CORPORATE LAW UPDATE FOR THE MONTH
CORPORATE LAW UPDATE FOR THE MONTH :
MCA
MCA has notified the New Form AOC – 4 (XBRL) which shall be available for filing w.e.f today, 1st October, 2015. All Companies which are falling under the critiria as prescribed by the MCA are required to file the financials in the XBRL mode only.
The recently notified forms for annual filing were having some technical issues relating to contents and data. MCA in this regard has revised the Versions of eForms AOC-4 (Non-XBRL) (Form for filing financial statement and other documents with the Registrar) & MGT-7 (Form for filing annual return by a company) w.e.f 30th September, 2015. Only new version of the eForm will be acceptable. Stakeholders are requested to plan accordingly and ensure that you have downloaded the latest version for filing and uploading the latest version only. Form-wise date of last version change is available at on the website of MCA.
The MCA has notified the amended rules which may be called as the Companies (Management and Administration) Second Amendment Rules,2015 and shall come into force on the date of their publication in the Official Gazette. Through this amendment, Ministry has modified the contents of MGT – 7 (Annual Return under Section 92 of the Companies Act, 2013) to insert the new mandatory field relating to the Permanent Account Number (PAN) of the Company.
MCA has constituted a High Level Committee to suggest the measure for improved monitoring of Corporate Social Responsibility (CSR). The High Level Committee (HLC) has submitted its Report & have suggested various measures for improved monitoring of the implementation of corporate social responsibility policies. The HLC has recommended various methodologies for monitoring compliance by the companies, measure and process for monitoring & evaluation of CSR projects / activities through expert agencies. The HLC also recommended to increase the limit of administrative cost of 5% to 10-15% and requested the MCA to sync the provision of the CSR with Income Tax for the purpose of deduction available under various sections like Section 80G, 35A. Through this report a request is also made to the MCA to clarify the provisions w.r.t definition of Net Profit under Section 135(1) and Section 135(5) of the Companies Act, 2013.
SEBI
As per the Regulation 27(2) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which specifies that the listed entity shall submit quarterly compliance report on corporate governance in the format specified by the Board from time to time to recognised Stock Exchange(s) within fifteen days from close of the quarter. Accordingly, SEBI has released the revised format(s) for Compliance Report on Corporate Governance to be submitted to Stock Exchange (s) by Listed Entities on quarterly basis, at the end of the financial year (for the whole of financial year), and within six months from end of financial year. Further, the Compliance Reports as mentioned above and Secretarial Audit Report shall also be placed before the board of directors of the listed entity in its next meeting. This circular shall come into force with effect from 90 days of notifications of Listing Regulations i.e. September 02, 2015.
CBDT
The Central Board of Direct Taxes, in compliance to the order of Hon’ble Punjab and Haryana High Court dated 28.09.2015 & order of Hon’ble Gujarat High Court dated 29.09.2015 and in exercise of powers conferred under section 119 of the Income-tax Act, 1961 (‘Act’), has granted extension to due date returns of income to be E-filed by 30th September, 2015 upto 31st October, 2015 in cases of Income-tax assessees of the State(s) of Punjab and Haryana and Union Territory of Chandigarh & in cases of Income-tax assessees of the State of Gujarat respectively. Further the extension is subject to the outcome of any further appeal / SLP which the CBDT may file against the said judgment(s).
CBDT has issued a Press Release relating to the circulation of Fake order for extension of due date for filing of Audit report and return of Income for Assessment Year 2015-16. The fake order extends the due date for filing of audit report under section 119 of the Income-tax Act to 15 October 2015. It is clarified that the order is fraudulent. The Government has not extended the due date for filing of returns and audit report due by 30th September 2015. Tax payer and practitioners are advised not to give any credence to the fraudulent order purportedly signed by one Upmanyu Reddy.
CLB
For the purpose of exercising and discharging its powers and functions, Company Law Board has reconstituted its Mumbai Bench and all urgent and mentioning matters falling in the State of Maharashtra in CLB, Mumbai Bench shall be mentioned before the Chief Justice Shri M.M. Kumar, Hon’ble Chairman CLB on the afternoon at 2.30 p.m.on every Tuesday and Thursday at New Delh1. Further for urgent and mentioning matters falling under States(s) of Gujarat, Goa, MP, Chhattisgarh, UT of Dadar&Nagar Havelli and Daman & Diu in CLB Bench, Mumbai Bench shall be mentioned before the Shri B.S.V. Prakash Kumar, Member (Judicial) CLB on the afternoon at 2.30 p.m.on every Tuesdayand Thursday at New Delhi. This order has come into force from 28th September, 2015.
NCLT / NCLAT
In continuation of the Ministry’s circular dated 10-08-2015, the MCA has extended the last date of receipt of applications for the post of Technical Member (2 Post) in NCLAT, Judicial Member (18 Post) in NCLT and Technical Member (10 Post) in NCLT from 01-09-2015 to 28-09-2015. Those who have already applied earlier are need not required to apply again and other terms and conditions will remain the same.
RBI
RBI has decided to grant “in-principle” approval to the 10 applicants to set up small finance banks under the “Guidelines for Licensing of Small Finance Banks in the private sector” (Guidelines) issued on November 27, 2014. The “in-principle” approval granted will be valid for 18 months to enable the applicants to comply with the requirements under the Guidelines and fulfill other conditions as may be stipulated by the RBI. On being satisfied that the applicants have complied with the requisite conditions laid down by it as part of “in-principle” approval, the RBI would consider granting them a license for commencement of banking business under Section 22(1) of the Banking Regulation Act, 1949. Until a regular license is issued, the applicants cannot undertake any banking business.
RBI has modified the directions issued to the Non Banking Financial Company – Micro Finance Institutions (NBFC-MFIs) w.r.t pricing of credit by MFIs. The maximum variance between the minimum and maximum interest rate on loans cannot exceed 4 per cent as per the directions, however the Ministry of Social Justice & Empowerment, Government of India, has proposed to expand its outreach by channelizing funds through select NBFC-MFIs at lower rate of interest for the National Scheduled Castes Finance & Development Corporation (NSFDC). In order to enable NBFC-MFIs to act as channelizing agents of NSFDC, it has been decided that the condition relating to the maximum variance permitted shall not be applicable to loans extended by NBFC-MFIs against funding by NSFDC. For this, NBFC-MFIs shall maintain proper record of funds received from NSFDC and the lending out of those funds. Appropriate disclosures in this regard shall be made in the balance sheet of such NBFC-MFIs.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: info@caindelhiindia.com or call at 011-23343333
**********************************************************
If this article has helped you in any way, i would appreciate if you could share/like it or leave a comment. Thank you for visiting my blog.
Legal Disclaimer:
The information / articles & any relies to the comments on this blog are provided purely for informational and educational purposes only & are purely based on my understanding / knowledge. They do noy constitute legal advice or legal opinions. The information / articles and any replies to the comments are intended but not promised or guaranteed to be current, complete, or up-to-date and should in no way be taken as a legal advice or an indication of future results. Therefore, i can not take any responsibility for the results or consequences of any attempt to use or adopt any of the information presented on this blog. You are advised not to act or rely on any information / articles contained without first seeking the advice of a practicing professional.