,,, Google . ENAM Informasi Keuangan. Data Interaktif Real-Time Services, Inc. - - (BMampF Bovespa) NASDAQ, FINRA FINRA (Borsa Italiana) NASDAQ OMX () Deutsche Brse XETRA (Deutsche Brse) NASDAQ OMX () NASDAQ OMX () NASDAQ OMX () NASDAQ OMX () (Wiener Brse) NASDAQ OMX () -, NASDAQ NYSE. ,, 15. Bintang fajar. ENAM Informasi Keuangan. Data Interaktif Real-Time Services, Inc.,. Google. Google,,,,),),,,,. Google,,. , Google -. ,,,,,,,,. . . Google,. , Google,. , Google,. Google,,. Google. ,,. NYSE, Google, NYSE, NYSE Arca LLC NYSE MKT LLC. ,,. NYSE, NYSE Arca LLC NYSE MKT LLC, Google,,,. -. SampP Capital IQ SampP Kecerdasan Pasar Global SampP Capital IQ. (C) 2016, SampP Capital IQ..Dictionnaires de langue en ligne jas nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Stok biru stok n nomina. Mengacu pada orang, tempat, barang, kualitas, dll. (Bisnis: perusahaan besar) tindakan orde utama nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Levage nm nom masculin Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Stok modal n nomina. Mengacu pada orang, tempat, barang, kualitas, dll. (Nilai total saham perusahaan dapat diterbitkan) modal sosial nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Stok ayam n nomina Mengacu pada orang, tempat, benda, kualitas, dll. Bouillon de volaille nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. (Tuangkan saus une. Bouillon trs rduit) suka de volaille nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Dia merebus bangkai dengan sayuran untuk membuat bekal ayam yang lezat. Saham biasa n nomina. Mengacu pada orang, tempat, benda, kualitas, dan lain-lain (hewan: bukan ras) (hewan) btard nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Pemuliaan stok biasa dengan purebreds meningkatkan kualitas kawanan. Saham biasa n nomina. Mengacu pada orang, tempat, barang, kualitas, dll. Merendahkan (orang: kelas pekerja) petite gens nfpl nom fminin pluriel. Sutilise avec larticle dfini les. Ex. Algues Mereka tidak di kelas kita, sayang Mereka berasal dari saham biasa. Ils ne sont pas de notre classe, trs chre. Ce sont de petites gens. Bas peuple nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Putar nf nom fminin Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Cette frase n39est pas une traduction de la phrase originale. La royaut et la roture, toujours fait beaux mariages. Saham biasa n nomina. Mengacu pada orang, tempat, barang, kualitas, dll. (Keuangan: saham) (Keuangan) tindakan ordinaire nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Perusahaan mengeluarkan dua kelas ekuitas: saham biasa dan saham preferen. Saham debenture n noun Mengacu pada orang, tempat, barang, kualitas, dll. (Keuangan: pembayaran tetap) (quivalent) kewajiban nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Stok ikan n noun Mengacu pada orang, tempat, benda, kualitas, dll. (Bouillon yang dibumbui dengan ikan) menyukai de poisson nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Untuk membuat bouillabaisse yang baik Anda mulai dengan stok ikan segar. Fumet de poisson nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Tindakan de croissance nf nom fminin Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Valeur davenir nf nom fminin Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Dalam adjective adjective. Menggambarkan kata benda atau kata ganti - misalnya, seorang gadis tinggi, buku yang menarik, sebuah rumah besar. (Tersedia, dalam cadangan) en stock, en magasin loc adj locution adjectivale. Groupe de mots qui servent dadjectif. Se tempatkan jabatan normal pada tanggal yang sama. Ballon de football Des ballons de sepak bola disponible adj adjectif. Modifie un nom. Il est gnralement plac aprs le nom et saccorde avec le nom (ex un ballon bleu, un e balle bleu e). En gnral, seule la forme au masculin singulier est donne. Tuangkan bekas le fminin. Pada ajoute e (misal petit petit e) dan tuangkan mantan le pluriel. Di ajoute s (ex petit petit s). Pour les formes qui sont irrgulires au fminin, seles-ci sont donnes (ex irrgulier, irrgulire irrgulier forme maskulin, irrgulire forme fminine) Panggil toko dan tanyakan apakah mereka memiliki buku yang tersedia. Sepatu ini masih dalam stok. Appelle le magasin et demande-leur sils ont ce livre en stock. Ces chaussures sont toujours en stock. Appelle le magasin et demande-leur si ce livre est disponible. Tolong sobat toujours disponibles. Tingkah laku sosial nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Simpan stok ekspresi verbal ekspres. Frase dengan arti khusus berfungsi sebagai kata kerja - misalnya, taruh kepala mereka bersama-sama, ayo sampai akhir. Figuratif (lacak sth) suvre vtr verbe transitif. Verbe qui sutilise avec un complment dobjet direct (COD). Ex. J cris une lettre. Elle seorang anak laki-laki retrouv chat. Simpan stok ekspresi verbal ekspres. Frase dengan arti khusus berfungsi sebagai kata kerja - misalnya, taruh kepala mereka bersama-sama, ayo sampai akhir. Figuratif (keep track of sth) dresser linventaire loc v locution verbale. Groupe de mots fonctionnant comme un verbe. Ex. Faire rfrence tertawa stok n nomina. Mengacu pada orang, tempat, benda, kualitas, dll. (Objek dari orang lain) meningkat nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Lock stock dan adverburg adverb. Menggambarkan kata kerja, kata sifat, kata keterangan, atau klausa - misalnya, datang dengan cepat, sangat jarang, terjadi sekarang, jatuh. Figuratif, informal (seluruhnya) dans sa totalit loc adv locution adverbiale. Groupe de mots qui servent dadverbe. Toujours invariabel. Ex. Avec souplesse sans pengecualian loc adv locment adverbiale. Groupe de mots qui servent dadverbe. Toujours invariabel. Ex. Avec suplesse Bourse de New York nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Stok disponible nm nom masculin. Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Stok suivi nm nom masculin Sutilise avec les artikel le, l (devant une voyelle ou un h muet), un. Ex. Garon - nm Di dira le garon ou un garon. Habis dari ketentuan kata sifat. Menggambarkan kata benda atau kata ganti - misalnya, seorang gadis tinggi, buku yang menarik, sebuah rumah besar. (Tidak saat ini dalam persediaan) en rupture de stock loc adj locution adjectivale. Groupe de mots qui servent dadjectif. Se tempatkan jabatan normal pada tanggal yang sama. Ballon de football Des ballons de football Maaf, CD yang Anda inginkan saat ini kehabisan stok. Cette frase n39est pas une traduction de la phrase originale. Une semaine aprs sa parution, le livre tait dj en rupture de stock. Adj adjif adj. Modifie un nom. Il est gnralement plac aprs le nom et saccorde avec le nom (ex un ballon bleu, un e balle bleu e). En gnral, seule la forme au masculin singulier est donne. Tuangkan bekas le fminin. Pada ajoute e (misal petit petit e) dan tuangkan mantan le pluriel. Di ajoute s (ex petit petit s). Pour les formes qui sont irrgulires au fminin, seles-ci sont donnes (ex irrgulier, irrgulire irrgulier forme maskulin, irrgulire forme fminine) Frase Cette n39est pas une traduction de la phrase originale. Ce produit est ditoleransi tuangkan linstant. Puis adj adjectif Modifie un nom. Il est gnralement plac aprs le nom et saccorde avec le nom (ex un ballon bleu, un e balle bleu e). En gnral, seule la forme au masculin singulier est donne. Tuangkan bekas le fminin. Pada ajoute e (misal petit petit e) dan tuangkan mantan le pluriel. Di ajoute s (ex petit petit s). Pour les formes qui sont irrgulires au fminin, seles-ci sont donnes (ex irrgulier, irrgulire irrgulier forme maskulin, irrgulire forme fminine) Frase Cette n39est pas une traduction de la phrase originale. Je regrette, mais ldition ancienne de ce livre est puise. Nilai nominal saham n nomina. Mengacu pada orang, tempat, barang, kualitas, dll. (Keuangan: nilai saham yang dinyatakan) (Keuangan) valeur nominale des action nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Saham preferen yang berpartisipasi, saham preferen yang berpartisipasi n noun. Mengacu pada orang, tempat, barang, kualitas, dll. (Bisnis: dengan dividen tertentu) tindakan memberi kesempatan kepada peserta nfpl nom fminin pluriel. Sutilise avec larticle dfini les. Ex. Algues penny stock n noun Mengacu pada orang, tempat, barang, kualitas, dll. AS (stock selling kurang dari 1 dollar per saham) action cote en cents nf nom fminin. Sutilise avec les articles la, l (devant une voyelle ou un h muet), une. Ex. Fille - nf Di dira la fille ou une fille. Avec un nom fminin, ladjectif saccorde. En gnral, pada ajoute un e ladjectif. Par exemple, di diego une petit e fille. Bob fokus menjual saham penny kepada investor kaya. SEBI telah membentuk Komite Tata Kelola Perusahaan di bawah kepemimpinan Shri N. R. Narayana Murthy. Berdasarkan rekomendasi Komite dan komentar publik yang diterima, amandemen tertentu dibuat dalam Klausul 49 dari Listing Listing, vide circular tertanggal 26 Agustus 2003. SEBI mengadakan rapat komite Narayana Murthy yang lain mengenai Tata Kelola Perusahaan yang diselenggarakan pada tanggal 17 November, 2003 untuk mempertimbangkan saran dan representasi yang diterima setelah penerbitan surat edaran tersebut di atas. Panitia telah menyampaikan laporannya ke SEBI. Laporan tersebut mengusulkan amandemen tertentu dalam klausul revisi 49 yang dikeluarkan secara vide melingkar tanggal 26 Agustus 2003. Laporan tersebut direproduksi di bawah untuk mencari komentar publik. Isu di bawah pasal 49 dan perubahan yang diajukan Isu 1 Definisi direktur independen Bahasa yang ada Penjelasan (i) (e) untuk klausul IA Penjelasan (i): Untuk tujuan klausul ini, ungkapan direktur independen adalah direktur non-eksekutif perusahaan Siapa: dari penerima remunerasi direksi, tidak memiliki hubungan atau transaksi keuangan dengan perusahaan, promotor, manajemen senior atau perusahaan induk, anak perusahaan dan perusahaan asosiasinya.9 Tidak terkait dengan promotor atau manajemen di Tingkat dewan atau pada satu tingkat di bawah dewan c.9 bukan sebagai eksekutif perusahaan dalam tiga tahun keuangan sebelumnya d.9 Bukan mitra atau eksekutif dari firma audit hukum atau firma audit internal yang terkait dengan Perusahaan, dan belum menjadi mitra atau eksekutif perusahaan semacam itu selama tiga tahun terakhir. Ini juga akan berlaku untuk firma hukum dan perusahaan konsultan yang memiliki hubungan material dengan entitas. Bukanlah pemasok, penyedia layanan atau pelanggan perusahaan. Ini juga mencakup hubungan tipe lessor-lessee dan juga bukan pemegang saham perusahaan yang substansial, yaitu memiliki dua persen atau lebih blok dari saham pemungutan suara. Penjelasan (i) (e) membatasi pemasok, penyedia layanan atau pelanggan perusahaan agar tidak menjadi direktur independen di dewan komisaris perusahaan. Klausul ini idealnya hanya untuk melarang orang-orang yang pemasok material, penyedia layanan atau pelanggan dan tidak memperpanjangnya ke setiap dan semua pemasok, penyedia layanan atau pelanggan. Pandangan ini didukung lebih jauh oleh fakta bahwa Penjelasan (i) (a) tidak mendiskualifikasi direktur non-eksekutif yang memiliki hubungan atau transaksi uang tak penting dengan perusahaan, promotor, manajemen senior atau perusahaan induknya, anak perusahaannya dan Perusahaan asosiasi dari menjabat sebagai direktur independen. Oleh karena itu diusulkan agar kata quotmaterialquot dimasukkan sebelum pemasok, dalam Penjelasan (i) (e) untuk Klausul I. A. Bahasa yang Direvisi Penjelasan (i) (e) untuk klausul IA Penjelasan (i): Untuk tujuan klausul ini, ungkapan direktur independen adalah direktur non-eksekutif perusahaan yang: a.9berikut dari penerimaan remunerasi direksi, tidak memiliki , Menurut pendapat dewan direksi, hubungan atau transaksi keuangan dengan perusahaan, promotor, manajemen senior atau perusahaan induknya, anak perusahaan dan perusahaan asosiasi yang dalam putusan dewan dapat mempengaruhi independensi penilaian direktur b .9 tidak terkait dengan promotor atau manajemen di tingkat dewan atau pada satu tingkat di bawah dewan c.9 Bukan sebagai eksekutif perusahaan pada tiga tahun keuangan sebelumnya d.9 Bukan seorang mitra atau eksekutif firma audit yang bertanggung jawab Atau perusahaan audit internal yang terkait dengan perusahaan, dan belum menjadi mitra atau eksekutif perusahaan semacam itu selama tiga tahun terakhir. Ini juga akan berlaku untuk firma hukum dan perusahaan konsultan yang memiliki hubungan material dengan entitas. Tidak, menurut pendapat dewan, pemasok material, penyedia layanan atau pelanggan perusahaan, yang dalam putusan dewan dapat mempengaruhi independensi penilaian direktur teknik. Ini juga mencakup hubungan tipe lessor-lessee dan juga bukan pemegang saham perusahaan yang substansial, yaitu memiliki dua persen atau lebih blok dari saham pemungutan suara. Untuk kepentingan klausul ini: Perusahaan asosiasi adalah perusahaan yang merupakan quotassociatequot sebagaimana didefinisikan dalam Standar Akuntansi (AS) 23, quotAccounting untuk Investasi pada Asosiasi dalam Laporan Keuangan Konsolidasi, yang dikeluarkan oleh Institute of Chartered Accountants of India. Senior management harus Memiliki arti sebagaimana ditentukan dalam penjelasan pada klausul VII (E).quotRelativequot adalah quotrelativequot sebagaimana didefinisikan dalam bagian 2 (41) dan bagian 6 dari Companies Act, 1956.Issue 2 Definisi direktur independen quot Direktur pemerintahquot Bahasa yang ada Penjelasan (ii ) Untuk klausul IA Penjelasan (ii). Direktur kelembagaan di dewan direksi dianggap direktur independen apakah institusi tersebut merupakan lembaga investasi atau lembaga pemberi pinjaman. Penjelasan tersebut tidak memperjelas bahwa bahkan direktur institusional harus dianggap independen, memenuhi persyaratan yang ditetapkan dalam klausul (a) sampai (f). Hal ini juga diperlukan untuk mengklarifikasi bahwa direksi institusional memiliki hak yang sama, Tugas dan tanggung jawab sebagai anggota dewan lainnya. Bahasa yang direvisi Penjelasan (ii) untuk klausul IA Tidak akan ada direktur calon. Apabila sebuah institusi ingin menunjuk seorang direktur di dewan, penunjukan tersebut harus dilakukan oleh para pemegang saham. Direktur institusional di dewan direksi dianggap direktur independen kecuali jika dia tidak memenuhi persyaratan klausul apapun (a ) Kepada (f) tercantum di atas. Direktur institusional memiliki hak, kewajiban dan tanggung jawab yang sama seperti anggota dewan lainnya dan sebagaimana ditentukan dalam Undang-undang Perusahaan, 1956 dan peraturan pencatatannya. Perusahaan pemerintah pada perusahaan sektor publik harus Sama terpilih9 dan harus tunduk pada tanggung jawab dan kewajiban yang sama seperti direksi lainnya. Isu 3 Remunerasi dibayarkan kepada direktur non-eksekutif Klausul bahasa yang ada IB (i), IB (ii) dan IC (ii) Klausul IB (i) Semua remunerasi yang dibayarkan kepada direktur non-eksekutif ditetapkan oleh Direksi dan harus Disetujui oleh pemegang saham pada rapat umum. Batasan harus ditetapkan untuk jumlah maksimum opsi saham yang dapat diberikan kepada direktur non-eksekutif di tahun buku dan keseluruhan. Opsi saham yang diberikan kepada direktur non-eksekutif akan dirahasiakan setelah jangka waktu minimal satu tahun sejak tanggal direktur non-eksekutif tersebut telah pensiun dari Dewan Komisaris. Klausul IB (ii) dan IC (ii) Pertimbangan mengenai remunerasi yang dibayarkan kepada direktur independen sama dengan yang diterapkan pada direktur non-eksekutif Disarankan agar klarifikasi ditambahkan untuk menyatakan bahwa direktur non-eksekutif termasuk pihak independen Direktur. Ini akan memastikan kejernihan dalam penyusunan. Sebagai akibatnya, klausul I. B (ii) dan I. C (ii) menjadi berlebihan dan harus dihapus. Revisi bahasa Klausul IB (i), IB (ii) dan IC (ii) 49 IB (i) Semua remunerasi yang dibayarkan kepada direktur non-eksekutif, termasuk direksi independen, ditetapkan oleh Dewan Direksi dan harus disetujui oleh pemegang saham Dalam rapat umum Batasan harus ditetapkan untuk jumlah maksimum opsi saham yang dapat diberikan kepada direktur non-eksekutif, termasuk direktur independen, dalam setiap tahun keuangan dan agregat. Opsi saham yang diberikan kepada direktur non-eksekutif, termasuk direksi independen, harus dilunasi setelah jangka waktu minimal satu tahun sejak tanggal pemberian opsi saham. Persyaratan ini berlaku secara prospektif untuk semua opsi baru yang diberikan setelah tanggal efektif surat edaran ini. Menghapus klausul IB (ii) dan IC (ii) Terbitan 4 Tanggung jawab direktur independen Klausul bahasa yang ada IC (i) IC (i) 9 Direktur Independen bagaimanapun secara berkala meninjau kembali laporan kepatuhan hukum yang disiapkan oleh perusahaan serta langkah-langkah yang diambil oleh perusahaan untuk Menyembuhkan noda apapun Jika ada tuntutan terhadap direktur independen sehubungan dengan urusan perusahaan, pembelaan tidak diperkenankan karena direktur independen tidak mengetahui tanggung jawab ini. Dewan secara keseluruhan harus memiliki tanggung jawab untuk secara berkala meninjau laporan kepatuhan hukum yang disiapkan oleh perusahaan serta langkah-langkah yang diambil untuk menyembuhkan setiap kasus ketidakpatuhan. Seorang direktur adalah petugas perusahaan dan istilah quotofficer yang berada di defaultquot telah didefinisikan pada bagian 2 (31) dan bagian 5 dari Companies Act, 1956. Oleh karena itu, tidak perlu membuat ketentuan lebih lanjut dalam hal ini dan Kalimat kedua ke klausa I (C) (i) dapat dihapus. Bahasa yang diperbaiki Klausul I. C (i) 49 I C (i) 9Para dewan secara berkala akan meninjau laporan kepatuhan hukum yang disiapkan oleh perusahaan serta langkah-langkah yang diambil oleh perusahaan untuk menyembuhkan kasus ketidakpatuhan. Isu 5 Perubahan prosedur papan bahasa yang ada Klausul I. D (iii) I. D (iii) 9Selanjutnya hanya ada tiga komite yaitu Komite Audit, Komite Keluhan Pemegang Saham dan Komite Remunerasi dipertimbangkan untuk tujuan ini. Saat ini ada kekurangan direksi independen. Undang-undang Perusahaan, 1956 menetapkan pada pasal 277 bahwa seseorang tidak dapat memegang lebih dari 15 direktur dan bagian 278 menetapkan bahwa dalam mempertimbangkan batasnya, jabatan direktur pengganti sebagai pengganti harus dikecualikan, sedangkan klausulnya membatasi keanggotaan komite menjadi 10. Oleh karena itu, direktur independen Siapa yang mau bersedia melayani di komite semacam itu tidak dapat melakukannya. Pembentukan komite remunerasi tidak diwajibkan dan hanya bertemu sesekali. Oleh karena itu disarankan agar untuk keperluan perhitungan limit, hanya komite audit dan komite keluhan pemegang saham yang harus dihitung. Bahasa yang diperbaiki Klausul I. D (iii) I. D (iii) 9Selanjutnya hanya dua komite yaitu. Komite Audit dan Komite Keluhan Pemegang Saham dipertimbangkan untuk tujuan ini. Isu 6 Masa jabatan direktur non-eksekutif Bahasa yang ada Klausul JIKA (i) JIKA (i) 9Person berhak untuk jabatan direktur non-eksekutif sepanjang masa jabatannya tidak melebihi sembilan tahun dalam tiga hal dalam tiga Tahun masing-masing, terus berjalan. Bahasa yang ada di klausul I. F (i) mengharuskan sutradara non-keseluruhan dapat melanjutkan sebagai direktur melampaui tiga periode berturut-turut tiga tahun berturut-turut, yaitu total sembilan tahun. Hal ini dapat menciptakan masalah praktis karena dapat mencegah promotor dan direktur melindungi kepentingan mereka dari terus berlanjut di dewan direksi bahkan sementara investasi promotor di perusahaan berlanjut. Hal ini juga dapat mencegah berlanjutnya pelepasan orang lain, yang mungkin memberikan kontribusi signifikan sebagai anggota dewan dan kelanjutan jabatannya untuk kepentingan perusahaan. Namun dapat dikatakan bahwa hubungan yang panjang dengan perusahaan dapat dianggap sebagai gangguan independensi seorang direktur. Oleh karena itu, dapat diberikan bahwa jika seseorang terus berada di dewan direksi melampaui jangka waktu yang ditentukan dalam sembilan tahun, dia tidak lagi dianggap sebagai direktur independen. Juga diperlukan agar ketentuan ini dibuat prospektif, yaitu harus berlaku untuk jangka waktu sembilan tahun secara keseluruhan, periode tersebut dimulai pada atau setelah tanggal mulai berlakunya pasal 49 mulai berlaku. Oleh karena itu, perlu klausa ini diubah sebagai berikut: Bahasa yang diperbaiki Ayat JIKA (i) JIKA (i) Direktur 9A dianggap sebagai direktur independen hanya selama masa jabatannya di dewan tidak melebihi, secara keseluruhan, Jangka waktu sembilan tahun, jangka waktu tersebut harus dimulai pada atau setelah tanggal pemberitaan ini mulai berlaku atau tanggal penunjukan pertamanya sebagai direktur, mana saja nanti. Setelah berakhirnya masa jabatan tersebut, direktur dapat terus menjadi anggota dewan dan berhak untuk diangkat kembali pada masa berlaku haknya, namun dia tidak dianggap sebagai direktur independen. Isu 7 Persyaratan terkait dengan komite audit Bahasa yang ada Klausul II. A (iv) II. A (iv) 9 Ketua hadir pada Rapat Umum Tahunan untuk menjawab pertanyaan pemegang saham Mungkin tidak praktis bagi Ketua Komite Audit untuk hadir Pada setiap rapat umum tahunan untuk menjawab pertanyaan pemegang saham karena berbagai alasan, termasuk perjalanan, kesehatan yang buruk, dan lain-lain, disarankan agar dalam ketidakhadirannya, anggota komite audit lainnya, yang merupakan direktur independen mungkin hadir untuk menjawab pertanyaan pemegang saham . Bahasa yang diperbaiki Klausul II. A (iv) II. A (iv) 9 Ketua komite audit, atau dalam ketidakhadirannya, anggota komite audit yang ditunjuk yang merupakan direktur independen hadir pada Rapat Umum Tahunan untuk menjawab pertanyaan pemegang saham Isu 8 Rapat Komite Audit Ayat II. B II. B9 Komite audit harus bertemu paling sedikit tiga kali setahun. Satu pertemuan diadakan sebelum finalisasi rekening tahunan dan satu setiap enam bulan. Kuorum tersebut terdiri dari dua anggota atau sepertiga anggota komite audit, mana yang lebih tinggi dan minimum dua direktur independen. Klausul II. D (i) mensyaratkan bahwa komite audit harus memiliki pengawasan atas pengungkapan informasi keuangan. Perusahaan yang terdaftar wajib menerbitkan hasil keuangan kuartalan dan laporan keuangan tahunan. Oleh karena itu perlu agar komite audit harus bertemu setidaknya empat kali dalam setahun. II. B9 Komite audit harus bertemu setidaknya empat kali dalam setahun dan tidak lebih dari empat bulan akan berlalu antara dua pertemuan. Kuorum adalah dua anggota atau sepertiga anggota komite audit mana saja yang lebih besar, namun harus ada minimal dua anggota independen yang hadir. Isu 9 Peran komite audit Bahasa yang ada Klausul II. D (i) Peran komite audit mencakup hal-hal berikut: Pengawasan terhadap proses pelaporan keuangan perusahaan dan pengungkapan informasi keuangannya untuk memastikan bahwa laporan keuangan benar, Cukup dan kredibel. Merekomendasikan penunjukan dan penghapusan auditor eksternal, penetapan biaya audit dan juga persetujuan pembayaran untuk layanan lainnya. Tinjau kembali pengelolaan laporan keuangan tahunan sebelum diajukan ke dewan pengurus, yang berfokus terutama pada perubahan dalam kebijakan dan praktik akuntansi. Catatan akuntansi utama berdasarkan pada pelaksanaan penilaian oleh manajemen. Kuantifikasi dalam laporan audit draft. Penyesuaian signifikan yang timbul dari audit. Asumsi kelangsungan usaha dengan standar akuntansi berlaku dengan peraturan bursa dan persyaratan hukum mengenai laporan keuangan. Transaksi pihak terkait Meninjau kembali pengelolaan, eksternal dan internal. Auditor, ade Sistem pengawasan internal. Meninjau kecukupan fungsi audit internal, termasuk struktur departemen audit internal, kepegawaian dan senioritas pejabat yang memimpin departemen, melaporkan cakupan struktur dan frekuensi audit internal. Diskusi dengan auditor internal menemukan temuan dan temuan yang signifikan. Tindak lanjuti di sana. Meneliti temuan dari investigasi internal oleh auditor internal mengenai masalah di mana ada dugaan kecurangan atau ketidakberesan atau kegagalan sistem pengendalian internal yang bersifat material dan melaporkan permasalahan tersebut ke dewan direksi. Diskusikan dengan auditor eksternal sebelum Audit dimulai tentang sifat dan ruang lingkup audit serta diskusi pasca audit untuk memastikan area yang menjadi perhatian. Meninjau kebijakan manajemen risiko dan risiko perusahaan. Untuk melihat alasan adanya default substansial dalam pembayaran kepada deposan, pemegang debitur, pemegang saham (Dalam hal tidak pembayaran dividen yang diumumkan) dan kreditor. Explanation (i ): Istilah transaksi dengan pihak yang mempunyai hubungan istimewa memiliki arti yang sama sebagaimana tercantum dalam Standar Akuntansi 18, Transaksi Pihak Terkait, yang dikeluarkan oleh Institute of Chartered Accountants of India. Penjelasan (ii): Jika perusahaan telah membentuk komite audit sesuai dengan ketentuan Companies Act, perusahaan setuju bahwa komite audit tersebut memiliki fitur fungsi tambahan seperti yang tercantum dalam the Listing Agreement. Bagian 217 (2AA) dari Companies Act, 1956 mensyaratkan bahwa laporan Dewan Komisaris harus mencakup Pernyataan Tanggung Jawab Direksi yang mencakup banyak item yang tercakup dalam klausul ini. Untuk memastikan konsistensi, perlu reword beberapa klausa. Bahasa yang diperbaiki Klausul II. D (i) Peran komite audit mencakup hal-hal berikut: Pengawasan terhadap proses pelaporan keuangan perusahaan dan pengungkapan informasi keuangannya untuk memastikan bahwa laporan keuangan benar, memadai dan dapat dipercaya. Merekomendasikan kepada Dewan, penunjukan, penunjukan ulang dan, jika diperlukan, penggantian atau pemecatan auditor eksternal dan pemenuhan biaya audit. Persetujuan pembayaran kepada auditor eksternal untuk layanan lain yang diberikan oleh auditor eksternal. Meninjau, dengan manajemen, Laporan keuangan tahunan sebelum diajukan ke dewan direksi untuk disetujui, dengan referensi khusus untuk: Hal-hal yang harus disertakan dalam Pernyataan Tanggung Jawab Direksi untuk disertakan dalam laporan Dewan Komisaris dalam hal ayat 2AA dari bagian 217 Undang-undang Perusahaan, 1956Canges, jika Apapun, dalam kebijakan dan praktik akuntansi dan alasan untuk entri akuntansi utama yang melibatkan estimasi berdasarkan pelaksanaan keputusan oleh Manajemen Penyesuaian signifikan yang dilakukan dalam laporan keuangan yang timbul dari temuan audit Kepatuhan terhadap pencatatan dan persyaratan hukum lainnya yang berkaitan dengan laporan keuanganDisebutkan transaksi pihak yang mempunyai hubungan istimewaKualifikasi dalam draft laporan audit. Meninjau, dengan manajemen, laporan keuangan triwulanan sebelum menyerahkan kepada dewan untuk persetujuan Meninjau , Dengan manajemen, auditor eksternal dan internal, kecukupan sistem pengendalian internal. Menelaah kecukupan fungsi audit internal, termasuk struktur departemen audit internal, kepegawaian dan senioritas pejabat yang memimpin departemen, melaporkan cakupan struktur dan frekuensi Audit internal. Diskusi dengan auditor internal ada temuan yang signifikan dan tindak lanjut di sana. Meninjau temuan dari penyelidikan internal oleh auditor internal mengenai masalah di mana ada dugaan kecurangan atau ketidakberesan atau kegagalan sistem pengendalian internal dari sifat material dan Melaporkan masalah ini ke dewan direksi. Melakukan diskusi dengan auditor eksternal sebelum audit dimulai mengenai sifat dan lingkup audit serta diskusi pasca audit untuk memastikan area yang menjadi perhatian. Meninjau kebijakan manajemen risiko dan risiko perusahaan. Untuk melihat alasan mengapa Default substansial dalam pembayaran kepada deposan, pemegang debitur, pemegang saham (dalam hal tidak pembayaran dividen yang diumumkan) dan kreditur. Explanation (i): Istilah transaksi dengan pihak yang mempunyai hubungan istimewa memiliki arti yang sama sebagaimana tercantum dalam Standar Akuntansi 18, Terkait Transaksi Pihak, yang dikeluarkan oleh Institute of Chartered Accountants of India. Penjelasan (ii): Jika perusahaan telah membentuk komite audit sesuai dengan ketentuan Companies Act, perusahaan setuju bahwa komite audit tersebut memiliki fitur fungsi tambahan seperti yang tercantum dalam the Listing Agreement. Ayat II. E.5 menjadi berlebihan dan karenanya harus dihapus. Isu 10 Tinjauan informasi oleh Komite Audit Bahasa yang ada Klausul II. E (E) Kajian informasi oleh Komite Audit (i) Komite Audit wajib meninjau kembali informasi berikut ini: Laporan keuangan dan laporan audit draft, termasuk informasi keuangan triwulanan setengah tahunanManagement Diskusi dan analisis kondisi keuangan dan hasil operasi Laporan yang berkaitan dengan kepatuhan terhadap undang-undang dan manajemen risiko Pengelolaan surat-surat kelemahan pengendalian internal yang dikeluarkan oleh auditor internal dan transaksi terkait Pihak terkait Penunjukan, penghapusan dan persyaratan remunerasi auditor internal Kepala harus tunduk Untuk ditinjau oleh Komite Audit Persyaratan di sub-pasal 1 sudah tercakup dalam klausul ID dan harus dihapus. Tidaklah praktis mengharapkan komite audit untuk mengkaji ulang catatan transaksi pihak-pihak yang terkait. Ini harus cukup jika tempat manajemen sebelum komite audit melakukan penelaahan, laporan transaksi pihak terkait yang signifikan dan memberikan rincian transaksi pihak terkait yang tidak memiliki dasar senjata dengan alasan yang sama. Klausul VII mengatur bahwa prosedur manajemen risiko harus ditinjau oleh Dewan. Karena itu, tidak perlu ada komite audit untuk juga melakukan review ini. Revisi bahasa Klausul II. E II (E) Kajian informasi oleh Komite Audit (i) Komite Audit wajib meninjau kembali informasi berikut ini: Diskusi dan analisis manajemen mengenai kondisi keuangan dan hasil operasi Menunjukkan transaksi dengan pihak hubungan istimewa yang signifikan (sebagaimana ditentukan oleh Komite audit), disampaikan oleh manajemenManajemen surat-surat kelemahan pengendalian internal yang dikeluarkan oleh auditor eksternal Laporan audit internal yang berkaitan dengan kelemahan pengendalian internal dan Penunjukan, pemindahan dan persyaratan remunerasi auditor internal Kepala dapat diperiksa oleh Komite Audit. Laporan audit dan kualifikasi Bahasa yang ada Klausul III. A A.9 Pengungkapan Perlakuan Akuntansi Jika telah mengikuti perlakuan yang berbeda dengan yang ditentukan dalam Standar Akuntansi, manajemen harus membenarkan mengapa mereka menganggap perlakuan alternatif tersebut lebih mewakili transaksi bisnis yang digarisbawahi. Manajemen juga harus dengan jelas menjelaskan perlakuan akuntansi alternatif dalam catatan kaki laporan keuangan. Jika standar akuntansi tidak diikuti, auditor diwajibkan untuk mengungkapkan fakta tersebut dan memenuhi syarat laporannya. Yang diusulkan, di samping itu, manajemen harus memberikan penjelasan dalam catatan terhadap laporan keuangan mengenai fakta bahwa standar akuntansi tidak diikuti dan alasan untuk keberangkatan. Bahasa dalam klausul tidak membawa ini keluar. Karena ini adalah masalah pengungkapan, akan lebih tepat untuk menghapus klausul ini dan memasukkan klausul yang telah diubah berdasarkan klausa VII sebagai sub-klausul (AA) Bahasa yang diperbaiki Klausul VII. AA AA.9Disclosure of Accounting Treatment Dimana dalam penyusunan keuangan Pernyataan, perlakuan yang berbeda dari yang ditentukan dalam Standar Akuntansi telah diikuti, fakta harus diungkapkan dalam laporan keuangan, bersama dengan penjelasan manajemen mengenai mengapa ia berpendapat bahwa perlakuan alternatif tersebut lebih mewakili pandangan yang benar dan adil terhadap Menggarisbawahi transaksi bisnis Issue 12 Whistle Blower Policy Bahasa yang ada Klausul IV. A (A) Kebijakan Internal mengenai akses ke Komite Audit: Personil yang mengamati praktik yang tidak etis atau tidak benar (tidak harus merupakan pelanggaran hukum) harus dapat mendekati komite audit tanpa harus memberitahukannya kepada mereka. Perusahaan pengawas harus mengambil tindakan untuk memastikan bahwa hak akses ini dikomunikasikan kepada semua karyawan melalui surat edaran internal, dan lain-lain. Kebijakan ketenagakerjaan dan personil lainnya dari perusahaan harus memuat ketentuan yang melindungi pelembab peluit dari penghentian yang tidak adil dan praktik kerja kasar lainnya yang tidak adil setiap tahun. Menegaskan bahwa mereka tidak menolak akses personil ke komite audit perusahaan (sehubungan dengan masalah yang melibatkan dugaan kesalahan) dan bahwa hal tersebut telah memberikan perlindungan untuk meniupkan blower dari pemutusan hubungan tidak adil dan praktik kerja tidak adil atau merugikan lainnya. Penegasan tersebut harus membentuk Bagian dari laporan Dewan Komisaris mengenai Corporate Governance bahwa i Harus disiapkan dan disampaikan bersamaan dengan laporan tahunan. Penunjukan, pemindahan dan persyaratan remunerasi auditor internal utama harus diperiksa oleh Komite Audit. Tujuan dari klausul ini adalah bahwa manajemen menetapkan mekanisme bagi karyawan untuk Melaporkan kekhawatiran tentang perilaku tidak etis, dugaan atau dugaan kecurangan atau pelanggaran kode etik perusahaan atau kebijakan etika. Rincian mekanisme tersebut harus diserahkan kepada masing-masing perusahaan, melalui Dewan Direksi, untuk memutuskan namun keberadaan dan pelaksanaannya harus ditinjau oleh komite audit. Mekanisme tersebut harus memiliki ketentuan yang memadai untuk memastikan tidak ada korban dari karyawan yang memanfaatkan prosedur ini. Klausa bisa diatur ulang sesuai dengan itu. Revisi bahasa Klausul IV. A Perusahaan akan membuat mekanisme bagi karyawan untuk melaporkan kepada manajemen mengenai perilaku tidak etis, dugaan atau dugaan kecurangan atau pelanggaran kode etik perusahaan atau kebijakan etika. Mekanisme ini harus memberikan perlindungan yang memadai terhadap viktimisasi Karyawan yang memanfaatkan mekanisme tersebut. Mekanisme juga harus diberikan, di mana manajemen senior terlibat, akses langsung ke Ketua Komite Audit. Adanya mekanisme tersebut harus dikomunikasikan dengan tepat di dalam organisasi. Komite Audit harus secara berkala meninjau kembali eksistensi Dan fungsi mekanisme. Gagasan 13 Penghapusan klausa berlebihan pada audit internal Bahasa yang ada Klausul IV. A (v) IV. A (v) 9 Penunjukan, pemindahan dan persyaratan remunerasi auditor internal utama harus diperiksa oleh Komite Audit. Klausul IV. A (v) berkaitan dengan penelaahan komite audit atas pengangkatan, pemindahan dan persyaratan remunerasi Kepala Auditor Internal harus dihapus karena ini merupakan pengulangan pasal II. E.6 dari pasal 49. Hal ini memastikan tidak adanya Bahasa yang berlebihan Bahasa yang diperbaiki Klausul IV. A (v) Klausul IV. A (v) harus dihapus. Terbitkan 14 Perusahaan Anak Perusahaan Bahasa yang ada Klausul V i.9Perusahaan setuju bahwa ketentuan yang berkaitan dengan komposisi Direksi perusahaan induk berlaku sesuai dengan komposisi Direksi anak perusahaan ii.9 Setidaknya satu direktur independen Pada Direksi perusahaan induk adalah direktur Direksi anak perusahaan. Komite Audit perusahaan induk juga harus mengkaji ulang laporan keuangan, khususnya investasi yang dilakukan oleh anak perusahaan. Iv.9 Risalah rapat dewan anak perusahaan dilakukan untuk ditinjau kembali pada rapat dewan induk perusahaan induk. V.9 Laporan dewan perusahaan induk harus menyatakan bahwa mereka telah meninjau ulang urusan anak perusahaan juga. Telah ditunjukkan bahwa penerapan klausul ini dapat menciptakan kesulitan praktis berikut: Anak perusahaan seringkali memiliki ukuran kecil dan mungkin terlalu berat jika semua ketentuan mengenai komposisi dewan direksi berlaku untuk perusahaan induk dapat diterapkan untuk Setiap anak perusahaan Mungkin juga ada kesulitan dalam menerapkan klausul ini untuk usaha patungan, ketika komposisi dewan dapat ditentukan oleh kesepakatan usaha patungan. Apabila ada sejumlah besar anak perusahaan, direksi independen di dewan induk perusahaan mungkin tidak bersedia Untuk menjadi direksi di dewan anak perusahaan, terutama di mana jabatan direktur semacam itu termasuk dalam jumlah jabatan direktur dimana plafon yang ditentukan dalam Undang-Undang Perusahaan, berlaku 1956. Mungkin sangat mahal bagi perusahaan jika direktur independen tersebut diperlukan untuk Menghadiri pertemuan dewan anak perusahaan asing Pada saat yang sama, perlu disadari bahwa maksud dalam merumuskan klausul ini adalah kebutuhan dewan direksi untuk memiliki hubungan independen dengan dewan anak perusahaan dan memberikan pengawasan yang diperlukan. Oleh karena itu, disarankan agar klausul dapat direvisi sebagai berikut: Ketentuan sub-ayat (ii), yang menetapkan bahwa setidaknya satu direktur independen di perusahaan induk adalah direktur anak perusahaan yang hanya berlaku untuk anak perusahaan India yang sesuai Yaitu anak perusahaan yang omset atau kekayaan bersihnya pada tahun sebelumnya melebihi omzet konsolidasi atau kekayaan bersih konsolidasian masing-masing, dari perusahaan induk dan anak perusahaannya. Harus ada kewajiban dari pihak manajemen untuk menarik perhatian Induk perusahaan induk melakukan transaksi dan pengaturan signifikan yang dilakukan oleh anak perusahaan. Untuk tujuan ini, transaksi dan penetapan harga quotaignifikan berarti setiap transaksi atau pengaturan individual yang melebihi atau mungkin melebihi 10 dari total pendapatan atau total biaya atau jumlah aset atau jumlah kewajiban perusahaan, seperti yang terjadi pada saat sebelumnya Year. Clause V (v) yang berkaitan dengan pengungkapan penelaahan urusan anak perusahaan oleh dewan induk perusahaan harus dihapus karena tidak berguna. Aspek ini sudah tercakup dalam klausul V (iii) dan V (iv). Bahasa yang diperbaiki Klausul V i.9 Setidaknya satu direktur independen di dewan direksi perusahaan induk adalah direktur Direksi anak perusahaan non-pemerintah yang tidak terdaftar. Ii.9 Komite Audit perusahaan induk yang terdaftar juga harus mengkaji ulang laporan keuangan, khususnya investasi yang dilakukan oleh anak perusahaan yang tidak terdaftar. Risalah rapat Direksi anak perusahaan tidak terdaftar dilakukan pada rapat dewan direksi perusahaan induk. Manajemen secara berkala harus memperhatikan Direksi dari perusahaan induk yang terdaftar, pernyataan dari semua transaksi dan pengaturan yang signifikan yang dilakukan oleh anak perusahaan yang tidak terdaftar. Explanation (i): Istilah anak perusahaan yang tidak terdaftar adalah anak perusahaan yang tidak terdaftar adalah Anak perusahaan yang tidak terdaftar, didirikan di India, yang omset atau kekayaan bersihnya (yaitu modal disetor dan cadangan gratis) pada tahun akuntansi sebelumnya melebihi 20 dari omset atau kekayaan bersih yang dikonsolidasi masing-masing, dari perusahaan induk dan anak perusahaan yang terdaftar di tempat yang sebelumnya Tahun akuntansi. Penjelasan (ii): Istilah quotsignificant transaction atau arrangementquot berarti setiap transaksi atau pengaturan individual yang melebihi atau kemungkinan melebihi 10 dari total pendapatan atau total biaya atau jumlah aset atau jumlah kewajiban, seperti kasus, material yang tidak terdaftar Anak perusahaan untuk tahun buku sebelumnya. Explanation (iii): Where a listed holding company has a listed subsidiary company which is itself a holding company, the above provisions shall apply to the listed subsidiary insofar as its subsidiaries are concerned. Issue 15 Disclosure of contingent liabilities Existing language Clause VI VI(i)9The company agrees that management shall provide a clear description in plain English of each material contingent liability and its risks, which shall be accompanied by the auditors clearly worded comments on the managements view. This section shall be highlighted in the significant accounting policies and notes on accounts, as well as, in the auditors report, where necessary. The disclosure of contingent liabilities is already required under Schedule VI to the Companies Act, 1956. It is also impractical for auditors to comment on managements views and any such viewcomment may be construed as an admission of the liability, which may be detrimental to the interests of the shareholders. It is therefore suggested that this clause be deleted. Revised language Clause VI Delete clause VI(i) in its entirety. Issue 16 Basis of related party transactions Existing language Clause VII. A(i) VII. A(i)9A statement of all transactions with related parties including their basis shall be placed before the Audit Committee for formal approvalratification. If any transaction is not on an arms length basis, management shall provide an explanation to the Audit Committee justifying the same. It may be cumbersome and unnecessary for the audit committee to review all transactions with related parties which are in the ordinary course of business. It should therefore be sufficient if these transactions are placed periodically in a summary form before the audit committee. It is however necessary that material individual transactions which are not in the normal course of business are placed before the audit committee. It is also necessary that management identify and place before the audit committee, material individual transactions, whether in the normal course of business or otherwise, with related parties or others which are not on an arms length basis, together with a justification for the same. Revised language Clause VII. A(i) VII. A(i)9A statement in summary form of transactions with related parties in the ordinary course of business shall be placed periodically before the audit committee. (ii)9Material individual transactions with related parties which are not in the normal course of business shall be placed before the audit committee. (iii)9Material individual transactions with related parties or others which are not on an arms length basis should be placed before the audit committee, together with Managements justification for the same. Issue 17 Board disclosures risk management Existing language Clause VII. B(i) VII. B(i) Management shall place a report certified by the compliance officer of the company, before the entire Board of Directors every quarter documenting the business risks faced by the company, measures to address and minimize such risks, and any limitations to the risk taking capacity of the corporation. This document shall be formally approved by the Board. The compliance officer of a company may not be the right person to attestcertify disclosure of the business risks faced by a company. It is recommended that this requirement be deleted. Revised language Clause VII. B(i) Delete clause VII. B(i) in its entirety. Issue 18 Proceeds from Initial Public Offering (IPO) Existing language Clause VII. C(i) VII. C(i) When money is raised through an Initial Public Offering (IPO) it shall disclose to the Audit Committee, the uses applications of funds by major category (capital expenditure, sales and marketing, working capital, etc), on a quarterly basis as a part of their quarterly declaration of financial results. Further, on an annual basis, the company shall prepare a statement of funds utilized for purposes other than those stated in the offer documentprospectus. This statement shall be certified by the independent auditors of the company. The audit committee shall make appropriate recommendations to the Board to take up steps in this matter. The current language in clause 49 requires companies to disclose use of IPO proceeds without specifying any time limitation. It is recommended that clause 49 be amended to ensure this disclosure is required only till funds are spent. There is no reason why this provision should apply only to an IPO and not be made applicable to all public offerings. Further, funds utilised for purposes other than that for which they were raised should be placed before the audit committee. Revised language Clause VII. C(i) When money is raised through an issue to public (including public issues, rights issues), it shall disclose to the Audit Committee, the uses applications of funds by major category (capital expenditure, sales and marketing, working capital, etc), on a quarterly basis as a part of their quarterly declaration of financial results. Further, on an annual basis, the company shall prepare a statement of funds utilized for purposes other than those stated in the offer documentprospectus and place it before the audit committee. Such disclosure shall be made only till such time that the full money raised through the issue has been fully spent. This statement shall be certified by the statutory auditors of the company. The audit committee shall make appropriate recommendations to the Board to take up steps in this matter. Issue 19 Remuneration of directors Existing language Clause VII. D(ii)(a) VII. D(ii)(a)9All elements of remuneration package of all the directors, i. e. salary, benefits, bonuses, stock options, pension etc. It is recommended that the disclosure of remuneration provided to directors should be aggregated by major category and disclosed. This will facilitate a robust disclosure of directors remuneration. Revised language Clause VII. D(ii)(a) VII. D(ii)(a)9All elements of remuneration package of individual directors , summarized under major groups, such as salary, benefits, bonuses, stock options, pension etc. Issue 20 Management Existing language Clause VII. E(i) VIII. E(i) Management shall make disclosures to the board relating to all material financial and commercial transactions, where they have personal interest, that may have a potential conflict with the interest of the company at large (for e. g. dealing in company shares, commercial dealings with bodies, which have shareholding of management and their relatives etc.) Clause VII. E requires management to disclose to the board details of transactions where they have personal interests. It is recommended to change quotManagementquot to quotSenior managementquot as follows, to make the language tighter and more precise. Revised language Clause VII. E(i) VII. E(i) Senior management shall make disclosures to the board relating to all material financial and commercial transactions, where they have personal interest, that may have a potential conflict with the interest of the company at large (for e. g. dealing in company shares, commercial dealings with bodies, which have shareholding of management and their relatives etc.) Explanation: For this purpose, the term senior management shall mean personnel of the company who are members of its management operating council (i. e. core management team excluding independent directors). This would also include all members of management one level below the executive directors Issue 21 CEOCFO certification (a)9The CEO and the CFO must assume primary responsibility for ensuring that the company does not enter into transactions which are fraudulent, illegal or violative of the companys code of conduct or ethics policy. Clause (f) which deals with two separate matters viz. (i) internal control and (ii) accounting policies should be split into two clauses as changes an internal control cannot be disclosed in the notes to the financial statements. Revised language CEOCFO certification The CEO (either the Executive Chairman or the Managing Director or Manager) and the CFO (either the whole-time Finance Director or any other person heading the Finance function) discharging that function shall certify to the Board that: They have reviewed financial statements and the cash flow statement and the Directors Report and that to the best of their knowledge and belief :these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleadingthese statements together present a true and fair view of the companys affairs and are in compliance with existing accounting standards, applicable laws and regulations. There are to the best of their knowledge and belief, no transactions entered into by the company wh ich are fraudulent, illegal or violative of the companys code of conduct or ethics policy. They accept responsibility for establishing and maintaining internal controls and that they have evaluated the effectiveness of the internal control systems of the company and they have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify these deficiencies. They have indicated to the auditors and the Audit committeesignificant changes in internal control during the yearsignificant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements andinstances of significant fraud of which they have become aware and the involvement, if any, of the management or an employee having a significant role in the companys internal control system. Issue 22 Annexure 1C 4. Postal Ballot With effect fr om June 15, 2001, section 192A was introduced in the Companies Act, 1956 providing for the passing of resolutions by postal ballot. Since this is now part of law, it is suggested that paragraph 4 of Annexure 1C be deleted. SEBI convened deliberating theafter the issuance of the aforesaid circular. SEBI hosted aforesaid in its The commentsin its meeting held on The committee has since submitted its report to SEBI. The report is reproduced below for seeking public comments. Issues under clause 49 and proposed amendments Issue 1 Definition of independent director Existing language Explanation (i)(e) to clause I. A Explanation (i): For the purpose of this clause, the expression independent director shall mean non-executive director of the company who: a.9apart from receiving directors remuneration, does not have any material pecuniary relationships or transactions with the company, its promoters, its senior management or its holding company, its subsidiaries and associated companies b.9is not related to promoters or management at the board level or at one level below the board c.9has not been an executive of the company in the immediately preceding three financial years d.9is not a partner or an executive of the statutory audit firm or the internal audit firm that is associated with the company, and has not been a partner or an executive of any such firm for the last three years. This will also apply to legal firm(s) and consulting firm(s) that have a material association with the entity. e.9is not a supplier, service provider or customer of the company. This should include lessor-lessee type relationships also and f.9is not a substantial shareholder of the company, i. e. owning two percent or more of the block of voting shares. Explanation (i)(e) restricts any supplier, service provider or customer of the company from being an independent director on the board of the company. This clause should ideally only bar persons who are material suppliers, service providers or customers and not extend it to any and all suppliers, service providers or customers. This view is further supported by the fact that Explanation (i)(a) does not disqualify a non-executive director who has an immaterial pecuniary relationship or transaction with the company, its promoters, its senior management or its holding company, its subsidiaries and associated companies from serving as an independent director. It is therefore proposed that the word quotmaterialquot be inserted before supplier, in Explanation (i)(e) to Clause I. A. Revised language Explanation (i)(e) to clause I. A Explanation (i): For the purpose of this clause, the expression independent director shall mean non-executive director of the company who: a.9apart from receiving directors remuneration, does not have, in the opinion of the board, any material pecuniary relationships or transactions with the company, its promoters, its senior management or its holding company, its subsidiaries and associated companies which in the judgment of the board may affect independence of judgment of the director b.9is not related to promoters or management at the board level or at one level below the board c.9has not been an executive of the company in the immediately preceding three financial years d.9is not a partner or an executive of the statutory audit firm or the internal audit firm that is associated with the company, and has not been a partner or an executive of any such firm for the last three years. This will also apply to legal firm(s) and consulting firm(s) that have a material association with the entity. e.9is not, in the opinion of the board, a material supplier, service provider or customer of the company, which in the judgment of the board may affect independence of judgment of the directorquot. This should include lessor-lessee type relationships also and f.9is not a substantial shareholder of the company, i. e. owning two percent or more of the block of voting shares. For the purposes of this clause: Associated company shall mean a company which is an quotassociatequot as defined in Accounting Standard (AS) 23, quotAccounting for Investments in Associates in Consolidated Financial Statementsquot, issued by the Institute of Chartered Accountants of India. Senior management shall have the meaning as prescribed in the explanation to clause VII(E).quotRelativequot shall mean quotrelativequot as defined in section 2(41) and section 6 of the Companies Act, 1956.Issue 2 Definition of independent director quotInstitutional directorsquot Existing language Explanation (ii) to clause IA Explanation (ii). Institutional directors on the boards of companies shall be considered as independent directors whether the institution is an investing institution or a lending institution. The explanation does not make it clear that even an institutional director must in order to be considered as independent, satisfy the tests laid down in clauses (a) to (f).It is also necessary to clarify that institutional directors have the same rights, duties and responsibilities as any other member of the board. Revised language Explanation (ii) to clause IA There shall be no nominee directors. Where an institution wishes to appoint a director on the Board, such appointment should be made by the shareholders. An institutional director on the boards of companies shall be considered as an independent director unless he does not satisfy the requirements of any of the clauses (a) to (f) listed above. An institutional director shall have the same rights, duties and responsibilities as other members of the board and as prescribed under the Companies Act, 1956 and the Listing regulations. Nominee of the Government on public sector companies shall be similarly elected9 and shall be subject to the same responsibilities and liabilities as other directors. Issue 3 Remuneration paid to non-executive directors Existing language Clauses I. B(i), I. B(ii) and I. C(ii) Clause I. B(i) All remuneration paid to non-executive directors shall be fixed by the Board of Directors and shall be approved by shareholders in general meeting. Limits shall be set for the maximum number of stock options that can be granted to non-executive directors in any financial year and in aggregate. The stock options granted to the non-executive directors shall vest after a period of at least one year from the date such non-executive directors have retired from the Board of the Company. Clauses I. B(ii) and I. C(ii) The considerations as regards remuneration paid to an independent director shall be the same as those applied to a non-executive director It is recommended that a clarification be added to state that non-executive directors include independent director. This will ensure clarity in drafting. As a result of this, clauses I. B(ii) and I. C(ii) become redundant and should be deleted. Revised language Clauses I. B(i), I. B(ii) and I. C(ii) 49 I. B(i) All remuneration paid to non-executive directors, including independent directors, shall be fixed by the Board of Directors and shall be agreed to by shareholders in general meeting. Limits shall be set for the maximum number of stock options that can be granted to non-executive directors, including independent directors, in any financial year and in aggregate. The stock options granted to the non-executive directors, including independent directors, shall vest after a period of at least one year from the date of grant of the stock options. This requirement shall apply prospectively to all new option grants made after the effective date of this circular. Delete clauses I. B(ii) and I. C(ii) Issue 4 Responsibility of independent directors Existing language Clause I. C(i) I. C(i)9Independent director shall however periodically review legal compliance reports prepared by the company as well as steps taken by the company to cure any taint. In the event of any proceedings against an independent director in connection with the affairs of the company, defence shall not be permitted on the ground that the independent director was unaware of this responsibility. The board as a whole should have the responsibility to periodically review legal compliance reports prepared by the company as well as the steps taken to cure any instances of non-compliance. A director is an officer of the company and the term quotofficer who is in defaultquot has already been defined in section 2(31) and section 5 of the Companies Act, 1956. It is therefore not necessary to make any further provision in this respect and the second sentence to clause I(C)(i) may be deleted. Revised language Clause I. C(i) 49 I C(i)9The Board shall periodically review legal compliance reports prepared by the company as well as steps taken by the company to cure instances of non-compliances. Issue 5 Amendment to board procedures Existing language Clause I. D(iii) I. D(iii)9Further only the three committees viz. the Audit Committee, the Shareholders Grievance Committee and the Remuneration Committee shall be considered for this purpose. There is currently a shortage of independent directors. The Companies Act, 1956 prescribes in section 277 that a person cannot hold more than 15 directorships and section 278 provides that in considering the limit, directorship as an alternate director should be excluded, whereas the clause restricts committee memberships to 10. Therefore, independent directors who would otherwise be willing to serve on such committees are unable to do so. The formation of a remuneration committee is not mandatory and it meets only occasionally. It is therefore suggested that for the purposes of the calculation of the limit, only the audit committee and the shareholders grievance committee should be counted. Revised language Clause I. D(iii) I. D(iii)9Further only two committees viz. the Audit Committee and the Shareholders Grievance Committee shall be considered for this purpose. Issue 6 Term of office of non-executive directors Existing language Clause I. F(i) I. F(i)9Person shall be eligible for the office of non-executive director so long as the term of office did not exceed nine years in three terms of three years each, running continuously. The existing language in clause I. F(i) would require that no non-whole time director can continue as a director beyond a period of three consecutive terms of three years each, i. e. a total of nine years. This may create practical problems as it may prevent promoters and directors protecting their interests from continuing on the board even while the promoters investment in the company continues. It may also prevent the continuance on the board of other individuals, who may be making a significant contribution as a board member and whose continuance on the board may be in the interest of the company. It can however be argued that long association with the company may be perceived as impairing the independence of a director. It may therefore be provided that where an individual continues on the board beyond the prescribed term of nine years, he shall no longer be considered as an independent director. It is also necessary that this provision be made prospective, i. e. it should apply to a period of nine years in the aggregate, such period to commence on or after the date the amended clause 49 comes into force. It is therefore necessary that this clause be amended as follows: Revised language Clause I. F(i) I. F(i)9A director shall be considered to be an independent director only so long as his tenure on the board does not exceed, in the aggregate, a period of nine years, such period to be considered as commencing on or after the date this circular comes into force or the date of his first appointment as a director, whichever is later. After the expiry of the said period, the director may continue to be a member of the board and be eligible for reappointment on the expiry of his term, but he shall not be considered to be an independent director. Issue 7 Requirements related to audit committees Existing language Clause II. A(iv) II. A(iv)9The Chairman shall be present at Annual General Meeting to answer shareholder queries It may not be practical for the Chairman of the Audit Committee to be present at all annual general meetings to answer shareholder queries due to various reasons, including travel, ill health, etc. it is therefore recommended that in his absence, another member of the audit committee, who is an independent director may be present to answer shareholder queries. Revised language Clause II. A(iv) II. A(iv)9The Chairman of the audit committee, or in his absence, a designated member of the audit committee who is an independent director shall be present at Annual General Meeting to answer shareholder queries Issue 8 Meeting of Audit Committee Clause II. B II. B9The audit committee shall meet at least thrice a year. One meeting shall be held before finalization of annual accounts and one every six months. The quorum shall be either two members or one third of the members of the audit committee, whichever is higher and minimum of two independent directors. Clause II. D(i) requires that the audit committee should have an oversight of the disclosure of financial information. A listed company is required to publish quarterly financial results and annual financial statements. It is therefore necessary that the audit committee should meet at least four times in a year. II. B9The audit committee should meet at least four times in a year and not more than four months shall elapse between two meetings. The quorum shall be either two members or one third of the members of the audit committee whichever is greater, but there should be a minimum of two independent members present. Issue 9 Role of the audit committee Existing language Clause II. D (i) The role of the audit committee shall include the following: Oversight of the companys financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. Recommending the appointment and removal of external auditor, fixation of audit fee and also approval for payment for any other services. Reviewing with management the annual financial statements before submission to the board, focusing primarily onAny changes in accounting policies and practices. Major accounting entries based on exercise of judgment by management. Qualifications in draft audit report. Significant adjustments arising out of audit. The going concern assumptionpliance with accounting standardspliance with stock exchange and legal requirements concerning financial statementsAny related party transactionsReviewing with the management, external and internal auditors, the ade quacy of internal control systems. Reviewing the adequacy of internal audit function, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit. Discussion with internal auditors any significant findings and follow up there on. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board. Discussion with external auditors before the audit commences about nature and scope of audit as well as post-audit discussion to ascertain any area of concern. Reviewing the companys financial and risk management policies. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors. Explanation (i ): The term related party transactions shall have the same meaning as contained in the Accounting Standard 18, Related Party Transactions, issued by The Institute of Chartered Accountants of India. Explanation (ii): If the company has set up an audit committee pursuant to provision of the Companies Act, the company agrees that the said audit committee shall have such additional functions features as is contained in the Listing Agreement. Section 217(2AA) of the Companies Act, 1956 requires that the Boards report should include a Directors Responsibility Statement which covers many of the items covered in this clause. To ensure consistency, it is necessary to reword some of the clauses. Revised language Clause II. D (i) The role of the audit committee shall include the following: Oversight of the companys financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible. Recommending to the Board, the appointment, re-appointment and, if required, the replacement or removal of the external auditor and the fixation of audit fees. Approval of payment to external auditors for any other services rendered by the external auditors. Reviewing, with the management, the annual financial statements before submission to the board for approval, with particular reference to:Matters required to be included in the Directors Responsibility Statement to be included in the Boards report in terms of clause 2AA of section 217 of the Companies Act, 1956Changes, if any, in accounting policies and practices and reasons for the sameMajor accounting entries involving estimates based on the exercise of judgment by managementSignificant adjustments made in the financial statements arising out of audit findingsCompliance with listing and other legal requirements relating to financial statementsDisclosure of any related party transactionsQualifications in the draft audit report. Reviewing, with the management, the quarterly financial statements before submission to the board for approvalReviewing, with the management, external and internal auditors, adequacy of the internal control systems. Reviewing the adequacy of internal audit function, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit. Discussion with internal auditors any significant findings and follow up there on. Reviewing the findings of any internal investigations by the internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the board. Discussion with external auditors before the audit commences about nature and scope of audit as well as post-audit discussion to ascertain any area of concern. Reviewing the companys financial and risk management policies. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors. Explanation (i): The term related party transactions shall have the same meaning as contained in the Accounting Standard 18, Related Party Transactions, issued by The Institute of Chartered Accountants of India. Explanation (ii): If the company has set up an audit committee pursuant to provision of the Companies Act, the company agrees that the said audit committee shall have such additional functions features as is contained in the Listing Agreement. Clause II. E.5 becomes redundant and should therefore be deleted. Issue 10 Review of information by Audit Committee Existing language Clause II. E (E) Review of information by Audit Committee (i) The Audit Committee shall mandatorily review the following information: Financial statements and draft audit report, including quarterly half-yearly financial informationManagement discussion and analysis of financial condition and results of operationsReports relating to compliance with laws and to risk managementManagement letters letters of internal control weaknesses issued by statutory internal auditors andRecords of related party transactionsThe appointment, removal and terms of remuneration of the Chief internal auditor shall be subject to review by the Audit CommitteeThe requirement in sub-clause 1 is already covered in clause I. D and should be deleted It is not practical to expect audit committees to review the records of related party transactions. It should be sufficient if management places before the audit committee for review, a statement of significant related party transactions and gives details of related party transactions that are not at an arms length basis with reasons for the same. Clause VII provides that risk management procedures should be reviewed by the Board. Therefore, there is no need for the audit committee to also perform this review. Revised language Clause II. E II (E) Review of information by Audit Committee (i) The Audit Committee shall mandatorily review the following information: Management discussion and analysis of financial condition and results of operationsStatement of significant related party transactions (as defined by the audit committee), submitted by managementManagement letters letters of internal control weaknesses issued by the external auditorsInternal audit reports relating to internal control weaknesses andThe appointment, removal and terms of remuneration of the Chief internal auditor shall be subject to review by the Audit Committee. Issue 11 Audit reports and qualifications Existing language Clause III. A A.9Disclosure of Accounting Treatment In case it has followed a treatment different from that prescribed in an Accounting Standards, management shall justify why they believe such alternative treatment is more representative of the underlined business transactions. Management shall also clearly explain the alternative accounting treatment in the footnote of financial statements. Where an accounting standard is not followed, the auditor is required to disclose that fact and qualify his report. What is proposed, in addition, is that management should provide an explanation in a note to the financial statements as to the fact that an accounting standard is not followed and the reason for the departure. The language in the clause does not bring this out. Since this is a matter of disclosure, it would be more appropriate to delete this clause and include an amended clause under clause VII as sub-clause (AA) Revised language Clause VII. AA AA.9Disclosure of Accounting Treatment Where in the preparation of financial statements, a treatment different from that prescribed in an Accounting Standard has been followed, the fact shall be disclosed in the financial statements, together with the managements explanation as to why it believes such alternative treatment is more representative of the true and fair view of the underlined business transaction. Issue 12 Whistle Blower Policy Existing language Clause IV. A (A) Internal Policy on access to Audit Committees: Personnel who observe an unethical or improper practice (not necessarily a violation of law) shall be able to approach the audit committee without necessarily informing their supervisorspanies shall take measures to ensure that this right of access is communicated to all employees through means of internal circulars, etc. The employment and other personnel policies of the company shall contain provisions protecting whistle blowers from unfair termination and other unfair prejudicial employment practicespany shall annually affirm that it has not denied any personnel access to the audit committee of the company (in respect of matters involving alleged misconduct) and that it has provided protection to whistle blowers from unfair termination and other unfair or prejudicial employment practices. Such affirmation shall form a part of the Board report on Corporate Governance that i s required to be prepared and submitted together with the annual report. The appointment, removal and terms of remuneration of the chief internal auditor shall be subject to review by the Audit Committee. The intention of this clause is that management establishes a mechanism for employees to report concerns about unethical behaviour, actual or suspected fraud or violation of the companys code of conduct or ethics policy. The exact details of such a mechanism should be left to each company, through its Board of Directors, to decide but the existence and implementation must be reviewed by the audit committee. The mechanism must have adequate provisions to ensure there is no victimization of employees who avail of this procedure. The clause may be reworded accordingly. Revised language Clause IV. A The company will establish a mechanism for employees to report to the management concerns about unethical behaviour, actual or suspected fraud or violation of the companys code of conduct or ethics policy. The mechanism must provide for adequate safeguards against victimization of employees who avail of the mechanism. The mechanism must also provide, where senior management is involved, direct access to the Chairman of the Audit Committee. The existence of the mechanism must be appropriately communicated within the organization. The Audit Committee must periodically review the existence and functioning of the mechanism. Issue 13 Deletion of redundant clause on internal audit Existing language Clause IV. A(v) IV. A(v)9The appointment, removal and terms of remuneration of the chief internal auditor shall be subject to review by the Audit Committee. Clause IV. A(v) dealing with the audit committee review of the appointment, removal and terms of remuneration of the Chief Internal Auditor should be deleted since this is a repetition of clause II. E.6 of clause 49. This ensures absence of redundant language. Revised language Clause IV. A(v) Clause IV. A(v) should be deleted. Issue 14 Subsidiary companies Existing language Clause V i.9The company agrees that provisions relating to the composition of the Board of Directors of the holding company shall be made applicable to the composition of the Board of Directors of subsidiary companies ii.9At least one independent director on the Board of Directors of the holding company shall be a director on the Board of Directors of the subsidiary company. iii.9The Audit Committee of the holding company shall also review the financial statements, in particular the investments made by the subsidiary company. iv.9The minutes of the Board meetings of the subsidiary company shall be placed for review at the Board meeting of the holding company. v.9The Board report of the holding company should state that they have reviewed the affairs of the subsidiary company also. It has been pointed out that the implementation of this clause may create the following practical difficulties: Subsidiaries are often of small size and it may be too onerous if all the provisions regarding the composition of the board as applicable to a holding company are made applicable to every subsidiary. There may also be difficulties in applying this clause to joint ventures, when the composition of the board may be determined by the joint venture agreement. Where there are a large number of subsidiaries, independent directors on the board of the parent company may not be willing to become directors on the board of a subsidiary, particularly where such a directorship is included in the number of directorships to which the ceiling prescribed under the Companies Act, 1956 applies. It may be very expensive for a company if the independent director is required to attend board meetings of foreign subsidiariesAt the same time, it needs to be appreciated that the intention in formulating this clause was the need for the board of the holding company to have some independent link with the board of the subsidiary and provide necessary oversight. It is therefore suggested that the clause may be revised as under: The provisions of sub-clause (ii), which provide that at least one independent director in the holding company shall be a director of the subsidiary company shall apply only to material Indian subsidiaries i. e. subsidiaries whose turnover or net worth in the immediately preceding year exceeds 20 of the consolidated turnover or consolidated net worth respectively, of the holding company and its subsidiaries. There should be an obligation on the part of the management to bring to the attention of the board of the holding company significant transactions and arrangements entered into by the subsidiary companies. For this purpose, quotsignificant transaction and arrangementquot shall mean any individual transaction or arrangement that exceeds or is likely to exceed 10 of the total revenues or total expenses or total assets or total liabilities of the company, as the case may be, in the immediately preceding year. Clause V (v) pertaining to a disclosure of the review of affairs of a subsidiary company by the board of the parent company should be deleted since it is superfluous. This aspect is already covered in clauses V(iii) and V(iv). Revised language Clause V i.9At least one independent director on the Board of Directors of the holding company shall be a director on the Board of Directors of a material non listed Indian subsidiary company. ii.9The Audit Committee of the listed holding company shall also review the financial statements, in particular, the investments made by the unlisted subsidiary company. The minutes of the Board meetings of the unlisted subsidiary company shall be placed at the Board meeting of the listed holding company. The management should periodically bring to the attention of the Board of Directors of the listed holding company, a statement of all significant transactions and arrangements entered into by the unlisted subsidiary company. Explanation (i): The term quotmaterial non-listed Indian subsidiaryquot shall mean an unlisted subsidiary, incorporated in India, whose turnover or net worth (i. e. paid up capital and free reserves) in the preceding accounting year exceeds 20 of the consolidated turnover or net worth respectively, of the listed holding company and its subsidiaries in the immediately preceding accounting year. Explanation (ii): The term quotsignificant transaction or arrangementquot shall mean any individual transaction or arrangement that exceeds or is likely to exceed 10 of the total revenues or total expenses or total assets or total liabilities, as the case may be, of the material unlisted subsidiary for the immediately preceding accounting year. Explanation (iii): Where a listed holding company has a listed subsidiary company which is itself a holding company, the above provisions shall apply to the listed subsidiary insofar as its subsidiaries are concerned. Issue 15 Disclosure of contingent liabilities Existing language Clause VI VI(i)9The company agrees that management shall provide a clear description in plain English of each material contingent liability and its risks, which shall be accompanied by the auditors clearly worded comments on the managements view. This section shall be highlighted in the significant accounting policies and notes on accounts, as well as, in the auditors report, where necessary. The disclosure of contingent liabilities is already required under Schedule VI to the Companies Act, 1956. It is also impractical for auditors to comment on managements views and any such viewcomment may be construed as an admission of the liability, which may be detrimental to the interests of the shareholders. It is therefore suggested that this clause be deleted. Revised language Clause VI Delete clause VI(i) in its entirety. Issue 16 Basis of related party transactions Existing language Clause VII. A(i) VII. A(i)9A statement of all transactions with related parties including their basis shall be placed before the Audit Committee for formal approvalratification. If any transaction is not on an arms length basis, management shall provide an explanation to the Audit Committee justifying the same. It may be cumbersome and unnecessary for the audit committee to review all transactions with related parties which are in the ordinary course of business. It should therefore be sufficient if these transactions are placed periodically in a summary form before the audit committee. It is however necessary that material individual transactions which are not in the normal course of business are placed before the audit committee. It is also necessary that management identify and place before the audit committee, material individual transactions, whether in the normal course of business or otherwise, with related parties or others which are not on an arms length basis, together with a justification for the same. Revised language Clause VII. A(i) VII. A(i)9A statement in summary form of transactions with related parties in the ordinary course of business shall be placed periodically before the audit committee. (ii)9Material individual transactions with related parties which are not in the normal course of business shall be placed before the audit committee. (iii)9Material individual transactions with related parties or others which are not on an arms length basis should be placed before the audit committee, together with Managements justification for the same. Issue 17 Board disclosures risk management Existing language Clause VII. B(i) VII. B(i) Management shall place a report certified by the compliance officer of the company, before the entire Board of Directors every quarter documenting the business risks faced by the company, measures to address and minimize such risks, and any limitations to the risk taking capacity of the corporation. This document shall be formally approved by the Board. The compliance officer of a company may not be the right person to attestcertify disclosure of the business risks faced by a company. It is recommended that this requirement be deleted. Revised language Clause VII. B(i) Delete clause VII. B(i) in its entirety. Issue 18 Proceeds from Initial Public Offering (IPO) Existing language Clause VII. C(i) VII. C(i) When money is raised through an Initial Public Offering (IPO) it shall disclose to the Audit Committee, the uses applications of funds by major category (capital expenditure, sales and marketing, working capital, etc), on a quarterly basis as a part of their quarterly declaration of financial results. Further, on an annual basis, the company shall prepare a statement of funds utilized for purposes other than those stated in the offer documentprospectus. This statement shall be certified by the independent auditors of the company. The audit committee shall make appropriate recommendations to the Board to take up steps in this matter. The current language in clause 49 requires companies to disclose use of IPO proceeds without specifying any time limitation. It is recommended that clause 49 be amended to ensure this disclosure is required only till funds are spent. There is no reason why this provision should apply only to an IPO and not be made applicable to all public offerings. Further, funds utilised for purposes other than that for which they were raised should be placed before the audit committee. Revised language Clause VII. C(i) When money is raised through an issue to public (including public issues, rights issues), it shall disclose to the Audit Committee, the uses applications of funds by major category (capital expenditure, sales and marketing, working capital, etc), on a quarterly basis as a part of their quarterly declaration of financial results. Further, on an annual basis, the company shall prepare a statement of funds utilized for purposes other than those stated in the offer documentprospectus and place it before the audit committee. Such disclosure shall be made only till such time that the full money raised through the issue has been fully spent. This statement shall be certified by the statutory auditors of the company. The audit committee shall make appropriate recommendations to the Board to take up steps in this matter. Issue 19 Remuneration of directors Existing language Clause VII. D(ii)(a) VII. D(ii)(a)9All elements of remuneration package of all the directors, i. e. salary, benefits, bonuses, stock options, pension etc. It is recommended that the disclosure of remuneration provided to directors should be aggregated by major category and disclosed. This will facilitate a robust disclosure of directors remuneration. Revised language Clause VII. D(ii)(a) VII. D(ii)(a)9All elements of remuneration package of individual directors , summarized under major groups, such as salary, benefits, bonuses, stock options, pension etc. Issue 20 Management Existing language Clause VII. E(i) VIII. E(i) Management shall make disclosures to the board relating to all material financial and commercial transactions, where they have personal interest, that may have a potential conflict with the interest of the company at large (for e. g. dealing in company shares, commercial dealings with bodies, which have shareholding of management and their relatives etc.) Clause VII. E requires management to disclose to the board details of transactions where they have personal interests. It is recommended to change quotManagementquot to quotSenior managementquot as follows, to make the language tighter and more precise. Revised language Clause VII. E(i) VII. E(i) Senior management shall make disclosures to the board relating to all material financial and commercial transactions, where they have personal interest, that may have a potential conflict with the interest of the company at large (for e. g. dealing in company shares, commercial dealings with bodies, which have shareholding of management and their relatives etc.) Explanation: For this purpose, the term senior management shall mean personnel of the company who are members of its management operating council (i. e. core management team excluding independent directors). This would also include all members of management one level below the executive directors Issue 21 CEOCFO certification (a)9The CEO and the CFO must assume primary responsibility for ensuring that the company does not enter into transactions which are fraudulent, illegal or violative of the companys code of conduct or ethics policy. Clause (f) which deals with two separate matters viz. (i) internal control and (ii) accounting policies should be split into two clauses as changes an internal control cannot be disclosed in the notes to the financial statements. Revised language CEOCFO certification The CEO (either the Executive Chairman or the Managing Director or Manager) and the CFO (either the whole-time Finance Director or any other person heading the Finance function) discharging that function shall certify to the Board that: They have reviewed financial statements and the cash flow statement and the Directors Report and that to the best of their knowledge and belief :these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleadingthese statements together present a true and fair view of the companys affairs and are in compliance with existing accounting standards, applicable laws and regulations. There are to the best of their knowledge and belief, no transactions entered into by the company wh ich are fraudulent, illegal or violative of the companys code of conduct or ethics policy. They accept responsibility for establishing and maintaining internal controls and that they have evaluated the effectiveness of the internal control systems of the company and they have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which they are aware and the steps they have taken or propose to take to rectify these deficiencies. They have indicated to the auditors and the Audit committeesignificant changes in internal control during the yearsignificant changes in accounting policies during the year and that the same have been disclosed in the notes to the financial statements andinstances of significant fraud of which they have become aware and the involvement, if any, of the management or an employee having a significant role in the companys internal control system. Issue 22 Annexure 1C 4. Postal Ballot With effect fr om June 15, 2001, section 192A was introduced in the Companies Act, 1956 providing for the passing of resolutions by postal ballot. Since this is now part of law, it is suggested that paragraph 4 of Annexure 1C be deleted.
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