Abridges Means to shorten by omission of words without sacrifice of sense.

Abridged Director Report means the format of director report is not vast rather an abridged Director Report shall also be sufficient.

Applicability: Small Company
One Person Company (OPC)
Rules   : Companies (Accounts) Amendment Rules, 2018
MCA has introduced new Rule 8A after rule 8 under Sec 134 of CA, 2013
Section : Section 2(62) of the Companies Act, 2013 defines One Person Company as a company which has only one person as a member.
Section 134(3) of the Companies Act, 2013 mandates that a report by Board of Directors shall be attached with Financial Statements of every Company.

Rule 8 shall not apply on the OPC and Small Company

Rule 8A : As per rule 8A “Matters to be included in Board’s Report for One Person Company and Small Company as per notification dated 31st July,2018 [G.S.R. 725(E) ]

The Board’s Report of One Person Company and Small Company shall be prepared based on the stand-alone financial statement of the company, which shall be in abridged form and contain the following:

a) the web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed;

b) number of meetings of the Board;

c) Directors’ Responsibility Statement as referred to in sub-section (5) of section 134;

d) details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government;

e) explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report;

f) the state of the company’s affairs;

Abridged Director Report for Small Company and OPC

g) the financial summary or highlights;

h) material changes from the date of closure of the financial year in the nature of business and their effect on the financial position of the company;

i) the details of directors who were appointed or have resigned during the year;

j) the details or significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company’s operations in future.

The Report of the Board shall contain the particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the Form AOC-2. 

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Author – CS Jyoti Gohil, Company Secretary in Employment in Ahmadabad, Gujarat.

Disclaimer:  The whole article has been written with all reference to such relevant provisions and rules of respective act. I have been taken all accuracy for reliability of content also as per my knowledge. Therefore, Users of this information are expected to refer to the relevant existing provisions of applicable Laws. I assume no responsibility for the consequences of the use of such information

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