Press Information Bureau

Government of India

Ministry of Corporate Affairs

30-April-2012 17:30 IST

Compliance of Reporting Norms by Companies

The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Rajya Sabha that the reporting norms comprises of annual reporting of financial results and state of affairs by companies in the format prescribed under the Companies Act, 1956 and Rules made thereunder. For non -compliance of reporting norms, prosecutions have been filed against 366, 228 and 252 companies during the financial year 2008-09, 2009-10 and 2010-11 respectively.

For all the companies, the Schedule VI to the Companies Act, 1956 has been revised for more comprehensive disclosure. The Ministry has also introduced filing of documents by a class of companies under XBRL Mode.

The Minister was replying to a written question whether it is a fact that the Ministries reporting norms have not been complied with by many companies, their details and whether Government is taking active steps to ensure diligent corporate financial reporting.

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Compliance of Reporting Norms prompted prosecutions; Schedule VI revised and XBRL filing introduced for companies. Non compliance with prescribed reporting norms has resulted in prosecutions against companies; the disclosure framework has been strengthened by revising Schedule VI to require more comprehensive financial disclosure, and regulatory filing mechanisms have been modernised by introducing mandatory filing in XBRL mode for a class of companies to improve standardisation and oversight.