CA P. C. SAINI ( ACA, CS, CMA-Inter) +91

Transcript:CA P. C. SAINI ( ACA, CS, CMA-Inter) +91:
CA P. C. SAINI ( ACA, CS, CMA-Inter) +91 9425531645 FINANCIAL REPORTING Under Companies Act,2013 Contents Act contains 470 Sections, 29 Chapters, 7 schedules Background Companies Act, 2013 MCA has notified 282 Sections till date Background… The Changed Approach: Shift from Shareholders Protection to stakeholders protection Corporate Governance /Investor Protection is Mantra Widened disclosure requirements Stricter penalties and Prosecution Liability of Directors / Professionals increased Increased coverage of the Act Background… Introduction of One Person Company & Small Company Internal Audit & Secretarial audit New Regulators (NFRA, SFIO, NCLT) New Committees - Nomination and Remuneration Committee and Stakeholders Relationship Committee, Vigil Mechanism New definition for Associate company, Control, Small company, Key managerial personnel, Related party, etc. New Concepts NATIONAL FINANCIAL REPORTING AUTHORITY National Financial Reporting Authority NFRA to be constituted by Central Government (CG) to provide for dealing with matters relating to accounting and auditing policies and standards to be followed by companies and their auditors. The Chairperson and full time members of NFRA shall not be associated with any audit firm (including related consultancy firms) during the course of their appointment and 2 years thereafter. Functions of NFRA are as below: Make recommendations to CG on the formulation of accounting and auditing policies and standards Monitor and enforce compliance with accounting and auditing standards Oversee the quality of service of the professions and suggest measures required for improvement in quality of services and such other related matters as may be prescribed; Perform other prescribed functions in relation to above as may be prescribed. National Financial Reporting Authority… Powers of NFRA include: Investigate into the matters of professional or other misconduct committed by member or firm of CA. Powers as are vested in a civil court under the Code of Civil Procedure, 1908 while trying a suit. Where professional or other misconduct is proved, NFRA has the power to make order for imposing monetary penalty or debarring the member or the firm from engaging himself or itself from practice as member of the institute for a minimum period of 6 months or for such higher period not exceeding 10 years. Any person aggrieved by the order of NFRA can prefer an appeal to NFRAA. Function of NFRA – Standard Setting, Monitoring, Compliance Review and Overseeing Quality of Service, Enforcement and Investigation It has he power to investigate, suo moto or on reference made by Central Government in matters of professional