22 June 2017
Notification no GSR 583 E dated 13 June 2017 published by MCA provides exemptions to a small company for reporting under section 143 (3)(i) ie Internal Control Over Financial Reporting.
Query: 1. What will be the effective date for application of this notification? 2. Shall it be the date of report or the date of financials (March 31)? 3. In logical analysis, it was found appropriate to take the date of report but, is there any law/rule/notification/interpretation supporting this logic?
26 June 2017
Effective date of notification would be the date of report. The exemption is provided for ICoFR and since it is an addendum to the main audit report which is issued on a date subsequent to the notification, it is logical to assume that even if the ICoFR is not tested/no report is given, the company/auditor has complied with all rules and provisions relating to Companies Act, 2013 on the reporting date.
Another logic is that the June'17 notification is an amendment to the principal notification which was issued in 2015. Hence, all such reporting requirements relating to the principal notification of 2015 has been revised as on the day of the June'17 notification and any reports issued later based on the principal notification of 2015 is subject to the amendment notification of June'17.