The weekly messenger | Edition 01.21
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
AUDITING NEWS
Report on Audit Quality Review (2019-20) – 29 December 2020
The Quality Review Board of the ICAI has issued the ‘Report on Audit Quality Review’ for the audit assignments conducted between the periods 2014 to 2016. Quality review is a review which is directed towards evaluation of audit quality and adherence to various statutory and other regulatory requirements. It involves assessment of the work of auditors while carrying out their audit function so that Board is able to assess:
- the quality of audit and reporting by the Statutory Auditors; and
- the quality control framework adopted by the Statutory Auditors/ audit firms in conducting the audit.
This report includes the key findings, its analysis and summary of the observations made by the reviewers in the various review reports reviewed by them.
For more information, click here.
REGULATORY NEWS
Companies (Meetings of Board and its Powers) Fourth Amendment Rules, 2020 – 30 December 2020
In the month of March 2020, the Ministry of Corporate Affairs (MCA) had issued a notification, wherein it had allowed the companies to hold board meeting even through video conferencing or other audio visual means from the period 19 March 2020 till 30 June 2020, which later got extended to 31 December 2020 for the following matters, which are otherwise required to be dealt with in a board meeting, requiring the physical presence of the directors:
- Approval of the annual financial statements;
- Approval of the Board’s report;
- Approval of the prospectus;
- Audit Committee Meetings for consideration of financial statements including consolidated financial statement if any, to be approved by the board under Section 134(1) of the Companies Act, 2013.
Now, as per the amended Rules, the MCA has extended the aforesaid relaxation till 30 June 2021.
These Rules shall come into force w.e.f. 1 January 2021.
For more information, click here.
Clarification on passing of ordinary and special resolutions by companies under the Companies Act, 2013 read with rules made thereunder on account of COVID - 19 – Extension of time – 31 December 2020
Due to COVID -19, the MCA had issued two Circulars in the month of April 2020, wherein it had issued certain clarifications on passing of ordinary and special resolutions by companies by holding extraordinary general meetings (EGMs) through video conferencing or other audio visual means or passing of certain items only through postal ballot without convening general meetings. As per the said clarifications, the companies were allowed to hold relevant EGMs or transact relevant business through postal ballot, as per the prescribed procedures up to 30 June 2020 or till further orders, whichever is earlier. These timelines were further extended till 31 December 2020.
Now, once again, the MCA has extended the aforesaid timelines till 30 June 2021. However, all the other requirements provided in the erstwhile Circulars remain unchanged.
For more information, click here.
Filing of Half-Yearly PoSP Returns in IIB Portal – 30 December 2020
In order to streamline the process of the submission and generate MIS reports, the Insurance Regulatory and Development Authority of India (IRDAI) had made a provision at https://pos.iib.gov.in portal to upload the half yearly data.
Pursuant to this, the IRDAI has advised insurers and insurance intermediaries to upload the Half yearly data on Point of Sales Person (POS) portal commencing from the financial year (FY) 2020-21, wherein the half yearly data up to September shall be uploaded by 31 January 2021 and the data up to 31 March 2021 by 30 April 2021. However, in future the half yearly data up to 30 September shall be uploaded on or before 30 October and data up to 31 March by 30 April.
For more information, click here.
Further extension of time limits for furnishing ITRs and Tax Audit Reports for FY 2019 - 20 – 30 December 2020
The Central Board of Direct Taxes has once again extended the due dates w.r.t. furnishing of Income Tax Returns (ITRs) and the Tax Audit Reports for the FY 2019 - 20, which are as follows:
Particulars | Revised Due date of furnishing of ITR | Revised Due date of furnishing of Tax Audit Reports and Form 3CEB (wherever applicable) |
For taxpayers who are required to get their accounts audited and companies [for whom the due date as per the Income Tax Act, 1961 was 31 October 2020 and was extended to 30 November 2020 and 31 January 2021] | 15 February 2021 | 15 January 2021 |
For taxpayers who are required to furnish report in respect of international/specified domestic transactions [for whom the due date as per the Income Tax Act was 30 November 2020, which was extended to 31 January 2021] | 15 February 2021 | 15 January 2021 |
For other taxpayers [for whom the due date as per the Income Tax Act was 31 July 2020 and was extended to 30 November 2020 and 31 December 2020] | 10 January 2021 | - |
For more information, click here.