Indian Accounting Standards
Indian Accounting Standards
The Road Map for implementation of Indian Accounting Standards (Ind AS) for commercial Banks (Banks), Insurance Companies (Insurers) and Non-Banking Financial Companies (NBFCs) was announced on 18/01/2016 and implementation schedule is drawn as follows:
(i) Banks (excluding Urban Cooperative Banks and Regional Rural Banks), All-India Term-lending Refinancing Institutions (i.e. Exim Bank, NABARD, NHB and SIDBI) to adopt Accounting Standards for Periods beginning from 01/04/18 onwards for preparation of financial statements.
(ii) NBFCs with networth of Rs. 500 crore and more to adopt Accounting Standards for Periods beginning from 01/04/18 onwards for preparation of financial statements.
(iii) NBFCs that are listed or in the process of being listed and having networth of less than Rs. 500 crores to adopt Accounting Standards for periods beginning from 01/04/19 onwards for preparation of financial statements.
(iv) Unlisted NBFCs having networth between Rs. 250 crores and Rs 500 crores to adopt Accounting Standards for Periods beginning from 01/04/19 onwards for preparation of financial statements.
(v) Holding subsidiary, Joint Venture or associate companies of (iii) and (iv) above to adopt Accounting Standards for Periods beginning from 01/04/19 onwards for preparation of financial statements.
These Ind AS are converged with International Financial Reporting Standards (IFRS). Minimum carve outs have been made in order to address country specific requirements.
This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.
(i) Banks (excluding Urban Cooperative Banks and Regional Rural Banks), All-India Term-lending Refinancing Institutions (i.e. Exim Bank, NABARD, NHB and SIDBI) to adopt Accounting Standards for Periods beginning from 01/04/18 onwards for preparation of financial statements.
(ii) NBFCs with networth of Rs. 500 crore and more to adopt Accounting Standards for Periods beginning from 01/04/18 onwards for preparation of financial statements.
(iii) NBFCs that are listed or in the process of being listed and having networth of less than Rs. 500 crores to adopt Accounting Standards for periods beginning from 01/04/19 onwards for preparation of financial statements.
(iv) Unlisted NBFCs having networth between Rs. 250 crores and Rs 500 crores to adopt Accounting Standards for Periods beginning from 01/04/19 onwards for preparation of financial statements.
(v) Holding subsidiary, Joint Venture or associate companies of (iii) and (iv) above to adopt Accounting Standards for Periods beginning from 01/04/19 onwards for preparation of financial statements.
These Ind AS are converged with International Financial Reporting Standards (IFRS). Minimum carve outs have been made in order to address country specific requirements.
This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.
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Nominating Women to the Board of Directors
There are 307 companies who have complied with mandate of law of nominating women to the Board of Directors. There are 169 companies against whom prosecutions have been launched for failure to nominate Women Directors. There are 16 companies who have filed compounding applications against prosecutions for offence relating to non-appointment of Women Directors.
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Financial Transactions of Companies
The Companies Act, 1956/2013 mandate that only individuals having Director Identification Number, which is allotted on verification of ID and address proof can become directors of a company. Further, the law requires physical verification of registered office addresses of companies by practicing professionals and intimation to the Registrar of Companies in the events of setting up or change in the situation of, registered office by the company. In addition, the accounts of all companies are required to be prepared as per Accounting Standards and audited by external auditors. The auditors are also required to report to Central Government on frauds above a prescribed threshold. Stringent penal provisions have been provided for fraud. These provisions appear sufficient to ensure that companies and its directors are traceable and the financial transactions of the company are properly and completely reported
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Registration of Companies
The Ministry of Corporate Affairs has setup a new Central Registration Centre for processing of “Name Availability” applications for starting a new company. In cases where the name availability application is compliant with the Companies Act/Rules, the same is processed within the next working day.
The authenticity is ensured by obtaining a declaration and certification by a professional such as an advocate/ chartered accountant / cost accountant / company secretary in practice. In addition, the person named in the Articles of Association as a director/manager/secretary of the company has to give a declaration confirming the fulfilment of all requirements for registration under the Companies Act and Rules thereunder. Any false statement in this regard is punishable under section 448 of the Companies Act, 2013.
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