Business News: The Ministry of Corporate Affairs on Friday made amendments to the Companies Rules Act under which corporate entities will have to make a series of disclosures of important things pertaining to the financial conduct of the companies. The disclosures will be on investments, transactions, benami properties, money in corporate social responsibility and cryptocurrency on top of all.
Companies will now have to disclose their relationship with struck-off firms and the title deeds of immovable properties not held in the name of the company. Now companies will have to disclose cryptocurrencies, transactions made in cryptocurrencies, trades and deposits made or taken from other cryptocurrency traders.
Disclosure of Cryptocurrency transactions has been the most recent amendment made to the Companies Rules Act. The government is currently engaged in formulating a new bill with regards to the regulation cryptocurrency trading. Government will soon need companies to disclose information on such digital currencies.
Other amendments are focused on expanding the scope of audit reporting. Now, management representations on advances, loans, and investments, etc., will also have to be reported. One of these changes requires companies to use that accounting software for maintaining its books that allow it to record the audit trail of every transaction.
To disclose information regarding insolvency and bankruptcy regarding the company’s assets is another requirement as per the amendment. Companies should also disclose the money spent on corporate social responsibility projects undertaken in the past year, as a part of their financial statements. CSR was usually part of directors’ report.