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Frauds – Classification and Reporting Notification by the Reserve Bank of India November 23, 2011

Posted by Khurana Khurana & Associates LLP Chartered Accountants in Forensic Accounting & Auditing.
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RBI 2011-12/266
DBS.FrMC.BC.No.4/23.04.001/2011-12

November 21, 2011

The Chairmen & Chief Executive Officers of all
Scheduled Commercial Banks (excluding RRBs)
and All India Select Financial Institutions

Dear Sir,

Frauds – Classification and Reporting

Please refer to our letter DBS. FrMC. BC. No.1 /23.04.001/2011-12 dated July 01, 2011 forwarding the Master Circular on ‘Frauds – Classification and Reporting’.

2. Following the constitution of Financial Conglomerate Monitoring Division (FCMD) in the Department of Banking Supervision, Central Office to supervise and monitor 12 large banks in the country the names of which are given in Annex and other related developments, it has been decided to amend para 3.1.4 of Master Circular DBS. FrMC. BC. No. 1/23.04.001/2011-12 dated July 01, 2011 on ‘Frauds – Classification and Reporting’ relating to reporting of fraud cases to various offices of RBI as under:

3.1.4 a) Fraud cases involving an amount more than Rs. 1 lakh and upto Rs. 50 lakh

i) To the R.O under whose jurisdiction the branch where the fraud has taken place is located.

ii) To the R.O under whose jurisdiction the Head Office where the fraud has taken place is located.

Note: – In case the bank falls under the supervisory purview of Financial Conglomerate Monitoring Division (FCMD) (12 banks listed in the Annex.), the reporting is to be done to Reserve Bank of India, Financial Conglomerate Monitoring Division (FCMD), Department of Banking Supervision, Central office, 4th Floor, Centre 1, World Trade Centre, Cuffe Parade Mumbai-400005

in place of R.O under whose jurisdiction the Head Office where the fraud has taken place is located.

b) Fraud cases involving an amount of Rs. 50 lakh and above.

i) To the R.O under whose jurisdiction the head office where the fraud has taken place is located.

Note: – In case the bank falls under the supervisory purview of Financial Conglomerate Monitoring Division (FCMD) (12 banks listed in the Annex.), the reporting is to be done to Reserve Bank of India, Financial Conglomerate Monitoring Division (FCMD), Department of Banking Supervision, Central office, 4th Floor, Centre 1, World Trade Centre, Cuffe Parade Mumbai-400005 in place of R.O under whose jurisdiction the Head Office where the fraud has taken place is located.

ii) To Reserve Bank of India, Fraud Monitoring Cell, Department of Banking Supervision, Central office, 2nd Floor, Centre 1, World Trade Centre, Cuffe Parade Mumbai-400005

There will not be any change regarding submission of soft copy of fraud reports in FMR format to Reserve Bank of India, Fraud Monitoring Cell, Department of Banking Supervision, Central office immediately after the detection of fraud in all cases involving an amount of Rs. 1.00 lakh and above.

3. It has also been decided to amend para 3.2.6 of Master Circular DBS. FrMC. BC. No. 1/23.04.001/2011-12 dated July 01, 2011 on ‘Frauds – Classification

Yours faithfully

(A. Madasamy)
Chief General Manager


Annex

List of banks under the supervisory purview of Financial Conglomerate Monitoring Division (FCMD):

  1. State bank of India.
  2. Bank of Baroda.
  3. Bank of India.
  4. Canara Bank.
  5. Punjab National bank.
  6. Axis bank.
  7. HDFC bank.
  8. Kotak Mahindra bank.
  9. ICICI bank.
  10. Citi bank.
  11. HSBC.
  12. Standard Chartered bank.
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The Companies (Cost Audit Report) Rules, 2011 November 18, 2011

Posted by Khurana Khurana & Associates LLP Chartered Accountants in Cost Accounting.
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Cost Audit is mandatory for 14 industries.

Category 1.

Category 2.

Bulk Drugs Cement
Formulations Tyres & Tubes
Fertilizers Steel Plants
Sugar Steel Tubes and Pipes
Industrial Alcohol Paper
Electricity Industry Insecticides
Petroleum Industry  
Telecommunications  

Criteria

Criteria

1. Aggregate value of net worth exceeds Rs. 5 Cr. Or 1. Aggregate value of turnover exceeds Rs. 100 Cr. Or
2. Aggregate value of turnover exceeds Rs. 20 Cr. Or 2. Company’s equity or debt securities are listed or are in the process of getting listed whether in India or outside India.
3. Company’s equity or debt securities are listed or are in the process of getting listed whether in India or outside India.  

Compile by CMA Sukhwinder Singh

Member Audit & Assurance Team

The Companies (Cost Accounting Records) Rules, 2011 November 17, 2011

Posted by Khurana Khurana & Associates LLP Chartered Accountants in Cost Accounting.
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The Ministry of Corporate affair has prescribed by notification dated 3rd  June 2011 the cost accounting record rules for various industries and products.

These rules shall apply to every company, including a foreign company, other than company which is a body corporate governed by any special Act and also these rules shall not apply to the activities or products covered in any of the following rules,-

(a) Cost Accounting Records (Bulk Drugs) Rules, 1974

(b) Cost Accounting Records (Formulations) Rules, 1988

(c) Cost Accounting Records (Fertilizers) Rules, 1993

(d) Cost Accounting Records (Sugar) Rules, 1997

(e) Cost Accounting Records (Industrial Alcohol) Rules, 1997

(f) Cost Accounting Records (Electricity Industry) Rules, 2001

(g) Cost Accounting Records (Petroleum Industry) Rules, 2002

(h) Cost Accounting Records (Telecommunications) Rules, 2002

 

Keeping in view the above the applicability criteria is as under:-

  1. In case of a Production, processing, manufacturing, or mining activities, the  net worth as on 31st March,xxxx  (the last date of the immediately preceding financial year) exceeds Rs. 5 Cr; OR
  2. The aggregate turnover from sale/supply of all product/activities during the immediately preceding financial year exceeds Rs.20 Cr; OR
  3. The company’s equity or debt securities are listed/in the process of listing whether in India/outside India.

Compiled by

CMA. Sukhwinder Singh

Member Audit & Assurance Team