Board Reports for OPC and Small Company

Introduction to OPC and Small Company

One Person Companies(OPC) and Small companies may represent a small share of revenue generation but they are vital for the economy of India. In a notification released on the 31st of July, 2018 the Ministry of Corporate Affairs made amendments to the Companies (Accounts) Rules, 2014. These rules specified the matters to be included in the Board reports for OPC and Small Company among additions of a few clauses and amendments to sub-rule (5)

Matters to be included in Board reports for OPC and Small Company

Once you have registered an OPC, there are a lot of compliances such as board reports and their particulars that need to be maintained to ensure smooth functioning of the company.

Matters OPC and small companies should include in board reports:

• The web address, if any, where Annual Return referred to in sub-section (3) of section 92 has been placed.

• The number of Board meetings during the year.

• Directors’ Responsibility Statement.

• Details in respect of frauds reported by auditors under section 143(12) other than those which are reportable to the Central Government.

• Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report.

• The state of the company’s affairs.

• The financial summary or highlights.

• Material changes from the date of closure of the financial year in the nature of a business and their effect on the financial position of the company.

• The details of directors appointed or have resigned during the year.

• The details or significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and Company’s operations in future.

• The Board’s report shall also contain the particulars of contracts or arrangements with related parties referred to in Section 188(1) in Form AOC-2.

 

You can have a look at the Official Notification released by the Ministry of Corporate Affairs.

 

At LegalRaasta we understand that it can be tough to keep up with the latest amendments and rule changes. Don’t worry! follow our blog to stay up to date with the latest for One-Person Companies and Small Companies. If you wish to register your OPC, head on over to OPC registration. We also specialize in various taxation related services such as GST registration, Income Tax Returns among others. Talk to us about your needs at +91-8750008585 or drop an e-mail at contact@legalraasta.com.