Sr.

No.
Category Compliance
1 Companys Stationery
including Letter Head
- Business letters, Billheads, Letter papers and in all its notices and
other official publications should contain
I. Company Name
II. Company Address of registered office
III. Corporate Identity Number
IV. Fax Number, email and website addresses

2 Director - Every Company is required to have One Resident Director
- Hold directorship in 20 companies ( not more than 10 public limited
companies including private companies)
- Document signing should contain
I. Directors Name
II. DIN
3 Section 2(41)-Financial
Year
- the financial year for all companies should end on 31 March, with
certain exceptions approved by the National Company Law Tribunal
4 Section 2(85)-Small
Company
- Criteria:- Other than Public company whose
I.Paid up capital < 5 Mio. ( 50 Mio if specified) OR
II. Turnover < 20 Mio. (200 Mio if specified) as per last P&L

- Not a Holding /Subsidiary Company
- Act Provides certain exemptions ( Board Meeting, CFS presentation,
Merger Process etc.,)
5 Section 73, 74(1) and 76-
Provisions related to
acceptance of deposits
- Stringent Provisions for accepting deposits
- Repay deposits within one year accepted under act 1956
6 Section 129- Financial
Statement
- Mandatory Preparation of Consolidated Financial Statement for all
companies which have one or more subsidiaries in addition to the
standalone financial statements
7 Section 134- Financial
statement, Boards report,
etc.
- The boards report will be more informative with extensive
additional disclosures
I.declaration of independence by the independent directors
II.related party transactions
III.directors appointment and remuneration
IV.policy by the company on corporate social responsibility
8 Section 138- Internal audit - Mandates internal audit for prescribed class of companies
A) LISTED COMPANY

B) UNLISTED PUBLIC COMPANY ( Last Financial)
- Paid up capital > 500 Mio. OR
- Turnover >2000 Mio. OR
- Borrowings> 1000 Mio OR
- Outstanding Deposits> 250 Mio.

C) PRIVATE COMPANY ( Last Financial)
- Turnover >2000 Mio. OR
- Borrowings> 1000 Mio OR
- Outstanding Deposits> 250 Mio.
9 Section 139- Appointment
of auditors
- Period of 5 years (subject to ratification at every AGM)
- Individual auditor 5 years and Audit Firm- 10 years
- Rotate at expiry of the term and reappointed after cooling off
period of 5 years
- Transition Period:- 3 years from 1 April 2014
10 Corporate Social
Responsibility
- Under the New Act, the Companies on which CSR provisions are
applicable, has to spend 2% of average net profits for last 3 years
and comply with the provisions of the Act and CSR Rules.
- CSR applies to the following companies having: - Net worth of INR
500 Crore or more; or Turnover of INR 1,000 Crore or more; or Net
profit of INR 5 Crore or more.
11 Women Director and Small
Shareholders director
- Not applicable
12 Annual report - Annual Report to be filed ROC within 60 days of AGM
13 Maximum Directors - Increases the limit of the number of Directors from 12 to 15
14 Exemptions withdrawn - Further issue of Share Capital by Right issue
if not right issue then:
o to any person if authorized by Special Resolution;
o at a price to be determined by registered valuer &
o subject to other conditions as may be prescribed
-
15 Depreciations - Check Note


Note
Depreciation Comparative Analysis
Sr. No. Companies Act 1956 Companies Act 2013
1 S. 350 & Sch XIV read with AS 6 Schedule II provides useful Lives of
assets and no rates (SLM or WDV)
2 95% of original cost to be depreciated
over specified period
The balance of WDV to be
depreciated as per provisions of this
schedule
3 Low value items - fully depreciated No provision for low value items or
rates for intangibles
4 Separate rates for Intangibles/electricity
companies/EST etc.
Schedule Rates for some items like
Building, Furniture etc. are different
5 Component Accounting is Optional Component Accounting is Mandatory
o Where Cost Of Any Part Of
The Asset Is Significant To
The Total Cost Of The Asset
And Useful Life Of That Part Is
Different From The Useful
Life Of The Remaining Asset,
Useful Life Of That Significant
Part To Be Determined
Separately
Depreciation Chart- Comparative Analysis
Asset Rate of
Depreciatio
n- 1956 Act
Rate
converted
to years-
1956 Act
Useful
Life-2013
Act
Longer
life/
(Shorter
life)
Rate of
Depreciatio
n- 2013 Act
Continuous Process Plant 5.28 % 18 25 7 4 %
General Plant & Machinery 4.75 % 20 15 (5) 6.66 %
General Rate for furniture & fittings 6.33 % 15 10 (5) 10 %
Electrically Operated Vehicles 7 % 13.57 8 (5.57) 12.5 %
Computer 16.21 % 5.86 3 (2.86) 33.33 %
Furniture & fittings used in hotels etc 9.5 % 10 8 (2) 12.5 %
Building (other than factory building)
other than RCC frame structure)
1.63 % 61.35 30.00 (31.35) 3.33 %
Bridges 1.63 % 61.35 30.00 (31.35) 3.33 %
If useful life or residual value is different for Schedule II, Justification to be disclosed
Component accounting under Note 4
Extra Shift depreciation higher 50%
Triple Shift - 100%