Wednesday, June 5, 2019

The Compliance calendar till April 2019 For Companies ACT.

June 05, 2019 0

The Companies Act 2013 has been amended in the last six months. The most important thing about these notifications is that they require immediate compliance or disclosure by the Companies in a timely manner. In this article, we will discuss preliminary notifications on important notifications for the months of January and February:



S.No.
Act/Rules
Date of Notification
FAST Summary
1
15.01.2019 Delegation of some powers of NCLT to RD
2

22.01.2019 Onetime return of any outstanding money or loan in Form DPT-3
3

22.01.2019 Furnish details of all outstanding dues to Micro or small enterprises suppliers existing in Form MSME I
4

22.01.2019 Exemption from compulsory demat of shares to Nidhi Company, Government Company or a WOS.
5

08.02.2019 Amendment in SBO
6

19.02.2019 Revision of Form PAS-3
7

21.02.2019 Introduction of ACTIVE Form
8

06.03.2019 Substitution of word “wide” instead of “widest” w.r.t. newspaper publication in case of change of RO from one state of another.

-:The Compliance calendar till April 2019:-

FORM
DATE
FEES
PENALTY for Non Compliance
ELIGIBILITY

ACTIVE Form

25.04.2019

Nil

₹ 10000/- plus no request for filing of following forms: 

· SH-7 
· PAS-3 
· DIR-12 
· INC-22 
· INC-28


Every Company incorporated on or before 31.12.2017   

DPT-3

Within 90 days of notification of Form

Normal Fees

Normal Additional Fees

Every Company having outstanding loan/deposit or any money.


MSME I

Within 30 days of notification of Form

Normal Fees

Normal Additional Fees

Every Company having outstanding dues to MSME


DIR-3 KYC


30.04.2019

Nil

₹ 5000/-

Every Director

NFRA-1

Within 30 days of notification of Form

Normal Fees

Normal Additional Fees

Every Company on which these rules are applicable

Furnish details of all outstanding dues to Micro or small enterprises suppliers existing in Form MSME I

June 05, 2019 0


Specified Companies Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within 30 days from the date of publication of this notification.

  • the amount of payment due; and
  • (b) the reasons of the delay;
  • And whereas, in exercise of power under section 405 of the Companies Act, 2013,(18 of 2013} the Central Government, considers it necessary to require “Specified Companies” to furnish above information under said section of the Act.

Now, therefore, in exercise of the powers conferred by section 405 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following Order, namely:-

  1. Short title and commencement.- (1) This Order may be called the Specified Companies (Furnishing of information about payment to micro and small enterprise suppliers) Order, 2019.
  2. It shall come into force from the date of its publication in the Official Gazette.
  3. Every specified company shall file in MSME Form I details of all outstanding dues to Micro or small enterprises suppliers existing on the date of notification of this order within thirty days from the date of publication of this notification.
  4. Every specified company shall file a return as per MSME Form I annexed to this Order, by 31st October for the period from April to September and by 30th April for the period from October to March.

Onetime return of any outstanding money or loan in Form DPT-3

June 05, 2019 0



Any company other than a government company is required to submit a single report on the outstanding amounts or loans contracted by a company but not considered deposits, pursuant to paragraph 1 (c) of rule 2 of 1 April 2014 on the date of publication of the present notification in the Official Journal, as specified in the DPT-3 form, within 90 days from the date of publication of the notification. 

The 22 January, 2019, 

In exercise of the powers conferred by clause (31) of section 2 and section 73 read with sub-sections (1) and (2) of section 469 of the Companies Act, 2013. the Central Government, in consultation with the Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 2014, namely:‑ 

  1. (1) These rules may be called the Companies (Acceptance of Deposits) Amendment Rules, 2019.

    (2) They shall come into force on the date of their publication in the Official Gazette. 

  • In the Companies (Acceptance of Deposits) Rules, 2014 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), in clause (c), in sub-clause(xviii), after the words “Infrastructure Investment Trusts,” the words “Real Estate Investment Trusts” shall be inserted.

     In the said rules, in rule 16, the following Explanation shall be inserted, namely:- 

Explanation :- It is hereby clarified that Form DPT-3 shall be used for filing return of deposit or particulars of transaction not considered as deposit or both by every company other than Government company.”.

  •  In the said rules, in rule 16(A), after sub-rule (2), the following sub-rule shall be inserted, namely:-

Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.”. 

  •  In the said rules, in the Annexure, for Form DPT-3, the following Form shall be substituted namely:-

Delegation of some powers of NCLT to RD

June 05, 2019 0



-:The 15th January, 2019:- 

  • In exercise of the powers conferred by sub-section (1) and sub-section (2) of section 469 of the Companies Act, 2013 (18 of 2013), the Central Government makes the following rules further to amend the National Company Law Tribunal Rules, 2016, namely:-

  •  These rules may be called the National Company Law Tribunal (Amendment) Rules,2019.

    They shall come into force on the date of their publication in the Official Gazette. 

  • In the National Company Law Tribunal Rules, 2016, in rule 71:-


  • (i) In sub-rule (3), in clause (b) for the words “Central Government” the words “RegionalDirector” shall be substituted.

    (ii) In sub-rule (4), for the words “Central Government” the words “Regional Director” shall be substituted.

Saturday, March 23, 2019

US DOLLAR DOWN VS YEN Due to US TREASURY TURN FLASH WARNING

March 23, 2019 0
US DOLLAR DOWN VS YEN Due to US TREASURY TURN FLASH WARNING -  - www.corporateslaw.com

The US dollar fell against the Japanese yen on Friday, as did the pessimistic data from the US manufacturing industry. They were worried about the economy in general and government bond yields indicated a growing fear of a recession, but the US dollar rose against the euro because a much weaker than expected German production survey raises concerns The mighty European economy could slowing down.
  •  The spread between three-month Treasury bonds and 10-year bond yields was reduced for the first time since 2007 after data from the US PMI. Estimates will not reach. This inversion of the yield curve is generally seen as a leading indicator of the recession.


"We need to take seriously the fact that this is a sign of slowing growth or a potential recession in the next 12 to 18 months." That's what the Fed is taking a closer look at, "said Sean Simko, 

Head of Global Fixed Income Management at SEI Investments Co. in Oaks, PA.The US Dollar was down 0.66% compared to the yen at 110.07, up to 6 weeks for the Japanese currency, SEE ALSO: the pound stabilizes but struggles to recover after the Japanese currency. "Delay agreement on Brexit" The recovery (in yen ) is not in line with the Japanese economy, it is rather a safe Alfonso Esparza, chief foreign exchange analyst at Oanda in Toronto.The largest creditor country and the largest creditor country in the world benefit when investors companies repatriate funds in times of financial or geopolitical tensions US dollar, which has come under pressure Federal Reserve investors have abandoned all plans to raise interest rates this year and have found a thanks to a weaker euro. "In March, SMEs confirm that GDP growth in the first" We are in the three major advanced economies, with Germany, which continues to suffer from the slowdown in global production, "wrote Simon MacAdam, a world economist such as Capital Economics.

"This helps to reinforce the idea that we expect a more significant and broad-based growth slowdown than expected by the markets a few months ago," said Karl Schamotta.

"What we see is a kind of recognition that the Fed is responding to deeper risks in the global economy," said the British Prime Minister. could leave without agreement, found overnight when European leaders gave two weeks late to Prime Minister Theresa May, to decide the way to leave Britain. US dollar: Canadian dollar weakened by up to 11 days against US counterpart, available data corroborate slowdown in Canadian economy.

Monday, December 17, 2018

FEATURE OF NIDHI COMPANY

December 17, 2018 0
-:BENEFITS OF NIDHI COMPANY:-


-:BENEFITS OF NIDHI COMPANY:-



2. MANDATORY REQUIREMENTS
  • public Company with a minimum paid up capital of Rs. 5 Lacs
  • Shall not issue preference shares
  • Shall have last words “Nidhi Limited” as a part of its name.
  • Minimum 3 Directors which shall mandatorily be a member of Nidhi Company.
  • Minimum 7 shareholders.

3. MANDATORY REQUIREMENTS AFTER INCORPORATION OF NIDHI COMPANY :
  • Within a period of one year of incorporation, the Nidhi Company has to ensure the following compliances:
  • Minimum 200 members
  • Net owned funds (“NOF”) of at least Rs. 10 lakhs. (Net owned fund means the aggregate of paid-up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet)
  • The ratio of NOF to deposits of not more than 1:20.
  • Unencumbered term deposits of not less than 10% of the outstanding deposits


4. RESTRICTIONS FOR NIDHI COMPANY
  • issue preference shares or debt instruments. 
  • open any current account with its members. 
  • acquire any Company by way of purchase of securities or controlling the composition of Directors unless approval has been taken from the Regional Director. 
  • carry on any business other than the business of borrowing and lending its own name. 
  • accept deposits from and lend to anyone else, apart from its members. 
  • Hypothecation any of the assets lodged by its members as security take deposits from any body corporate.
  • into any partnership arrangement in its borrowing or lending activities.
  • advertisement for soliciting the deposit. 
  • pay any brokerage or incentive for mobilizing deposits from members or for granting loans. 
  • levy service charges for issue of its shares or issues less than 10 shares per deposit holder. 
  • grant loans to members exceeding the ceiling as mentioned in the Nidhi Rules, 2014. 
  • A charge rate of interest exceeding 7.5%. 
  • does not declare dividend exceeding 25%
5. DEPOSITS AND ITS ACCEPTANCE

Company shall accept deposits in the following manner:-

  • Shall not accept deposits exceeding twenty times of its NOF. 
  • Fixed Deposits shall be accepted for a period of minimum 6 months to maximum 60 months. 
  • Recurring Deposits shall be accepted for a period of minimum 12 months to maximum 60 months. 
  • Unnumbered Term Deposits: Every Nidhi Company shall invest and continue to keep investing, in unencumbered term deposits with a scheduled commercial bank, or post office deposits in its own name an amount which shall not be less than ten per cent. of the deposits outstanding at the close of business on the last working day of the second preceding month. Further, in case of any unforeseen emergency, the limit of 10% can be withdrawn only after prior approval of the Regional Director.

  • The Director shall not hold office for a term up to ten consecutive years.

  • Shall be eligible for re-appointment only after the expiry of two years from the date of expiry of ten years period.

6. STATUTORY COMPLIANCE:-

The Nidhi Company shall have to adhere to all the provisions and sections as applicable to a Public Company except the provisions that have been specifically exempted for Nidhi Company. Further, instead of Form AOC-4 and MGT-7 that we file for normal Companies, the following forms shall have to file for Nidhi Companies:

    NDH-1:

  • Within 90 days of closure of first financial year after its incorporation certified by a company secretary in practice or a chartered accountant in practice or a cost accountant in practice certifying that the Nidhi Company has duly complied with its post incorporation compliances. 


    NDH-3:

  • Half yearly return shall have to be filed within 30 days from the conclusion of each half year duly certified by a company secretary in practice or chartered accountant in practice or cost accountant in practice. 

  • Auditors Certificate that the Company has requisitely complied with all the provisions of the Act. 

Further, the Income Tax provisions w.r.t. a Nidhi Company and a normal Company are the same.

Friday, November 16, 2018

Create Charge on Company Assets under Companies Act 2013

November 16, 2018 0

Create Charge on Company Assets under Companies Act 2013

Definition Companies Act 2013:- Section 2(16) “Charge” means an interest or lien Created on the property or assets of the company or any on its undertaking or both as security include a mortgage.

-: Registration of charge:-

Companies Act, 2013:- Section 77 levied duty primarily on the company creatinga charge and to register charge with ROC. Company Creating a Charge,

"Register the particular charge signed by the company and the charge holder with it to Registrar"

Section -78 of the companies act, 2013 give benefit to charging holder to the registration of the charge along with the instrument where the company fails to register u/s 77, on such application, within 14 Days after giving notice to the company,
  • unless the company itself register the charge,
  • or company give sufficient reason why such charge should not be registered, allow such registration on payment of such fees as may be prescribed.
In such case, charge holders have the right to incurred expense from the company.

-: Form to be filling for Charge registration:-


A company shall give intimation to Registrar in e-form CHG-4, of the payment or satisfaction in full of any charge registered under this Chapter within a period of 30 days from the date of such payment or satisfaction.


If fails to Register charge within 300 days:-

If the particulars creation/modification/satisfaction of charge is not filed within the period of 300 days, as mentioned above, only the Central Govt. has the power to condone such delay. An application for condonation of delay u/s 87 shall be filed with the Central Government in Form No.CHG-8 along with the prescribed fee. The order passed by the Central Government u/s 87 shall be required to be filed with the Registrar in e-Form No. INC-28 along with the fee as per the conditions stipulated in the said order.

-: The issue of certificates by ROC IN:-

Register of Charges must be maintained in CHG-7

Register of charge and instrument of charges shall be open for inspection

-: Punishment for the contravention:-

– punishable with fine which shall not be less than one lakh rupees but which may extend to ten lakh rupees.