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MCA vide Circular dated June 30, 2021 extended the timelines up to 31st August, 2021 for Companies/LLPs to file such forms (other than CHG-1, CHG-4 and CHG-9) which were/ would be due for filing  during April 01,  2021 to July 31, 2021 without payment of additional fees.

Accordingly, only normal fees shall be levied upto August 31, 2021 for above mentioned forms.

The list of 57 forms where additional fees has been waived off is also attached in the enclosed file.

CircularList of forms

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MCA vide Circular dated June 30, 2021 has further granted relief in filling of form CHG-1 and CHG-9  by a company or charge holder, where the date of creation/modification of charge:

  • is before 01.04.2021, but the timeline for filing such form had not expired u/s 77 of the Act as on 01.04.2021, or
  • falls on any date between 01.04.2021 to 31.07.2021 (both dates inclusive)

Further, the period from 01.04.2021 to 31.07.2021 shall not be reckoned for the purpose of counting the number of days for filing e-form CHG-1 and CHG-9.

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MCA has notified the accounting standards for SMCs that revise the turnover and borrowing limits as well as help in making disclosure requirements less onerous.

Under the revised SMC definition, SMCs have been defined as unlisted companies and which are not banks, financial institutions or insurance companies with a turnover not exceeding Rs. 250 crore and with no borrowings in excess of Rs. 50 crore

The increased limits are aligned with the latest definition as per the ministry of MSMEs and increase in threshold done by ICAI for non-corporate entities.

“The revised criteria will help a number of companies and will promote ease of doing business”.

Click the link below to access the Notification:

Notification

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MCA vide Notification dated March 24, 2021 amended the Schedule III to the Companies Act, 2013 to incorporate the general instructions for preparation of the balance sheet and the profit and loss account of an Ind AS compliant company along with additional disclosure requirements.

As per the amendment following Additional Disclosures are also required:

  • Disclosure of Shareholding of Promoters
  • Trade Payables ageing schedule with age 1 year, 1-2 year, 2-3 year & More than 3 years
  • Reconciliation of the gross and net carrying amounts of each class of assets
  • Trade Receivables ageing schedule with age 1 year, 1-2 year, 2-3 year & More than 3 years
  • Detailed disclosure regarding title deeds of Immovable Property not held in name of the Company.
  • Disclosure regarding revaluation & CWIP ageing.
  • Loans or Advances granted to promoters, directors, KMPs and the related parties
  • Details of Benami Property held
  • Reconciliation and reasons of material discrepancies, in quarterly statements submitted to bank and books of accounts.
  • Disclosure where a company is a declared wilful defaulter by any bank or financial Institution
  • Relationship with Struck off Companies
  • Pending registration of charges or satisfaction with Registrar of Companies
  • Compliance with number of layers of companies
  • Disclosure of 11 Ratios
  • Compliance with approved Scheme(s) of Arrangements
  • Utilisation of Borrowed funds and share premium
  • Details of transaction not recorded in the books that has been surrendered or disclosed as income in the tax assessments
  • Disclosure regarding Corporate Social Responsibility
  • Details of Crypto Currency or Virtual Currency

The above amendment shall come into force with effect from April 01, 2021

Click the link below to access the notification:

Notification

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MCA vide Notification dated March 24, 2021 broadens the scope of reporting by inserting clause e in Rule 11 which defines ‘Other Matters to be included in the Audit Report’

As per the amendment following Additional Disclosures are also required:

  • Reporting regadvances, arding loans & Investment other than disclosed in notes to accounts.
  • Receiving of funds for further lending or investing other than disclosed in notes to accounts.
  • Comment upon above 2 points whether representation made contains any material misstatement.
  • Dividend declared or paid is in compliance of section 123 of CA, 2013.
  • Comment of use of Accounting Software having Audit Trail & other rules therein.

The above amendment shall come into force with effect from April 01, 2021

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MCA vide Notification dated March 24, 2021 announced that from financial year commencing on or after April 01, 2021 every company which  uses  accounting  software  for  maintaining  its  books  of  account,  shall  use  only  such accounting  software  which  has  a  feature  of  recording  audit  trail  of  each  and  every  transaction,  creating  an edit  log  of  each  change  made in  books  of  account  along  with  the  date  when  such  changes  were  made  and ensuring that the audit trail cannot be disabled.

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MCA vide Notification dated January 22, 2021 issued Companies (Corporate Social Responsibility Policy) Amendment Rules 2021. Key takeaways are:

  • Mandatory registration of CSR Entity: Every entity which intends to undertake any CSR activity, shall register itself by filing the form CSR – 1 electronically with the Registrar, with effect from April 01, 2021. For the new projects taken w.e.f. 1st April 2021.
  • CSR Impact Assessment: Every company having average CSR obligation of Rs. 10 Crores or more as per Section 135 in the three immediately preceding financial years, shall undertake impact assessment, through an independent agency, of their CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study.
  • Carry forward and Set off- Carry Forward and Set off of Expenditure of CSR if spend in excess of the requirement as specified.
  • Transfer of unspent CSR amount to Fund: In case any company failed to spend the full CSR outlay for any financial year or any amount remained to be spent during the year, the unspent CSR amount, if any, shall be transferred by the company to any fund included in schedule VII of the Act.
  • Annual Action Plan: The CSR Committee of the Company shall formulate and recommend to the Board, an annual action plan in pursuance of its CSR policy.
  • Disclosure of CSR activities: The Board of Directors of the Company shall ensure mandatorily disclosure of the CSR activities on the website of the Company.
  • Capital asset creation and holding: CSR Expenditure may be spent for creation or acquisition or capital asset but its holding is restricted to specific entities.
  • Certification by CFO or Finance head: Chief Financial Officer or the person responsible for financial management shall certify funds of CSR have been utilized for the purposes and in the manner as approved by the Board.
  • Collaboration with Companies for CSR Expenditure: In such a manner that the CSR committees of respective companies are in a position to report separately on such projects.
  • Engagement of International Organizations for CSR Designing

Notification

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MCA has introduced a new scheme namely, “Scheme for condonation of delay for companies restored on the Register of Companies between 01 December 2020 and 31 December 2020, under section 252 of the Companies Act, 2013”. Key features are:

  • The Scheme provides to condone delay in filing forms with the Registrar, and spares payment of additional fees.
  • This Scheme will be in operation from 01st February 2021and will be available for filing of any overdue e-forms by such companies till 31st March 2021.
  • The scheme is applicable for filing of all e-forms except for the following forms: E-form SH-7 CHG-1, CHG-4, CHG-8 and CHG-9

Circular

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