Daily Updates and News

ICAI

The Accounting Standards Board of the Institute of Chartered Accountants of India has issued FAQs clarifying the preparation of Consolidated Financial Statements. It clarified that a Company needs to consolidate the accounts of a Limited Liability Partnership and a Partnership Firm if it is its Subsidiary as Indian Accounting Standard (AS 110) requires a Company to consolidate the accounts of all the controlled entities and the word entity, hereby, includes a company as well as LLPs and partnership firms. Also, under Accounting Standard (AS) 21, an enterprise controlled by the parent is required to be consolidated and the term ‘enterprise’ includes a company and any enterprise other than a company. It further clarified that a Company which has no Subsidiaries but has investment in an associate company and a joint venture, it is required to prepare consolidated financial statements for its associate and joint venture in accordance with the applicable Accounting Standards, viz, AS 23, Accounting for Investments in Associates in Consolidated Financial Statements and AS 27, Financial Reporting of Interests in Joint Ventures.

RBI - NBFC

The "Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 has prescribed the Prudential Norms Directions. In terms of the extant instructions, all NBFCs are required to submit a certificate from their Statutory Auditors every year to the effect that they continue to engage in the business of NBFI requiring it to hold a CoR under Section 45-IA of the RBI Act. With a view to ensure consistency in the manner in which the information is received from the Auditors, it has been decided to introduce a uniform Format of Statutory Auditors’ Certificate (SAC) to be submitted by NBFCs. The NBFC would need to fill in the information, as applicable, in COSMOS. Thereafter, the SAC needs to be scanned and uploaded in COSMOS.

CBEC:

The Central Board of Excise and Customs has notified the conditions or limitations under the Rule 9(2) of Central Excise Rules, 2002. The Board has specified that (i) a person who is registered as a first stage dealer shall not be required to take registration as an importer or (ii) a person who is registered as an importer shall not be required to take registration as a first stage dealer.   

RBI:

The Reserve Bank of India has issued circular for Foreign Exchange Management (Foreign Currency Accounts by a person resident in India) Regulations, 2015 with respect to regulatory relaxations for start-ups. The Reserve Bank of India has decided that an Indian start-up, having an overseas subsidiary, may open a foreign currency account with a bank outside India for the purpose of crediting to the account the foreign exchange earnings out of exports/sales made by the said start-up or its overseas subsidiary. The balances held in such accounts, to the extent they represent exports from India, shall be repatriated to India within the period prescribed for realisation of exports.

Thanks & Regards,
Meetesh Shiroya