Companies Accounts Amendment Rules 2016. Consolidation of Accounts, Board Report and Internal Auditor related amendments Notification



G.S.R. (E).-ln exercise of the powers conferred by sub-sections (1) and (3) of section 128, sub section (3) of section 129, section 133, section 134 and section 138 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely: –

1. (1) These rules may be called the Companies (Accounts) Amendment Rules, 2016.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Companies (Accounts) Rules, 2014, (hereinafter referred to as principal rules), in rule 6, for the second proviso, the following proviso shall be substituted namely:-

“Provided further that nothing in this rule shall apply in respect of preparation of consolidated financial statements by a company if it meets the following conditions:-

(i) it is a wholly-owned subsidiary, or is a partially-owned subsidiary of another company and all its other members, including those not otherwise entitled to vote, having been intimated in writing and for which the proof of delivery of such intimation is available with the company, do not object to the company not presenting consolidated financial statements;

(ii) it is a company whose securities are not listed or are not in the process of listing on any stock exchange, whether in India or outside India and

(iii) its ultimate or any intermediate holding company files consolidated financial statements with the Registrar which are in compliance with the applicable Accounting Standards.”

3. In rule 8 of the principal rules, in sub-rule (1), for the words “and the report shall contain a separate section wherein a report on the performance and financial position of each of the subsidiaries, associates and joint venture companies included in the consolidated financial statement is presented”, the words “and shall report on the highlights of performance of subsidiaries, associates and joint venture companies and their contribution to the overall performance of the company during the period under report” shall be substituted.

4. In rule 13 of the principal rules, in sub-rule (1),-
(a) in the opening portion, the words nor a firm of internal auditors’, the words “which may be either an individual or a partnership firm or a body corporate’ shall be substituted;
(b) In the Explanation, for item (ii), the following item shall be substituted, namely:

(ii) the term “Chartered Accountant” or “Cost Accountant’ shall mean a “Chartered Accountant” or a “Cost Accountant”, as the case may be, whether engaged in practice or not’.

5. In the principal rules, in Annexure,-
(a) for form AOC-1, the following form AOC-1 shall be substituted, namely:-

‘Form AOC- 1
(Pursuant to first proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 2014)

Statement containing salient features of the financial statement of subsidiaries or associate companies or Joint ventures

Part A Subsidieries

 (Information in respect of each subsidiary to be presented with amounts in Rs.)

1. Sl. No.
2. Name of the subsidiary
3. The date since when subsidiary was acquired
4. Reporting period for the subsidiary concerned, if different from the holding company’s reporting period.
5. Reporting currency and Exchange rate as on the last date of the relevant Financial year in the case of foreign subsidiaries.
6. Share capital
7. Reserves and surplus
8. Total assets
9. Total Liabilities
10. Investments
11. Turnover
12. Profit before taxation
13. Provision for taxation
14. Profit after taxation
15. Proposed Dividend
16. Extent of shareholding (in percentage)

Notes: The following information shall be furnished at the end of the statement:
1. Names of subsidiaries which are yet to commence operations
2. Names of subsidiaries which have been liquidated or sold during the year.

Part B Assoclates and Joint Ventures
Statement pursuant to Sectlon 129 (3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures

Name of Associates or Joint Ventures Name 1 Name 2 Name 3
1. Latest audited Balance Sheet Date
2. Date on which the Associate or Joint Venture was associated or acquired
3. 3. Shares of Associate or Joint Ventures held by the company on the year end
Amount of Investment in Associates or Joint Venture
Extent of Holding (in percentage)
4. Description of how there is significant influence
5. Reason why the associate/Joint venture is not consolidated
6. Networth attributable to shareholding as per latest audited Balance Sheet
7. Profit or Loss for the year
i. Considered in Consolidation
ii. Not Considered in Consolidation

1, Names of associates or joint ventures which are yet to commence operations.
2. Names of associates or ioint ventures which have been liquidated or sold during the year.

Note: This Form is to be certified in the same manner in which the Balance Sheet is to be certified’.

(b) for form AOC-4, the following form AOC-4 shall be substituted, namely:-


[F. No. 1/19/2013-CL-V-Part]


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