The weekly messenger | Edition 45.20
This newsletter is a weekly compilation of accounting, auditing and related regulatory news from different accounting and regulatory bodies in India and overseas.
AUDITING NEWS
One-time Condonation Scheme to regularize UDINs – 28 December 2020
Pursuant to various representations being received from the members, wherein they have unintentionally missed to generate Unique Document Identification Number (UDINs) on their Audit and Assurance Reports and Certificates due to prolonged lockdown, the ICAI has come up with the ‘One-time condonation scheme’. The key features of this Scheme are as follows:
- To regularize the non-generation of UDIN, members will be allowed to generate the earlier missed UDINs for the documents signed between 1 February 2019 to 31 December 2020.
- The scheme would be made available from 1 January 2021 till 31 January 2021.
- This scheme would not be applicable for the documents / forms where the respective Regulators or other stakeholders require UDIN on real-time or as per their specified requirement.
- UDIN so generated is to be communicated to ‘Management’ or ‘Those Charged with Governance’ for disseminating it to the stakeholders from their end.
- UDIN generated under this scheme would not be treated as violation of the erstwhile ICAI announcement dated 2 August 2019 published in Gazette.
For more information, click here.
REGULATORY NEWS
MCA notifies the commencement date of various sections of Companies (Amendment) Act, 2020 – 21 December 2020
The Ministry of Corporate Affairs (MCA) has notified 21 December 2020 as the commencement date of various sections of the Companies (Amendment) Act, 2020, the listing of which is as follows:
Section Number of Companies (Amendment) Act 2020 | Corresponding Section of Companies Act 2013 |
Section 3 | Amendment of Section 8 ‘Formation of Companies with Charitable Objects, etc.’ |
Sections 6 to 10 (both inclusive) | Amendment of Section 26 ‘Matters to be stated in prospectus’; Amendment of Section 48 ‘Variation of Shareholders’ Rights’; |
Sections 12 to 17 (both inclusive) | Amendment of Section 64 ‘Notice to be given to Registrar for Alteration of Share Capital’; |
Clauses (a) and (b) of Section 18 | Amendment in sub-sections (5) and (7) of Section 89 ‘Declaration in respect of Beneficial Interest in any Share’ |
Sections 19 to 21 (both inclusive) | Amendment of Section 90 ‘Register of significant beneficial owners in a company’; |
Clause (i) of Section 22 | Amendment in sub-section (2) of Section 117 ‘Resolutions and Agreements to be filed’. |
Section 24 | Amendment of Section 128 ‘Books of Account, etc., to be kept by Company’ |
Section 26 | Amendment of Section 134 ‘Financial Statement, Board’s Report, etc.’ |
Sections 28 to 31 (both inclusive) | Amendment of Section 137 ‘Copy of Financial Statement to be filed with Registrar’; |
Sections 33 to 39 (both inclusive) | Amendment of Section 165 ‘Number of Directorships’; |
Sections 41 to 44 (both inclusive) | Amendment of Section 204 ‘Secretarial Audit for Bigger Companies’; |
Sections 46 to 51 (both inclusive) | Amendment of Section 284 ‘Promoters, Directors, etc., to cooperate with Company Liquidator’; |
Section 54 | Amendment of Section 392 ‘Punishment for Contravention’ |
Section 57 | Amendment of Section 405 ‘Power of Central Government to direct companies to furnish information or statistics’ |
Section 61 | Amendment of Section 441 ‘Compounding of certain offences’ |
Section 63 | Amendment of Section 450 ‘Punishment where no specific penalty or punishment is provided’ |
For more information, click here.
Companies (Share Capital and Debentures) Second Amendment Rules, 2020 – 24 December 2020
The MCA has issued the Companies (Share Capital and Debentures) Second Amendment Rules, 2020, wherein the erstwhile Form SH-7 has been substituted with a new form SH-7 ‘Notice to Registrar of any alteration of share capital’.
These Rules shall come into force w.e.f. 26 December 2020.
For more information, click here.
Companies (Incorporation) Third Amendment Rules, 2020 – 24 December 2020
The MCA has also issued the Companies (Incorporation) Third Amendment Rules, 2020, wherein the following changes have been made:
- After Rule 9, a new Rule 9A ‘Extension of reservation of name in certain cases’ has been inserted, as per which upon payment of certain fees provided in the web service available at ww.mca.gov.in, the Registrar shall extend the period of a name reserved under rule 9 by using web service SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus: INC-32) for a specified period;
- Former Part A of the SPICE+ form has been replaced by new Part A.
These Rules shall come into force w.e.f. 24 December 2020; however, Rule 9A shall become effective w.e.f. 26 January 2021.
For more information, click here.
Insolvency Proceedings suspended for further three months – 22 December 2020
The Ministry of Law and Justice had issued the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020, wherein the government of India had decided to suspend the fresh bankruptcy proceedings against persons impacted due to COVID-19 for defaults arising on or after 25 March 2020 for a period of six months or such further period, not exceeding one year.
In September 2020, the government had decided to further extend the aforesaid suspension by another three months.
Now, once again, the aforesaid period has been extended for additional three months w.e.f. 25 December 2020.
For more information, click here