The weekly messenger | Edition 18.18

Accounting News

FASB proposes targeted changes to collaborative arrangements standard – 26 April 2018

The Financial Accounting Standards Board (FASB) has issued a proposal that would make certain targeted changes to its standard for collaborative arrangements. The proposed Accounting Standard Update (ASU) would also clarify the interaction between the collaborative arrangements standard and the board’s new standard on revenue recognition.

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Regulatory News

Condonation of Delay Scheme, 2018 – 27 April 2018

The Ministry of Corporate Affairs (MCA) vide its circular no. 16/2017 dated 29 December 2017 had introduced the Condonation of Delay Scheme, 2018 wherein it had provided an opportunity to disqualified directors to regularise the compliance. This scheme was applicable to all the defaulting companies (other than the companies which have been/ whose names have been removed from the register of companies under section 248(5) of the Companies Act 2013). Further, under this scheme, a defaulting company was permitted to file its overdue documents which were due for filing till 30 June 2017 in accordance with the provisions of this scheme.

This scheme was originally applicable for a period of three months i.e. from 1 January 2018 to 31 March 2018 which was after considering the requests received from various stakeholders was extended up to 30 April 2018 vide MCA’s circular no. 02/2018 dated 28 March 2018.

Now, MCA has again issued a circular wherein it has further extended the aforesaid deadline from 30 April 2018 to 1 May 2018 as the closing date of the scheme was falling under gazetted holiday on account of ‘Budh Purnima’.

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Relaxation of additional fees and extension of last date of filing of AOC-4 XBRL E-Forms using Ind AS under the CA 2013 – 27 April 2018

The MCA had vide its general circular no. 13/2017 and 01/2018 dated 26 October 2017 and 28 March 2018 respectively extended the last date of filing of AOC-4 extensible Business Reporting Language (XBRL) for FY 2016-17 till 31 March 2018 and 30 April 2018 . Now, MCA has again after considering the requests of various stakeholders for extending the last date of filing of AOC-4 XBRL E-form using Indian Accounting Standards (Ind AS) under the Companies Act, 2013 , decided to extend the last date for filing of AOC-4 XBRL for all eligible companies required to prepare or voluntarily prepare their financial statements in accordance with Companies (Ind AS) Rules, 2015 for the FY 2016-17, without additional fees till 31 May 2018.

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Amendment to SEBI Circular No.  IMD/FPIC/CIR/P/2018/61dated April 5, 2018 on Monitoring of Foreign Investment limits in listed Indian companies – 27 April 2018

The Securities and Exchange Board of India (SEBI) vide its Circular No. IMD/FPIC/CIR/P/2018/61 dated 5 April 2018 had introduced a new system for Monitoring of Foreign Investment limits in listed Indian companies and also prescribed the guidelines w.r.t the necessary infrastructure, data to be provided by listed Indian companies and other related matters.

Now, in respect of the aforesaid circular, the SEBI has issued the following clarifications:

• The deadline for the companies to provide the necessary data to the depositories has been extended to May 15, 2018.
• The new system for monitoring foreign investment limits in listed Indian companies shall be made operational on May 18, 2018.

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ECB Policy – Rationalisation and liberalisation – 27 April 2018

The Corporates and other entities which are planning to avail External Commercial Borrowings (ECB) to meet their capital needs have been approaching RBI for relaxations in the existing ECB framework. In respect of the requests received and experience gained in administering the ECB regime, the RBI in consultation with Government of India, has further decided to rationalise and liberalise the following provisions of the ECB guidelines:

• Rationalisation of all-in-cost for ECB under all tracks and Rupee denominated bonds (RDBs);
• Revisiting ECB Liability to Equity Ratio provisions;
• Expansion of Eligible Borrowers’ list for the purpose of ECB; and
• Rationalisation of end-use provisions for ECBs.

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Condonation of Delay Scheme w.r.t. EPCG Scheme, 2018 - 27 April 2018

The Directorate General of Foreign Trade had introduced an onetime Condonation of time period in Export Obligation period under EPCG Scheme vide the following public notices namely;

• Public notice no. 35/2015-20 dated 25 October 2017, wherein the Onetime condonation of time period in respect of obtaining block-wise extension in Export Obligation period under EPCG Scheme was introduced and the period of extension for the requests already submitted but submitted beyond the time on payment of additional composition fee of Rs 5000/- in addition to payment of regular composition fee as applicable and may also consider the requests that may be received up to 31 March 2018.
• Public notice no. 36/2015-20 dated 25 October 2017, wherein an onetime condonation of time period in respect of obtaining extension in Export Obligation period under EPCG Scheme was introduced and the Regional Authorities (RAs) may consider the requests received as per the prescribed procedure but have not been considered due to the non-submission within the prescribed period, on payment of additional composition fee of Rs. 5000/- per authorization and the requests that may be received up to 31 March2018.
• Public notice no. 37/2015-20 dated 25 October 2017, wherein It had been decided that in relaxation of the procedure as onetime condonation, the RAs concerned may accept the installation certificate submitted beyond the time limit on payment of penalty of Rs 5000/- per authorization to RA, subject to a few conditions.

It has now been notified that in public interest, the time of receipt of requests w.r.t. all the public notices mentioned above shall be further extended till 30 September 2018

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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. the roll out of e-Way Bill system for intra-State movement of goods in the States / Union territory of Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim and Puducherry from 25.04.2018, click here;
• For clarification w.r.t. requirement of e-Way Bill for 'Bill To Ship To' model of supply, click here; and
• For information w.r.t. recording of Unique Identity Number of Foreign Diplomatic Missions / UN Organizations on invoices while making supplies, click here.