Master Circular: Disclosure in Financial Statements: ‘Notes to Accounts’

RBI/2015-16/99

DBR.BP.BC No.23/21.04.018/2015-16

July 1, 2015

The Chairmen / Chief Executives of

All Commercial Banks

(excluding RRBs)

Dear Sir,

Master Circular – Disclosure in Financial Statements – ‘Notes to Accounts’

Please refer to the Master Circular DBOD.BP.BC.No.8/21.04.018/2014-15 dated July 1, 2014 consolidating all operative instructions issued to banks till June 30, 2014 on matters relating to disclosures in the ‘Notes to Accounts’ to the Financial Statements. This Master Circular consolidates instructions on the above matters issued up to June 30, 2015.

2. It may be noted that in addition to the instructions consolidated in this Master Circular, disclosure requirements contained in “Master Circular on Basel III Capital Regulations” will also be applicable.

Yours faithfully,

(Sudha Damodar)

Chief General Manager

The circular can also be accessed at the link given below.

Master Circular – Disclosure in Financial Statements – ‘Notes to Accounts’

Information on Sexual Harassment to be Mandatory under CA 2013

Under the Companies Act, the government has set off the process necessary for the private companies.

“In order to ensure that private sector companies also constitute ICC as mandated under Sexual Harassment at Workplace (Prevention, Prohibition and Redressal) Act 2013, it will be appropriate to ask the companies to disclose the constitution of the IIC in their Annual Disclosures filed under the provision of Section 134 of the Companies Act 2013,”.

“While adequate protection is available in government structures to women, it is important that women in the private sector are also given the same level of protection. We had taken up this matter with Chambers of business but we have not been able to cut much ice with them,”.

Section 134 of the Act enables the Central government to mandate any non-financial disclosure to be made in the Directors’ Report of a company.

“Since companies did not show much interest on the matter, we have decided to make it mandatory for them under the Companies Act, 2013.There has been an increase in the number of cases of sexual harassment at workplace being brought up by women employees in different organizations.

As per this law penalty of Rs 50,000 on employers who are unable to implement its various provisions.

Master Circular Bank Finance to Non-Banking Financial Companies

RBI/2015-16/36
DBR.BP.BC.No.5/21.04.172/2015-16

July 1, 2015

Chairman and Managing Directors /
Chief Executives of
All Scheduled Commercial Banks (excluding RRBs)

Dear Sir/Madam,

Master Circular – Bank Finance to Non-Banking Financial Companies(NBFCs)

Please refer to our Master Circular DBOD.BP.BC.No.10/21.04.172/2014-15 dated July 1, 2014 on the captioned subject. This Master Circular consolidates instructions on the above matters issued up to June 30, 2015.

Yours faithfully,

(Sudarshan Sen)
Chief General Manager-in-Charge

The circular can also be accessed at the link given below.

Bank Finance to Non-Banking Financial Companies(NBFCs)

#CBEC Releases New System for Detailed Manual Scrutiny of Service Tax Returns

In the era of self-assessment, the need for a strong compliance verification mechanism cannot be over emphasized. Such a mechanism has three important prongs — audit, anti-evasion and return scrutiny.

In order to put in place a strong ‘return scrutiny’ system, a two-part system of return scrutiny was envisaged— a preliminary scrutiny which would be online covering all the returns; and a detailed manual scrutiny of select returns, identified on the basis of risk parameters, to be done by the Division

Please click on the below link to read the full circular

Detailed Manual Scrutiny of Service Tax Returns

Explanation on charging depreciation for extra shift under CA 2013

There are  various views are possible for determining remaining useful life on transition from Schedule XIV to Schedule II if an asset has been used on double/ triple shift basis in past years.

For example, in the case of plant above, one view is that the asset has remaining Schedule II life of 12 years, i.e., 15 years – 3 years. The second view is that remaining Schedule II life of the plant is 9 years, i.e., 15 years –6 years (considering the plant was used on a triple shift basis on all days in the previous three years).

The third view is that remaining Schedule II life of the plant is 6 years, i.e., 15 years – 9 years (considering the plant was used on a triple shift basis on all days in previous three years and each shift is considered to depreciate the asset equally).”

The above extract say before charging depreciation on triple shift, the life of Assets should be reduced to half in second and third view. Argues are there whether to consider the same from the beginning of uselife of assets or for remaining uselife.

However, Note 5 to SCHEDULE II of Companies Act, 2013 says –

The useful lives of assets working on shift basis have been specified in the Schedule based on their single shift working. Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C above), if an asset is used for any time during the year for double shift, the depreciation will increase by 50% for that period and in case of the triple shift the depreciation shall be calculated on the basis of 100% for that period.