CS Inquest

RBI to ease norms for Real Estate Companies to bring in foreign loan in form of ECBs! Earlier foreign funds could come in for real estate projects only through foreign equity!

Entire story on the link below-

https://youtu.be/JiApSrvqPOc

India's first legislation addressing workplace sexual harassment, the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 ("POSH Act"), was enacted in 2013. The Act empowered an aggrieved woman to file a complaint with an internal committee within three months of an incident.

However, after analyzing various scenarios and reluctance to report such incidents, the Rajya Sabha introduced The Sexual Harassment of Women at Workplace (Prevention, Prohibition And Redressal) Amendment Bill, 2024 on Feb 02, 2024.

The proposed amendment extends the time limit for making complaint to Internal Committee / Local Committee from three months to one year. It also omits the provision for settling matters through conciliation. These changes aim to ensure the safety of women in the mainstream workforce of India, which is rapidly growing and diversifying.

Some fact check on - Whether Consolidated Financial Statements are required if Indian Company has wholly owned foreign subsidiary under Companies Act, 2013 (‘the Act’)?

Section 129(3) of the Act states that where a company has one or more subsidiaries, it is required to prepare a consolidated financial statement of the company and of all the subsidiaries
(‘The word subsidiaries includes Body Corporate and the word ‘Body Corporate includes Company incorporated outside India’)

Now, there is an exemption from filing CFS in ‘Second proviso of Rule 6 of Companies (Accounts) Rules,2014 which states that
(i) If members do not object to the company not presenting consolidated financial statements
(ii) & (iii) If the holding Company to an Indian Company, which has its foreign subsidiary files CFS, that Indian Company is not required to prepare CFS.

Also, MCA vide notification dated 16th January, 2015 provided that a company having subsidiary or subsidiaries incorporated outside India are not required to consolidate their financials for the financial year commencing on or after 1st April, 2014.
The intention of MCA for its notification dated 16/01/2015, is to provide temporary relief or to give exemption for all upcoming years is not clear. Nevertheless, since Act prevails over the Rules and no clear exemption in the Act read with Rules is given for F/Y on and after 2014-15. Hence, Indian Companies are under an obligation to prepare consolidated financial statements in case of wholly owned foreign subsidiary also, unless exempted under Second proviso of Rule 6 of Companies (Accounts) Rules,2014