{"id":193,"date":"2015-07-10T11:14:49","date_gmt":"2015-07-10T05:44:49","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=193"},"modified":"2024-04-06T15:19:37","modified_gmt":"2024-04-06T09:49:37","slug":"company-laws-update-on-directors-report-for-private-limited-companies-small-companies","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/company-laws-update-on-directors-report-for-private-limited-companies-small-companies\/","title":{"rendered":"CORPORATE UPDATE ON DIRECTORS REPORT"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6acd7419e3e6e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6acd7419e3e6e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/company-laws-update-on-directors-report-for-private-limited-companies-small-companies\/#COMPANY_LAWS_UPDATE_ON_DIRECTORS_REPORT_FOR_PRIVATE_LIMITED_COMPANIES_SMALL_COMPANIES\" >COMPANY LAWS UPDATE ON DIRECTORS REPORT FOR PRIVATE LIMITED COMPANIES &amp; SMALL COMPANIES<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/company-laws-update-on-directors-report-for-private-limited-companies-small-companies\/#24_Points_to_Be_Taken_To_Directors_Report_For_Private_Limited_Companies_Small_Companies\" >24 Points to Be Taken To Directors Report For Private Limited Companies &amp; Small Companies:-<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><\/h2>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled32A.png\" rel=\"attachment wp-att-1609\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1609\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled32A-300x161.png\" alt=\"Untitled32A\" width=\"859\" height=\"461\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled32A-300x161.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/11\/Untitled32A.png 504w\" sizes=\"auto, (max-width: 859px) 100vw, 859px\" \/><\/a><\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"COMPANY_LAWS_UPDATE_ON_DIRECTORS_REPORT_FOR_PRIVATE_LIMITED_COMPANIES_SMALL_COMPANIES\"><\/span><span style=\"color: #000080;\"><strong>COMPANY LAWS UPDATE ON DIRECTORS REPORT FOR <a href=\"https:\/\/www.caindelhiindia.com\/blog\/?s=private+limited+company\">PRIVATE LIMITED COMPANIES<\/a> &amp; SMALL COMPANIES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"24_Points_to_Be_Taken_To_Directors_Report_For_Private_Limited_Companies_Small_Companies\"><\/span>24 Points to Be Taken To Directors Report For Private Limited Companies &amp; Small Companies:-<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol style=\"text-align: justify;\">\n<li>Extract of Annual Return (Extract of annual return relating to FY to which the Board\u2019s Report relates shall be attached.) MGT 9\/Sec 134 (3) (a) r\/w rule 12 of Cos (MAD) Rules.<\/li>\n<li>Number of Meetings Of The Board, including dates of Board and Committees meetings held indicating the number of Meetings attended by each Director\u00a0-SS1.(Clarification by ICSI \u2013 SS 1 to apply to BM in respect of which Notices are issued on or after 1stJuly, 2015.) Sec 134 (3) (b);\/Secretarial Standards 1.<\/li>\n<li>3 Directors\u2019 Responsibility Statement\u00a0-Accounting Standards\u00a0\u2013Accounting Policies-\u00a0Proper and efficient care for 3 things-Going concern basis-Adequate Internal Financial Controls-Compliance with all applicable laws.Above 6 points to be cover \/ Sec 134 (3) (C) &amp; (5).<\/li>\n<li>Explanation or Comments By The Bod on every qualification, reservation or adverse remark or disclaimer made bythe Auditors in Audit report Sec 134 (3)(f) (i).<\/li>\n<li>Particulars of Loans, Guarantees or Investments U\/S186\u00a0-Sec 134 (3) (g).<\/li>\n<li>Related Party Contracts or Arrangements (Particulars of contract along with justification for entering into such contract) AOC 2\/ Sec 134 (3) (h) r\/w Rule 8(2) of Cos (Accounts) Rules.<\/li>\n<\/ol>\n<p><a href=\"https:\/\/carajput.com\/blog\/closure-of-subsidiary-company\/\"><span style=\"color: #000000;\">Read more about<\/span> : CLOSURE OF SUBSIDIARY COMPANY<\/a><\/p>\n<p>Read more about :\u00a0<a href=\"https:\/\/carajput.com\/blog\/summary-of-new-mca-official-updates-under-the-company-act-2013\/\">Summary of New MCA official updates under the Company Act 20<\/a><\/p>\n<ol style=\"text-align: justify;\" start=\"7\">\n<li>State of the Company\u2019s Affairs Sec 134 (3) (i).<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"8\">\n<li>Amounts proposed to be Carried to Reserves, if any Sec 134 (3) (j).<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"9\">\n<li>Amount recommended as Dividend, if any, Sec 134 (3) (k).<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"10\">\n<li>Material Changes &amp; Commitments affecting financial position of the Company, occurring after Balance Sheet Date (Details of material changes occurring between date of Financial Statements &amp; Board Report) Sec 134 (4) (l).<\/li>\n<li>Energy Conservation, Technology absorption, FOREX earnings &amp; outgo, in prescribed manner Sec 134 (3) (m) r\/w Rule 8(3) of Cos (Accounts) Rule.<\/li>\n<li>Statement indicating development &amp; implementation of RISK Management Policy (This is required only if risk factors are there) Sec 134 (3) (n).<\/li>\n<li>Financial Highlights&amp; Change in the nature of business Sec 134 (3)(q) r\/w Rule 8(5).<\/li>\n<li>Details of Directors\/ KMP Appointed\/Resigned during the year Sec 134 (3)(q) r\/w Rule (8)(5)(iii) of Cos (Accounts) Rules, 2014 &amp; Sec168 (1).<\/li>\n<li>Name of the Companies Which Have Become\/Ceased to be subsidiaries, JVs or Associate companies during the year Sec 134 (3)(q) r\/w Rule (8)(5)(iv) of Cos (Accounts) Rules, 2014.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"16\">\n<li>Details of significant and material Orders Passed By The Regulators, Courts, Tribunals impacting the going concern status and company\u2019s operations in future Sec 134 (3)(q) r\/w Rule 8 (5) (vii) of Cos (Accounts) Rules.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"17\">\n<li>Details in respect of adequacy of internal Financial Controls with reference to Financial Statements Sec 134 (3)(q) r\/w Rule 8 (5) (viii) of Cos (Accounts) Rules.<\/li>\n<li>Separate section containing a report on Performance And Financial Position Of Each Of Subsidiaries, Associates&amp; JVs included in the Consolidated FS of the Co Rule 8(1) of Cos (Accounts) Rules.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"19\">\n<li>Disclosures under Sexual Harassment Of Women at Workplace (Prevention, prohibition &amp;redressal) Act, 2013 Sexual Harassment of Women at Workplace (Prevention, prohibition &amp;redressal) Act, 2013.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"20\">\n<li>Details about CSR Committee, Policy, its implementation and initiatives taken during the year (To be included if following limits are triggered \u2013NW \u2265 500Cr TO \u2265 1000 Cr NP\u2265 5 Cr)Format prescribed in CSR Rules Sec 134 (o); 135 (2) r\/w Rule 8 of Cos (CSR) Rules.<\/li>\n<\/ol>\n<ol style=\"text-align: justify;\" start=\"21\">\n<li>Disclosure on establishment of Vigil Mechanism (Applicable to Cos which have accepted deposits from the public or borrowed money from banks &amp; FIs in excess of Rs 50 Cr) Sec 177(9) r\/w Rule 7 of Cos(Meetings of the BoD) Rules.<\/li>\n<li>Prescribed details of Deposits covered under Chapter V of the Act Sec 134 (3)(q) r\/w Rule (8)(5)(v) &amp; (vi) of Cos (Accounts) Rules, 2014.<\/li>\n<li>Issue of Equity Shares with Differential Rights, Sweat Equity, ESOS, etc. Sec 43, 54 r\/w Rule4 (4); 8 (13) &amp; 12 (9) of Cos &amp; Sec 62 (1)(b) r\/w rule 12(9) of Cos(Share Cap &amp; Debenture) Rules.<\/li>\n<li>Disclosure in respect of Voting Rights not exercised directly by the employees in respect of shares to which the scheme relates\u00a0-Sec 67(3) r\/w Rule 16 of Cos(Share Cap &amp; Debenture) Rules.<\/li>\n<\/ol>\n<p><strong>What is Rapo Rate ?\u00a0<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-26415\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Repo-rate-.jpg\" alt=\"Repo rate\" width=\"1080\" height=\"999\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Repo-rate-.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Repo-rate--300x278.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Repo-rate--1024x947.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Repo-rate--768x710.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/07\/Repo-rate--800x740.jpg 800w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<p style=\"text-align: justify;\">The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional\u00a0endeavors. For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n<p style=\"text-align: justify;\">\n","protected":false},"excerpt":{"rendered":"<p>COMPANY LAWS UPDATE ON DIRECTORS REPORT FOR PRIVATE LIMITED COMPANIES &amp; SMALL COMPANIES 24 Points to Be Taken To Directors Report For Private Limited Companies &amp; Small Companies:- Extract of Annual Return (Extract of annual return relating to FY to which the Board\u2019s Report relates shall be attached.) MGT 9\/Sec 134 (3) (a) r\/w rule &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,1],"tags":[3084,3082,3081,3085,3086,3083],"class_list":["post-193","post","type-post","status-publish","format-standard","hentry","category-companies-act-roc","category-others","tag-amount-recommended-as-dividend","tag-directors-responsibility-statement","tag-extract-of-annual-return","tag-forex-earnings-outgo","tag-implementation-of-risk-management-policy","tag-internal-financial-controls"],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 5.0.2 - aioseo.com -->\n\t<meta name=\"description\" content=\"Company laws update on directors report for private limited companies &amp; small companies, 24 Points to Be Taken To Directors Report For Private Limited Companies\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"Rajput Jain &amp; 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