenture Trust Deed
SH 13- Nomination form
SH 14- Cancellation or variation of
nomination
SH 15- Certificate of compliance in
respect of buy back of securities.
Forms of Chapter V
DPT 1- Circular in the form
of advertisement inviting deposits
DPT 2- Deposit Trust deed
DPT 3 – Return of Deposits
DPT 4 – Statement regarding
deposits existing on the commencement of the Act
Forms of Chapter VI
CHG 1- Application for
registration of creation, modification of charge (other than those related to
debentures) including
particulars of modification of charge by Asset Reconstruction Company in terms
of Securitization and Reconstruction
of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI)
CHG 2- Certificate of Registration of
charge.
CHG 3- Certificate of registration of
Modification of Charge
CHG 4- Particulars for satisfaction of
charge
CHG 5- Memorandum of satisfaction of
charge.
CHG 6- Notice of appointment or
cessation of receiver or manager
CHG 7- Register of charges
CHG 8- Application for condonation of
delay to the Central Government.
CHG 9- Application for registration of
creation or modification of charge for debentures or rectification of particulars filed in respect of
creation or modification of charge for debentures.
Forms of Chapter VII
MGT 1- Register of Members
MGT 2- Register of
debenture holders/other security holders
MGT 3- Notice regarding
place of keeping the registers
MGT 4- Declaration of
beneficial interest (by registered owners)
MGT 5- Declaration of
beneficial interest by persons holding beneficial interest.
MGT 6- Return to registrar
regarding beneficial interest.
MGT 7- Annual Return
MGT 8- Certificate by
Company Secretary in Practice
MGT 9- Extract of Annual
Return
MGT 10 – Changes in the
shareholding position of promoters and top ten shareholders.
MGT 11- Proxy form
MGT 12 –polling paper
MGT 13- Report of the
Scrutinizer
MGT 14- Filing of
Resolutions and agreements to the Registrar under section 117.
MGT 15- Form for filing the
report on AGM.
Forms of Chapter VIII
No forms prescribed
Forms of Chapter IX
AOC 1- Statement containing
salient features of the financial statement of subsidiaries/ associate
companies/joint ventures
AOC 2- Related party disclosure
AOC 3- Statement containing
salient features of Balance Sheet and Profit and Loss Account
AOC 4- Form for filing
financial statement and other documents with the registrar.
AOC 5- Form to intimate the
place of keeping the books of accounts and other documents at a place other
than the registered office.
Forms of Chapter X
ADT 1- Notice of
appointment of Auditors
ADT 2- Application for
removal of auditors before the expiry of term.
ADT 3- Notice of
Resignation of Auditor
ADT 4- Report to Central Government,
suspecting offence involving fraud.
Forms of Chapter XI
DIR 1- Application for
inclusion in databank of independent directors
DIR 2- Consent to act as
director
DIR 3- Application for
allotment of Director Identification Number
DIR 4- verification of
applicant for application for DIN
DIR 5- Application for
surrender of DIN
DIR 6- Intimation of change
in particulars of Director to be given to the Central Government
DIR 7- Verification of
applicant for change in DIN particulars
DIR 8- Intimation by
director about other directorships / previous disqualification if any etc.
DIR 9- report by a company
to registrar
DIR 10 – For of application
for removal of disqualification.
DIR 11- Notice of Resignation of Director to the Registrar.
DIR 12- Particulars of Appointment of Directors, Key Managerial
Personnel and Change amongst them.
Forms of Chapter XII
MBP 1- Notice of interest
by Director
MBP 2- Register of loans
etc
MBP 3- Register of
investments not in own name
MBP 4- Register of
contracts with related party.
Forms of Chapter XIII
MR 1- Return of appointment of managing director or whole time
director or manager
MR 2- Form of application to the Central Government for approval of
appointment or reappointment and remuneration or increase in
remuneration or waiver for excess or over payment to managing director or whole time director or manager
and commission or remuneration to directors
MR 3- Secretarial Audit Report
Forms of Chapter XXI
URC 1- Application by a
company for registration under section 366
URC 2- Advertisement giving
notice about registration under Part I of Chapter XXI
Forms of Chapter
XXII
FC 1- Information to be
filed by foreign company
FC 2- Return of alteration
in the documents filed for registration by foreign company
FC 3- List of all principal
places of business in India established by foreign company
FC 4- Annual Return
Forms of Chapter
XXIV
GNL 1 Form for filing an
application with Registrar of Companies
GNL 2 Form for submission
of documents with Registrar of Companies
GNL 3 Particulars of
person(s) or director(s) or charged or specified for the purpose of section
2(60)
Forms of Chapter
XXVI
NDH 1- Return of statutory
compliances
NDH 2- Application for
extension of time
NDH 3- Half yearly Return
Forms of Chapter
XXIX
ADJ - Memorandum of Appeal
MSC 1- Application to ROC
for obtaining the status of dormant company
MSC 2-
Certificate of status of a Dormant Company
MSC 3- Return of dormant
companies
MSC 4- Application for
seeking status of active company
MSC 5- Certificate of
Status of an Active Company
Note:
If you are facing any other problems while filing any forms or need any
assistance, do write to us or chat online through the gateway appearing on the bottom left of the screen; we will assist you in all possible manner. (note: online chatting facility is not available on mobile version)
Best regards,
Prince Kumar
csprincekumar@gmail.com