Rule 8 - Matters to be included in Board’s report. - Companies (Accounts) Rules, 2014

8. Matters to be included in Board s report.- (1) The Board s Report shall be prepared based on the stand alone financial statements of the company 2 [ and shall report on the highlights of performance of subsidiaries, associates and joint venture companies and their contribution to the overall performance of the company during the period under report ] (2) 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. (3) The report of the Board shall contain the following information and details, namely:- (A) Conservation of energy- (i) the steps taken or impact on conservation of energy; (ii) the steps taken by the company for utilising alternate sources of energy; (iii) the capital investment on energy conservation equipments; (B) Technology absorption- (i) the efforts made towards technology absorption; (ii) the benefits derived like product improvement, cost reduction, product development or import substitution; (iii) in case of imported technology (imported during the last three years reckoned from the beginning of the financial year)- (a) the details of technology imported; (b) the year of import; (c) whether the technology been fully absorbed; (d) if not fully absorbed, areas where absorption has not taken place, and the reasons thereof; and (iv) the expenditure incurred on Research and Development. (C) Foreign exchange earnings and Outgo- The Foreign Exchange earned in terms of actual inflows during the year and the Foreign Exchange outgo during the year in terms of actual outflows. (4) Every listed company and every other public company having a paid up share capital of twenty five crore rupees or more calculated at the end of the preceding financial year shall include, in the report by its Board of directors, a statement indicating the manner in which formal annual evaluation has been made by the Board of its own performance and that of its committees and individual directors. (5) In addition to the information and details specified in sub-rule (4), the report of the Board shall also contain - (i) the financial summary or highlights; (ii) the change in the nature of business, if any; (iii) the details of directors or key managerial personnel who were appointed or have resigned during the year; 5 [ (iiia) a statement regarding opinion of the Board with regard to integrity, expertise and experience (including the proficiency) of the independent directors appointed during the year . Explanation .- For the purposes of this clause, the expression proficiency means the proficiency of the independent director as ascertained from the online proficiency self- assessment test conducted by the institute notified under sub-section (1) of section 150 . ] (iv) the names of companies which have become or ceased to be its Subsidiaries, joint ventures or associate companies during the year; (v) the details relating to deposits, covered under Chapter V of the Act,- (a) accepted during the year; (b) remained unpaid or unclaimed as at the end of the year; (c) whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved- (i) at the beginning of the year; (ii) maximum during the year; (iii) at the end of the year; (vi) the details of deposits which are not in compliance with the requirements of Chapter V of the Act; (vii) the details of significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company s operations in future; (viii) the details in respect of adequacy of internal financial controls with reference to the Financial Statements. 3 [ (ix) a disclosure, as to whether maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, is required by the Company and accordingly such accounts and records are made and maintained, (x) a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 [14 of 2013] ] 1 [Provided that the requirement of furnishing information and details under this sub-rule shall not apply to a Government company engaged in producing defence equipment.] 6 [ (xi) the details of application made or any proceeding pending under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) during the year alongwith their status as at the end of the financial year. (xii) the details of difference between amount of the valuation done at the time of one time settlement and the valuation done while taking loan from the Banks or Financial Institutions along with the reasons thereof. ] 4 [ (6) This rule shall not apply to One Person Company or Small Company. ] ------------ Notes:- 1. Inserted vide F. No.1/19/2013-CL-V-Part - Dated 4-9-2015 2. Substituted vide F.No. 1/19/2013-CL-V - Dated 22-7-2016 , before it was read as, and the report shall contain a separate section wherein a report on the performance and financial position of each of the subsidiaries, associates and joint venture companies included in the consolidated financial statement is presented. 3. Inserted vide F. No. 1/19/2013-CL-V-Part dated 31-07-2018 4. Inserted vide F. No. 1/19/2013-CL-V-Part dated 31-07-2018 5. Inserted vide F. No. 1/19/2013-CL-V-Part dated 22-10-2019 w.e.f. 01-12-2019 6. Inserted vide Notification No. G.S.R. 205 (E) dated 24-03-2021 w.e.f. 01-04-2021