---
title: "Edition No. 13 | 12 August 2026 | BNPS and Associates LLP"
url: "https://bnpsca.com/insight/edition-no-13-12-august-2026"
description: "KEY HIGHLIGHTS: • Parliament clears the MSMED (Amendment) Bill, 2026 (RS 3 Aug, LS 7 Aug): mandatory TReDS settlement by CPSEs, statutory permanence for Udya..."
---

# Edition No. 13 \| 12 August 2026

Written by: **[CA Chintan Patel](https://bnpsca.com/partner/ca-chintan-patel)** \| Topic: **Board Members**

 ![Edition No. 13  |  12 August 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:1200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7c0c6099a35-Images-4.jpeg)12-08-2026

KEY HIGHLIGHTS:

 • Parliament clears the MSMED (Amendment) Bill, 2026 (RS 3 Aug, LS 7 Aug): mandatory TReDS settlement by CPSEs, statutory permanence for Udyam, fixed dispute-resolution timelines, recovery as arrears of land revenue, and decriminalisation of disclosure defaults.

 • ED files two PMLA prosecution complaints (8 Aug 2026) against Reliance Infrastructure, Reliance Communications, RTL and former group executives; alleged proceeds of crime in the RCom-linked matter approx Rs. 40,185 crore. Allegations remain untested.

 • GSTN puts the proposed e-Way Bill and e-Invoice API enhancements on hold indefinitely (advisory 29 July 2026) and is withdrawing the June advisories and 2 July FAQs

  **—** **CHINTAN'S PERSPECTIVE**

| ![](https://bnpsca.com/public/assets/upload/images/original/6872083e8d605-11.png)  **Chintan N. Patel**  Partner – Financial Reporting & Advisory  *B N P S And Associates LLP* | *Parliament cleared the MSMED amendments this week, NFRA moved a global Ind AS alignment forward, and the IAASB opened audit evidence itself for reconsultation. Read alongside the Enforcement Directorate's prosecution complaints against two listed Anil Ambani group companies, the week's theme is enforcement machinery being assembled around disclosures that already exist. MSME dues, related-party flows and export documentation have long been disclosable. What is changing is the number of independent places the same fact now surfaces — TReDS, Udyam, e-invoicing, AIS. Preparers who treat a disclosure as discharged once it appears in the notes are working from an outdated model. Reconciliation across systems is becoming the substantive control.* |
|---|---|

**—** **TOP DEVELOPMENTS**

**01** **IND AS & FINANCIAL REPORTING**

**NFRA Recommends Ind AS 21 Amendments on Translation to a Hyperinflationary Presentation Currency for Notification**

**WHY IT MATTERS** *An Ind AS change India is adopting for global alignment rather than domestic need — NFRA's own record note says so, which is a useful precedent for how convergence items should be triaged.*

At its 24th meeting on 10 July 2026, the record note of which was published on 4 August 2026, NFRA decided to recommend to the Central Government the ICAI proposal amending Ind AS 21, The Effects of Changes in Foreign Exchange Rates — Translation to a Hyperinflationary Presentation Currency — with consequential changes to Ind AS 29 and editorial changes to Ind AS 1, Ind AS 101 and Ind AS 28. The amendments would apply to annual reporting periods beginning on or after 1 April 2027.

| **PRACTICAL IMPLICATION** Groups with subsidiaries or branches in hyperinflationary economies should scope the impact now. MCA notification is still awaited; the recommendation is not itself law. |
|---|

**02** **AUDITING STANDARDS**

**IAASB Proposes Revisions to ISA 330, ISA 500 and ISA 520, Redefining Audit Evidence for a Digital Environment**

**WHY IT MATTERS** *A revised definition of audit evidence and strengthened requirements on the relevance and reliability of information used will eventually flow into the corresponding Standards on Auditing.*

The IAASB released the package on 5 August 2026 — ED-330 (The Auditor's Responses to Assessed Risks), ED-500 (Audit Evidence) and ED-520 (Analytical Procedures). The proposals revise the definition of audit evidence for a digital environment, emphasise the intended purpose of audit procedures, strengthen evaluation of the relevance and reliability of information used, and reinforce professional scepticism throughout the audit. The IAASB has deliberately chosen a principles-based rather than technology-specific approach. Comments are due by 15 December 2026.

| **PRACTICAL IMPLICATION** Firms should test ED-500 against how they currently document information produced by the entity and externally sourced data, and consider responding through ICAI's Auditing and Assurance Standards Board. |
|---|

**03** **CORPORATE LAW & MSME**

**Parliament Clears the MSMED (Amendment) Bill, 2026, Mandating TReDS Settlement by CPSEs and Decriminalising Disclosure Defaults**

**WHY IT MATTERS** *Delayed-payment enforcement moves to hard statutory timelines and land-revenue recovery, while the buyer's failure to disclose unpaid MSME dues in its accounts is decriminalised.*

Introduced in the Rajya Sabha on 28 July 2026, the Bill was passed by that House on 3 August and by the Lok Sabha on 7 August 2026. It gives statutory permanence to the Udyam registration portal, requires all central public sector enterprises to settle MSME invoices through TReDS, introduces online dispute resolution with fixed timelines — mediation within 90 days, referral to arbitration within 30 days, award within 90 days — permits recovery of awards as arrears of land revenue, and replaces conviction-based fines with graded civil penalties.

| **PRACTICAL IMPLICATION** Buyers should re-examine Section 22 disclosure controls and MSME vendor master accuracy. Suppliers to CPSEs and their auditors should factor TReDS settlement into receivable ageing and cut-off testing. |
|---|

**04** **ENFORCEMENT & FRAUD RISK**

**ED Files Two PMLA Prosecution Complaints Against Reliance Infrastructure, Reliance Communications and Former Group Executives**

**WHY IT MATTERS** *The alleged mechanisms — shell entities operated on forged documents, and outward remittances against over-valued export invoices — are precisely the patterns fraud-risk procedures are designed to detect.*

On 8 August 2026 the Enforcement Directorate filed prosecution complaints before special PMLA courts in Delhi: one at Dwarka against Reliance Infrastructure Limited, former group executive Sateesh Seth and others, arising from a Mumbai Police Economic Offences Wing FIR; and a supplementary complaint at Rouse Avenue naming Reliance Communications Limited, RTL and former executives including Sateesh Seth, Gautam Doshi and Amitabh Jhunjhunwala. Alleged proceeds of crime in the RCom-linked investigation are quantified at approximately ₹40,185 crore. The allegations remain untested and no finding of guilt has been recorded.

| **PRACTICAL IMPLICATION** Audit committees should revisit fraud-risk assessment wherever export documentation, counterparty due diligence and outward remittance approval are concentrated in few hands. |
|---|

**05** **GST ADMINISTRATION**

**GSTN Places the Proposed e-Way Bill and e-Invoice API Enhancements on Hold Indefinitely and Withdraws Its Earlier Advisories**

**WHY IT MATTERS** *This is a withdrawal rather than a further deferral — the underlying advisories and FAQs are being removed from the portal and no revised implementation date has been announced.*

By advisory dated 29 July 2026 on the GST portal, GSTN kept on hold the enhancements notified through its advisories of 9 and 17 June 2026 — mandatory Ship-to GSTIN validation in the e-Invoice and e-Way Bill by IRN APIs, and the proposed e-Way Bill closure facility — which were to have applied from 1 August 2026. Stakeholders were told that no production changes are required. The June advisories and the FAQs of 2 July 2026 are being withdrawn. Obligations under Rule 138 are unaffected.

| **PRACTICAL IMPLICATION** ERP changes built to the June specification should be held in test rather than deployed. Our 4 August issue reported the 1 August effective date and is corrected accordingly. |
|---|

| **— THIS MATTERS MORE THAN IT APPEARS**  *The MSMED amendments decriminalise a buyer's failure to disclose unpaid MSME dues and interest in its annual accounts: conviction and fine give way to a warning, then a penalty, then a fine. Auditors have long used that criminal exposure as leverage where management resists the Section 22 disclosure that flows into Schedule III and CARO. That leverage weakens. Simultaneously, mandatory TReDS settlement by central public sector enterprises places the same payment data before the buyer's bankers independently. The disclosure becomes easier to under-report and harder to hide. Reconcile to the platform rather than rely on the penalty.* |
|---|

**—** **AI WATCH**

| The AI-Native Firm Advantage Report from KPMG, Baker Tilly and Fieldguide, reported on 11 August 2026, surveyed roughly 400 audit and advisory leaders and found the profession split almost evenly — 51% 'active deployers' who have rebuilt workflows around AI, 49% 'casual users'. The finding that matters is not the split but its cause: 87.3% of active deployers formally redesigned roles and team structures. Value followed operating-model change, not tool purchase. |
|---|

**—** **QUOTE OF THE DAY**

| *“Accountability breeds response-ability.”*  — STEPHEN R. COVEY |
|---|

**ABOUT BNPS**

B N P S And Associates LLP is a firm of Chartered Accountants having offices at Ahmedabad, Bengaluru, Raichur, Rajkot. The firm provides professional services in the areas of audit, assurance, financial reporting, taxation, risk advisory, due diligence and related professional services. For details refer, [www.bnpsca.com](http://www.bnpsca.com).

**Disclaimer:** This publication is intended solely for informational purposes and should not be construed as professional advice. Readers should seek professional guidance before acting on any information contained herein.

- Tags:
- [MSME](#)
- [NFRA](#)
- [Board Members](#)
- [Audit Committee](#)
- [IFRS](#)
- [Ind AS](#)

 ![CA Chintan Patel](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6872083e8d605-11.png)About the Author

#### CA Chintan Patel

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 Ind AS Advisory Statutory Audit of Listed Companies ESG,BRSR

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