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In Part I and II of the article we discussed Amendment for use of Accounting Software having Audit Trail, Amendments for the preparation of Financial Statements (Schedule III), Applicability of the CARO 2020, Amendments in Auditor’s Report, Amendments in definition of Small company, Amendments related to One Per and Amendments applicable to OPC and Small Company.

In this Article Author discussed 10. Amendments for CSR activities, Amendments for Gap between two Board of Directors (BODs) Meetings, Amendments for Holding of Extraordinary General Meeting (EGM) through Video Conferencing (Virtual) or Other Audio Visual Means (OAVM) or through postal ballot, Amendments for holding of Board of Directors meeting through video conferencing (virtual) mode, Amendments for relaxations for appointment of Independent Director’s and Amendments in Ind AS for aligning with IFRS.

10. Amendments for CSR activities

(i) Now the following entities are required to have unique CSR registration number

(a) Registered Public Trust

(b) Registered Society

(c) Section 8 Company under the Companies Act, 2013

(ii) Unique CSR Registration Number Any abovementioned entity if intends to undertake any CSR activity is required to register itself by filing the e-form CSR-1 with the ROC to obtain Unique CSR Registration Number.

(iii) This amendment is applicable from April 01, 2021. Hence these are applicable for the financial statements for the year ending March 31, 2022.

11. Amendments for Gap between two Board of Directors (BODs) Meetings

(i) Now gap between two BODs meetings is permitted ‘up to 180 days’ instead of 120 days

(ii) This amendment is permitted for 2 quarterly BODs meetings like June 2021 and Sep 2021 quarters meeting ‘only’.

12. Amendments for Holding of Extraordinary General Meeting (EGM) through Video Conferencing (Virtual) or Other Audio Visual Means (OAVM) or through postal ballot.

Now EGM can be held through

(i) Video conferencing modes vide circular number 10/2021 dated June 23, 2021 and it’s further applicable from July 01, 2021

(ii) This amendment is permitted up to December 31, 2021 which was earlier permitted up to June 30, 2021.

13. Amendments for holding of Board of Directors meeting through video conferencing (virtual) mode for the followings agenda (items)

(i) Approval for the Annual Financial Statements

(ii) Approval for the Board of Directors report

(iii) Approval for the Prospectus

(iv) Approval for the matter relating to the followings:-

(a) Amalgamation

(b) Merger

(c) Demerger

(d) Acquisition

(e) Takeover

(v) Audit committee meetings for consideration of the financial statements which are subsequently to be approved by the Board of Directors.

14. Amendments for relaxations for appointment of Independent Director’s

(i) ‘Definition’ of the Independent Directors is to include a director but who is not a Managing Director, whole time director or nominee director.

(ii) ‘Relaxations’ as notified by the MCA

(a) Now an individual is permitted to be appointed as an Independent Director in a company ‘before’ inclusion’ of his/her name in data bank as maintained by the MCA against payment of a fee of Rs. 1000

(b) Now an independent director is also permitted to renew the registration with the data bank as maintained by the MCA against payment of a fee of Rs. 1000 beside delay is more than 30 days.

Changes in Companies Act, 2013 you must know - Part III

15. Amendments in Indian Accounting Standards (Ind AS) for aligning with the International Financial Reporting Standards (IFRS)

(i) Followings amendments are made in the Ind AS

(a) Ind AS 101 – Presentation of Financial Statements

Now the term ‘Financial Asset’ is to be replaced with ‘Financial instrument’ under the head ‘classification and Measurement of Financial Asset’

(b) Ind AS 102 – Share Based Payment Now changes are made under the conceptual frame work of financial reporting for the defining the term ‘Equity Instrument’

(c) Ind AS 107 – Financial Instruments, Recognition , Presentation and Disclosure Now following ‘additional’ disclosures are required in the financial statements for interest rate benchmark reform

(ca) nature and extent of risk is exposed from financial instruments due to interest rate benchmark reform

(cb) Progress for completing the transition for alternative benchmark rates and also to state that how company is managing the transition

(d) Ind AS 109 – Financial Instruments Now ‘introduced the practical method for assessment of contractual cash flow test to measure a financial asset ‘amortized’ cost for the changes in the financial assets due to interest rate benchmark reform

(e) Ind AS 116- Lease Now benefit relating to ‘rent concession’ to the lessees is to be recognized as income instead of lease rent up to June 2022 instead of up to June 2021.

Also Read  –

Analysis of Companies Act Schedule III Amendment applicable wef 01.04.2022

Changes in Companies Act, 2013 you must know – Part I

Changes in Companies Act, 2013 you must know – Part II

Disclaimer: While every care has been taken to ensure the accuracy/ authenticity of the above, the readers are advised to recheck/reconfirm the same from the original sources/ relevant departments. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. By the use of the said information, you agree that the company is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional. The company shall in no way be responsible for any loss or damage suffered to any person on account of the same.

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