The weekly messenger | Edition 02.20

Accounting News

Educational Material on Ind AS 116 – 14 January 2020
The Institute of Chartered Accountants of India, pursuant to the introduction of the new accounting standard i.e. Ind AS 116, Leases, which has changed the accounting requirements enormously for the lessee, has issued an Educational Material on Ind AS 116, in order to provide guidance with respect to the accounting for various lease contracts which the reporting entity has entered into.
 
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Auditing News

ICSI Auditing Standards (CSAS-1 to CSAS-4) – 15 January 2020

The Institute of Company Secretaries of India (ICSI) has issued the revised version of its publication on ICSI Auditing Standards i.e. CSAS -1 to CSAS -4 which are effective from 1 April 2020.
 
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GN on ICSI Auditing Standards (CSAS – 1 to CSAS – 3) – 13 January 2020

The Auditing Standards Board of the ICSI has issued the ‘Guidance Note (GN) on ICSI Auditing Standards (CSAS – 1 to CSAS – 3)’ in order to set out the explanations, procedures and practical aspects of various provisions contained in ICSI Auditing Standards (CSAS-1 to CSAS-3) to facilitate compliance thereof by the stakeholders.
 
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Regulatory News

GN on Prevention of Insider Trading – 12 January 2020

The Secretarial Standards Board of the ICSI has issued the ‘GN on Prevention of Insider Trading’ which inter-alia includes:

• Informal guidance issued by Securities and Exchange Board of India (SEBI) on various aspects of Prevention of Insider Trading Regulations;
• Frequently Asked Questions issued by SEBI from time to time on Prevention of Insider Trading Regulations;
• Important case laws; and
• Specimen formats of disclosures under Prevention of Insider Trading Regulations.

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Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020 – 6 January 2020

The Central Government has amended the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 with the Companies (Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2020, wherein the following changes have been made:

• Erstwhile rule 8A ‘Appointment of Company Secretaries in Companies Not Covered Under Rule 8’ has been substituted by a new Rule 8, which states that every private company which has a paid-up share capital of ten crore rupees or more shall have a whole-time company secretary;
• In Rule 9 ‘Secretarial Audit Report’ of the aforesaid Rules, which prescribes the limits for the companies other than listed companies which are required to annex its secretarial audit report along with its Board Report, one more limit has been inserted which states that  ‘every company having outstanding loans or borrowings from banks or public financial institutions of one hundred crore rupees or more’ would also be required to annex its secretarial audit report along with its Board Report;
• An explanation has also been inserted in the aforesaid Rule 9 which states that: ‘For the purposes of this sub-rule, it is hereby clarified that the paid-up share capital, turnover, or outstanding loans or borrowings as the case may be, existing on the last date of latest audited financial statement shall be taken into account’.

These rules shall be applicable in respect of financial years commencing on or after 1 April 2020.
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IBBI (Voluntary Liquidation Process) (Amendment) Regulations, 2020 - 15 January 2020

The Insolvency and Bankruptcy Board of India (IBBI) has amended the IBBI (Voluntary Liquidation Process) Regulations, 2017 with the IBBI (Voluntary Liquidation Process) (Amendment) Regulations, 2020, wherein a new requirement has been inserted in the said Regulations as per which a Liquidator is required to deposit the amount of unclaimed dividends and undistributed proceeds, if any, in a liquidation process along with any income earned thereon into the Corporate Voluntary Liquidation Account (CVLA) before submission of an application for dissolution of the corporate person. The amendment also provides a process for a stakeholder to seek withdrawal from the CVLA.
 
These Regulations shall come into force on the date of their publication in official gazette i.e. 15 January 2020.
 
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SEBI (LODR) (Amendment) Regulations, 2020 – 10 January 2020

The SEBI has amended the SEBI (Listing Obligations and Disclosure Requirements (LODR)) Regulations, 2015 with the SEBI (LODR) (Amendment) Regulations, 2020, wherein in Regulation 17(1B), earlier the top 500 listed entities were required to ensure that the Chairperson of their Board shall be a non-executive director and not be related to the Managing Director or the Chief Executive Officer as per the definition of the term “relative” defined under the Companies Act, 2013 with effect from 1 April 2020. Now, the said date has been extended to 1 April 2022.
 
These regulations shall come into force on the date of their publication in the Official Gazette i.e. 13 January 2019.
 
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