NEW DELHI: The corporate affairs minister Murli Deora has relaxed the accounting norms for corporate firms in India. The minister has made announcement for corporate rules relaxation while addressing a press conference in New Delhi on corporate accounting issues.
Deora has said that the corporate firms listed with any of the stock exchanges of India are free to fix and file accounts for their management. He has also said that even unlisted enterprises, earning no or inadequate profits, need not seek government’s approval to fix and provide finalised salary to their chief executive officer (CEO) and other professionals in company’s top management. He said, however, these exempted unlisted companies are required to attain their shareholders’ approval to finalise the salary of top officials.
Deora has also decided to exempt parent companies for attaching separate documents with their annual financial reports providing information on the financial accounts of their subsidiaries. He said that companies working in sectors like space, export-oriented units, airlines, defence, hotels and trading, research and shipping need not provide quantity-related information to the government.