Companies (Accounts) Amendment Rules-2020

The Companies (Accounts) Amendment Rules, 2020 was issued through the notification of the Ministry of Corporate Affairs (MCA) on 30th January 2020. These rules amend the already existing Companies (Accounts) Amendment Rules, 2014. This newly amended rule introduces two new forms, in addition to the previously existing forms in filing the financial statements. The proposed new forms are Form AOC-4 NBFC and Form AOC-4 CFS NBFC.

Form AOC-4

The Form AOC-4 is for filing the financial statements of a company. The MCA requires the financial statements of a company. So, every company files its financial statements within 30 days of commencing the annual general meeting (AGM) to the Registrar. The companies under the Extensible Business Reporting Language (XBRL) format can file through the Form AOC-4 XBRL. The companies are to attach certain documents like the Auditor's report, Board's report, details of the Corporate Social Responsibility (CSR) policy, disclosure of the related party transactions, the subsidiaries statement in Form AOC-1 and the secretarial audit's applicability. The Form AOC-4 requires the certification from a Company Secretary or from a practising Chartered Accountant (CA). The Form AOC-4 CFS is to file the Consolidated Financial Statements of a company.

Form AOC-4 NBFC

The new Companies (Accounts) Amendment Rules has introduced the two forms. The introduced forms are the Form AOC-4 NBFC and Form AOC-4 CFS NBFC. These two forms relate to the filing of financial statements. These forms are applicable to the Non-Banking Financial Company (NBFC). NBFC is an institution that provides banking services without having a banking license. The amendment rule states that the NBFC's have to file its financial statements to the Registrar, just like the other companies. This is for every NBFC that has complied under the Indian Accounting Standards (Ind AS). The financial statement for the NBFC should require the same details as for Form AOC-4. The Form AOC-4 CFS NBFC is to file the consolidated financial statements. The notification of the Companies (Accounts) Amendment Rules, 2020 is below for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2020/02/Rules_31012020-1.pdf"]

Financial Statements

The financial statements should contain the following in it:

Balance sheet
Cash flow statement
A statement of the change in the equity (if any)
Profit and loss account and the explanatory notes (if any)

Consolidated Financial Statements

The Consolidated financial statement should contain the following:

Consolidated balance sheet
A statement of the consolidated profit and loss
Consolidated cash flow statement
The explanatory materials and other statements

Required Details for Form AOC-4 NBFC

The Required details of the Form AOC-4 NBFC are quite similar to that of the Form AOC-4. Apart from that, the new Form AOC-4 NBFC requires the following details:

The nature of the financial statement and the details pertaining to it
The date of the adjourned AGM, if the financial statement is accepted in that meeting
The Service Request Number (SRN) of Form INC-28 and of Form AOC-4 NBFC
Date of the Competent Authority's order
Balance sheets of financial assets and non-financial assets
The particulars of the Service provider
A Detailed balance sheet on the statement of the changes in equity, derivative financial instruments, investments, debt securities, borrowings (apart from debt securities), deposits and subordinated liabilities
Auditor's Report
Details of the remarks of the auditors
Applicability of CARO (Company Auditor's Report Order)

Attachment Required

Details of other entity or entities
The salient features and justification for entering into contracts, Arrangements or transactions. This is to be filed through the Form AOC-2
Details of comments of CAG (Comptroller and Auditor General) of India
Secretarial Audit Report
Report of the director
The details of the remaining CSR activities

The Form AOC-4 NBFC is attached below for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2020/02/Rules_31012020-2-23.pdf"]

Required Details for Form AOC-4 CFS NBFC

The Required details of the Form AOC-4 CFS NBFC are quite similar to that of the Form AOC-4 CFS. Apart from that, the new Form AOC-4 CFS NBFC requires the following details:

The date of the adjourned AGM, if the financial statement is accepted in that meeting
The Service Request Number (SRN) of Form INC-28 and Form AOC-4 CFS NBFC (Ind AS)
Date of the Competent Authority's order
Balance sheets of financial assets and non-financial assets
A Detailed balance sheet on the statement of the changes in equity, derivative financial instruments, investments, debt securities, borrowings (apart from debt securities), deposits and subordinated liabilities
Comment of the Auditor on the items under CARO

Attachment Required

Supplementary test audit report. As per section 143
Details of comments of CAG of India
Secretarial Audit Report
Report of the director

The Form AOC-4 CFS NBFC is attached below for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2020/02/Rules_31012020-25-44.pdf"]