Recent Companies Act 2013, Amendments

  • Companies Act 2013 Amendments:

(1) More audit disclosures introduced — Rule 11 (d) of the Companies Audit and Auditor Rules, which deals with matters to be included in an Auditor’s Report have been amended. Now Auditors Report must also mention:

(i)                 Whether Dividend paid or declared during the year complies with Sec. 123 of the CA 2013 or not.

(ii) In addition to the disclosures in “Notes to Accounts”, whether there’s a management representation that:

  •    It has not advanced, loaned or invested funds to any person, domestic or foreign entity (together the “Intermediaries”)
  • With an intent that such Intermediaries shall invest or lend such funds to Ultimate Beneficiaries on its behalf.
  • Whether the Company received funds from a foreign entity or person for being extended as loan / investment / guarantee to an Ultimate Beneficiary.

(iii) Whether the Company’s accounting software has a feature of recording audit trail or not.

(2) Companies Accounts Rules, 2014 have been amended. From April 01, 2021 Companies can only use an Accounting Software package which provides non-tamper able facility of Audit Trail and Audit Log for each and every transaction.

(3) Ss. 23 and 45 of CAA, 2020 notified.


  •              Company (Accounts) Amendments Rules, 2021

 Section 134 read with Section 469 of the Companies Act, 2013 the Central Government here by makes the following rules further to amend the Companies (Accounts) Rules, 2014-

1. every company shall use accounting software for maintaining its books of accounts which shall have the feature of tracking each and every transaction for the purpose of Audit Trial and also create edit log of each change made  along with the date when such change was made and that audit trail cannot be disabled


2.  Two new clauses has been inserted after clause (x) and first one is that the details of pending proceeding under Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year along with their status as at the end of the financial year and second one is that the details of difference between amount of valuation done at the time of one time settlement and the valuation done while taking loan from Bank together with the reasons thereof.


  • Schedule-III Amendments-  

          1. Rounding off of the figures is now compulsory. Earlier it was optional


·                 For PART-I Balance Sheet

1.       In share capital schedule- Promoters holding is must to be disclosed

2.       Ageing of trade payable is must to be disclosed

3.       Ageing of trade receivable is must to be disclosed

4.       If the borrowed funds from banks and financial institution not utilized for the specific purpose, then to disclose the details where the funds have been utilized.

5.       If title deed of property not in company name then additional disclosure to be given

6.       Additional disclosure for the loans given to promotes, directors, KMP and related parties

7.       Additional  disclosures for capital work in progress – ageing wise

8.       Additional disclosure for intangible assets under development– ageing wise

9.       Details of benami properties held

10.   Additional disclosure in case of bank borrowings on the basis of security of current assets. To give detail whether the books are matched with the periodical details submitted to bank.

11.   Additional disclosures in case of willful defaulter

12.   Additional disclosure for relationship with struck off companies

13.   Additional disclosure for pending registration of charges and pending satisfaction of charges

14.   Additional disclosure for non Compliance with number of layers of companies

15.   Various ratios- (total 10 ratios) to be disclosed along with numerator and denominator and reason for variation with previous year

16.   Various additional disclosures in case of utilization of borrowed funds and share premium etc.


·               For PART-II Profit & Loss Account

1.       Additional disclosure for undisclosed income surrendered during any search or survey under income tax act

2.       Various detailed disclosures for CSR

3.        Details of trade or investment in any crypto currency or virtual currenc

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