The weekly messenger | Edition 23.21

Auditing News

Statement on Peer Review (Revised 2021) – July 2021

The Institute of Chartered Accountants of India has issued the Statement on Peer Review (Revised 2021), which provides the terms of reference for the peer reviews and the roles and responsibilities of those involved including the Board.

For more information, click here.

Regulatory News

Companies (Creation and Maintenance of databank of Independent Directors) Second Amendment Rules, 2021 – 19 August 2021

The Ministry of Corporate Affairs (MCA) has issued the Companies (Creation and Maintenance of databank of Independent Directors) Second Amendment Rules, 2021, wherein a new Rule 6 ‘Annual report on the capacity building of independent directors’ has been inserted, which states that the institute (Indian Institute of Corporate affairs) shall within sixty days from the end of every financial year send an annual report to every individual whose name is included in the data bank and also to every company in which such individual is appointed as an independent director in a specified format provided in the Schedule to these Rules.

These Rules shall come into force w.e.f. 19 August 2021.

For more information, click here.

Companies (Appointment and Qualification of Directors) Amendment Rules, 2021 – 19 August 2021

The MCA has issued the Companies (Appointment and Qualification of Directors) Amendment Rules, 2021, wherein the following modifications have been made in Rule 6(4) of the aforesaid Rules:

• It has been further clarified that an individual shall not required to pass the online proficiency self-assessment test, if he has served a total period of not less than 3 years as on the date of inclusion of his name in the data bank in the pay scale of Director or equivalent or above in any Ministry or Department, of the Central Government or any State Government, and having experience in handling:

1. the matters relating to commerce, corporate affairs, finance, industry or public enterprises; or
2. the affairs related to Government companies or statutory corporations set up under an Act of Parliament or any State Act and carrying on commercial activities.

• Further, a proviso has also been inserted, which states that the following individuals, who are or have been, for at least ten years shall not be required to pass the online proficiency self-assessment test :

1. an advocate of a court; or
2. in practice as a chartered accountant; or
3. in practice as a cost accountant; or
4. in practice as a company secretary,

 These Rules shall come into force w.e.f. 19 August 2021.

 For more information, click here.