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JUL 26, 2017

Clarification issued by MCA

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As per serial no. 5 of Notification No. G.S.R. 583(E) dated 13th June, 2017 (exemptions to private companies), the auditor’s report of the following private companies need not state whether the company has adequate financial controls system in place and the operative effectiveness of such controls:

(i) a one person company or a small company; or

(ii) a private company having turnover of less than Rs. 50 crore asper latest audited financial statement or which has aggregate borrowings from banks or financial institutions or anybody corporate at any point of time during the financial year of less than Rs. 25 crore.

MCA, vide F.No. 1/1/2014-CL-V dated 25thJuly, 2017 has clarified that the aforesaid exemption shall be applicable for those audit reports in respect of financial statements pertaining to financial years commencing on or after 1st April, 2016, which are made on or after the date of the said notification.

Click here to download the Circular.

Constitution of two Review Committee(s) for reviewing the 10 year old and above cases of different regions and in office of SFIO for withdrawal of prosecutions

MCA has constituted two Committees at Head Quarter which will review the cases under their jurisdiction. The Committees would review and recommend the details of cases in which prosecutions are required to be withdrawn including the reports submitted by the Regional Director(s): -

Committee A Committee B
The reviewing Committee will consist of the following:
  1. Director General of Corporate Affairs- Chairman of Review Committee;
  2. Joint Director (Insolvency Section) – Convener cum Member; and
  3. Joint Director (Policy Section)- Member.
The reviewing Committee will consist of the following:
  1. Director General of Corporate Affairs- Chairman of Review Committee;
  2. Joint Director (Sh. D. Bandopadhyay)– Convener cum Member; and
  3. Nominee Joint Director of SFIO- Member
This Committee will review the cases of the following Regional Director(s):
  1. Regional Director (Southern Region);
  2. Regional Director (North West Region);
  3. Regional Director (Northern Region); and
  4. Regional Director (South East Region);
This Committee will review the cases of the following Regional Director(s):
  1. Regional Director (Eastern Region);
  2. Regional Director (North East Region);
  3. Regional Director (Western Region); and
  4. Serious Fraud Investigation Office;

The Committee will furnish the details of cases within one month to MCA.

Click here to download the Notice.