Know Your Client (KYC) Norms for PCS



KNOW YOUR CLIENT (KYC) NORMS

Client Information as well as due diligence on clients has become a necessity for professionals in today’s complex business scenario. Such an exercise can be made possible in a structured way. Many professional bodies today advise their members to have KYC about their clients so that professionals can freely exercise and deliver their professional services in the best suited way.

However, these norms are recommendatory in nature and every Company Secretary in Practice carrying out attestation function is encouraged to follow them.

1

Client Information

(a)     

Name of Entity

(b)    

CIN / Registration No.

(c)     

Date of Incorporation / Registration No.

(d)    

Type of Entity

(e)     

Business Description

(f)     

Address of Registered Office

(g)    

Address of Corporate Office

(h)    

Address(es) of Branch Office(s)

(i)      

PAN No. and Name & Address of Income Tax Circle

(j)      

Email id

(k)    

Telephone No (s)

(l)      

Fax No (s)

(m)  

Banker(s) of the Entity

(n)

Major Client customers information

2

Corporate Structure

(a)   

Shareholding pattern (with details of holding of more than 25%)

(b)  

Name of parent company

(c)   

Name of subsidiaries

(d)  

Details of Chain holding , if any

(e)   

Details of associate / JVs

3.

Permissible Business information as per Memorandum of Association

4.

Board Structure/ Organization Structure

5.

Transaction with Business entities in which Directors are interested

6.

Details of Loans and Guarantees

Details of Loans and Guarantees in which director(s) are interested

7.

Creation, modification and satisfaction of charges

8.

FOREX Exposure and overseas borrowings

9.

Payment status of statutory dues and arrears

10.

Name of the CEO ,CFO & Company Secretary

11.

Engagement Information

(a)

Details of assignment proposed by the Entity

12.

Proceedings against the company or any of its director

(a)     

Details of proceedings pending or commenced, etc.

(b)    

Details of prosecution, if any, pending or commenced or resulting in conviction in the past against the director and /or the company or its parent company or any of its subsidiaries

(c)     

Details of criminal prosecution, if any, pending or commenced or resulting in conviction in the past against the director

(d)    

Whether any of the director(s) of the company attracts any of the disqualifications envisaged under Section 274 of the Companies Act, 1956?

(e)     

Has any director and /or the company or its parent company or any of its subsidiaries at any time been found guilty of violation of rules / regulations / legislative requirements by customs / excise / income tax / foreign exchange / other revenue authorities, if so give particulars

(f)

Whether any director at any time has come to adverse notice of a regulator such as SEBI, RBI, IRDA, MCA

( g)

Default in repayment of Public Deposits and unsecured loans debentures, loans from banks , financial institution

6

Other Information

(a)     

Details of last IPO/FPO/Rights Issue 

(b)    

Name, address and CoP No. of Statutory Auditor

(c)     

Name, address and CoP No. of Secretarial Auditor

7

Undertaking to be obtained from the client

I confirm that the above information is to the best of our knowledge and belief true and complete. I undertake to keep the PCS informed, as soon as possible, of all event which take place subsequent to his engagement which are relevant to the information provided above.

Place:

Date:

For…………

Signature of client

8

Remarks (if any)

Min. Annexure to be given:

(a)   Annual Report

(b)   AoA and MoA

(c)    Details of any major tie-up arrangements

***********




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