The\nCompanies (Accounts) Second Amendment Rules, 2023, were announced by the\nMinistry of Corporate Affairs on June 2, 2023. They alter the Companies\n(Accounts) Rules, 2014, in several ways. Companies (Accounts) Second Amendment\nRules, 2023 state that after completing the required forms AOC-4, AOC-4-NBFC\n(Ind AS), or AOC-4 XBRL, Form CSR-2 must be submitted separately on or before\nMarch 31, 2024, for the financial year 2022\u20132023. The day after these changes are\npublished in the official gazette, they take effect.<\/p>\n\n\n\n
G.S.R.\n(E)<\/strong><\/p>\n\n\n\n The Central Government specifies some of the rules for further amending the Companies (Accounts) Rules, 2014 in accordance with the authority granted by sub-sections (1) and (3) of section 128, sub-section (3) of section 129, section 133, section 134, section 135(4), section 136(1), section 137, and section 138 as may be read with section 469 of the Companies Act, 2013<\/a><\/strong>. These rules are as follows:-<\/p>\n\n\n\n As\nstated in the rules, “Provided also that for the financial year 2022-2023,\nForm CSR-2 has to be filed separately on or before March 31, 2024, following\nthe filing of Form No. AOC-4, Form No. AOC-4-NBFC (Ind AS), or Form No. AOC-4\nXBRL, as specified in the Companies (Filing of Documents and Forms in\nExtensible Business Reporting Language) Rules, 2015, as applicable.”<\/p>\n\n\n\n Following\nare some vital provisions dealt with in the Companies (Accounts) Second Amendment\nRules 2023:<\/p>\n\n\n\n Suppose the Board of Directors decides to keep any or all of the aforementioned books of account and other pertinent papers somewhere else in India. In that case, the company must file a written notice with the Registrar within seven days of that decision giving the complete address of that additional location.<\/p>\n\n\n\n Furthermore,\nthe business may maintain such books of accounts or other pertinent documents\nin an electronic format in accordance with any applicable regulations.<\/p>\n\n\n\n However,\nonly the person designated in this manner may conduct an examination of any\nsubsidiary company of the company who is authorised by a resolution passed by\nthe Board of Directors.<\/p>\n\n\n\n When\na company has subsidiaries or associate companies. The company must prepare a\nconsolidated financial statement in the same format and manner as per the\napplicable accounting standards. This statement must be presented at the\ncompany’s annual general meeting as its financial statements.<\/p>\n\n\n\n With\nthe caveat that the firm must also provide a supplementary statement that\nsummarises the key elements of the financial statements of its subsidiary\ncompany or subsidiaries and associated company or companies in the format that\nmay be required.<\/p>\n\n\n\n Furthermore,\nthe Central Government may make provisions for the consolidation of company\naccounts in accordance with applicable regulations.<\/p>\n\n\n\n In consultation with and following examination by the National Financial Reporting Authority, the Central Government may prescribe the accounting standards or any supplement thereto as the Institute of Chartered Accountants of India (ICAI) may recommend. The organisation was established under section 3 of the Chartered Accountants Act, 1949<\/strong>[1]<\/strong><\/a><\/sup>.<\/p>\n\n\n\n Section\n134 deals with significant reports and papers that must be filed by a\ncorporation, such as financial statements, board reports, a description of\ndirectors’ responsibilities, etc. First of all, it specifies how the financial\nstatements should be authorised. The Section further specifies that the Board\nof directors must approve the statement before the directors may sign it. Additionally,\nit stipulates that the auditor’s report must be attached. A board report must\nalso be included in addition to this. The list of materials that must be stated\nin the report is also provided in this part.<\/p>\n\n\n\n Every company mentioned in subsection (1) shall have a Board of Directors that – Companies\nmust submit their 2013 Audited Financial Statements within 30 days in Form\nAOC-4 of the company’s Annual General Meeting in accordance with Section 137 of\nthe Companies Act. For various classes of corporations, different forms are\nrequired.<\/p>\n\n\n\n (1)<\/strong> Any class of companies that are prescribed may be required to appoint an internal auditor to conduct an internal audit of the company’s functions and activities. The chartered accountant, cost accountant, or other professional may be the internal auditor the Board may determine.<\/p>\n\n\n\n (2)<\/strong> The form and frequency in which the internal audit shall be carried out and reported to the Board may be prescribed by rules made by the Central Government.<\/p>\n\n\n\n The Central Government here makes rules for the company’s accounts that shall come into effect as and when they are published in the official gazette.<\/p>\n\n\n\n
(a) these rules will be called the Companies (Accounts) Second Amendment Rules, 2023.
(b) These provisions shall be applicable from the date when they will be published in the Official Gazette.<\/li>Important Provisions\nDealt With In the Companies (Accounts) Second Amendment Rules 2023<\/h2>\n\n\n\n
(a)<\/strong> Adopt the company’s corporate social responsibility policy after considering the recommendations made by the corporate social responsibility committee. They disclose the contents of the policy in its report, and, if applicable, post the policy on the company’s website in the manner that may be required; and
(b)<\/strong> Ensure that the corporation carries out the initiatives listed in its corporate social responsibility policy.<\/p>\n\n\n\nConclusion<\/h2>\n\n\n\n