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    • Introduction:
      • This Standard on Auditing (SA) is effective from 1st April, 2009 and mainly deals with the auditor’s responsibility to consider laws and regulations in an Audit of Financial Statements.
      • It is not applicable to other assurance engagements in which the auditor is specifically engaged to test and report separately on non-compliance with specific laws and regulations.
      • According to this SA, non-compliance means an act of omission or commission by the entity, either intentional or unintentional, which are contrary to the prevailing laws or regulations. 

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    General Points on ICDS:

    • ICDS was made applicable from FY 2016-17 (i.e. A.Y 2017-18) as per Notification S.O.892(E) dated 31.03.2015
    • However, It is not for the purpose of maintenance of books of accounts.

    Applicability:

    External Commercial Borrowings (ECB) Policy – Liberalisation

    1. Liberal procedures for Oil Marketing Companies (OMCs):

    Under the existing policy, ECB can be raised under Track I and III for working capital purposes from direct and indirect equity holders or from a group company with a minimum average maturity of 5 years. It has been decided, in consultation with the Government of India, to liberalise the provisions and permit public sector OMCs to raise ECB for working capital purposes with minimum average maturity period of 3 or 5 years from all recognized lenders under the automatic route.

    Further, the individual limit of USD 750 million or equivalent and mandatory hedging requirements as per the ECB framework have also been waived for borrowings under this dispensation. However, OMCs should have a Board approved forex mark to market procedure and prudent risk management policy for ECBs referred above.

    The overall ceiling for such ECBs shall be USD 10 billion equivalent and the said facility will come into effect from the date of this Circular.

    For more details, refer Notification No. RBI/2018-2019/54, A.P. (DIR Series) Circular No. 10 dated 3rd October, 2018.

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    Introduction:

    Foreign Investment in to India comprises of both direct foreign investment from non-residents and indirect investments through resident Indian entities having such direct foreign investment. Indirect Foreign Investment is often referred to as “Downstream Investment (DI)” under FEMA.

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    MCA UPDATES RULES, CIRCULARS, NOTIFICATIONS AND ORDERS ISSUED  DURING THE MONTH OF OCTOBER, 2018 

    RULES

    No Rules were issued during the month.

    NOTIFICATIONS

    • Constitution of National Financial Reporting Authority (NFRA), Dt: 01.10.2018. 

    Vide the said Notification, the Central Government has appointed  the 1st October 2018 as the date of constitution of National Financial Reporting Authority (NFRA). 

    http://www.mca.gov.in/Ministry/pdf/ConstitutionNotificationNFRA_04102018.pdf 

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