The weekly messenger | Edition 08.21

AUDITING NEWS

Extension of Condonation Scheme to regularize UDINs – 12 March 2021
 
The ICAI vide its announcement dated 28 December 2020, had announced the ‘Condonation Scheme to regularise UDINs’, wherein the members could regularize the non-generation of Unique Document Identification Number (UDIN), if they earlier missed to generate the same for the documents signed between 1 February 2019 to 31 December 2020 till 31 January 2021.
 
Consequently, the ICAI had extended the aforesaid period, wherein it has allowed its members to generate all the missed UDINs between the period 1 February 2019 to 31 January 2021 till 28 February 2021.
 
Now, once again, the above-mentioned period has been extended and the members have been allowed to generate all the UDINs, which they missed to generate earlier between the period 1 February 2019 to 10 March 2021 till 31 March 2021.
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REGULATORY NEWS

Companies (Management and Administration) Amendment Rules, 2021 – 5 March 2021
 
The Ministry of Corporate Affairs (MCA) has issued the Companies (Management and Administration) Amendment Rules, 2021, wherein the following changes have been made:

• A new format of abridged annual return has been prescribed for One Person Companies (OPC) and small companies i.e. Form MGT-7A, which is applicable from FY 2020-21 onwards;
• In Rule 12, the requirement of attaching Form No. 9 to the Board Report has been omitted.
• In Rule 20 ‘Voting through electronic means’, definitions of the following terms have been added in the Explanation:

1. Agency;
2. Cut-off date;
3. Cyber Security;
4. Electronic voting system;
5. Remote e-voting;
6. Secured system;
7. Voting by electronic means.

• Erstwhile Form MGT-7 has been substituted by the Forms MGT-7 and MGT-7A.

These Rules shall come into force w.e.f. 8 March 2021.
 
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Companies (Incorporation) Third Amendment Rules, 2021 – 5 March 2021
 
The MCA has issued the Companies (Incorporation) Third Amendment Rules, 2021, wherein in the Annexure in Form INC-35 AGILE-PRO, part of SPICE+, an option has been given for authentication of Aadhaar for Goods and Services Tax (GST) Registration at the time of incorporation of a company.
 
These Rules shall come into force w.e.f. 8 March 2021.
 
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MCA notifies commencement date of clause (i) of Section 23 of the Companies (Amendment) Act, 2017 – 5 March 2021
 
The MCA has notified that the provisions of clause (i) of Section 23 of the Companies (Amendment) Act, 2017 i.e. Amendment to Section 92 ‘Annual Return’ of the Companies Act, 2013 shall come into force w.e.f. 5 March 2021.
 
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Insolvency and Bankruptcy Board of India (Liquidation Process) (Amendment) Regulations, 2021 – 4 March 2021
 
The Insolvency and Bankruptcy Board of India (IBBI) has issued the IBBI (Liquidation Process) (Amendment) Regulations, 2021, wherein the following changes have been made in Regulation 31 ‘List of Stakeholders’:

• Sub-Regulation (2) has been substituted with the following:

1. The liquidator shall file the list of stakeholders with the Adjudicating Authority within forty-five days from the last date for receipt of the claims.

• In Sub-Regulation (5), a new clause (d) has been inserted after clause (c) as per which:

1. The list of stakeholders, as modified from time to time, shall also be filed on the electronic platform of the Board for dissemination on its website. This clause shall apply to every liquidation process ongoing and commencing on or after the date of commencement of the IBBI (Liquidation Process) (Amendment) Regulations, 2021.

These Regulations shall come into force w.e.f 5 March 2021.
 
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Registration Process for MSMEs (Udyam Registration) further simplified – 5 March 2021
 
The Ministry of Micro, Small and Medium Enterprises (MSMEs) vide its Notification dated 26 June 2020, had notified that for the purpose of Udyam Registration, it is mandatory for an enterprise to provide its Permanent Account Number (PAN) and GST Identification Number (GSTIN) w.e.f. 31 March 2021. Now, this condition has been relaxed and it has been clarified that ‘The exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Act, 2017’.
 
Further, it has been notified that in case of any proprietorship enterprise, which is 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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Data Format for Furnishing of Credit Information to Credit Information Companies and other Regulatory Measures – 12 March 2021
 
To enable the banks / All India Financial Institutions (AIFIs) / Non-Banking Financial Companies (NBFCs) to report the information relating to restructured loans to Credit Information Companies, as provided in the Reserve Bank of India’s (RBI’s) Circular dated 6 August 2020 on the Resolution Framework for COVID-19 related stress, the RBI has decided to modify the formats for furnishing Credit Information to Credit Information Companies and other regulatory measures.
 
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