NOC required from Regulator for Incorporation / Conversion / Change of Name of LLP by CAs / Professionals

NO OBJECTION CERTIFICATE (NOC) FROM THE CONCERNED REGULATOR/INSTITUTE FOR LLP NAME APPROVAL/INCORPORATION

LLP GENERAL CIRCULAR NO. 40/2012, DATED 17-12-2012... extracts

In continuation of this Ministry's Circular No. 2/2012, dated 1st March, 2012 on registration of companies or LLPs where one of their objects is to carry on the profession of Chartered Accountant, Company Secretary, Cost Accountant, Architect, etc. relating to the requirement of obtaining NOC from the concerned regulator, it is hereby stated that the approval of the council/regulator governing the profession shall be obtained both at the time of application for incorporation and while seeking to change the name of an existing Limited Liability Partnership.

2. All ROCs are accordingly advised to ensure that in-principle approval/NOC of the regulator/institute governing such profession is obtained at the time of incorporation/conversion into LLP and not while making application for name approval for new LLP.

3. However, in case of change of name of an existing LLP, NOC from the concerned regulator shall be obtained at the time of making application for name approval because change of name of LLP is made by filing Form 5 through STP mode.

New FORM 18 with effect from 25-12-2012 for Notice of situation or change of situation of registered office

COMPANIES (CENTRAL GOVERNMENT'S) GENERAL RULES AND FORMS (SEVENTH AMENDMENT) RULES, 2012 - SUBSTITUTION OF FORM 18

MCA NOTIFICATION [F.NO. 5/80/2012-CL.V], DATED 24-12-2012.. extracts

In exercise of the powers conferred by sub-section (1) of section 642, read with section 610B of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Central Government's) General Rules and Forms, 1956, namely: -

1. (1) These rules may be called the Companies (Central Government's) General Rules and Forms (Seventh Amendment) Rules, 2012. (2) They shall come into force with effect from 25-12-2012.

2. In the Companies (Central Government's) General Rules and Forms, 1956, in Annexure 'A' for Form 18, the following Form shall be substituted, namely:-

FORM 18

Notice of situation or change of situation of registered office

[Pursuant to section 146 of the Companies Act, 1956]

MCA NOTIFICATION [F.NO. 5/80/2012-CL.V], DATED 24-12-2012

24.12.2012 

The Companies (Central Government's) General Rules and Forms (Seventh Amendment) Rules 2012

AMENDMENT IN FORM DIN-4 : Certain Additional Verifications with effect from 25-12-2012

COMPANIES DIRECTORS IDENTIFICATION NUMBER (THIRD AMENDMENT) RULES, 2012 - AMENDMENT IN FORM DIN-4

MCA NOTIFICATION [F.NO. 5/80/2012- CL.V], DATED 24-12-2012.. extracts

In exercise of the powers conferred by clause (a) and (b) of sub-section (1) of section 642, read with section 266A, 266B, 266D and 266E of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Directors Identification Number) Rules, 2006 namely: -

Short title and commencement

1. (1) These rules may be called the Companies Directors Identification Number (Third Amendment) Rules, 2012. (2) They shall come into force with effect from 25-12-2012.

2. In the Companies (Directors Identification Number) Rules, 2006, In Form DIN-4, the certification column after serial no. 17, the following 2nd para of the certification in Form DIN-4 shall be substituted, namely:-

♦ I hereby verify that I have satisfied myself about the identity of the director/designated partner based on the perusal of the original of the attached documents.

♦ I also verify having attested the photograph of the said person

• Who is personally known to me, or

• Who met me in person along with the original of the attached documents.

♦ It is further certified that all required attachments have been completely attached to this application.

MCA NOTIFICATION [F.NO. 5/80/2012- CL.V], DATED 24-12-2012

24.12.2012 

The Companies Directors Identification Number(Third Amendment) Rules 2012-DIN4

AMENDMENT IN FORM NO. DIN-1 : Application for allotment of Director Identification Number with effect from 25-12-2012

COMPANIES DIRECTORS IDENTIFICATION NUMBER (THIRD AMENDMENT) RULES, 2012 - AMENDMENT IN FORM NO. DIN-1

MCA NOTIFICATION [F.NO. 5/80/2012-CLV], DATED 24-12-2012...extracts

In exercise of the powers conferred by clause (a) and (b) of sub-section (1) of section 642 read with section 266A, 266B, 266D and 266E of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules further to amend the Companies (Directors Identification Number) Rules, 2006 namely: -

Short title and commencement.

1. (1) These rules may be called the Companies Directors Identification Number (Third Amendment) Rules, 2012. (2) They shall come into force with effect from 25-12-2012.

2. In the Companies (Directors Identification Number) Rules, 2006, in Annexure 'A' for Form DIN-1, the following Form of DIN-1 shall be substituted, namely:-

FORM NO. DIN-1

Application for allotment of Director Identification Number

[See Rule 3(1) of the Companies (Director Identification Number) Rules, 2006, Rule 10 of Limited Liability Partnership Rules, 2009]

Filing of Cost Audit Report and Compliance Report in XBRL mode

MCA General Circular No. 43/2012 *Dec 26, 2012..extracts

Filing of Cost Audit Report and Compliance Report in the eXtensible Business Reporting Language (XBRL) mode

In continuation of MCA’s General Circular Nos. 8/2012 dated May 10, 2012 [as amended on June 29, 2012] and 18/2012 dated July 26, 2012, it has been decided that all cost auditors and the companies concerned are allowed to file their Cost Audit Reports and Compliance Reports for the year 2011-12 [including the overdue reports relating to any previous year(s)] with the Central Government in the XBRL mode, without any penalty, within 180 days from the close of the company’s financial year to which the report relates or by January 31, 2013, whichever is later. The Institute is requested to circulate this for the information of all concerned.

MCA General Circular No. 43/2012 dt. 26.12.2012
Filing of Cost Audit Report and Compliance Report in the eXtensible Business Reporting Language (XBRL) mode.

RECTIFICATION OF MISTAKES IN FORM 1, FORM 1A AND FORM 44: FILING OF FORM 68

FILING OF FORM 68 FOR RECTIFICATION OF MISTAKES IN FORM 1, FORM 1A AND FORM 44

MCA GENERAL CIRCULAR NO. 42/2012, DATED 21-12-2012.. extracts

Rule 20G(1) of Companies (Central Government's) General Rules and Forms (Second Amendment), 2010 allows for filing of an application for rectification of mistakes made while filing Form No.1, Form No.1A and Form No.44 electronically, on the Ministry's website. Such applications are to be made to the Registrar of companies in Form No.68 and are required to be accompanied by a fee of Rs.1000 in case of Form No.1, Form 1A and Rs. 10000 for Form 44. Rule 20G(2) permits filing of an application in Form No.68 to be filed with the Registrar within a period of three hundred and sixty five days from the date of approval of the aforesaid forms by the Registrar concerned.

2. Requests have been received from time to time by this Ministry to extend the facilities for rectification of mistakes as above companies incorporated prior to the year 2009 and to other companies which could not avail of this facility earlier. After due consideration it has been decided to allow such companies to rectify mistakes in Forms 1, 1A and 44 by filing Form 68 on payment of fee stipulated above.

3. Form 68 (electronic mode) may be filed for rectification of mistakes in the forms referred above within a period of 180 days from the effective date.

4. This circular is effective from 23-12-2012.

MCA General Circular No. 42/2012
dt. 21.12.2012
Filing of Form 68 for rectification of mistakes in Form 1,Form 1A and Form 44 

MCA XBRL Validation Tool/ Filing Manual for Costing Taxonomy released

MCA XBRL Validation Tool (for costing taxonomy) has been released and XBRL filings of Cost Audit report and Compliance report have been enabled on MCA website with effect from 02.12.2012.Stakeholders are also advised to refer to the ‘Filing Manual for Costing Taxonomy’ available on the XBRL portal for filing the Cost audit report and Compliance report in XBRL format.

Validation Tool for Costing Taxonomy Version 1.0

Filing Manual for Costing Taxonomy
Revised business rules based on updated Costing taxonomy

Due Date for filing e-forms 23AC / 23ACA (Non XBRL) extended upto 24.11.2012

MCA vide General Circular No.38 / 2012 Dated 23.11.2012 reg. "Filing of Balance Sheet and profit and Loss Account by companies in Non - XBRL for the accounting year commencing on or after 01.04.2011" has notified that due date of filing of e-forms 23AC (Non-XBRL) and 23ACA (Non XBRL) as per new schedule VI (applicable for the accounting year commencing on or after 1.4.2011 ) has been extended upto 24.11.2012 for Companies holding AGM or whose due date for holding AGM is on or after 21.09.2012.

Such companies can now file these eForms without any additional fees upto 24.11.2012 or due date of filing, which ever is later.

General Circular No. 38/2012

XBRL: Instance Creation Process

XBRL Update from ICAI : 

Video demonstrating the Process of Instance Creation

EXAMINATION OF BALANCE SHEETS BY ROCs

MCA GENERAL CIRCULAR NO. 37/2012, DATED 6-11-2012.. extracts

EXAMINATION OF BALANCE SHEETS BY ROCs

It is considered expedient to issue the following circular for general information.

2. Every company registered under the provisions of the Companies Act, 1956 is required to file its balance sheet annually with the office of the Registrar of Companies within whose jurisdiction the registered office of the company is located. Presently, there are more than 8 lakh companies registered with various offices of the RoCs located all over the country. Balance sheets of all the companies who carry out the filing are available for public inspection on the portal of this Ministry (http://www.mca.gov.in). The underlying idea behind the filing of balance sheets and other documents which require similar filings is to publicly disclose information which reflects various aspects of the working of a company so that the company's public accountability is maintained. It is neither intended nor feasible for the Registrars to scrutinize or verify the contents of filing except on a random basis. Companies and its Directors and officials are liable to be penalized for any incorrect, false or misleading information that such filing disclose. In the following cases, however, the Registrars routinely scrutinize balance sheets:

(i) of companies against whom there are complaints;

(ii) of companies which have raised money from the public through public issue of shares/debentures etc.;

(iii) in cases where the auditors have qualified their reports.

(iv) Default in payment of matured deposits and debentures.

(v) References received from other regulatory authorities pointing out violations/irregularities calling for action under the Companies Act, 1956.

3. After the scrutiny suitable steps are initiated wherever necessary to obtain explanation and clarification and to institute inspections, investigations and prosecutions wherever warranted.

Source:

http://mca.gov.in/Ministry/pdf/General_Circular_37_2012.pdf

MCA Announcement reg. Filing of Balance Sheet and Annual Return

The Ministry issued General Circular No.30/2012 Dated 28.09.2012, In order to ensure smooth filing and to avoid last minute rush, the due date of filing of e-forms 23AC(Non-XBRL) and 23ACA (Non XBRL) as per new schedule VI (applicable for the accounting year commencing on or after1.4.2012 ) is interalia extended for Company holding AGM or whose due date for holding AGM is on or after 21.09.2012, the time limit will be 22.11.2012 or due date of filing, which ever is later.

TO AVOID LAST MINUTE RUSH AND SYSTEM CONGESTION IN MCA21 KINDLY EXPEDITE FILING OF BALANCE SHEET AND ANNUAL RETURN WITHOUT WAITING FOR THE LAST DATE.

Further the Ministry vide General Circular No.31/2012 dated 28.09.2012 has extended the filing ofe-form 23B without any additional fee till 23.12.2012 or due date of filing which ever is later. All are advised to file e-form 23B after 22.11.2012 to avoid system congestion.

KINDLY PLAN YOUR FILING ACCORDINGLY.

Default by Cost Auditors in filing Form 23D against the corresponding Form 23C

MCA General Circular 35/2012 dt. 05.11.2012.. extracts

Default by Cost Auditors in filing Form 23D against the corresponding Form 23C

Ministry of Corporate Affairs vide General Circular No. 15/2011, dated April 11, 2011 had prescribed a revised procedure to be followed for appointment of cost auditors. As per the revised procedure, each company is 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.

2. Upon approval by MCA, the company is required to issue formal letter of appointment to the cost auditor, who shall, within 30 days of receipt of such letter of appointment, inform the Central Government in the prescribed Form 23D alongwith a copy of such appointment.

3. It is, however, observed that since April 1, 2011, though all the appointment applications made by the companies concerned in Form 23C have already been approved by the MCA, a large number of cost auditors have defaulted in filing the required Form 23D within the stipulated time. In many cases, the default period is even more than a year. This has been viewed very seriously by the Ministry.

4. Keeping in view the initial operation of the revised procedure, all the defaulting cost auditors are requested to file their required Form 23D that have already become due till date, by December 16, 2012 positively. In case of any further default, names of such defaulting members shall be sent to the Institute on December 17, 2012 intimating the Institute to initiate Disciplinary Proceedings against them under the relevant provisions of Cost and Works Accountants Act, 1959.

5. In cases where the company concerned, after approval of Form 23C, has failed to issue the formal letter of appointment to the cost auditor, they shall do so within 15 days of the issue of this Circular enabling the cost auditor to file Form 23D within the extended time indicated above. In case of non-compliance, the company and every officer thereof who is found to be in default shall be punishable as per provisions of the Companies Act, 1956.

XBRL Filing Due Date Extended to 15th December, 2012

MCA GENERAL CIRCULAR NO. 34/2012, DATED 25-10-2012..extracts

Re. FILING OF BALANCE SHEET AND PROFIT AND LOSS ACCOUNT IN EXTENSIBLE BUSINESS REPORTING LANGUAGE (XBRL) MODE FOR THE FINANCIAL YEAR COMMENCING ON OR AFTER 1-4-2011

In continuation of the Ministry's General Circular No. 16/2012, dated 6-7-2012, on the subject cited above, it is stated that the time limit to file the financial statements in the XBRL mode without any additional fee/penalty has been extended up to 15th December, 2012 or within 30 days from the date of Annual General Meeting of the company whichever is later.

2. All other terms and conditions of the General Circular No. 16/2012, dated 6-7-2012 will remain the same.

MCA XBRL - Validation Tool V2.0 and Filing Manual V2.0

MCA XBRL Validation Tool (Final Version)

Final version of the MCA XBRL Validation Tool (for Financial Statements based upon new Schedule VI of the Companies Act, 1956) has been released. XBRL filings of financial statements for accounting year commencing on or after 01.04.2011 have been enabled on MCA website with effect from 14.10.2012. Stakeholders are also advised to refer to the ‘Filing Manual’ available on the XBRL portal for filing the financial statements in XBRL format.

• Click here for MCA XBRL Validation Tool V2.0 
• Click here for Filing Manual V2.0 

Listing of XBRL Software Vendors on MCA XBRL Portal

For the benefit and awareness of stakeholders, it has now been decided to revive the list of XBRL Software Vendors (i.e., company/firm that own/develop a XBRL Conversion Tool) on the MCA XBRL portal. In case you are interested for such a listing, you are requested to furnish the information as per attached checklist below. You would also need to submit one XBRL instance Document that has been prepared by your Tool and that has also passed MCA Validation Tool.

You are required to submit the information at e-mail egov-mca@nic.in. Please note that MCA is in no way certifying your Tool and information furnished to MCA, and correctness and authenticity of the same is solely your responsibility.

• Click here for the checklist
• Click here for Software Vendor List

Updated Taxonomy & Business Rules for C & I Companies for FY 11-12 Filings

Based on the feedback received from various stakeholders, the C&I taxonomy has been updated. The business rules have also been revised based on the updated taxonomy.

• Click here for the Updated C&I Taxonomy v1.1 dated 04.10.2012
• Click here for the list of changes in Updated C&I taxonomy v 1.1
• Click here for Revised Business Rules based on updated XBRL C&I taxonomy
  2012 dated 06.10.2012

QUALITY OF XBRL FILING CERTIFIED BY PROFESSIONAL MEMBERS: INCORRECT MAPPING/ TAGGING OF DISCLOSURES

MCA GENERAL CIRCULAR NO. 33/2012, DATED 16-10-2012..(Extracts)

You are aware that XBRL filing of financial statements by a select class of companies for FY 2010-11 was mandated vide Ministry of Corporate Affairs Notification GSR No. 748(E), dated 5-10-2011. The e-forms were duly certified by CA/CS/CWA professionals for their completeness and correctness in representation with respect to audited financial statement of the company.

2. A random scrutiny of XBRL filing of financial statements by few companies to MCA for FY 2010-11 reveals significant variations in disclosures in published results and the XBRL filings due to 'incorrect' mapping of disclosures. It has been observed that few disclosures were 'mapped/tagged' with incorrect accounting concept despite availability of appropriate element in taxonomy. It has also been observed that provisions of "Block Text tagging" and/or "Footnote" have been inappropriately used to report disclosures, like subsidiary details, related party transactions, Director's Report, etc., even when appropriate elements were available in the taxonomy for such disclosures. Few instances of "incorrect" tagging of XBRL documents are provided at Annexure-I.

3. Such filing are inaccurate and do not adequately represent true and fair view of the state of affairs of the company as per section 211 of the Companies Act, 1956. Such XBRL filings, apart from being misleading, also dilute the effectiveness of XBRL for stakeholders' usage relating to the companies. It is unfortunate that professionals have certified the authenticity of such incorrect data, for which they are liable to be penalized. Such lapses defeat the very purpose of introducing XBRL filings which are meant to elicit more detailed and refined information as to the affairs of companies. Please note that XBRL filings are being minutely scrutinized to see if similar mistakes also appear in a larger sample.

4. It is bounden duty of Institutes to direct its members to take necessary steps to improve the quality of XBRL filing for FY 2011-12 to be undertaken by its members. The Institute may conduct further trainings, issue guidelines, etc. so that such quality related issues are appropriately resolved.

5. This may be accorded high priority.

Filling Of Balance Sheet and Profit & Loss Account by Companies in Non-XBRL for the accounting year commencing on or after 01.04.2011

The Ministry has issued general Circulars No. 21/2012 dated 28-9-2012 and No. 28/2012 dated 3-9-2012 extending time for filing e-form 23AC (Non-XBRL) and 23ACA (Non-XBRL) up to 15-10-2012 or within 30 days from the date of AGM whichever is later. The revised e-forms 23AC (Non-XBRL) and 23ACA (Non-XBRL) have now been notified vide notification dated 24-9-2012 and shall come into effect from 30-9-2012.

In order to ensure smooth filing and to avoid last minute rush, it is to inform you that with the approval of the competent authority, the due date of filing of e-forms 23AC (Non-XBRL) or 23ACA (Non-XBRL) as per new Schedule VI is now further extended in following manner without any additional fees:-

(a) Company holding AGM or whose due date for holding AGM is on or before 20-9-2012, the time limit will be 3-11-2012 or due date of filing, whichever is later.

(b) Company holding AGM or whose due date for holding AGM is on or after 21-9-2012, the time limit will be 22-11-2012 or due date of filing, whichever is later.

Extracts.. MCA GENERAL CIRCULAR NO. 30/2012 DATED 28-9-2012

http://mca.gov.in/Ministry/pdf/General_Circular_30_2012.pdf

Filing of e-form 23B without additional fees extended till 23-12-2012

The MCA had issued Circular No. 14 of 2012 whereby the fees was imposed on filing of 23B by Statutory Auditors as per Schedule X of the Companies Act. To ensure smooth filing of the forms 23AC (Non-XBRL) and 23ACA (Non-XBRL), with the approval of the competent authority, the filing of e-form 23B is extended without any additional fees till 23-12-2012 or due date of filing, whichever is later.

MCA GENERAL CIRCULAR NO. 31/2012 DATED 28-9-2012..Extracts

http://mca.gov.in/Ministry/pdf/General_Circular_31_2012.pdf

India Inc's reporting standards under ICAI scanner

India's accounting regulator will look into the standards being followed by some of the country's leading companies, a move that comes in the wake of serious concerns raised by several analyst firms.

Global analyst firm Veritas had downgraded Reliance Communications over corporate governance and accounting norms a few weeks ago, just as it had earlier done in the case of Kingfisher, Reliance Industries and DLF, among other companies, over discrepancies in their financial reports.

"We have been keeping tabs on these reports and have decided to look into the matter seriously as such reports tend to have huge implications on market sentiments," said Jaipdeep Shah, president of Institute of Chartered Accountants of India, which is responsible for regulating accounting and financial reporting practices in the country...Contd..

http://economictimes.indiatimes.com/news/news-by-industry/services/consultancy-/-audit/india-incs-reporting-standards-under-icai-scanner/articleshow/15174306.cms

FILING OF FORM 5 INV OF IEPF (UPLOADING OF INFO REG. UNCLAIMED AMOUNTS) RULES

MCA Circular No. 17/2012, Dated 23-7-2012 (Extracts)

The following clarifications are issued with reference to the Investor Education and Protection Fund (uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012, published in the Gazette of India Part II section 3 sub-section (i) vide Notification No. G.S.T. 352 (E), dated the 10th May, 2012:

(a) As per these rules, information is to be filed in Form 5 INV. The cut-off date for filing information in Form 5 INV refers to the date of AGM up to which the information relating to a particular year is to be updated and then filed. Example: for the financial year ended 31-3-2012, where date of AGM is 30-9-2012, the complete information regarding unpaid and unclaimed amounts has to be updated till the date of AGM i.e., up to 30-9-2012 and then this information is to be filed through eform 5 INV within 90 days of the date of AGM i.e. by 29-12-2012.

(b) The Companies will have to file Form 5 INV for the year 2010-2011 up to 31st July, 2012 or within 90 days of the date of Annual General Meeting, whichever is later.

(c) Any company which has filed Form No. 5 INV but could not upload correct excel template within 14 days from the date of filing Form 5 INV, can file details of investors in excel template up to 31st August, 2012,

(d) The Companies are required to file one Form No. 5 INV each year for furnishing information on unpaid/unclaimed amounts lying with companies as on the date of Annual General Meeting.

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General Circular No. 17/2012 23.07.2012 The Investor Education and Protection Fund(uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules 2012.

Filing of Cost Audit Report and Compliance Report in XBRL mode

MCA General Circular No. 18/2012, 52/17/CAB-2011 Dated the July 26, 2012 (Extracts)

Subject: Filing of Cost Audit Report and Compliance Report in the eXtensible Business Reporting Language (XBRL) mode

Vide MCA’s General Circular No. 8/2012 dated 10th May, 2012 [as amended on 29th June, 2012], it has already been mandated by the Ministry of Corporate Affairs that all cost auditors and the concerned companies shall file their Cost Audit Reports and Compliance Reports for the year 2011-12 onwards [including the overdue reports relating to any previous year(s)] only in the XBRL mode. For this purpose, the applicable taxonomy, business rules, validation tools, etc. and also the “Product Group” classification required for preparing the cost audit reports and compliance reports as per the notified Cost Accounting Records Rules, 2011 and Cost Audit Report Rules, 2011 are under preparation and would soon be made available by the Ministry. The actual date for enabling XBRL filing will be intimated separately.

2. It has now been decided by the Ministry that all cost auditors and the concerned companies will be allowed to file their Cost Audit Reports and Compliance Reports for the year 2011-12 [including the overdue reports relating to any previous year(s)] with the Central Government in the XBRL mode, without any penalty, upto 31st December, 2012.
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General Circular No. 18/2012 26.07.2012 Filing of Cost Audit Report and Compliance Report in the eXtensible Business Reporting Language (XBRL) mode.