The weekly messenger | Edition 16.18

Accounting News

IFRS for SMEs Update March 2018 published – 10 April 2018

The International Accounting Standards Board has recently published its March 2018 edition of International Financial Reporting Standard (IFRS) for Small and Medium-sized entities (SMEs) Update which includes information on the following:

• Update on IFRS for SMEs Standard modules;
• IFRS for SMEs Standard adopted in Papua New Guinea; and
• IFRS for SMEs Standard translations-status report.

For more information, click here.

Regulatory News

Companies (Share Capital and Debentures) Amendment Rules, 2018 – 10 April 2018

The Central Government (CG) has amended the Companies (Share Capital and Debentures) Rules, 2014 with the Companies (Share Capital and Debentures) Amendment Rules, 2018 wherein certain amendments have been made in sub rule (3) of rule 5 of the aforesaid rules which relates to “Certificate of shares (where shares are not in demat form)”. Earlier, as per sub rule (3) of rule 5 of the said Rules, every share certificate was required to be issued under the seal of the company which shall be signed by two directors duly authorized by the Board of Directors of the company for the purpose or the committee of the Board, if so authorized by the Board; and the secretary or any person authorised by the Board for the purpose. However, in case, the company did not have a common seal, then the share certificate was required to be signed by two directors or by a director and the Company Secretary, wherever the company had appointed a Company Secretary.

Now, in the amended rules, the CG has added certain additional requirements and also modified the existing requirements w.r.t. the share certificate which are as follows:

• every share certificate shall specify the shares to which it relates and the amount paid-up thereon in addition to the earlier requirements;
• earlier there were two different options w.r.t. signing of share certificate i.e. in case the certificate is issued under the seal of the company and in case the company does not have a common seal as mentioned above. Now, instead of two options, a single option has been provided, wherein it has been mentioned, that every share certificate shall be signed two directors or by a director and the Company Secretary, wherever the company had appointed a Company Secretary and in case the company has a common seal, it shall be affixed in the presence of the persons required to sign the certificate.

These rules shall come into force on the date of their publication in the Official Gazette i.e. 10 April 2018.

For more information, click here.

Notification for Amendment in Schedule I of the Companies Act, 2013 – 10 April 2018

The CG has amended the Schedule I of the Companies Act, 2013 which deals with Memorandum and Articles of Association wherein in the CG has made certain procedural changes in the below mentioned tables:

• Table F ‘Articles of Association of a Company Limited by Shares’; and
• Table H ‘Articles of Association of a Company Limited by Guarantee and Not Having Share Capital’

For more information, click here.

Change in the provisions of Start-up Companies – 11 April 2018

The CG has issued a notification w.r.t. the start-up companies wherein it has revised the various provisions applicable on such companies, thereby superseding its earlier notification no. G.S.R. 501(E) dated 23 May 2017. In the amended notification, the following modifications have been made:

• Certain new terms have been defined in the explanation to the definitions;
• Two new points i.e. ‘Certification for the purposes of section 80-IAC of the Act’ and ‘Approval for the purposes of clause (viib) of sub-section (2) of section 56 of the Act’ have also been added etc.

These changes shall come into force from their date of publication in the Official Gazette i.e. 11 April 2018.
For more information, click here.

Further GST Updates

The Central Board of excise and Customs has issued certain updates w.r.t. Goods and Services Tax (GST) whose links are as follows:

• For information w.r.t. Roll out of e-way bill system for intra-State movement of goods in the States of Andhra Pradesh, Gujarat, Telangana, Kerala & Uttar Pradesh from 15.04.2018, click here;
• For clarification w.r.t. the issues arising in refund to UIN, click here;
• For clarification w.r.t. the procedure for recovery of arrears under the existing law and reversal of inadmissible input tax credit, click here;
• For clarification w.r.t. the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyance, click here.