Government of India
Ministry of Corporate Affairs
5th Floor, ‘A’ Wing, Shashi Bhavan
Dr. Rajendra Prasad Road
New Delhi-110 001
A copy of the Monthly Summary of the Ministry of Corporate Affairs for the month of July, 2017 is enclosed for information.
Under Secretary to the Govt. of India
All Members of the Council of Ministers
Copy, with enclosures, forwarded Lo:
1. Secretary to the President of India, Rashtrapati Bhawan, New Delhi
2. Secretary to the Vice- President of India, Cabinet Secretariat, New Delhi.
3. The Principal Director General, Ministry of I & B, Shastri Bhawan, New Delhi
4. Secretary, Depth of Telecommunications, Sanchar Bhawan, New Delhi
5. Secretary, Depth of Higher Education, Shastri Bhawan, New Delhi
6. Secretary, Depth of Statistics, Sardar Patel Bhawan, New Delhi
7. Secretary, Legislative Depth, Shastri Bhawan, New Delhi
8. Secretary, Depth of Scientific & Industrial Research, C.S.LR Building, Rafi Marg, New Delhi
9. Secretary, Ministry of Environment & Forest, Paryavaran Bhawan, New Delhi
10. Secretary, Ministry of Urban Development, Nirman Bhawan, New Delhi
11. Secretary, Depth of Revenue, North Block, New Delhi
12. Secretary; Depth. of Industrial Development, Udyog Bhawan, New Delhi
13. Secretary, Depth of Defence Production & Supplies, South Block, New Delhi
14. Secretary, Dept:. of Legal Affairs, Shastri Bhawan, New Delhi
(i) Economic Advisor, MCA
(ii) I PS to Secretary, Ministry of Corporate Affairs
(iii) PPS to Additional Secretary, Ministry of Corporate Affairs
Copy, also to: Dir (AK) – To upload the communication on official website of the MCA – under the caption “Monthly Summary of the Ministry of Corporate Affairs for the month of July, 2017”
Under Secretary to the Govt. of India
MINISTRY OF CORPORATE AFFAIRS
IMPORTANT POLICY DECISIONS TAKEN AND MAJOR ACHIEVEMENTS DURING THE MONTH OF JULY, 2017
A circular was issued to clarify that exemption from section 143(3)(i) of Companies Act, 2013 [reporting on internal financial controls by auditors in their audit reports] given through notification dated 13th June, 2017 shall be applicable for those audit reports in respect of financial statements for financial years commencing on or after 01/04/2016, which are made by auditors after the date of such exemption notification. (General Circular No. 08/2017 dated 25.07.2017).
(2) Notifications/Amendments in Rules:-
(i) During the month, a draft notification under section 462 of the Companies Act, 2013 (CA-13) was laid in the Parliament with a view to amend the existing exemptions to government companies engaged in defense production from segment reporting in their annual financial statements on account of adoption of Indian Accounting Standards (Ind AS).
(ii) NCLT Rules, 2016 prescribed under Companies Act, 2013 were. amended to provide for the procedural requirements/manner in which appeals or applications for restoration of name of a company, whose name was struck off from the register of companies shall be made ‘to and approved by NCLT. (G.S.R. 840(E), dated 05.07.2017).
(iii) Companies (Appointment & Qualification of Directors) Rules, 2014 prescribed under Companies Act, 2013 were amended to provide exemption from appointment of independent directors (IDs) to unlisted public companies which are joint ventures, wholly owned subsidiaries and dormant companies. Consequent change in the Companies (Meetings of Board and its powers) Rules,’ 2014 was also made on 13th July, 2017 for providing exemption to such classes of companies from constitution of Audit Committee and Nomination & Remuneration Committee. (G.S.R. 839(E), dated 05.07.2017).
(iv). The Schedule IV to the Companies Act, 2013 [Code for IDs] was also amended to provide certain exemptions from requirements of this Schedule to those Government companies for which similar requirements were separately specified by the concerned administrative Ministry/Department of the Central Government or the State Government concerned, as the case may be. (S.O. 2113(E), dated 05.07.2017).
(v) The Ministry vide notification dated 27.07.2017 has amended Rule 28 and 30 of Companies (Incorporation) Rules, 2014 to simplify the procedure of shifting of registered office from the jurisdiction of one Registrar of Companies to another Registrar within the same State and shifting of registered office from one State/Union Territory to another. (G.S.R. 955(E), dated 27.07.2017).
(3) The Companies (Amendment) Bill, 2016 (along with Official Amendments therein proposed by the Government) was considered and passed by the Lok Sabha on 27th July, 2017. The amended Bill, as passed by Lok Sabha, is likely to be considered by Rajya Sabha during the current Session of the Parliament..
(4) Large number of comments were received on the draft Companies (Registered Valuers and Valuation) Rules, 2017. These are being examined.
(5) The Ministry had, on 28.06.2017, placed a consultative paper for public suggestions/comments regarding commencement of provisions of section 2(87) of the Companies Act, 2013 which provides for restriction on the number of layers of subsidiaries which a company may have. The suggestions/comments from the stakeholders as well as concerned Ministries/ Departments/ Regulators were sought up to 20.07.2017. The comments received are being examined and relevant rules would be revised suitably before taking a decision to publish in the Gazette.