The weekly messenger | Edition 34.21

Accounting News

Ind AS: An Overview (Revised 2021) – 14 December

The Institute of Chartered Accountants of India (ICAI) has issued a publication namely ‘Ind AS: An Overview (Revised 2021)’, which contains all the recent amendments made in Ind ASs. It also contains differences between Ind AS and IFRS and Ind AS and existing AS.

For more information, click here.

Auditing News

Last Date for Updation of UDINs at e-filing Portal ‒ 30 November 2021

The Central Board of Direct Taxes (CBDT) has further extended the last date for updating Unique Document Identification Number (UDINs) for all the Income Tax forms at the e-filing portal to 31 January 2022.

For more information, click here.

Regulatory News

Clarification on passing of Ordinary and Special resolutions by the companies under the Companies Act, 2013 read with rules made thereunder on account of COVID-19 – Extension of timeline ‒ 8 December 2021

Due to COVID -19, the Ministry of Corporate Affairs (MCA) had issued two Circulars in the month of April 2020, wherein it had issued certain clarifications on passing of ordinary and special resolutions by companies by holding Extraordinary General Meetings (EGMs) through video conferencing or other audio-visual means or passing of certain items only through postal ballot without convening general meetings. As per the initial clarifications, the companies were allowed to hold relevant EGMs or transact relevant business through postal ballot, as per the prescribed procedures up to 30 June 2020 or till further orders, whichever is earlier. These timelines were further extended till 31 December 2021.

Now, once again, the MCA has extended the aforesaid timelines till 30 June 2022. However, all the other requirements provided in the erstwhile Circulars remain unchanged.

For more information, click here.

Clarification on holding of AGM through Video Conference or Other Audio-Visual Means ‒ 8 December 2021 and 14 December 2021

The MCA vide its Circular dated 5 May 2020 and 13 January 2021 had issued clarifications, wherein it allowed the companies to conduct their Annual General Meeting (AGMs) through Video Conference or Other Audio-Visual Means.

Now, the MCA has decided to allow the companies whose AGMs are due in the year 2021 or who are proposing to organise their AGMs in 2022 for the Financial Year ended/ending any time before/on 31 March 2022, to conduct the same on or before 30 June 2022, in accordance with the requirements provided in paragraphs 3 and 4 of the Circular dated 5 May 2020.

It has been further clarified that the said circular shall not be construed as conferring any extension of time for holding of AGMs by the companies under the Companies Act, 2013 and the companies which have not adhered to the relevant timelines shall be liable to legal action under the appropriate provisions of the Act.

For Initial Circular, click here.

For Extended Circular, click here.

SEBI (Substantial Acquisition of Shares and Takeovers) (Third Amendment) Regulations, 2021 ‒ 6 December 2021

The Securities and Exchange Board of India (SEBI) has issued the SEBI (Substantial Acquisition of Shares and Takeovers) (Third Amendment) Regulations, 2021, wherein certain changes have been made in the Delisting provisions.

These Regulations shall come into force w.e.f. 6 December 2021.

For more information, click here.

External Commercial Borrowings and Trade Credits Policy – Changes due to LIBOR transition ‒ 8 December 2021

Considering the imminent discontinuance of LIBOR as a benchmark rate, the Reserve Bank of India (RBI) has decided to make the following changes to the all-in-cost benchmark and ceiling for foreign currency denominated External Commercial Borrowings (ECBs) and Trade Credits (TCs):

• The definition of ‘Benchmark Rate’ in case of foreign currency ECBs and TCs has been redefined to “any widely accepted interbank rate or alternative reference rate (ARR) of 6-month tenor, applicable to the currency of borrowing”.

• The all-in-cost ceiling for new foreign currency ECBs and TCs has been increased by 50 bps to 500 bps and 300 bps, respectively, over the benchmark rates.

• To enable smooth transition of existing ECBs and TCs linked to LIBOR, the all-in-cost ceiling for existing foreign currency ECBs and TCs has been increased by 100 bps to 550 bps and 350 bps, respectively, over the benchmark rates.

• There is no change in the AIC benchmark and ceiling for INR ECBs / TCs.

For more information, click here.