RoC Filing changes in disclosures latest amendments
The Ministry of corporate affairs vide CIRCULAR DATE 31ST JULY 2018, has introduced RoC Filing changes in disclosures latest amendments for Small companies and One person companies in their Boards Report the complete changes are discussed below in detail
What is RoC filing ( Annual Filings)?
RoC filing is the process of submitting the financials and other records to the Registrar in the prescribed form to know more about RoC Filing clink on this link RoC Filings
What amendments have been made ? ( RoC filing changes in disclosures)
MCA has amended the Companies (Accounts) Rules, 2014. These rules are now referred as the Companies (Accounts) Amendment Rules, 2018.
COMPANIES (ACCOUNTS) AMENDMENT RULES, 2018
New Rule 8A of the COMPANIES (ACCOUNTS) AMENDMENT RULES, 2018 prescribed abridged form of Directors Report for One Person Company and Small Company this has been issued under Section 134 of Companies Act, 2013
What is a One Person Company (OPC)?
OPC refers to one person company , where the company has only 1 share holder and turnover less than 2 Crores , to more about One Person Company click on this link OPC
What is the definition of small Company under the Companies Act 2013?
Section 2(85) of the Companies Act, 2013 defines “Small Company” in the following manner:
Small company’’ means a company, other than a public company,-
- paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees;
- turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees:Provided that nothing in this clause shall apply toA) a holding company or a subsidiary company;
- B) a company registered under section 8; or
- C) a company or body corporate governed by any special Act;
What are the major relief under the newly inserted Rule 8A?
- As the new rule , there is NO REQUIREMENT OF MGT-9 FOR OPC AND A SMALL COMPANY
- Director’s report of OPC and Small Company shall be prepared on the basis of “Stand Alone Financial Statement” of the Company.
INFORMATION TO BE CONTAINED IN THE DIRECTORS REPORT OF OPC AND SMALL COMPANY. (RoC Filings Changes in Disclosures)
RULE 8A. Matters to be included in Board’s Report for One Person Company and Small Company.- (1) The Board’s Report of One Person Company and Small Company shall be prepared based on the standalone financial statement of the company, which shall be in abridged form and contain the following:-
(a) the webaddress , if any, where annual return referred to in sub-sect ion (3) of section 92 has been placed;
(b) number of meetings of the Board;
(c) Directors’ Responsibility Statement as referred to in sub-section (5) of section 134;
(d) details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government;
(e) explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report;
(f) the state of the company,s affairs;
(g) the financial summary or highlights;
(h) material changes from the date of closure of the financial year in the nature of business and their effect on the financial position of the company;
(i) th e details of directors who were appointed or have resigned during the year;
(j) the details or significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company’s operations in future.
(2) The Report of the Board shall contain the particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the Form AOC-2 .”.
Conclusion :
This is a very welcome move by the Ministry of Corporate affairs to reduce the compliance burden of small companies and one person companies , the reduced to a very good in term of ease of doing business
FOR ANY ASSISTANCE ON ROC FILING/ ANNUAL FILING CONTACT VIRTUAL AUDITOR SUPPORT TEAM, WE WILL HELP YOU WITH GETTING THE ROC FILING DONE CONTACT US @ [email protected]
