As per section 137 of Companies Act, 2013 a copy of financial statements of a company are required to be filed with the Registrar along with Form AOC-4 every year for each Financial Year. It should be filed within 30 days of the date of annual general meeting with such fees or additional fees as applicable. Rule 12 of Companies (Accounts) Rules, 2014 requires that every company shall file its financial statements with Registrar in e-Form AOC-4 and Consolidated Financial Statements, if applicable in e- Form AOC-4 CFS. It further states that such class of companies as may be notified by Central ..read more

XBRL stands for “extensible business reporting language”. Ministry of Corporate affairs in its endeavor to bring harmony in filing of various reports by some big companies, introduced Companies (Filing of documents & Forms in Extensible Business Reporting Language) Rules, 2015. As per Rule 3, following class of companies shall file their financial statements and other documents under section 137 of the Act, with the registrar in e-Form AOC-4 XBRL on or after 1st April 2014, namely: • All companies listed with any Stock Exchange(s) in India & their Indian subsidiaries • All companies ha ..read more

A quorum is the minimum number of directors who must attend the proceedings in order to transact business validly at a duly convened Board meeting. The directors must not be disqualified to participate in the meeting. Unless the quorum is present at the meeting, it shall not be deemed to have been properly held. Section 174 of the Companies Act, 2013 contains provisions in respect of quorum required for the meetings of the Board of Directors. Quorum required for a Board Meeting Section 174(1): i. The quorum for a Board Meeting shall be one-third of its total strength or two directors, whicheve ..read more

Detailed Procedure for the termination of employment of Company Secretary: The Company secretary is appointed as a whole time employee of the Company. In order to remove the Company Secretary, the Company shall serve the notice of termination to the Company Secretary in terms with the Appointment Letter signed between the Company and the Company secretary. If there is no appointment letter/offer letter, the Company can follow its regular procedure for termination of employment of the employee. 1. Convene a Board Meeting: The company shall convene a board meeting to discuss the termination of e ..read more

Introduction Reserve Bank of India has introduced mandatory obtaining of Legal Entity Identifier (“LEI”) registration vide circular FMRD.FMID.No.10/11.01.007/2018-19 dated November 29, 2018, issued by the Reserve Bank on requirement of Legal Entity Identifier (LEI) for participation in non-derivative markets. Legal Entity Identifier (LEI) is a unique 20-character alphanumerical identifier (code) of a Legal Entity assigned in compliance with the international ISO 17442 standard as notified to create a global reference data system that uniquely identifies every Legal Entity (in any jurisdiction ..read more

Companies Act, 2013 makes the provision of passing the resolutions by circulation, to transact urgent matters in cases where holding of Board Meeting is not possible. As per Section 175 of Companies, Act 2013 read with Rule 5 of Companies (Meetings of Board and its Powers) Rules, 2014 the Board of directors may approve/reject the resolution circulated to them, by email or in writing.   Authority to Circulate resolution  The Chairman of the Board or the Managing Director or any Director other than an Interested Director, shall decide whether the approval of the Board for particular ..read more

A quorum is the minimum number of directors who must attend the proceedings in order to transact business validly at a duly convened Board meeting. The directors must not be disqualified to participate in the meeting. Unless the quorum is present at the meeting, it shall not be deemed to have been properly held. Section 174 of the Companies Act, 2013 contains provisions in respect of quorum required for the meetings of the Board of Directors. Quorum required for a Board Meeting Section 174(1): i. The quorum for a Board Meeting shall be one-third of its total strength or two directors, whicheve ..read more

The shareholders in general meetings and the directors acting collectively as a Board conduct the affairs of a company. Therefore, directors frequently meet to discuss various matters relating to the management and administration of the affairs of the company in the interest of stakeholder. Section 173 of Act contains provisions which deal with Meetings of the Board. The provisions of Section 173 are discussed hereunder: 1. Frequency of Board Meetings [Section 173 (1)] i. First Board meeting: Every company shall hold the first meeting of the BOD within 30 days of the date of its Incorporation ..read more

1. What is financial statement? As per section 2(40) of Companies Act 2013, Financial statement in relation to company includes- • a balance sheet as at the end of the financial year; • a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year; • cash flow statement for the financial year; a statement of changes in equity, if applicable; and • any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv) 2. Form and content of Financial Statement ..read more

Place of keeping books of account? Section 128(1) of the Companies Act, 2013 requires every company to prepare and keep at its registered office books of account and other relevant books and papers and financial statement for every financial year. All or any of the books of account aforesaid and other relevant papers may be kept at any other place in India as may be decided by the Board of Directors. The notice regarding address at which books of account may be kept is required to be filed with the Registrar within seven days of passing of resolution by Board of Directors in Form AOC-5 (Rule 2 ..read more