Training and Recruitment info - please reach 040- 4003 2244-47
+91 90 43 003 883 | [email protected] | Reach us

Ministry of Corporate Affairs

November 1, 2012

     

  1. Default by Cost Auditors in filing Form 23D against the corresponding Form 23C - MCA vide General Circular No.15/2011 dated April11, 2011 had prescribed a revised procedure to be followed for appointment of cost auditors. As per the revised procedure, each company was required to e-file its application with the Central Government in the prescribed Form 23C within ninety days from the date of commencement of each financial year, which shall be approved by MCA within 30 days. Upon approval by MCA, the company was required to issue formal letter of appointment to the cost auditor, who shall within 30 days of receipt of such letter, inform the Central Government in the prescribed Form 23D along with a copy of such appointment. The MCA has noticed that a large number of cost auditors have defaulted in filing Form 23D within the stipulated time which is being viewed seriously by the ministry. MCA has now vide itsGeneral_Circular_35/2012. requested the defaulting auditors to file Form 23D, that have already become due till date by December 16, 2012.
  2. Extension of due date for filing Balance Sheet and Profit & Loss Account in Extensible Business Reporting Language (XBRL) mode – MCA has vide General Circular No. 34/2012 dated 25.10.2012 extended the due date for filing the financial statements in XBRL mode without any additional fee/ penalty upto 15.12.2012 or within 30 days from the date of the Annual General Meeting of the Company whichever is later.
  3. Scrutiny of XBRL Filings for the Financial Year 2010-2011 and urge for improvement in the quality thereof - : MCA has come out with General Circular No. 33/2012 dated 16.10.2012 wherein it has been stated that a random scrutiny of the XBRL filings of financial statements for the financial year 2010-2011 of a few companies revealed that there were significant variations in the disclosures in the published results and the XBRL filings due to ‘incorrect’ mapping/ tagging of disclosures with the appropriate elements in the taxonomy'. It was also stated that such filings do not represent the true and fair view of state of affairs and therefore such professionals certifying the same are liable to be penalised for authentication of incorrect data The Institutes have been advised to conduct further training etc., to resolve the quality related issues. Further, the MCA has listed out in Annexure - I to the circular, certain instances of incorrect mapping/ tagging.
  4. Companies required to file financial statements for the Financial Year 2011-2012 in Extensible Business Reporting Language (XBRL) – MCA has vide G.S.R.(E) dated 12.10.2012 modified the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011, which have come into force from 14.10.2012, in the following maner:It has introduced a new Rule 4 after the Rule 3 to read as follows: 4. The following class of companies have to file their Balance Sheet, Profit and Loss Account and any other document as required under Section 220 of the Companies Act, 1956 with the Registrar using the Extensible Business Reporting Language (XBRL) taxonmy given in Annexure II for the financial year commencing on or after 1st April, 2011 with e-Form No. 23AC-XBRL and 23ACA-XBRL specified under the Companies (Central Government) General Rules and Forms, 1956 namely:-
    i.      all companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or ii.     all companies having paid up capital of rupees five crore and above; or iii.    all companies having turnover of rupees one hundred crore and above; or iv.    all companies covered under rule 3;
    Provided that the companies in Banking, Insurance, Power Sectors and Non-Banking Financial Companies are exempted for Extensible Business Reporting Language (XBRL) filing for the financial year commencing on or after 1st April, 2011.
    Through the above new Rule 4, the MCA has made it mandatory that in addition to the Companies which satisfy any of the first three criteria of the above referred Rule 4, Companies which were required to file their Annual filings for the Financial year 2010-2011 in XBRL mode also have to file their Annual Filings for the financial year 2011-2012 in XBRL mode irrespective of their satisfaction of any one of the first three criteria of the Rule 4.
  5. Transfer, redemption and re-issuance of Indian Depository Receipts (IDRs) - MCA has vide G.S.R (E) dated 01.10.2012 substituted the sub-rule (i) of Rule 10 of the Companies (Issue of Indian Depository Receipts) Rules, 2004 to read as follows:“A holder of IDRs may transfer the IDRs, may ask the domestic depository to redeem them, or any person may seek reissuance of IDRs by conversion of underlying equity shares, subject to the provisions of the Foreign Exchange Management Act, 1999, Securities and Exchange Board of India Act, 1992, or the rules, regulations or guidelines issued under these Acts, or other law for the time being in force.” Through the above amendment, MCA has introduced the concept of reissuance of IDRs by conversion of underlying equity shares.
  6. Extension of time for filing Form 23B without additional filing fees - - The Ministry of Corporate Affairs (hereinafter referred to as “MCA”) has vide General Circular No. 31/2012 dated 28.09.2012 extended the time for filing the Form 23B without any additional fee/ penalty upto 23.12.2012 or due date of filing, whichever is later.
  • By admin  gg 0 Comments   

    0 Comments

    Leave a Reply

    Your email address will not be published. Required fields are marked *