Companies (Accounts) Rules, 2014

Rule No.

Mode of change

Amendment

Effect of amendment

8(5)(ix)

Insertion

a disclosure, as to whether maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained

Companies other than One Person Company and Small Company are now required to disclose the requirements andmaintenance of cost records.

8(5)(x)

Insertion

a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of 2013]

Companies other than One Person Company and Small Company are now required to disclose a compliance statement relating to constitution of Internal Compliance Committee under Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

8(6)

Insertion

This rule shall not apply to One Person Company or Small Company

The rule 8 is applicable only to companies other than One Person Company and Small Company.

8A(1)

Insertion

The Board’s Report of One Person Company and Small Company shall be prepared based on the stand alone financial statement of the company, which shall be in abridged form and contain the following: -

1. The web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed;
2. Number of meetings of the Board;
3. Director’s Responsibility Statement as referred to in sub-section (5) of section 134;
4. Details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government;
5. Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report;
6. The state of the company’s affairs;
7. The financial summary or highlights
8. Material changes from the date of closure of the financial year in nature of business and their effect on the financial position of the company;
9. The details of directors who were appointed or have resigned during the year;
10. The details or significant and material orders passed by the regulators or courts of tribunals impacting the going concern status and company’s operations in future

The provisions tighten disclosure norms for One Person Company and Small Company.

8A(2)

Insertion

The Report of the Board shall contain the particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the Form AOC-2