Corporate Laws: Recent News Snippets

MCA plans system in 2 months to detect fraud in early stages

According to an official of the ministry of corporate affairs, who did not wish to be identified, a seven-member internal committee headed by an additional secretary of the ministry of corporate affairs (MCA) has been working to evolve a mechanism of [...]

Clarity on LLP tax issue only next year

Corporate Affairs Minister Salman Khursheed has said, contrary to expectation, the Budget will not address the taxation issue related to limited liability partnerships (LLPs). The issue will be clarified only next year, he added.
“It is too short a time for us to sort out the issue, but it is flagged,” Khursheed told Business Standard. The [...]

FAQ on AS 11 by MCA

Relaxations were given in Accounting Standard 11 (AS-11) on “The Effects of Changes in Foreign Exchange Rates” given to Corporates vide Companies (Accounting Standards) Amendment Rules, 2009 [G.S.R. 225 (E) dtd. 31-Mar-09] issued by Ministry of Corporate Affairs.
Herewith attached is the ASB Guidance in the form of FAQs to illustrate and to assist in clarifying [...]

Accounting norm changes help major companies boost earnings

Benefit of option to capitalise/amortise differences in forex rates.

Walking stick
Profits of Tata Motors, M&M and Sterlite Industries would have been lower but for the amendment
JSW Steel, Bharat Forge and Ashok Leyland may have slipped into losses in FY-09 if the new option had not been exercised

Relaxations in AS 11, the Accounting Standard that [...]

Limited Liability Partnership Act, 2008

Limited Liability Partnership Bill has received the accent of Honourable President of India on 7-Jan-2009 and has now become a legislation and is to be called as ‘Limited Liability Partnership Act, 2008′ vide Notification in the Official Gazette on 9-Jan-2009.

The impact of IFRS on corporate governance

Come 2011, and audit committees and board members of Indian companies will have to deal with convergence of Indian GAAP (generally accepted accounting principles) with International Financial Reporting Standards (IFRS), which will have a key impact on their functioning, roles and responsibilities. The audit committees and board members will have to handle this challenge in [...]

SEBI directive on mandatory internal audit of stock-brokers

Last month, SEBI issued a circular to he various stock exchanges requiring mandatory internal audit for their stock-brokers / clearing members on a half-yearly basis.
The scope of the said audit includes the existence, scope and efficiency of the internal control system, compliance with the provisions of the SEBI Act, 1992, Securities Contracts (Regulation) Act, [...]