The weekly messenger | Edition 14.22

Auditing news

Updation of UDINs at e-filing Portal – 28 April 2022

Considering the various instances of invalidation of Unique Document Identification Number (UDINs) at the e-filing portal of Income Tax Department, the ICAI has advised its members to try again to update those UDINs which have been invalidated earlier at the e-filing portal of Income Tax Department now.

For more information, click here.

Effective Date of applicability of SAE 3410 ‘Assurance Engagements on Greenhouse Gas Statements’ – 2 May 2022

In order to strengthen the assurance frameworks for Non-Financial Information, the ICAI had issued a new Standard on Assurance Engagements (SAE) i.e., SAE 3410 ‘Assurance Engagements on Greenhouse Gas Statements’ in February 2021, which deals with assurance engagements to report on an entity’s greenhouse gas statement.

Now, the ICAI has notified the effective date of the aforesaid Standard, which is as follows:

• On voluntary basis for assurance reports covering periods ending on 31 March 2023

• On mandatory basis for assurance reports covering periods ending on or after 31 March 2024.

For more information, click here.

Regulatory news

Companies (Registration of Charges) Amendment Rules, 2022 – 27 April 2022

The Ministry of Corporate Affairs (MCA) has issued the Companies (Registration of Charges) Amendment Rules, 2022, wherein in Rule 3 ‘Registration of Creation or Modification of Charge’, a new sub-rule (5) has been inserted, which states that “Nothing contained in this rule shall apply to any charge required to be created or modified by a banking company under section 77 in favour of the Reserve Bank of India (RBI) when any loan or advance has been made to it under sub-clause (d) of clause (4) of section 17 of the RBI Act, 1934”.

These Rules shall come into force w.e.f. 27 April 2022.

For more information, click here.

Format of the Initial & Annual Disclosure to be made by an entity identified as a “Large Corporate – 27 April 2022

The Securities and Exchange Board of India vide its Circular dated 26 November 2018 had issued the detailed guidelines on ‘Fund raising by issuance of Debt Securities by Large Entities’, wherein it was notified that the companies which are identified as Large Corporate would be required to file the Initial Disclosure through ‘Annexure A’ and Annual Disclosure through ‘Annexure B1’ for FY 2020 and 2021 and through ‘Annexure B2’ from the FY 2022 onwards.

Now, in this regard, the Bombay Stock Exchange has introduced a facility in the Listing Centre for filing of Annual Disclosure (Annexure B2) and have also modified the existing tabs for filing the Initial & Annual Disclosure as mentioned in Annexure A & B1 respectively.

For more information, click here.

Guidelines on Compensation of Key Managerial Personnel and Senior Management in NBFCs – 29 April 2022

The RBI vide its circular dated 22 October 2021 had issued a revised regulatory framework for Non-Banking Financial Companies (NBFCs) i.e., ‘Scale Based Regulatory (SBR) framework for NBFCs’, wherein it was mentioned that detailed circulars w.r.t. ‘Compensation guidelines’ and ‘Other Governance Matters’ would be issued in due course.

Accordingly, the RBI has issued the ‘Guidelines on Compensation of Key Managerial Personnel and Senior Management in NBFCs’, which provides broad guidance on the following matters:

• Nomination and Remuneration Committee

• Principles for compensation

• Guaranteed Bonus

• Malus/Clawback

These guidelines shall come into effect from 1 April 2023.

For more information, click here.