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Companies (Accounts) Rules, 2014

New Changes in Board Report Introduced by the Companies (Accounts) Rules, 2014

On 31st July 2018, the government of India has issued the notification for the amendment in the Companies (Accounts) Rules, 2014. So, let us discuss those changes and amendments under the Companies (Accounts) Rules, 2014. Following are the Amendments: 

 Additional disclosure in Board Report

The Board shall additionally disclose the following in its Report:

  • as to whether maintenance of cost records as specified under section 148(1) of the Act, is required by the Company and accordingly such accounts and records are made and maintained and
  • a statement that the company has complied with provisions relating to the constitution of the Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013.
Matter to be included in Board report for OPC and Small Company

Rule 8(5) shall not apply to One Person Company and Small Company. New Rule 8A has been inserted to deal specifically with the matters to be included in Board’s Report for the said Companies. The Board’s report of OPC and Small Company shall be prepared based on the standalone financial statement of the company, which shall be in abridged form and contain the following:

  • The web address, if any, where the annual return has been placed;
  • Number of meetings of the Board;
  • 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 the business and their effect on the financial position of the company;
  • The details of directors who were 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 the company’s operations in the future.

Further, 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.


FCS Rajiv Bajaj

Central Council Member-The ICSI

Sr. Associate Director –Finance & Company Secretary

Panasonic AVC Networks India Co. Ltd.

Profile photo of CS Rajiv Bajaj CS Rajiv Bajaj

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