Circular No. 143/12/ 2011 – ST Representations have been received that client processing of tobacco involving threshing and drying of tobacco leaves and client processing of raw cashew involving roasting/drying, shelling and peeling of raw cashew to recover kernel, are considered by the field formations as not falling within the meaning of the expression “in relation to agriculture” appearing in notification 14/2004-ST (as amended) dated 10th September, 2004, resulting in avoidable disputes and litigation.
DNBS (PD) CC. No. 24/SCRC/26.03.001/2010-2011 – Pursuant to the announcement made by the Finance Minister in the budget speech for 2011-12, Government of India, Ministry of Finance notified the establishment of the Central Registry vide notification F. No. 56/05/2007-BO-II dated March 31, 2011. The objective of setting up of Central Registry is to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), a Government Company licensed under section 25 of the Companies Act 1956 has been incorporated for the purpose of operating and maintaining the Central Registry under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act).
Policy Circular No. 31 (RE-2011) /2009-14 Dated the, 25th May, 2011 – Sub:- File applications for 24 SEZ ports codes – reg. – Director General (Systems) have accorded SEZ port codes to the following 24 SEZs which have been uploaded on DGFT’s website:-
UBD.BPD.(PCB) CIR No. 49/09.14.000/2010-11 Consequent upon the enhancement in gratuity limits following the amendment to Payment of Gratuity Act 1972, UCBs and their Associations have expressed that it would be difficult to absorb the large amount involved in a single year. The expenditure, if not fully charged to the Profit and Loss Account during the financial year 2010-11, be deferred over a period of five years beginning with the financial year ended March 31, 2011 subject to charging to the Profit and Loss Account a minimum of 1/5th of the total amount involved every year.
CIRCULAR NO. DBOD. NO.BC.NO. 95/29.39.001/2010-11, DATED 23-5-2011 It has been decided to partially modify the format of ‘Declaration and Undertaking’ prescribed for the purpose of conducting due diligence to determine the ‘fit and proper’ status of directors, incorporating an explanatory note against Column (IV)(g) of the said format which is given in Annex 1. Henceforth, banks should use the revised format for obtaining declaration and undertaking from existing directors as well as the person to be appointed/elected as director.
General Circular No. 30A/2011 Under section 226 (3) (a) of the Companies Act, 1956 (Act) a ‘body corporate’ is disqualified from being appointed as an auditor of a company, which means that LLP of Chartered Accountants is thereby disqualified from being appointed as auditors. To remove this anomaly, MCA has issued Notification No. S.O.1152(E) dated 23 May 2011 along with Circular No. 30A dated 26 May 2011 wherein LLP has not been recognized as ‘Body Corporate’ for the purpose of appointment as ‘Auditor’ under Section 226 of the Act. Accordingly, an LLP of Chartered Accountants will be eligible to be appointed as auditor of a company.
Circular 30/2011 Sections 108A to 1081 of the Companies Act, 1956 were inserted in the Companies Act, 1956 through Monopolies and Restrictive Trade Practices (Amendment) Act, 1991. Section 108G (applicability of sections 108A to 108F) and Section 108H (construction of certain expressions used in sections 108A to 108G) of Companies Act, 1956 refer to applicability of provisions of sections 108A to 108F in reference to various requirements under the MRTP Act, 1969.
Presently, ROC issues a number of certificates and standard letters physically, under the manual signature. Such certificates and standard letters would now be issued with digital signature of ROC. The digital certificates are expected to be available for issue by 30 June 2011, in a phased manner.
MCA has permitted use of video conference facility for Board / Committee meetings subject to following conditions: 1. The facility shall be capable of allowing all participants to communicate concurrently with each other without any intermediary; Every director must attend at least one Board / Committee meeting personally in each financial year; 2. Notice of Meeting should provide for the availability of the facility and necessary information to access the same;
MCA has permitted the use of video conference facility for shareholders’ meeting subject to following conditions: The facility shall be capable of allowing all participants to communicate concurrently with each other without any intermediary; Notice of Meeting should provide for the availability of the facility and necessary information to access the same; The requirement of Chairman and members being personally present would continue; Chairman and Secretary are responsible for integrity, proper functioning of the meeting and ensure participation by the shareholder himself / proxy (i.e. no other person except shareholder / proxy can attend such meeting);
