1. 01. 105 )rice :Rs. 125 Issue 3 I
a Regulatory Framework for Core Investment Companies Itisnotpossiblet.g aeceptas
(CICs) 28 an ominous universal rule
Log on to
STATUTES [25-381 REPORTS [I97-2801 MAQAZINE [25-521
Volume 10EiIsue 3 for the week of January 17 -January 23,2011 releasedon January 17
MODEOF CITATION[2011] 105S6L...(...) TOTALNO.OF PAGES IWCLUDINGCOVER 140

3. Ormat of quarterly compliance report
In order the criticality of compliance of conditions of
vmategovernance~ itisessentialforeproduce the
prescribedthe for
of quarterly comphce repon, inhenureof 49 which is give^ hereinbelow :
ANNEXUIZEIB
"QuuLerly Col.~UanceReport on c ~ ~ , , ~ ~ ~ ~~avel.nce (io 1.column No. 3,complianceornon-compliancemaybeindicafedby
6f the'&mpany : yes/No/N.A. For example, if the board has been composed in
Qtkmere&g on : accordance with the clause 49-1of the ListingAgreement, 'Yes' may
be indicated. Similarly,in case the company has no related party
transactions, the words 'N.A.' may be indicated against 49(IV*).
(iiq the remarks column, reasons for non-compfiancemay be
L dHnddFDirect& - cated, for example,in case of requirement related to circulation of
information to the shareholders, which would be done only in the
(A1 Compositionof Board AGM/EGM, it might be indicated in the 'Remarks' c~lumnas - ''will
Nan-executive Directorsp . be complied withat the AGM".Similarly,in respect ofmatterswhich
compensation & disclosures
49(IB) can be with only where the situation arises, for example,
(C) Otherpr~visionsas to Boar-and "Reporton Corporate Governance"is to be a part of AnnualRepo*
Gmimi~tees only,the words "willbe compliedin the next AnnualRep&* may be
indicated.
Audit Committee
4 9 m
(A) Qdified& hdependentAudit 4 9 m )cOmr$ttee 3. order to submit the report in the prescribed time-frame, ie.,within
M@?t$gof Audit fifteen days of close of every quarter, compfiance Officer or is
to go through the process of testingthe conditionsof c o ~ o r a ~ e
('1 Powen of Audit Committee 49mc)
4gW1 governance in their organization.The report is required to be submitted
(Dl Role of Audit Committee
49@D) withinfifteen days of the end of quarter, ie.. assumingprior fothe date of
m of ~ 0 l ? % X & t i ,by Audit
4 9 ~ 1
board meeting which is required to be convened within foufly-fivedays
fhmnittee by the end of each quarter (refer clause 41). Hence, the CEO or Comdi-
anteOfficer(unless both the positions'areheld by an individual)needs to
be extra careful while examining the position of the company in the
reporting quarter and fulfilment of the conditions of the corporate
(A) Beof related party tramctions
4gw*) governance.
D w w e *Accounting Treatment
'
4 9 ~ ~ )'
(c)Board Disclos~r~
''9WC)
(D) Pmceedsfrompt.&lic issues,*hts
issues,preferentialhues, etc. 49(IVD)
Remunerationof Directors
49VE)
mRPoRA'fE LAWSnJANUARY 1.7-JANUARY23,U ) l , O.