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Rama Krishna Besetty asked 1 year ago

Referring to the subject matter, request you to please clarify on the following issue:
In Point (e) of Audit Procedures and Reporting, it has been given that amount representing the proceeds of issue of preference share capital, shall not be considered for NOF Calculation. 
Could you please clarify, as to why these wordings are mentioned in the provision at first place when Nidhi Company is restricted from issuing Preference Share Capital by virtue of Rule 6 of Nidhi Amendment Rules, 2020.
Apologies Sir, unable to attach snapshot for quick reference due to technical reasons.

1 Answers
RaviRavi Staff answered 1 year ago

What should be included in Net Owned Fund is prescribed by RBI
Net Owned Fund means owners fund and only equity share holders are considered real owners, so RBI said include only those
further amendments happen as faster rate, part of modules are updated at slower rate
Nidhi company cannot issue preference shares is recent amendment.
CARO 2016 content is based on guidance note on caro issued in 2016 and which is not yet updated, so it has procedures with context of old law.

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