Provisions in the new Companies Act being slashed by more than half

New Delhi, July 2 (UNI) Corporate Affairs Minister Prem Chand Gupta today said that the new Companies' Bill to be introduced in the Monsoon Session of Parliament will be business friendly and simplified with its provision being slashed by more than half.

''The present Act has a total of 786 provisions but these will be brought down by more than half. Early next year, new Companies' Act will be place,'' Mr Gupta said while giving away the ICWAI National Award for Excellence in Cost Management 2006 here.

The Minister said that his Ministry has taken up a broad ranging programme of reform in the corporate sector.

The programme involves the reform of the professional Councils of Chartered Accountants, Cost and Works Accountants and Company Secretaries, the implementation of the e-Governance through setting up of an electronic registry for companies through MCA-21, the Notification of Accounting Standards, the preparation and introduction of a Bill to provide for Limited Liability Partnerships (LLP) and comprehensive reform of the Companies Act, Mr Gupta informed.

Lauding the role of the Institute of Cost and Works Accountants of India (ICWAI) for instituting an award for Cost Management, Mr Gupta said that ''we have to be aware of the global trends, changes in prices and technology. We have to work out our own practices for measurement and comparison of costs so that standards of economy and efficiency are maintained.'' He said the ICWAI has an important role to play in enabling cost consciousness and competitiveness in the industry by keeping abreast of the changing technology and operational practices so that it could work out standard costs for different types of industrial activity.

It will be important to ensure that the standards are prepared keeping in view the international trends and after a process of consultation with experts, trade and industry. In the process, it will be useful to also review the existing standards so that they can be made up to date, he added.

India is now emerging as a manufacturing centre for a number of industrial goods. The quality of Indian goods is steadily improving.

There is strong competition faced by Indian goods from China and South-East Asia.

He said the process of reform is in fact a never ending one.

Along with the reform of the professional Councils, ''we have also taken up a new initiative for regulation of valuation profession,'' the Minister said and added that valuation is an important area where professionals from various fields can play an important role.

Mr Gupta said, however, the corporate sector in India is expanding. The demand for such services has also increased. In fact, there is a shortage of corporate professionals emerging. The professional Councils must gear up to meet this challenge.

The members of professional bodies have to provide their services to ensure better compliance of the law. It is also to be seen that the compliance with statutory provisions, while protecting the interests of all stakeholders, in particular the small stakeholders, does not invite burdensome exercise and excessive cost, the Minister said.

Mr Gupta asked all the three Councils to discharge their responsibilities with firmness as well as professional excellence, fairness, transparency and accountability.

UNI