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Top 200 cos may soon have to file annual consolidated information
Our Bureau
SEBI proposes to ask firms to update information every year; file it in e-form
Mumbai, February 18:
To provide consolidated information on companies to investors in a single document, SEBI has proposed that the top 200 companies by market capitalisation would have to file an annual information memorandum (AIM) every year.
The AIM should contain details about the company, its history, promoters, contact information, key managerial personnel, business description, industry description, capital structure, market price information, risk factors, financial statements, management's discussion and analysis of financial condition and results of operations, utilisation of issue proceeds, industry specific regulations and policies, legal information and litigation and material information in the preceding year.
This will be applicable for the top 200 companies from April 1, according to a SEBI discussion paper released on Tuesday.
Companies need to file the AIM within 135 days from the end of a financial year on their websites and on stock exchanges. The requirement for other companies would be from April 1, 2015.
Companies have to update information every year and file AIM only in e-form. SEBI has proposed that all the qualitative and quantitative information in the AIM has to be reviewed for accuracy, sufficiency and relevance.
AIM would be useful to investors for taking an informed investment decision, enable listed companies raise capital expeditiously, said SEBI. Moreover, inclusion of reports on corporate governance, business responsibility and related party transactions would mean their exclusion in the annual report.
Tejesh Chitlangi, Partner, IC Legal, said "The proposal looks good. However, listed companies will have to strengthen their legal-compliance teams so as to keep a regular track of company activities and annually collate the very broad set of information required to be disclosed under AIM."
For companies planning an initial public offering, the requirement of AIM would commence with the IPO. The disclosures made by the companies at the IPO stage has to be updated annually to ensure that updated information is available in public domain at any point of time.
Companies wishing to use the AIM as a draft offer document for future capital raisings have to submit an auditor's examination report along with the AIM, said SEBI.
(This article was published on February 18, 2014)
Keywords: Top 200 cos, file annual consolidated information, SEBI, Market regulator, e-fprm
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| EPFO earned more, paid less in 4 tax years: CAG |
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New Delhi, 11 February Retirement fund body EPFO ( Employees Provident Fund Organisation) paid a lesser amount as interest on the provident fund ( PF) deposits of 50 million subscribers than its earnings between 2007- 08 and 2010- 11, government auditor Comptroller and Auditor General of India ( CAG) said in areport on EPFO for 2011- 12, tabled in Parliament on Tuesday. The EPFO earned ₹ 7,780 crore in 2006- 07 and credited ₹ 7,976 crore to subscriber accounts in the year. In 201112, it earned ₹ 17,880 crore and credited ₹ 23,146 crore. In 2007- 08, it earned ₹ 8,707 crore on investments but credited ₹ 7,854.60 crore. A lesser amount of ₹ 9,268 crore was credited against an income of ₹ 10,667 crore in 2008- 09. In 2009- 10, it credited ₹ 9,632 crore compared to its income of ₹ 11,934 crore. It credited ₹ 8,719 crore against an income of ₹ 14,182 crore in 2010- 11. The CAG has said there were gaps between the declared rate of interest and the rate it was earning on investments. The earnings on investments were 7.49 per cent, 7.17 per cent and 7.46 per cent in that order for three straight financial years starting 2006- 07. The earnings were 7.09 per cent, 7.05 per cent and 7.53 per cent for 200910, 2010- 11 and 2011- 12, respectively. However, the EPFO declared an 8.5 per cent rate of interest on deposits for four consecutive financial years starting 2006- 07. It raised the rate of interest to 9.5 per cent in 2010- 11 after discovering a surplus in interest suspense account and then reduced it to 8.25 per cent for 2011- 12. The CAG said the " total amount of money under the EPFO corpus was more than the cumulative balance with all its subscribers, and the difference was increasing over the years. The gap could be due to non- updation of accounts, unclaimed accounts, and moneys in transit, etc. This is reflective of inadequate services to its subscribers." The report said the interest suspense account balance was not a true reflection of sums available for distribution as interest to the subscribers, in the absence of non- updation of 3.8 million subscribers accounts as of March 2012. The Comptroller and Auditor General of India ( CAG) has pulled up the income- tax department for not posting appropriate officers to handle prosecution in cases of tax evasion. The CAG did a study on the administration of penalty and prosecution by the department between August and December 2012. "Our study revealed that due seriousness was not given for posting of a senior and experienced officer to the post of nodal officer, affecting the entire process of prosecution," the report said. PTI Wrong appointments affected prosecution in tax- evasion cases: CAG |
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