S. Jaykishan

Chartered Accountants

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Revised Standards on Auditing | Audit Report Formats

Revised Standards on Auditing | Audit Report Formats

– CA Vivek Newatia

The Standard on Auditing (SA) 700 deals with the auditor’s responsibility to form an opinion on the financial statements. It also deals with the form and content of the auditor’s report, issued based on audit of the financial statements.

In accordance with the revisions in ISA 700 by The International Federation of Accountants, ICAI has made corresponding revisions to SA 700. Accordingly, the format of auditor’s report has been changed.

The Council […] Read More >>


KYC of Active Companies – MCA’s spree to clean up the waste

KYC of Active Companies – MCA’s spree to clean up the waste

– CS Aditi Jhunjhunwala

–  Mayank Kumar

In its further endeavour to eradicate the sham companies the Ministry of Corporate Affairs has come up with Notification dated 21st February, 2019 inserting Rule 25A vide Companies (Incorporation) Amendment Rules, 2019 providing for KYC of companies pursuant to powers under section 12 (9) and 469 of the Companies Act, 2013.

The introduction of ACTIVE is another fall out of the MCA’s drive after striking of […] Read More >>


Merger of Limited Liability Partnership and Company

Merger of Limited Liability Partnership and Company – An Analysis

–  CA Vivek Newatia

–  CS Khushboo Jain

This article highlights the proposition of a LLP or firm merging into a company a landmark judgement passed by the National Company Law Tribunal, Chennai Bench.

Reaping the benefits of a merger or acquisition is a tricky business. Outcomes are uncertain, previously unknown or unimportant facts suddenly emerge as critical, and there are many moving parts to control. The article primarily discusses on the facts of the […] Read More >>


‘High risk’ NBFC’s due to PMLA non-compliance

‘High risk’ NBFC’s due to PMLA non-compliance

– By Ishanah Santhalia

The Financial Intelligence Unit (FIU) has released a list of 9,491 NBFCs that have been categorized as ‘high-risk’ due to non-compliance of one of the stipulated conditions mentioned in the PMLA Act and Rules. According to the FIU, these 9,491 NBFCs did not comply with the conditions of appointing a Principal Officer responsible to check and report suspicious transactions and cash transactions of 10 Lakhs and above and […] Read More >>


Compliance with RBI reporting for FDI

Compliance with RBI reporting for FDI

– By Khushboo Jain

To strengthen two of the major agendas currently being perused by the Government of India i.e. “Identification of Beneficial Ownership” and “Ease of Doing Business”, The Reserve Bank of India (“RBI”), apex Central Bank of India, in pursuance of regulation of foreign capital flows, has issued a Circular No. 30 dated June 7, 2018, streamlining the reporting requirement for entities which presently have Foreign capital contribution and/or entities contemplating to have foreign investments.

In this […] Read More >>


KYC of Directors by MCA

KYC of Directors by MCA

– By Aditi Jhunjhunwala  
– Nirali Gosaliya Vasa 

In its recent move to eradicate the shell companies Government has yet taken another move by introduction of Rule 12A and amendment to existing Rules of Companies (Appointment and Qualification of Directors) Rules, 2018 wherein Government seeks to ensure that the management is being run by directors who are qualified enough to act as such and accordingly seeks to identify the shadow directors. While the move is a welcome move in light […] Read More >>


Impact of Ind AS on Minimum Alternate Tax (MAT)

Impact of Ind AS on Minimum Alternate Tax (MAT)

– By CA Niketa Agarwal

As the book profit based on Ind AS compliant financial statement is likely to be different from the book profit based on existing Indian GAAP, the CBDT constituted a committee in June, 2015 for suggesting the framework for computation of MAT liability under section 115JB for Ind AS compliant companies in the year of adoption and thereafter. On 22nd December, 2016, the Committee submitted its final report after […] Read More >>


Impact of Ind AS 41- Agirculture on Tea Industry

Impact of Ind AS 41 – Agriculture on Tea Industry

– By CA Niketa Agarwal

The Ministry of Corporate Affairs (‘MCA’) issued a press release on January 2, 2015 announcing a roadmap for the implementation of Ind- AS based on a company’s net worth. With respect to agricultural sector, before the introduction of the Companies (Indian Accounting Standards) Rules, 2015, there was no specific accounting literature in India (previous GAAP) that required recognition of biological or bearer plant and hence no accounting […] Read More >>


Revenue recognition for real estate developers – Indian GAAP vs ICDS

Revenue recognition for real estate developers  – Indian GAAP vs ICDS

-By CA Vivek Newatia

Real estate as a subject has always been of interest to all professionals considering the complex implications of the transactions – legal, accounting or taxation. One question which has perplexed everyone is whether revenue in the books of real estate developers should be recognised on percentage completion method (POCM) or project completion method/ completed contract method (CCM).

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Controversies surrounding Section 14A of the Income Tax Act

Controversies surrounding Section 14A of the Income Tax Act

-By CA Vivek Newatia
-By CA Puja Borar

Section 14A introduced by the Finance Act 2001 with retrospective effect from 1st April 1962 has been one of the most litigated provisions with different courts interpreting it differently. The Section provides for disallowance of such expenditure which is incurred in relation to income which does not form part of the total income.

Read More >>