11/04/2014
A Company has various social and economic implications. That's the reason a company's accounts must give True & Fair view. It must comply with all the Statutes to which it is related. These compliances are mandatory without having any criteria relating to its paid up capital, turnover and so on and so forth. So when the accounts are compulsorily to be audited, why the other Statutory compliances are not to be audited or why that will depend on some criteria, such as capital, turnover, etc. Moreover, from financial compliances angle, after certain benchmark, Tax audit is required, CFO is mandatorily to be appointed, etc. This sort of benchmark could be implemented in case of other Statutory compliances but that does not mean that minimal governance should be wiped out just because they are very small entities. Its just like that you are a small baby and so you don't have to go through the school of statutory or social obligations. If that be the case, the Statute itself should exempt them from following those compliances. Today MCA has exempted all companies who has not fulfilled certain benchmark from Secretarial Audit or Corporate Governance. Should they give a life to those small companies if they do not comply with the Rules and Regulations prescribed by Statutes.... or they are forwarding these small companies to be a part of corruptions...... Whether they are trying to advancing the socio economical growth of the country or they are trying to protect the vested interest of some groups... My humble reminder to all the Law Makers and their supporters is that In these way nobody's vested interest could be protected nor any profession could be suppressed. please remember that today the whole world is open...