MCA notifies 14th December, 2015 as the date on which Sec 143(12) & 177(4)(iv) for fraud reporting by Auditors shall come into effect

MCA vide Notification No S.O. 3388(E), has appointed the 14th day of December, 2015 as the date on which the provisions of Section 13 and 14 of the Companies (Amendment) Act, 2015  shall come into force. The said Sections are as under:

13. In section 143 of the principal Act, for sub-section (12), the following sub-section
shall be substituted, namely:—

“(12) Notwithstanding anything contained in this section, if an auditor of a
company in the course of the performance of his duties as auditor, has reason to
believe that an offence of fraud involving such amount or amounts as may be
prescribed, is being or has been committed in the company by its officers or employees,
the auditor shall report the matter to the Central Government within such time and in
such manner as may be prescribed:

Provided that in case of a fraud involving lesser than the specified amount, the
auditor shall report the matter to the audit committee constituted under section 177 or
to the Board in other cases within such time and in such manner as may be
prescribed:

Provided further that the companies, whose auditors have reported frauds
under this sub-section to the audit committee or the Board but not reported to the
Central Government, shall disclose the details about such frauds in the Board's report
in such manner as may be prescribed.”.

14. In section 177 of the principal Act, in sub-section (4), in clause (iv), the following
proviso shall be inserted, namely:—

"Provided that the Audit Committee may make omnibus approval for related
party transactions proposed to be entered into by the company subject to such
conditions as may be prescribed;".