Oct 01, 2017

Companies (Accounts) Amendment Rules, 2016

The significant changes introduced by the MCA, by way of a notification dated July 27, 2016, to the Companies (Accounts) Rules, 2014 are as follows:i.  Companies that are unlisted (and not in the process of listing), both in India or overseas, are exempted from the obligation to prepare consolidated financial statements, provided that: (i) such company is a subsidiary of another company and all its members have been notified and no objection has been received from the members in relation thereto; and (ii) the ultimate or intermediate holding company of such company files consolidated financial statements (in compliance with applicable accounting standards), with the relevant Registrar of Companies;ii.  The Board’s report in respect of the subsidiaries’ / joint ventures’ / associate companies’ performance is now required to only provide highlights (and not contain a detailed report as was previously required); andiii.  In addition to ‘a firm of internal auditors’, companies may now appoint either individual/s, partnership firm/s, or a body corporate/s to act as internal auditors and a ‘Cost Accountant’ may be appointed along with a ‘Chartered Accountant’.




These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.