Page 190 - CA Inter Audit PARAM

CA Ravi Taori
QNO Benami Property – Proceedings Old Course -- (M22M/M22E)
AIFS.78 Bhaskar CNO - AIFS-P3.130 New Course -- (M24R)
Proceedings have been initiated against the company ABC Ltd for holding one of its property as benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

State the disclosure requirements to be complied with by ABC Ltd as per Schedule III to the Companies Act,
2013.
Answer Details of Benami Property held
Where any proceedings have been initiated or pending against the company for holding any benami property

under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder, the
company shall disclose the following:-
(a) Details of such property, including year of acquisition,
(b) Amount thereof,
(c) Details of Beneficiaries,
(d) If property is in the books, then reference to the item in the Balance Sheet,
(e) If property is not in the books, then the fact shall be stated with reasons,
(f) Where there are proceedings against the company under this law as an abetter of the transaction or as the
transferor then the details shall be provided,
(g) Nature of proceedings, status of same and company’s view on same.

QNO Disclosure Related to CSR Expenditure Old Course -- (M22E/M23M)
AIFS.80 Bhaskar CNO - AIFS-P3.130 New Course – (M24M)
Prudent Enterprises Private Limited has incurred and fully spent for the first time Corporate Social
Responsibility (CSR) expenditure amounting to ₹ 14.50 lacs in pursuance to provisions of section 135 of
Companies Act, 2013. The expenditure was spent for women empowerment programmes through an
implementing agency (not a related party). As per law provisions, it was required to spend ₹ 14.00 lacs
during the year. Discuss how such information is required to be disclosed in accordance with requirements

of Schedule III to the Companies Act, 2013 in financial statements of the company.
OR
B Ltd. is covered u/s 135 of the Companies Act, 2013 i.e. Corporate Social Responsibility (CSR). What matters
(other than the amount spent, amount not spent, amount required to be spent etc.) shall be disclosed by
the company with regard to CSR activities done by the company?
Answer In the given situation, following information is required to be disclosed in accordance with requirements
to Schedule III to the Companies Act, 2013:

a) amount required to be spent by the company during the year ₹ 14.00 lacs

b) amount of expenditure incurred ₹ 14.50 lacs

c) shortfall at the end of the year NIL

d) total of previous years shortfall NA

e) reason for shortfall NA

f) nature of CSR activities - Women empowerment activities through
implementing agency

g) details of related party transactions, e.g., contribution to a trust
controlled by the company in relation to CSR expenditure as per
relevant Accounting Standard NIL

h) where a provision is made with respect to a liability incurred by
entering into a contractual obligation, the movements in the
provision during the year should be shown separately NIL

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