Ajay K. Ratra Blog
Ajay K. Ratra Blog
Ministry of Corporate Affairs (MCA) has made the changes in Schedule III to the Companies Act, 2013 wef 1st April 2021 to ensure more transparency. Schedule III contains the general instructions for preparation of Balance Sheet and Statement of Profit and Loss of a Company. Following are the changes made in the financials/ notes to accounts on account of amendments in Schedule III brought about by MCA:
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Ministry of MSME has, vide its notification dated 05.03.2021, relaxed the condition of having GSTIN as mandatory for registration as MSME and has provided that the exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Tax Act, 2017. It further provided that in case of any proprietorship enterprise not registered under any Act or rules of the Central Government or the State Government, the proprietor may use his or her PAN for registration of the enterprise in the Udyam Registration portal and for all other types of enterprises PAN shall be mandatory
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Government of India vide Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 dated 5th June 2020 1 has suspended insolvency triggering provisions i.e Section 7, 9 and 10 of the Insolvency and Bankruptcy Code (IBC) in respect of defaults arising on or after 25th March, 2020 for 6 months or such further period not exceeding 1 year. Ordinance has also clarified that such suspension shall not apply to any default committed before 25th March, 2020.
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In this growing digital age, we have become more dependent on the internet for many of our daily activities. Be it communicating with friends, searching for information, doing banking transactions, availing online services, finding job, finding life partner or even running entire businesses. The internet touches almost all aspects of our lives.
There are both advantages and disadvantages of using internet. Everyday, we see new cyber crimes being reported. Though Government Agencies are equipped to deal with cyber crimes, it is our duty to take precautions to remain safe.
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National Company Law Appellate Tribunal, New Delhi (NCLAT) on the appeal of Ministry of Corporate Affairs issued, set aside 1 the omnibus order dated of 22.11.2019 2 of the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, whereby it ordered that in all petitions of IBC and Company Petitions, Ministry of Corporate Affairs shall always be arrayed as one of the Respondent.
The NCLAT vide its order dated 22.05.2020 observed that NCLT does not have any such power to make such order. Further, the order of NCLT was passed without hearing ministry of Corporate Affairs and hence principal of natural justice has been violated.
Read MoreReferencesMinistry of Corporate Affairs (MCA) has issued a statement on 20 May, 2020 1 which states that Names expiring any day between 15th March, 2020 to 31st May would be extended by 20 days beyond 31st May 2020. It has also stated that SRNs where last date of Resubmission (RSUB) falls between 15th March 2020 to 31st May, 2020, additional 15 days beyond 31st May 2020 would be allowed. For details on MCA extends period for names reserved and Forms resubmission, please click the following link.
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The COVID–19 pandemic and the consequent lockdown restrictions imposed by government has severally impacted businesses. SEBI Advisory says that it is important for a listed entity to ensure that all available information about the material impact of COVID-19 on the company and its operations is communicated in a timely and cogent manner to its investors and stakeholders.
Keeping the above in view, Securities and Exchange Board of India (SEBI) vide its circular dated 20 May, 2020 1 has issued an advisory regarding disclosure of material impact of Covid-19 pandemic on listed entities. In this advisory, SEBI has provided an illustrative list of information that listed entities should provide to the Stock Exchanges.
Read MoreReferencesMinistry of Home Affairs, Government of India has issued an Order No. 40-3/2020-DM-I(A) dated 17th May, 2020 1 extending lockdown till 31st May, 2020 in view of pandemic Covid-19. In this article, summary of this order dated 17th May 2020 vis a vis MHA order dated 1st May, 2020 is provided for ease of understanding.
Contributed by: Mr. Gauarav Girdhar, LLM
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During the continuance of Covid-19 pandemic, the regulatory authorities are providing relaxation in the various compliances under different laws to ease the corporates. On the same lines, Securities and Exchange Board of India (SEBI) has issued a circular dated May 14, 2020 1 vide which it has granted relaxation to the effect that no penal action be taken by Stock Exchange against the listed entities who could not meet the requirements of Minimum Public Shareholding (MPS) during the period March 1, 2020 to August 31, 2020.
Regulation 38 of the Listing regulations requires a listed entity to comply with the minimum public shareholding requirements as specified in rule 19(2) and rule 19A of the Securities Contracts (Regulation) Rules, 1957. However, this provision does not apply to entities listed on institutional trading platform without making a public issue.
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National Company Law Tribunal (NCLT) vide its order dated 12 May 2020 has directed to Financial Creditors to file record from Information Utility mandatorily alongwith the new petitions being filed under section 7 of Insolvency and Bankruptcy Code, 2016 (IBC). No new petition shall be entertained without record of default u/s 7 of IBC.
Here, it is pertinent to mention that National E-Governance Services Ltd (NeSL), is India’s first and only Information Utility which is registered with the Insolvency and Bankruptcy Board of India (IBBI) under the aegis of the Insolvency and Bankruptcy Code, 2016 (IBC). The primary role of NeSL is to serve as a repository of legal evidence holding the information pertaining to any debt/claim, as submitted by the financial or operational creditor and verified and authenticated by the other parties to the debt.
Henceforth, default record from National E-Governance Services Ltd (NeSL) is mandatorily required to be annexed with all the petitions being filed u/s 7 of IBC.
In the case of petitions already filed u/s 7 of IBC which are pending for admission, NCLT has also directed to the Authorised Representatives/parties in the case to file default record from Information Utility i.e NeSL before next date of hearing.
Reference:
NCLT Order-File No.25/02/2020-NCLT dated 12th May 2020
