MCA Notification and Circulars – Dec 2012

MCA Notification:

1. Amendment to the Directors Identification Number Rules 2006:

Dated: Dec 24, 2012

Crux of the Circular:

1. These rules have replaced the existing form DIN 1 and DIN 4.

Annexure to be attached to DIN 1:

An affidavit is to be taken from the applicant as said in the below link. The affidavit is to be notarized in Non Judicial stamp paper of RS. 10 and the same has to be scanned and attached to the Form DIN 1.

http://mca.gov.in/Ministry/pdf/G.S.R%28E%29_DIN1_24dec2012.pdf

Below link is for DIN 4:

http://mca.gov.in/Ministry/pdf/G.S.R%28E%29_DIN4_24dec2012.pdf

2. Change in the Form 18:

Date: Dec 24, 2012

Crux of the Circular:

As per the Companies (Central Government’s) General Rules and Forms (Seventh Amendment) Rules, 2012, the Ministry has amended the Form 18, the standard filing for situation of the registered office or any change thereof. Under the new form, onus has been put on the chartered accountant (CA), cost accountant or company secretary (CS) who verifies the filing to physically check the existence of the company.

http://mca.gov.in/Ministry/pdf/G.S.R%28E%29_Form18_24dec2012.pdf

http://www.business-standard.com/india/news/cacs-to-physically-verify-company-addresses/200933/on

MCA Circulars:

1. Extension of date in filing the Cost Audit. Company Report in the XBRL format:

Circular No : 43/2012 dated Dec 26, 2012

Crux of the Circular:

As per this circular all the Companies / Cost Auditors are allowed to file the 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.

http://mca.gov.in/Ministry/pdf/General_Circular_43_2012.pdf

2. Filing of Form 68 for rectification of mistakes in Form 1, Form 1A and Form 44:

Circular No : 42/2012 dated Dec 21, 2012

The Companies are allowed to rectify the mistakes made in Form 1, Form 1A and Form 44 filed in electronic form by filing Form 68 with the respective fee as follows:

Fee details to be filed along with Form 68:

For Form 1 and 1A : Rs. 1000

For Form 44: Rs. 10000

Form 68 has to be filed with 365 days from the date of approval of the aforesaid forms by the Registrar concerned.

In this regard the first Form 68 can be filed within 180 days from the effective date of this circular ie. Dec 23, 2012

http://mca.gov.in/Ministry/pdf/General_Circular_42_2012.pdf

NBFC – Core Investment Company

Criteria to be fulfilled to be a NBFC under section 45 I of the RBI act 1934.

-          The most important is that the principal business of the Company should be evident enabling us to classify it as an NBFC.

[As per the RBI press release in April 1999 Principal business is that if the financial assets of a company are more than 50 per cent of its total assets (netted off by intangible assets) and income from financial assets is more than 50 per cent of the gross income]

Core Investment Company

Core Investment Companies (CICs) were not considered as carrying on the business of acquisition of shares and securities in the following circumstances, namely,

(i)       not less than 90% of their assets were in investments in shares for the purpose of holding stake in the investee companies;

(ii)     they were not trading in these shares except for block sale (to dilute or divest holding);

(iii)    they were not carrying on any other financial activities; and

(iv) they were not holding / accepting public deposits.

As such, companies fulfilling the above criteria were not required to obtain Certificate of Registration (COR) from RBI under Section 45 IA of the RBI Act 1934. It has been found in practice, that it is very difficult to determine whether a company has invested in the shares of another company for the purpose of holding stake or for the purpose of trade. Even where initially investments had been made in some cases for holding stake in the investee company, for various reasons these shares were sold or additional shares were purchased. Such absence of clarity is not in the interest of the system. It was therefore decided that investing in shares of other companies, even for the purpose of holding stake should also be regarded as carrying on the business of acquisition of shares in terms of Section 45I(c) (ii) of RBI Act.  –

- Even if the company is running in losses on fulfilling the above said criteria it would still be considered to be a Core Investment Company (CIC) as per the RBI regulations.

http://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=7391#ci