Companies Act 2013 Current Affairs - 2020
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The National Financial Reporting Authority (NFRA) issued its first audit report of IL&FS Financial Services Limited for the year 2017-18. It is the first report submitted by the authority since its constitution in October 2018. The audit was conducted abiding Section 13(2) of the companies act, 2013 and NFRA rules, 2018.
Prior to NHRA, the audit of the IL and FS financial services were conducted by Deloitte Haskins and Sells (DHS). NHRA reports that the audit conducted by DHS was inadequate.
IL and FS crisis
IL and FS is a non-banking financial company that was established 30 years ago in order to conglomerate funds for infrastructure projects in India. The company fell short of cash recently and faced cash over runs, delays in land acquisition and approvals in 2018.
National Financial Reporting Authority
National Financial Reporting Authority was established in 2018 under the Companies act, 2013. Due to the establishment of NFRA, India is now eligible for membership of International Forum of Independent Audit Regulators. It is a global member organization that includes regulators from 53 jurisdictions. It was established in 2006 at Paris. It works to enhance investor protection by improving auditing globally.
Companies act, 2013
The powers and function of NFRA is listed under Section 13(2) of companies Act, 2013.
Under Section 13 (2) of the Companies act, 2013, the NFRA is responsible to audit policies and standards in the country, impose sanctions against defaulting auditors, audit firms and their monetary penalties. It is also responsible to audit companies that are listed in stock exchanges and those that function outside India.
Tags: Auditing • Bad loans • Companies Act 2013 • Financial Assistance • Investment
The earnings from internet ticketing services of IRCTC (Indian Railway Catering and Tourism Corporation) increased by 80.8% between the period April, 2019 and September, 2019. The earnings in the four-month period is Rs 199.3 crores. It was Rs 199.3 crore before April, 2019. The revenue has almost doubled.
IRCTC is an exclusive e-ticketing partner of the Indian Railways. This is the first time IRCTC is releasing its revenue after it entered the stock market in October, 14, 2019. Also, the sector has earned huge success in India’s path of Digitization.
The report was released by IRCTC after its audit by the Serva Associates, Charted Accountant, New Delhi. The audit was conducted through the concerned auditor under Section 139 of Companies Act, 2013
Section 139 of Companies Act, 2013
- The section deals with the appointment of auditors
- The section under the act allows the public sector companies and other private companies to appoint auditors at the first annual meeting.
The IRCTC is one of the Miniratna companies of India. It is a subsidiary of the Indian Railways.
A Miniratna status is provided to the Public Sector Undertakings that satisfy the following criteria
- The PSU should have continuously made profit in the last 3 years or it should have earned Rs 30 crore profit in one year