Section 129A of Companies Act 2013

Recent Companies Act Amendment Update

Now unlisted companies soon be required to submit their financial statements to the government on a quarterly or half-yearly basis.

For this a new section 129A would going to be introduced.

There are more than 11 lakh unlisted companies that are active in india and the proposal also assumes significance against the backdrop of instances of financial distress at some large unlisted entities.

As of now, Listed Companies are required to disclose their financials on a quarterly basis under SEBI regulations. In the case of unlisted companies, they are currently not required to furnish any sort of  financial statements on a quarterly or half-yearly basis.


Through, Section 129A, MCA is rolling out a new quarterly or half-yearly financial statement reporting norm for unlisted companies.

The purpose behind it is to have updated financial details about systemically-important companies that are not listed. 

Currently, an unlisted company can submit its financial statement and annual returns to the ministry after at least completion of six months of financial year end.

After the end of a financial year, a company has to hold its Annual General Meeting (AGM) within six months and the financial statement has to be submitted within 30 days of the meeting.

Within 60 days of the AGM, the company is required to furnish the annual returns.

Under the current system, the ministry would be able to get the information on financial affairs of the company only after passing of a significant time. The MCA would not be updated in case there are any significant financial issues during the course of a financial year.

As MCA has decided to bring in quarterly or half-yearly financial statements reporting requirement for unlisted firms, Company Secretary now become more responsible by this additional compliance.

Please be informed, LLPs are still out of this proposed reporting criteria. This seems another benefit to the business running through LLPs. 
This blog is authored by Company Secretary Ronak Gupta. He is author of many blogs and runs many websites and youtube channels. His work is dedicated to corporate laws, legal, secretarial, professional services and also in strategy formulations for corporates. Mail him at: csronakgupta23@gmail.com or call at :9910226715

Comments

Post a Comment

Popular posts from this blog

DIR 8 Intimation by Director

Image
FORM 'DIR-8' Intimation by Director  [Pursuant to Section 164(2) and rule 14(1) of Companies (Appointment and Qualification of Directors) Rules, 2014]   Registration No. of Company Nominal Capital           Rs.  Paid-up Capital Rs.  Name of Company Address of its Registered Office     To, The Board of Directors of XYZ Private Limited I, ________ son/daughter/wife of  __________  resident of  ________________ , Director/Managing Director/Manager in the company hereby give notice that I am/was a director in the following companies during the last three years:-   S.No Name of the Company Date of Appointment Date of Cessation 1   I further confirm that I have not incurre...
Read more

H-1B visas

H-1B visas are issued by U.S. H-1B recipients can only remain in the country legally for 60 days without being paid. About three-quarters of H-1B visas go to people working in the technology industry, though the exact levels vary year by year. H-1B visas, are tied to a specific location and employer who commits to paying the recipient a minimum salary. Furloughing recipients, reducing their wages, and in some cases allowing them to work from home violates visa requirements. H-1B workers who are terminated have 60-days to find another job, transfer to a different visa or leave the country. God is with them, everything will be alright. O-1 visa, which is designated for individuals with extraordinary ability.
Read more

Median Salary Disclosure procedure

This article is about the calculations involved in the disclosure of section 197(12). Also read on for clarification on the median calculation related to this section, which is commonly found in the Annual Report of Listed Companies.  This write-up will guide you through the process of calculating and understanding the median disclosure required in the Board Report. 📜 Legal Requirement u/s 197(12) Every Listed companies must disclose the ratio of each director’s remuneration to the median remuneration of employees in their Board’s Report.  But how is the median remuneration calculated? Let’s break it down step by step. 👇 The median is the middle salary value when all salaries are arranged in ascending order. Unlike the mean (average), the median is not affected by extreme high or low salaries, making it a more accurate representation of the typical employee salary. 🔹 Step 1: Gather Salary Data Collect the annual salaries of all permanent employees in the company. 🔹 Step 2:...
Read more