Regulatory updates

The Key Performance Indicators (KPIs) refer to the numerical measures of an issuer company’s historical financial or operational performance and financial or operational positions. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (ICDR Regulations) mandates the disclosure of such KPIs in the offer document by the issuer company under the heading ‘Basis for Issue Price’. Further, the KPIs disclosed in the offer document should be approved by the audit committee of the issuer company and also certified by the statutory auditor(s) before such disclosure is made.

In this regard, on 6 April 2023, the Institute of Chartered Accountants of India has issued the Technical Guide on Disclosure and Reporting of KPIs in Offer Documents (Technical Guide). Some of the key guidance provided in the Technical Guide includes:

• Recent amendments to the ICDR Regulations in relation to disclosure of KPIs
• Disclosure/relevance of KPIs
• Roles and responsibilities of bankers, issuer company and practitioners
• Liability for misstatement in prospectus
• Illustrative format of independent auditor’s/practitioner’s report on KPIs

To access the text of the Technical Guide, please click here

Recently, the Institute of Chartered Accountants of India (ICAI) issued the Compendium of Indian Accounting Standards (Ind AS) (Year 2023-24) – Volume I and Volume II publication (the compendium). The compendium encompasses all the amendments issued by the Ministry of Corporate Affairs (MCA) till date which are effective as of 1 April 2023.

To access the text of the compendium, please click here

Recently, ICAI released a Handbook on Disallowance of Expenses under the head Income from Business and Profession (the handbook). It provides basic knowledge and guidance on disallowance of expenses under the Income Tax Act, 1961. The handbook incorporates specific provisions for disallowance of expenses, which include:

• Section 40 – Amounts not deductible
• Section 40A – Expenses or payments not deductible in certain circumstances
• Section 43B – Certain deductions to be only on actual payment

To access the text of the handbook, please click here

Collection of tax at source (TCS) is a set of provisions requiring taxpayers to collect tax at source while collection of proceeds of sale. A complete set of provisions for prescribing situations for TCS, its rate and administrative provisions are included in this handbook.

To access the text of the handbook, please click here