Companies (accounts) amendment rules, 2015
The Ministry of Corporate Affairs has vide Notification dated 16th January, 2015 amended the Companies (Accounts) Rules, 2014 with the Companies (Accounts) Amendment Rules, 2015. The following changes have been made:
i) A fter Rule 2 the following is inserted “2A. Notice of address at which books of account are to be maintained.—For the purposes of the first proviso to sub-section (1) of section 128, the notice regarding address at which books of account may be kept shall be in Form AOC-5” and
ii) in Rule 6, after the third proviso, the following proviso shall be inserted
“Provided also that nothing in this rule shall apply in respect of consolidation of financial statement by a company having subsidiary or subsidiaries incorporated outside India only for the financial year commencing on or after 1st April, 2014.”
Form AOC-5 is similar to eForm 23AA as per section 209(1) of the Companies Act, 1956 and if required to be filed when the Board of Directors decides by passing the resolution to keep all or any of the books of account at any other place in India besides the registered office then, the company shall, within seven days of passing the Board Resolution, file this form giving full address of that other place in form AOC-5.
2. Companies (cost records and audit) amendment rules 2014
The Ministry of Corporate Affairs has vide Notification dated 31st December, 2014 made the Companies (Cost Records and Audit) Amendment Rules, 2014 to amend the Companies (Cost Records and Audit) Rules, 2014.
It has inserted in Rule 2 (aa) a clarification that “Central Excise Tariff Act Heading” means the heading as referred to in Additional notes in First Schedule to Central Excise Tariff Act, 1985.
Accordingly, Companies are required to maintain Cost Records if turnover exceeds Rs. 35 crore or more during immediately preceding Financial Year in respect of the products and services specified;
Applicability of Cost Records: The Rules have categorised the entities into Regulated Sector (namely Telecommunication services; Power generation, Transmission, Distribution and Supply; Petroleum products; Drugs and Pharmaceuticals; Fertilisers; Sugar and Industrial alcohol) and Unregulated Sectors (i.e., steel, minerals oil, electrical, education services, health services, textiles, milk powder, medical devices etc businesses);
Applicability of Cost Audit: It will be applicable for entities under the Regulated sectors having overall annual turnover of Rs. 50 crore or more and the aggregate turnover of the individual products or services of Rs. 25 crore whereas Unregulated Sector Audit of Cost Records will be applicable for annual turnover of Rs. 100 crore or more and the aggregate turnover of the individual products or services of Rs. 35 crore or more have to get their Cost Records Audited; for financial years commencing from 01-04-2015.
Exemptions are provided to Companies whose revenue from exports, in foreign exchange, exceeds 75% of total revenue and Companies operating from Special Economic Zones.
