Rule 9A of Companies (Prospectus and Allotment of Securities) Rules, 2014 mandates the reconciliation of share capital audit report (Half-Yearly).
Purpose: The purpose of Rule 9A of Companies (Prospectus and Allotment of Securities) Rules, 2014 is to ensure that there is proper reconciliation and audit of share capital of a company on a half-yearly basis.
Timeline: As per Rule 9A, the reconciliation of share capital audit report should be done on a half-yearly basis, i.e., once in every six months.
Penalty: Non-compliance with Rule 9A may result in penalties as per the provisions of the Companies Act, 2013. The penalty may range from a minimum of Rs. 50,000 to a maximum of Rs. 5,00,000 depending on the nature and severity of the non-compliance.
Form: The reconciliation of share capital audit report should be submitted in Form PAS-6 as prescribed under the Companies Act, 2013.
Reporting Authority: The Board of Directors of the company is responsible for ensuring compliance with Rule 9A and submitting the share capital audit report to the Registrar of Companies (ROC).
Other: The reconciliation of share capital audit report should contain details of changes in share capital during the half-year, reasons for such changes, and shareholding pattern of the company. The report should also be certified by a practicing Company Secretary or a practicing Chartered Accountant.
