2. An Internal Auditor is a Chartered Accountant, Cost Accountant or any
other professional. Internal Audit standards (SIA) have been prescribed
by Institute of Chartered Accountants of india.
• Turnover (during the
preceeding financial
year)
200 Crore or
more
• Loans & Borrowings
(Any time during the
preceeding financial
year)
100 Cr. or
more
3. A concept of Rotation of Auditors has been evolved with the new Act.
Category of Auditors
• Paid Up Capital
20 Crore
• Loans &
Borrowings50 Crore
• Individual
Auditor
5
Years
• Audit Firm10
Years
Eligibility of Rotation
4. RELATED PARTY
Director or
his relative
Key managerial
personnel or his
relative
Any Firm where
Director/Manager/Rela
tive is a a partner
Any body coprporate whose
BOD, MD, Manager is
accustomed to act
according to the direction of
director
A Public Company in
which a
Director/Manager or
his relative is a
member with +2%
Shareholding
A private Company in
which a
Director/Manager or his
relative is a member/
director
Relative as defined under
the Companies Act, 2013
1. Mother (including step)
2. Father (including step)
3. Brother (including step)
4. Sister (including step)
5. Son (including step)
6. Son’s wife
7. Daughter
8. Daughter’s husband
9. Spouse
6. Net Profit
5 Crore or more
Turnover
1000 Crore or more
Net Worth
500 Crore or more
CSR Activited to be undertanken
if a Company comes under any of
the criteria
Spend
Atleast
2% of
Average Net
Profit of
Immediately
preceeding 3
Year
How much to spend on CSR
Activities?
7. Net Profit Calculation
Net Profit of a company to
mean Net Profit as per its
financial statements
prepared in accordance
with the 2013 Act.
Any profit arising from
any overseas branch or
branches of the
company, whether or
not operated as a
separate company.
But
excludes
9. Excluded Activities
Activities of the
normal course of
business
Activities
exclusively for
benefit of
Employees and their
family members
Contribution in any
way directly or
indirectly to political
parties
Note
•Board’s Report and Company’s Website to contain specified
disclosures.
•CSR projects / programs / activities are required to be undertaken in
India only.
10. S.
No.
Prescribed Activites for CSR Activities
1 Promoting gender equality and empowering women;
2 Eradicating extreme hunger and poverty;
3 Promotion of education;
4 Reducing child morality and improving maternal health;
5 Ensuring environment sustainability;
6 Employment enhancing vocational skills;
7 Contribution to PM Fund;
8 Such other matter as may be prescribed.
11. Signing of Annual Return:
• Paid up
Capital
10 Crore
or more
• Turnover50 Crore
or more
• Paid up
Capital
50 Lac
or more
• Turnover2 Crore
or more
Certification of Annual Return
12. Paid up
Capital
50 Crore
or more
Turnover
5 Crore
or more
Loans &
Borrowings
25 Lac or
more
CARO to be complied with in case of
any of the three threshold limits
or
or
13. All Companies
having a Paid up
Capital of Rs. 5
Crore or More
or
All Companies
having turnover of
Rs. 100 Crore or
more
Mandatory Filing of Balance Sheet
and P&L in XBRL format on hitting
any of the threshold limit
14. Vigil Mechanism
• Company that has borrowed money from
banks or public financial institutions – 50
Crore or more
Key Managerial Personnel - KMP
• Company that has borrowed money from
banks or public financial institutions – 50
Crore or more
