Accounting & Auditing Committee

The Companies Act, 2013 received the President of India’s assent on 29th August, 2013 and was notified on 30th August, 2013. The Companies Act, 2013 is contemplated to improve transparency and accountability in the corporate sector. To better understand the intricacies of various aspects of controlling, managing, operating and complying in the new regulatory environment of the Companies Act, 2013 and to provide a holistic view of some of the important provisions of the Act, Bombay Chartered Accountants’ Society had organised a two-day Non-Residential Refresher Course on 12th and 13th December, 2013 at hotel The Leela, near International Airport, Andheri (East), Mumbai. The course was designed in a unique style of imparting knowledge with four intensive sessions of group discussion with case studies on different aspects of relevance. The four sessions were addressed by eminent faculties specialising in corporate laws.

The course started with the inaugural address by the President of BCAS, Mr. Naushad Panjwani. He informed the participants about the encouraging response received to the course, with 145 participants enrolled for the course. The mix of the participants

Inauguration of the Course by lighting the lamp

Inaugural speech by President of BCAS, Mr. Naushad Panjwani

were also interesting, with 61 participants who were below the age of 30. He informed that the importance of topic and popularity of BCAS can be gauged from the fact that there were 21 outstation delegates who had travelled from various parts of India. Later, there were introductory remarks on the design of the course by the Chairman of the Accounting and Auditing Committee Mr. Harish Motiwalla. Then there was lighting of the lamp by all the dignitaries present to commence the course.

There was a group discussion on the first paper on the topics of provisions relating to private limited companies, one person company (OPC), share capital, issue of shares through prospectus, private placement and allotment of securities, which was followed with the presentation on the topics by the paper writer Ms. Shashikala Rao, Company Secretary. The paper writer had raised very topical issues and was discussed in great depth by the three groups. The session was chaired by Mr. Harish Motiwalla, Chairman, Accounting & Auditing Committee.

Ms. Shashikala Rao, Company Secretary

The second paper was on provisions relating to accounts/audit, dividends, auditors, holding/subsidiary companies and acceptance of deposits. The paper writer Mr. Nilesh Vikamsey , Chartered Accountant, had raised very relevant and burning issues on the allotted provisions, on which there was a very healthy debate during the group discussion. This was followed by the presentation on the relevant provisions by the paper writer Mr. Nilesh Vikamsey, wherein he provided great insight into the thought process involved and suggestions provided by the professional bodies on the draft rules which are in the process of finalisation. The session was ably chaired by Mr. Narendra Sarda, who in his inimitable style provided his valuable inputs on the provisions dealt by the paper writer.

Day 2:

Mr. Nilesh Vikamsey, Chartered Accountant

The second day started with the group discussion on the provisions regarding management and administration of companies, directors (incl. remuneration), loans to directors, loans/investments by companies and related party transactions. The groups had lively discussion on contentious provisions relating to loans/investments by companies and related party transactions. Later, the paper writer Mr. Jigar Parikh, Chartered Accountant, provided the participants his viewpoints, during the presentation on the provisions dealt by him in his discussion paper and also addressed the issues raised during the group discussion. The session was chaired by Mr. Kanu Chokshi, Co-Chairman, Accounting & Auditing Committee.

Mr. Jigar Parikh, Chartered Accountant

The concluding session was on the provisions relating to cross border mergers & acquisitions, minority buyouts, exit options to dissenting shareholders , demergers, class action suits and rehabilitation of financially distressed companies. There were very interactive group discussions on some novel provisions incorporated for the first time in the Act and participants tried to address the issues raised by the paper writer Mr. Sanjay Buch, Advocate & Solicitor. The group discussion was followed by the presentation by the paper writer on the provisions he had dealt in the paper. He also provided insight into the positive and negative aspects of the provisions affecting the minority shareholders and simplified process of M & A. The session was ably chaired by the past president of BCAS, Mr. Uday Sathaye.

Mr. Sanjay Buch, Advocate & Solicitor

During the concluding session, some of the participants gave their views on the course and conveyed their satisfaction to the format and structure of the course. The feedback to the course was encouraging and many of them were keen to attend such course in future. Mr. Kanu Chokhsi acknowledged the contribution of the paper writers in the success of the course and also thanked participants for their active participation.