Omnibus approval (as per clause 49)

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This query is : Resolved

prachi gupta (Querist)

02 January 2015 Can anyone please explain concept of omnibus approval

Audit Committee may grant omnibus approval subject to the following conditions:

In the interest of the company;

The Audit Committee shall lay down the criteria

For transactions which are repetitive in nature.

Such omnibus approval shall specify details & conditions

Where details are not available, may grant omnibus approval for value not exceeding Rs.1 crore per transaction

Review, at least on a quarterly basis

Valid for a period not exceeding one year

Amol S Joglekar

Amol S Joglekar (Expert)

02 January 2015 Concentrate on REPETITIVE transactions and you can understand the OMNIBUS approval.

Say a Company is running a petrol pump/bunk (Southern part of India use the word BUNK, northern part of India use the word pump)

Omnibus approval may be given for all those sales transactions below say Rs.100, is it not?

Your views plase.

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prachi gupta

prachi gupta (Querist)

02 January 2015 ok sir, i got the point that it must be repetitive in nature, can you give any practical example of repetitive transaction of company with its related party

Amol S Joglekar

Amol S Joglekar (Expert)

02 January 2015 Many companies have certain arrangements say Apparel companies having arrangement of stitching
Cement companies having arrangement of say RMC (Ready mix concrete)
Construction companies having arrangements of broking commission

many examples can be cited...

your views please.

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