Section 217(2A)(b)(ii) of Indian companies act, 1956 read with Companies (Particulars of Employees) Rules, 1975 provide that remuneration details of employees earning more than amount stipulated in the rules (currently Rs 24 lacs per annum or Rs. 2 lacs per month for those who were not in employment with the company for full financial year Notification G.S.R 288(E)) should be published in Board's report as part of Annual Report. Letters of Law in this respect
Section 217 BOARD'S REPORT.
(2A)(a) The Board's report shall also include a statement showing the name of every employee of the company who -
(i) if employed throughout the financial year, was in receipt of remuneration for that year which, in the aggregate, was not less than such sum as may be prescribed; or
(ii) if employed for a part of the financial year, was in receipt of remuneration for any part of that year, at a rate which, in the aggregate, was not less than such sum per month as may be prescribed ;
(iii) if employed throughout the financial year or part thereof, was in receipt of remuneration in that year which, in the aggregate, or as the case may be, at a rate which, in the aggregate, is in excess of that drawn by the managing director or whole-time director or manager and holds by himself or along with his spouse and dependent children, not less than two per cent, of the equity
shares of the company. (b)The statement referred to in clause (a) shall also indicate, -
(i) whether any such employee is a relative of any director or manager of the company and if so, the name of such director, and(ii) such other particulars as may be prescribed.
Explanation : "Remuneration" has the meaning assigned to it in the Explanation to section 198. Section 198 Explanation : For the purposes of this section and sections 309, 310, 311, 381 and 387, "remuneration" shall include, -
(a) any expenditure incurred by the company in providing any rent-free accommodation, or any other benefit or amenity in respect of accommodation free of charge, to any of the persons specified in sub-section (1);
(b) any expenditure incurred by the company in providing any other benefit or amenity free of charge or at a concessional rate to any of the persons aforesaid;
(c) any expenditure incurred by the company in respect of any obligation or service, which, but for such expenditure by the company, would have been incurred by any of the persons aforesaid; and
(d) any expenditure incurred by the company to effect any insurance on the life of, or to provide any pension, annuity or gratuity for, any of the persons aforesaid or his spouse or child.
Therefore, remuneration for this purpose includes
Salary, Allowances, Company’s Contribution to Provident Fund, Medical Benefits, Leave Travel Allowance & Other Perquisites and benefits valued on the basis of the provisions of Income Tax Act, 1961. But it does not include ESOPs.