---
title: "Edition No. 9 | 14 July 2026 | BNPS and Associates LLP"
url: "https://bnpsca.com/insight/edition-no-9-14-july-2026"
description: "KEY HIGHLIGHTS: - NFRA confirms it has begun examining Rajesh Exports\' statutory auditors; MCA in advanced talks on notifying revised SA 600 making group aud..."
---

# Edition No. 9 \| 14 July 2026

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

 ![Edition No. 9  |  14 July 2026](https://imageproxy.inlancer.in/pr:sharp/f:webp/rs:fit:1200:0/g:sm/plain/https://bnpsca.com/public/assets/upload/images/original/6a7c1cd88d025-Images-9.jpeg)14-07-2026

KEY HIGHLIGHTS:

 - NFRA confirms it has begun examining Rajesh Exports' statutory auditors; MCA in advanced talks on notifying revised SA 600 making group auditors responsible for consolidated opinions - reassess component-auditor documentation now.

 - Labour Ministry notifies EPF, EPS and EDLI Schemes, 2026 under the Social Security Code, effective June 29 - payroll and ICFR processes must be re-mapped to new scheme names and 20-day claim timelines.

 - MCA mandates TReDS for all CPSE-MSME invoice settlements, with a fresh statutory auditor certification requirement each year - CPSE audit programmes should build this in for FY27.

  **—** **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* | *The Rajesh Exports matter is no longer only a company-specific enforcement action — it is now the proximate cause for one of the most consequential audit-framework changes India has considered in years. NFRA has confirmed its examination of the statutory auditors is underway, while MCA moves toward notifying a revised SA 600 that would make group auditors ultimately responsible for consolidated opinions, including reliance placed on component auditors. ICAI's continuing objection is understandable on feasibility grounds, but the direction is unmistakable: 'mechanical reliance' on component-auditor work — the phrase NFRA has used in citing the Reliance Capital, DHFL and Coffee Day precedents — is losing its defensibility. Group engagement teams should not wait for notification to strengthen component-auditor oversight and documentation.* |
|---|---|

**—** **TOP DEVELOPMENTS**

**01** **AUDIT & ASSURANCE**

**MCA Moves Toward Notifying Revised SA 600 as NFRA Confirms Rajesh Exports Auditor Examination**

**WHY IT MATTERS** *NFRA has confirmed it has begun examining Rajesh Exports' statutory auditors following SEBI's revenue-misstatement finding, and the case is accelerating a two-year-old proposal to make group auditors legally responsible for consolidated opinions, including component-auditor work.*

In its interim order of June 3, 2026, SEBI held that Rajesh Exports had prima facie misstated revenue attributable to overseas subsidiaries across FY 2020-21 to FY 2024-25, and referred the statutory auditors to NFRA. NFRA Chairperson Nitin Gupta confirmed on July 7, 2026 that examination has begun. MCA is separately in advanced consultation on NFRA's proposed revised SA 600, recommended in November 2024 and covering an estimated 17,450 listed groups, which ICAI continues to oppose.

| **PRACTICAL IMPLICATION** Statutory auditors of listed groups and their subsidiaries should reassess component-auditor reliance and documentation now, ahead of notification. Audit committees should test whether current group-audit instructions already meet the 'ultimate responsibility' standard the revised norm will impose. |
|---|

**02** **LABOUR LAW & PAYROLL COMPLIANCE**

**Labour Ministry Notifies EPF, EPS and EDLI Schemes, 2026 Under the Code on Social Security — Effective Immediately**

**WHY IT MATTERS** *The Code on Social Security, 2020 has begun operational rollout for provident fund, pension and deposit-linked insurance, replacing decades-old schemes with effect from the date of notification — a direct compliance event for every employer's payroll and statutory-return systems.*

By notifications including G.S.R. 526(E) dated June 29, 2026, the Ministry of Labour and Employment notified the EPF Scheme 2026, EPS 2026 and EDLI Scheme 2026, effective the same date. Contribution rates are unchanged — 12% each for EPF, 0.5% of wages for EDLI — but claim settlement is now bound to a 20-day timeline, and the framework mandates electronic contribution payment, online return filing and Aadhaar-enabled digital claims processing.

| **PRACTICAL IMPLICATION** Finance and HR-payroll teams should confirm statutory registers, employer-contribution workflows and return-filing systems are re-mapped to the 2026 schemes before the next payroll cycle. ICFR walkthroughs covering payroll and retirement-benefit processes should be updated to reference the new scheme names and timelines. |
|---|

**03** **CORPORATE COMPLIANCE**

**MCA Extends CCFS-2026 to August 31 and DPT-3 to July 31, Citing Data-Centre Fire Restoration**

**WHY IT MATTERS** *Two successive MCA filing-deadline extensions within a month, both attributed to the same June 5, 2026 data-centre fire, point to an infrastructure dependency that compliance calendars should now treat as a recurring risk rather than a one-off.*

General Circular No. 03/2026 dated July 8, 2026 extends the Companies Compliance Facilitation Scheme, 2026 — under which companies may regularise pending annual filings (MGT-7, AOC-4, ADT-1 and related forms) at 10% of additional fees, or seek dormant status — from July 15 to August 31, 2026. General Circular No. 02/2026 had earlier extended the Form DPT-3 (Return of Deposits) due date to July 31, 2026, without additional fees.

| **PRACTICAL IMPLICATION** Companies with pending back-filings should use the extended window to close compliance gaps at reduced fees before year-end scrutiny. Company secretaries should build MCA21 portal downtime into filing-risk assessments rather than treating statutory due dates as fixed. |
|---|

**04** **MSME & PUBLIC SECTOR**

**Government Mandates TReDS for All CPSE-MSME Invoice Settlements, With Statutory Auditor Certification**

**WHY IT MATTERS** *The MSME Ministry has made routing of all CPSE payments to MSME suppliers through RBI-authorised TReDS platforms a statutory requirement, backed by a fresh annual audit-certification obligation, converting supplier-payment discipline into a reportable audit assertion rather than a policy aspiration.*

By notification dated June 30, 2026, issued under Sections 9 and 10 of the MSMED Act, 2006, the Ministry of MSME mandated all operating CPSEs to route settlement of MSME procurement invoices through an RBI-authorised TReDS platform, in line with the Union Budget 2026-27 announcement. CPSEs must disclose TReDS-routed invoice details in RBI-prescribed format and, during annual audits, obtain a statutory auditor's certificate confirming platform registration and compliance; invoice discounting itself remains optional for MSME suppliers.

| **PRACTICAL IMPLICATION** Statutory auditors of CPSEs should build TReDS-registration and compliance verification into FY27 audit programmes now. CPSE finance teams should complete platform onboarding and disclosure-format alignment with RBI well ahead of year-end to avoid a qualified certification. |
|---|

| **— THIS MATTERS MORE THAN IT APPEARS**  *Two MCA circulars within five weeks, both tracing to the same June 5 data-centre fire, are a reminder that statutory compliance now runs on infrastructure finance teams do not control. A due date is only as reliable as the portal enforcing it. Boards and company secretaries typically build filing risk around legal deadlines and penalty structures; few build it around server uptime. Where MCA21, GSTN or SEBI systems intermediate a statutory obligation, portal continuity deserves treatment as a control in its own right, with documented contingency procedures and evidence of timely attempts, not an assumption that the next extension will arrive.* |
|---|

**—** **AI WATCH**

| At its 78th Foundation Day address (July 1, 2026), ICAI highlighted the AI Innovation Summit 2026 held in New Delhi on June 26-27, where it launched the AICA Level 3 Programme and the publication 'AI Essentials for Chartered Accountants', alongside MoUs with Sarvam AI and CoRover. The Institute is moving from AI awareness to structured certification — firms should treat AICA credentials as a talent-development signal, not an optional upskilling course. |
|---|

**—** **QUOTE OF THE DAY**

| *“It takes 20 years to build a reputation and five minutes to ruin it.”*  — WARREN BUFFETT |
|---|

**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:
- [Audit Committee](#)
- [Board](#)
- [NFRA](#)
- [Ind AS](#)
- [Governance](#)
- [Risk](#)

 ![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

 Ahmedabad

 Ind AS Advisory Statutory Audit of Listed Companies ESG,BRSR

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