JMJA and Associates LLP

MCA in September 2017 had identified 3,09,614 directors associated with the companies that had failed to file financial statements or annual returns in the MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16 in terms of provisions of section 164(2) r /w 167(1)(a) of the Act and they were barred from accessing the online registry and a list of such directors was published on the website of MCA. As per list published on MCA, these directors were disqualified for a period of 5 years and their respective DIN was disabled. As a result, there have been a spate of representations from industry, defaulting companies and their directors seeking an opportunity for the defaulting companies to become compliant and normalise operation. Considering the various request and representation made by the various stakeholders, MCA has issued General Circular No.16/2017 , Condonation of Delay Scheme, 2018 ( COD Scheme ), with a view to giving an opportunity for th...

The Institute of chartered Accountants in India (ICAI) today revised the minimum recommended scale of fees for the professional assignments done by the Chartered Accountants under the initiative of the Committee for Capacity Building of Members in Practice (CCBMP). The committee has recommended the fee to be charged as per the work performed for various professional assignments and the amount quoted under respective heads of professional work. The fee has been recommended separately for Class A and Class B Cities. The prescribed Minimum Recommended Scale Fees will enhance the productivity and Capacity Building of Practitioners & CA Firms and will largely benefit the Practitioners. The fee structure for partnership deeds, filing of tax returns including income tax, GST, Company law and LLP work, audit and other assignments, RERA, FEMA matters etc has been revised.  To access the complete list  click here

Bombay High Court in its order dated October 12, 2017 gave clarity on following observations pertaining to Section 167(2)(a): 1) Non filing of financial for FY 2014 will be treated as Non Compliance under  Companies Act, 2013 as the Act already came into operations as on filing date of financial. 2) The effective of provision of Section 167(2)(a) is not restrospective in nature.  3) The order of disqualification of Directors came into effective from September 7, 2014 for non filing of financial or annual returns for 2014, 2015 and 2016 which is well within the timeframe of the provision. 4) Pendency of this petition will not stop the applicant to file DIR 10 for removal of disqualification and that the concerned authorities can take appropriate action which will be independent from the petition before HC. To access Order of Bombay High Court, click here Source:  CS Undivided: A GROUP OF PROFESSIONALS

Any Foreign Entity looking for an office in India as a sourcing division or to facilitate export or to test the Indian market with a prospective business venture to improve the relations with the authorities and business community or to have the presence in the country from worldwide business outlook, Liaison Office (LO) is the best option. A Liaison Office or a Representative Office can undertake only liaison activities, which means that it can act as a channel of communication between the Head Office (out of India) and parties in India. It is not allowed to undertake any commercial activity in India. As there is no income of Liaison Office of its own, its expenses are to be met entirely through inward remittances from the parent company outside India received in Convertible Foreign Exchange. In terms of permitted activities, a liaison office can do the following listed activities in India: Act as a channel between the Head office and parties in India. Collect market info...

The President of India has given his assent today to  the Ordinance to amend the Insolvency and Bankruptcy Code, 2016 (the Code).  The Ordinance aims at putting in place safeguards to prevent unscrupulous, undesirable persons from misusing or vitiating the provisions of the Code. The amendments aim to keep out such persons who have wilfully defaulted, are associated with non-performing assets, or are habitually non-compliant and, therefore, are likely to be a risk to successful resolution of insolvency of a company. In addition to putting in place restrictions for such persons to participate in the resolution or liquidation process, the amendment also provides such check by specifying that the Committee of Creditors ensure the viability and feasibility of the resolution plan before approving it. The Insolvency and Bankruptcy Board of India (IBBI) has also been given additional powers The  Ordinance amends sections 2, 5, 25, 30, 35 and 240 of the Code, and inse...

While there are confusion prevailing over What next after disqualification of Directors? MCA is yet to come out with any official clarification on it. There are many companies which are affected due to the steps taken by MCA. While, the action by MCA was very clear that all the Directors who are disqualified will not be able to work as a Director and their respective DIN will be disabled for a period of 5 years. Many senior professionals have opined that such disqualification will not amount to automatic vacation of office of directorship from other companies.  While we await further clarification from MCA on its stand on disqualification of Directors under Section 164 and disability of DIN. The notice at ROC office makes one thing clear, an Active Company (the one that is not struck off by ROC), can appoint new Director on their Board from Back end. While generally appointing a Director in active company is simple and can be given effect by filing eForm DIR-12 i...

Around 2.24 lakh companies have been struck-off till date for remaining inactive for a period of two (2) years or more;. Around 3.09 lakh Directors disqualified who were on the Board of Companies that have failed to file Financial Statements and/or Annual Returns for a continuous period of three (3) financial years during 2013-14 to 2015-16. Over 3,000 disqualified Directors are Directors in more than 20 companies each, which is beyond the limit prescribed under the Law; To address the criminality angle, the Director, Additional Director or Assistant Director of SFIO have been recently authorized to arrest any person believed to be guilty of any fraud punishable under the Act; Steps are underway for setting-up National Financial Reporting Authority (NFRA), an independent body, to test check Financial Statements, prescribe Accounting Standards and take disciplinary action against errant professionals;. A separate initiative is underway to develop a State-of-the-Art software applicat...

Atyati Technologies Private Limited (The Company) was incorporated under Companies Act, 1956 as a Private Limited Company with Registered Office in Bangalore. The Paid-up capital of the Company was Rs. 8.81 Crores. As per Rule 8A, it is mandatory for every company to appoint a Company Secretary in all the Companies having Paid up capital of Rs. 5 Crores or more. The Company filed a suo-motto filed a petition under Section 203 of the Companies Act, 2013 (The Act) read with Rule 8A of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 with a prayer for compounding violation committed under Section 441 of the Act. The Company pleaded that though since the commencement of new Companies Act, 2013, i.e. April 01, 2014 the Company could not appoint any Professional as a CS as no CS was willing to work with the Company as Company being a Private Limited Company there was very limited scope of work. As per Section 203 (5), if a company contravenes the provision...