Directors' report (disclosure of employees)
This query is : Resolved
Pankaj Arya
(Querist)
15 November 2012
Dear Experts
The names, qualifications etc. of employees drawing more than 5 lakhs per month are required to be disclosed in the Directors Report.
Is this requirement also applicable for Whole Time Directors who are drawing salary more than 5 lakhs per month.
Please guide...
Thanks
The names, qualifications etc. of employees drawing more than 5 lakhs per month are required to be disclosed in the Directors Report.
Is this requirement also applicable for Whole Time Directors who are drawing salary more than 5 lakhs per month.
Please guide...
Thanks
CA Ayush Agarwal
(Expert)
15 November 2012
Applicable to All. i.e WTD Also
Pankaj Arya
(Querist)
16 November 2012
Thanks Ayush for the guidance...
The appointment resolution is like this
"..........hereby appointed at a remuneration of .... lakhs per month, plus actual expenses for official purposes including mobile, car expenses etc."
Please guide whether besides the monthly salary, should we disclose all the amount paid for mobile bills, car expenses, driver's salary(driver is on Company's rolls). Mobile and Car is being used for both Official & personal purposes
Please guide
thanks & regards
The appointment resolution is like this
"..........hereby appointed at a remuneration of .... lakhs per month, plus actual expenses for official purposes including mobile, car expenses etc."
Please guide whether besides the monthly salary, should we disclose all the amount paid for mobile bills, car expenses, driver's salary(driver is on Company's rolls). Mobile and Car is being used for both Official & personal purposes
Please guide
thanks & regards
Ajay Mishra
(Expert)
16 November 2012
Hi
The provisions applicable on employee whether he is WTD/MD or other employee draw remuneration 5 lakhs p.m..
TATEMENT SHOWING PARTICULARS OF EMPLOYEE [SECTION 217(2A)]
Section 217(2A) of the Companies Act, 1956 provides that the Directors’ Report shall contain information in a statement about employees who are in receipt of remuneration of such sum as may be prescribed, per annum if employed in the whole of the last year or per month if employed for part of the year. The particulars required to be given in the statement to the Directors’ Report shall be in accordance with Companies (Particulars of Employees) Rules, 1975. The salary limit of employees for the purpose of the above Rule has been raised by Notification GSR 289 (E) dated 31.03.2011 from Rs. 24 lakhs to Rs. 60 lakhs per annum in respect of employees employed throughout of the year or from Rs. 2 lakhs to Rs. 5 lakhs per month if employed for the part of the year.
MCA has clarified vide its Circular No. 23/2011, dated 03.05.3011 that increase in remuneration limit is applicable to all Directors’ Report approved by the Board of Directors on or after 01.04.2011 irrespective of the accounting year, being approved by the Board.
The provisions applicable on employee whether he is WTD/MD or other employee draw remuneration 5 lakhs p.m..
TATEMENT SHOWING PARTICULARS OF EMPLOYEE [SECTION 217(2A)]
Section 217(2A) of the Companies Act, 1956 provides that the Directors’ Report shall contain information in a statement about employees who are in receipt of remuneration of such sum as may be prescribed, per annum if employed in the whole of the last year or per month if employed for part of the year. The particulars required to be given in the statement to the Directors’ Report shall be in accordance with Companies (Particulars of Employees) Rules, 1975. The salary limit of employees for the purpose of the above Rule has been raised by Notification GSR 289 (E) dated 31.03.2011 from Rs. 24 lakhs to Rs. 60 lakhs per annum in respect of employees employed throughout of the year or from Rs. 2 lakhs to Rs. 5 lakhs per month if employed for the part of the year.
MCA has clarified vide its Circular No. 23/2011, dated 03.05.3011 that increase in remuneration limit is applicable to all Directors’ Report approved by the Board of Directors on or after 01.04.2011 irrespective of the accounting year, being approved by the Board.
Ajay Mishra
(Expert)
16 November 2012
Hi
What details is required to be given in Director Report is given in above mention rule. That information is sufficient.
What details is required to be given in Director Report is given in above mention rule. That information is sufficient.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- Employee secondment
- Ito add credit side of bank
- GSTR9 Annual Return
- Applicability of tax on invoice
- Form 144 TDS Return Validation error
- GST ITC as per notification 12/2023- central tax
- Rent agreement of House of deceased person
- Positive Balance in RCM Liability/ITC Statement – Commercial Rent RCM – Guidance Required
- Capital gain on commercial property and investment in residential property
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
