MCA Updates - Latest Corporate Updates
Mentioned below latest Corporate Updates:
I) AMENDMENT TO SCHEDULE III OF THE COMPANIES ACT 2013:
i) The Central Government has made further amendments to Schedule III to the Companies Act, 2013 vide Notification dated 11th October 2018. As per the said notification, Division III has been inserted in respect of Financial Statements for a Non-Banking Financial Company (NBFC) whose financial statements are drawn up in compliance of the Companies (Indian Accounting Standards) Rules, 2015.
ii) The changes to AOC-4 Non-XBRL form (Form for filing Financial Statements with Ministry) necessitated by insertion of Division III in Schedule III of CA 2013 are under development and the revised form exclusively for such class of companies would be made available for filing purposes soon.
iii) Source: http://mca.gov.in/MinistryV2/
II) MCA ISSUES CIRCULAR TO REMOVE DOUBTS/AMBIGUITIES IN “APPOINTED DATE” AND “ACQUISITION DATE” WITH RESPECT TO MERGERS/AMALGAMATIONS:
Key highlights of press release on official website of “Press Information Bureau, Government of India” regarding Merger/Amalgamations:
i) “Appointed date” in the scheme need always be a definite calendar date, which led to difficulties for companies intending to give effect to their merger at a future/event-linked date, based on business considerations, fulfilling legal requirements such as procurement of license from sectoral regulators, etc. Besides this, Ind AS 103 (Business Combinations), which deals with the accounting treatment, uses the expression.
ii) “Acquisition date”, as a date when the acquirer takes control of the Acquiree, also required clarification.
iii) The companies may choose the “appointed date” of the merger/amalgamation based on occurrence of an event, which is relevant to the merger between companies.
iv) This would allow the companies concerned to function independently till such event is actually materialised.
v) “Appointed date” used in section 232(6) shall be deemed to be the “acquisition date” for the purpose of conforming to Ind AS 103 standard dealing with business combinations.
vi) This clarification would lead to harmonization of practices in ascertaining the “appointed date” of merger/amalgamation and provide due clarity on the accounting treatment, thereby allowing stakeholders to align the “appointed date” of merger/amalgamation in accordance with their business considerations or legal requirements. This would also contribute significantly in the ease of Doing Business.
vii) Source: http://pib.gov.in/