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ALL OTHER APPLICABLE LAWS ON THE
COMPANY
ASHOK TYAGI
FCS-2968
9810070575
OTHER LAWS
Reference of Other Laws Section 134(5)(f) of the Companies Act, 2013 provides that
The Directors’ Responsibility Statement shall state that thedirectors had devised proper systems to ensurecompliance with the provisions of all applicable laws andthat such systems were adequate and operating effectively.
Section 205 of the Act states that
The functions of the Company Secretary shall include toreport to the Board about compliance with the provisions ofthis Act, the rules thereunder and other laws applicable tothe Company.
Format of the Secretarial Audit Report (MR-3) also talks aboutmentioning other laws as may be applicable specifically to theCompany.
CATEGORISATION OF OTHER
LAWS
GENERAL LAWS
INDUSTRY SPECIFIC LAWS
General laws are usually applicable to all Companies. Someof them are enlisted below:
Income Tax Act, 1961 and Rules made there under;
Payment of Gratuity Act, 1972;
Central Sales Tax Act, 1956 as amended from time to timeand Rules made there under;
Employees State Insurance Act, 1952 and Rules made thereunder;
The Maternity Benefit Act, 1961 and Rules made thereunder;
The Finance Act, 2004 and Service Tax Rules;
Wealth Tax Act, 1957;
Employees Provident Fund and Miscellaneous Provisions Act,1952;
Environment Laws;
Various Labour Legislations.
INDUSTRY SPECIFIC LAWS
Industry Specific Laws differ from
Industry to Industry depending upon the
area and type of work into which an
industry is operating.
Tentative List of laws applicable on
different Industries are enlisted below:
REAL ESTATE SECTOR
The Indian Contract Act, 1872;
The Transfer of Property Act, 1882;
The Indian Registration Act, 1908;
The Specific Relief Act, 1963;
The Land Acquisition Act, 1894;
The Indian Stamps Act, 1899;
The Co-operative Societies Act,1912;
Building And Other Construction Workers (Regulation OfEmployment and Conditions Of Service) Act, 1996; *
The Building And Other Construction Workers (RegulationOf Employment And Conditions Of Service) Central Rules,1998 and The Building and Other Construction Workers(Regulation of Employment and Conditions of Service)Central (Amendment) Rules, 2015; *
The Building And Other Construction Workers' Welfare Cess Act,1996.
AVIATION INDUSTRY
Aircraft Act, 1934;
Aircraft Rules, 1937;
Aircraft Public Health Rules, 1954;
Unlawful Seizure Against Safety of Civil Aviation Act, 1982;
Anti-hijacking Act, 1982;
Anti-hijacking (Amendment) Act, 1994;
Air Corporations (Transfer of undertakings and Repeal) Act,1994;
The Suppression of unlawful acts against safety of CivilAviation Act, 1982;
Aircraft Security Rules, 2011;
The Aircraft (Carriage of Dangerous Goods) Rules, 2003.
BANKING SECTOR
Reserve Bank of India Act, 1934;
The Banking Regulation Act, 1949;
The Banking Regulation (Companies) Rules, 1949;
Prevention of Money Laundering Act, 2002;
Negotiable Instrument Act, 1881;
The Bankers' Books Evidence Act, 1891;
The Banking Companies (Legal Practitioners' Clients'Accounts) Act,1949;
The State Financial Corporations Act, 1951;
The Deposit Insurance and Credit GuaranteeCorporation Act, 1961;
The Banking Companies (Acquisition and Transfer ofUndertakings) Act, 1970.
FOOD SECTOR
Essential Commodities Act, 1955 (in relation to food);
Export Quality Control and Inspection Act, 1963;
National Food Security Act, 2013;
Food Safety & Standard Act, 2006;
Food Safety and Standards Rules, 2011;
Food Safety And Standards (Packaging And Labelling)Regulations, 2011;
Food Safety And Standards (Licensing And Registration OfFood Businesses) Regulations, 2011;
Food Safety and Standards (Food Products Standards andFood Additives) Regulations, 2011;
Food Safety and Standards (Contaminants, toxins andResidues) Regulations, 2011;
Indian Fisheries Act, 1897 and Amendments till date.
POWER SECTOR
Electricity Act, 2003 & The Electricity Rules, 2005;
Indian Electricity Rules, 1956;
Energy Conservation Act, 2011;
The Central Electricity Authority (Installation andOperation of Meters) Regulations, 2006;
Central Electricity Authority (Safety requirementsfor construction, operation and maintenance ofelectrical plants and electric lines) Regulations,2011;
Central Electricity Authority (Technical Standardsfor Construction of Electrical Plants and ElectricLines) Regulations, 2010.
OIL AND GAS SECTOR
Petroleum And Natural Gas (Safety In Offshore Operations)Rules, 2008;
THE PETROLEUM ACT, 1934*;
PETROLEUM RULES, 1976 AND AMENDMENTSTHERETO* ;
The Petroleum Amendment Act, 2011;
THE Oilfields (Regulation And Development) Act, 1948;
The Petroleum Mineral Pipelines (Acquisition Of Right OfUser In Land) Act, 1962;
The Oil Industry (Development) Act, 1974;
THE Petroleum And Natural Gas Rules, 1959 AndAmendments thereto;
The Petroleum & Natural Gas Regulatory Board Act, 2006Oil Fields (Regulation And Development) Act, 1948.
DETAILED DISCLOSURES
PETROLEUM ACT, 1934 &
Rules, 2002Rule 14 of Petroleum Rules, 2002
License for import of Petroleum
Petroleum, other than petroleum which
may be stored without a license under
Sections. 7, 8 and 9 of the Act, shall not be
imported into India except under a
license granted under these rules.
Inclusion in AUDIT REPORT
Whether the Company has taken
appropriate License or not?
Rule 20 of Petroleum Rules, 2002
Permission of Collector of Customs to land
petroleum- (Imported by sea)
No imported petroleum shall be landed except withthe permission of the Collector of Customs.
If the Collector of Customs after receiving(a) of the testing officer's report on the petroleum;(b) the certificate of storage accommodation in Form11 if required under rule 19;
The license or an authenticated copy of the license ifrequired under rule 19,and after making such further enquiries as he deemsnecessary, is satisfied that the petroleum can belawfully imported and that there is suitableaccommodation for it, he shall permit it to be landed.
If the Collector of Customs is satisfied that anypetroleum imported otherwise than in bulk is notintended to be stored in India but is intended tobe dispatched immediately after landing to anyplace outside India, he may waive therequirements of rules 14 and 19 and by writtenorder permit subject to such conditions as hemay specify such petroleum to be landed for thepurpose of immediate dispatch to that place.Nothing in this rule shall affect the power of theCollector of Customs to detain the petroleumunder any other law or rule for the time being inforce.
Inclusion in AUDIT REPORT
Whether the required permission
under the Act from the Collector has
been taken or not?
Section 27 of the Petroleum Act, 1934
Notice of accidents with petroleum Whenever there occurs in or about, or in connection with,any place in which petroleum is refined, blended or kept, orany carriage or vessel either conveying petroleum or on orfrom which petroleum is being loaded or unloaded, anyaccident by explosion or by fire as a result of the ignition ofpetroleum or petroleum vapour attended with loss of humanlife or serious injury to person or property, or of adescription usually attended with such loss or injury, theoccupier of the place or the person for the time being incharge of the petroleum or the person in charge of thecarriage or the master of the vessel, as the case may be, shall,within such time and in such manner as may be prescribed,give notice thereof and of the attendant loss of human life, orinjury to person or property, if any, to the nearest Magistrateor to the officer-in-charge of the nearest police station andto the Chief Controller of Explosives.
Rule199 of Petroleum Rules, 2002
Notice of accidentThe notice of an accident required to be given under Sec. 27 of the
Act shall be given forthwith-
(a) to the Chief Controller by telegram (Telegraphic address-"EXPLOSIVES", NAGPUR) followed with 24 hours by a letter givingparticulars of the occurrence, and
(b) to the officer-in-charge of the nearest police station by thequickest means of communication.
Pending the visit of the Chief Controller or his representative, oruntil instruction is received from the Chief Controller that he doesnot wish any further investigation or inquiry to be made, allwreckage and debris shall be left untouched except in so far as itsremoval may be necessary for the rescue of persons injured andrecovery of the bodies of any persons killed by the accident or inthe case of railways for the restoration of through communication
Inclusion in AUDIT REPORT
Whether the notice relating to details
regarding the accidents caused has been
given to the nearest Police Station or
not?
Rule 33 of Petroleum Rules, 2002
Required valid license for carriage
of petroleum in bulk by water
Petroleum in bulk shall not be carried bywater except in a ship or other vessellicensed for the carriage of petroleum inbulk by an officer appointed by the centralGovernment in this behalf(hereinafter in thisPart referred to as the licensing authority)and in such manner as may be approved bygeneral or special order by the licensingauthority after consultation with the ChiefController:
Provided that-
(a) nothing in this rule shall apply to shipsimporting petroleum;
(b) petroleum in tank vehicles may, with thepermission, in writing, of the ChiefController and subject to such conditionsas he may specify, be transported across ariver by a ferry.
The license referred to in sub-rule (1)shall be granted in Form III, and shallremain in force for a period of one yearfrom the date of its issue.
Inclusion in AUDIT REPORT
Whether the adequate licenses have
been taken or not?
Rule 89 of Petroleum Rules, 2002
Approval of the design and route of
the pipeline
No pipeline shall be laid without the priorwritten approval of the Chief Controller ofthe route of the pipeline, and of the design,construction and working thereof.
Where the approval of the Chief Controlleris sought for the laying of a pipeline, theperson desirous of laying the pipeline shallsubmit to be Chief Controller-
(i) a comprehensive project report, accompanied byall necessary drawings, calculation givingreferences to recognized code or codes followed,giving full details of the design, construction andtesting of the pipeline and its components; theroute along which the pipeline will be laid and themanner of laying; the class or classes of petroleumproposed to be transported in the pipeline andprovisions proposed to be made for themaintenance and patrolling of the pipeline;
(ii) a scrutiny fee of rupees two hundred
Inclusion in AUDIT REPORT
Whether the approval of the design and
route of the pipeline has been taken
from the Chief Controller or not?
Building And Other Construction
Workers (Regulation Of Employment
and Conditions Of Service) Act, 1996
Section 30(1) of Building and other construction workers(Regulation of Employment and Conditions of Service) Act, 1996
(1) Every employer shall maintain such registers and records givingsuch particulars of building workers employed by him, the workperformed by them, the number of hours of work which shallconstitute a normal working day for them, a day of rest in everyperiod of seven days which shall be allowed to them, the wagespaid to them, the receipts given by them and such otherparticulars in such form as may be prescribed.
The Building And Other
Construction Workers (Regulation
Of Employment And Conditions Of
Service) Central Rules, 1998Rule 241(1) provides:
Every employer shall, in respect of each work on which he employs building workers,
maintain--
(a) muster-roll and a register of wages in Form XVI and Form XVII, respectively,
annexed to these rules:
Provided that a combined register of wage-cum-muster roll in Form XVIII, annexed
to these rules shall be maintained by the employer where the wage period for such
building worker is a fortnight or less;
(b) a register of deductions for damage or loss, register of fines and register of
advances in Form XIX, Form XX and Form XXI, respectively, annexed to these rules;
(c) a register of overtime in Form XXII annexed to these rules, for recording therein
the number of hours of, and the wages paid for, overtime work, if any.
Inclusion in AUDIT REPORT
Whether adequate registers of workers
have been maintained under the Act?
Section 38 of Building And Other
Construction Workers (Regulation
Of Employment and Conditions Of
Service) Act, 1996(1) In every establishment wherein five hundred or morebuilding workers are ordinarily employed, the employer shallconstitute a Safety Committee consisting of such number ofrepresentatives of the employer and the building workers as maybe prescribed by the State Government:
Provided that the number of persons representing the workers,shall, in no case, be less than the persons representing theemployer.
(2) In even, establishment referred to in sub-section (1), theemployer shall also appoint a safety officer who shall possesssuch qualifications and perform such duties as may beprescribed.
Section 44 of Building And Other
Construction Workers (Regulation
Of Employment and Conditions Of
Service) Act, 1996
An employer shall be responsible forproviding constant and adequate supervisionof any building or other construction workin his establishment as to ensure compliancewith the provisions of this Act relating tosafety and for taking all practical stepsnecessary to prevent accidents.
Rule 208 of the Building And Other
Construction Workers (Regulation Of
Employment And Conditions Of
Service) Central Rules, 1998
Every establishment wherein five hundred or morebuilding workers are ordinarily employed, there shallbe a Safety Committee constituted by the employerwhich shall be represented by equal number ofrepresentatives of employer and building workersemployed in such establishment. In no case thenumber of representatives of the employer shallexceed the representatives of building workers. TheCommittee shall be represented by representatives ofthe recognized unions wherever such unions exist.
Rule 209 of the Building And Other
Construction Workers (Regulation
Of Employment And Conditions Of
Service) Central Rules, 1998
In every establishment wherein five hundred
or more building workers are ordinarily
employed, the employer shall appoint safety
officers as per the scale laid down in
Schedule VIII annexed to these rules. Such
safety officers may be assisted by suitable
and adequate staff.
Inclusion in AUDIT REPORT
Whether necessary facilities have beenprovided by the employer to ensure safetyof workers and prevent accidents?
Where more than 500 building workers areemployed, whether the employer hasconstituted a Safety Committee andappointed a Safety Officer with desiredqualification?
Rule 73 of the Building And Other
Construction Workers (Regulation Of
Employment And Conditions Of
Service) Central Rules, 1998
The employer shall ensure at a construction
site of a building or other construction work
that a competent person issues a certificate
for the purpose of rule 56, rule 62, rule 71
and rule 72 only after actual testing or, as the
case may be, examination of the apparatus
specified in the said rules.
Inclusion in AUDIT REPORT
Whether such Certificate of Testing
and Examination has been obtained
on time or not?
