Section 217 (2a)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 November 2012
Does the above section require to give the whole list of employees who have been paid an amount in aggregate of Rs. 3,00,000 p.a.??
Suppose A pvt. ltd. company has 900 such employees. Is it necessary for the company to attach the list of employees in their directors report and is it mandatory to file the same with ROC while annual XBRL Filing??
Is this clause still applicable or removed??
If removed, Can we find the notification or circular through which the same was withdrawn.
Urgent reply requested.
Suppose A pvt. ltd. company has 900 such employees. Is it necessary for the company to attach the list of employees in their directors report and is it mandatory to file the same with ROC while annual XBRL Filing??
Is this clause still applicable or removed??
If removed, Can we find the notification or circular through which the same was withdrawn.
Urgent reply requested.
21 November 2012
Hi
STATEMENT 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.
STATEMENT 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.
Querist : Anonymous
Querist :
Anonymous
(Querist)
21 November 2012
Thankyou
21 November 2012
Agree with Dear Ajay ji.... and the list is to be annexed with Directors' Report.
20 September 2014
Agree with Ajay ji
List is to be annexed with Directs' Report
List is to be annexed with Directs' Report
11 February 2015
What is the new section for this reporting as per companies act,2013 ??
23 July 2025
Under the Companies Act, 2013, the reporting requirements for the holding company regarding its subsidiary companies have changed. The provision that governed this under the Companies Act, 1956 (Section 212) has been replaced by Section 129 and Section 137 of the Companies Act, 2013.
Here's how the reporting works under the 2013 Act:
1. Section 129(3) - Financial Statements of Subsidiaries (Consolidated Financial Statements):
Under the Companies Act, 2013, Section 129 requires a holding company to prepare consolidated financial statements (CFS) along with its own individual financial statements. These consolidated statements must include the financials of the subsidiary companies.
Section 129(3) provides that a holding company must present consolidated financial statements as per the prescribed accounting standards, unless the holding company is exempt from consolidation under specific provisions.
If the holding company does not include the financial statements of its subsidiary in the consolidated financials, it is required to provide a separate statement detailing why such subsidiaries are excluded, and this should be approved by the Board of Directors.
However, if the subsidiary's financials are unavailable, the Board must explain why they are unable to consolidate them.
2. Section 137 - Filing of Financial Statements with ROC:
Once the consolidated financial statements are prepared, they must be filed with the Registrar of Companies (ROC) under Section 137.
The financial statements, including those of subsidiaries, must be filed within 30 days from the date of the AGM.
If a subsidiary company fails to provide its financials to the holding company, and the consolidated financial statements are incomplete, the holding company must file a statement explaining the reason for this non-compliance with the Registrar of Companies (ROC).
3. Exemptions for Small Companies or Non-Reporting:
Under the Companies Act, 2013, there are certain exemptions for small companies or companies that qualify for certain criteria to not prepare consolidated financial statements. These exemptions can be granted in specific cases, such as for foreign subsidiaries or when the subsidiary is small in size.
In such cases, the holding company must inform the members about the non-consolidation, and this will be explained in the annual report.
Key Changes from the 1956 Act to the 2013 Act:
Under Section 212 of the Companies Act, 1956, the holding company was required to attach the balance sheets of subsidiaries to its own financials. This requirement is no longer applicable under the 2013 Act.
The 2013 Act now requires the consolidation of financial statements of the holding company and its subsidiaries, rather than simply attaching the financials of subsidiaries.
Conclusion:
The new provision for reporting by the holding company regarding its subsidiaries is found in Section 129(3) and Section 137 of the Companies Act, 2013.
Section 129(3) requires the preparation and presentation of consolidated financial statements, including the financial statements of subsidiary companies.
If the subsidiary financials are not available, the company is required to explain why the financials were not included in the consolidated report.
Section 137 mandates filing these consolidated statements with the Registrar of Companies (ROC).
The holding company can still proceed with its AGM and file its financial statements, but it should disclose reasons for the non-availability of the subsidiary's financial statements if applicable.
Here's how the reporting works under the 2013 Act:
1. Section 129(3) - Financial Statements of Subsidiaries (Consolidated Financial Statements):
Under the Companies Act, 2013, Section 129 requires a holding company to prepare consolidated financial statements (CFS) along with its own individual financial statements. These consolidated statements must include the financials of the subsidiary companies.
Section 129(3) provides that a holding company must present consolidated financial statements as per the prescribed accounting standards, unless the holding company is exempt from consolidation under specific provisions.
If the holding company does not include the financial statements of its subsidiary in the consolidated financials, it is required to provide a separate statement detailing why such subsidiaries are excluded, and this should be approved by the Board of Directors.
However, if the subsidiary's financials are unavailable, the Board must explain why they are unable to consolidate them.
2. Section 137 - Filing of Financial Statements with ROC:
Once the consolidated financial statements are prepared, they must be filed with the Registrar of Companies (ROC) under Section 137.
The financial statements, including those of subsidiaries, must be filed within 30 days from the date of the AGM.
If a subsidiary company fails to provide its financials to the holding company, and the consolidated financial statements are incomplete, the holding company must file a statement explaining the reason for this non-compliance with the Registrar of Companies (ROC).
3. Exemptions for Small Companies or Non-Reporting:
Under the Companies Act, 2013, there are certain exemptions for small companies or companies that qualify for certain criteria to not prepare consolidated financial statements. These exemptions can be granted in specific cases, such as for foreign subsidiaries or when the subsidiary is small in size.
In such cases, the holding company must inform the members about the non-consolidation, and this will be explained in the annual report.
Key Changes from the 1956 Act to the 2013 Act:
Under Section 212 of the Companies Act, 1956, the holding company was required to attach the balance sheets of subsidiaries to its own financials. This requirement is no longer applicable under the 2013 Act.
The 2013 Act now requires the consolidation of financial statements of the holding company and its subsidiaries, rather than simply attaching the financials of subsidiaries.
Conclusion:
The new provision for reporting by the holding company regarding its subsidiaries is found in Section 129(3) and Section 137 of the Companies Act, 2013.
Section 129(3) requires the preparation and presentation of consolidated financial statements, including the financial statements of subsidiary companies.
If the subsidiary financials are not available, the company is required to explain why the financials were not included in the consolidated report.
Section 137 mandates filing these consolidated statements with the Registrar of Companies (ROC).
The holding company can still proceed with its AGM and file its financial statements, but it should disclose reasons for the non-availability of the subsidiary's financial statements if applicable.
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