Month: November 2015

AOC-4 XBRL

Happy Diwali

Hope your Diwali was wonderful and the coming year is filled with prosperity, peace and happiness for you, your family and business. I wish this Diwali illuminate your days in the year ahead. After enjoying your festival this month, you must be happy again on hearing that the last date of filing forms AOC-4 (XBRL and non-XBRL) and MGT-7 have been extended till 30th Nov 2015 without additional fee. You might be in a hurry to utilize this opportunity and close all the compliances for the year for your Company and of your Clients and also have in note that the versions of forms AOC-4 (XBRL) and AOC-4attachments are modified from 1st Nov 2015. This month we are focusing on this and give you a brief about AOC-4.

CEO Saranya Deivasigamani,
CEO

AOC-4

Every company needs to file its financial statements, including consolidated financial statement and mandatory attachments, within the prescribed time limit as per section 137. In case financial statements are not adopted in AGM then un-adopted financial statements needs to be filed within 30 days of date of AGM (due date of AGM if AGM not held or extended due date, if any). Once financial statements are adopted then company shall file the adopted financial statements within 30 days of the AGM (actual or adjourned whichever is applicable). In case company revises the financial statements then revised financial statements are required to be filed. Certain classes of companies as notified under Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2015 by the Central Government are required to mandatorily file their financial statement in Extensible Business Reporting Language (XBRL) format. Other companies can also file their financial statement in XBRL format voluntarily. However, once, filed in XBRL format, they would be required to file subsequent financial statements only in XBRL format.
Eligibility
The following class of companies shall file their financial statement and other documents under section 137 of the Act, with the Registrar in e-form AOC-4 XBRL given in Annexure-l The greatest pleasure in life is doing what people say you cannot do. For the financial years commencing on or after 1st April, 2014 using the XBRL taxonomy given in Annexure II, namely:
  1. All companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or
  2. All companies having paid up capital of rupees five crore or above;
  3. All companies having turnover of rupees hundred crore or above; or
  4. All companies which were hitherto covered under the Companies (Filing of documents and Forms in Extensible Business Reporting Language) Rules, 2011.
Provided that the companies in Banking, Insurance, Power Sector and Non-Banking Financial companies are exempted from XBRL filing. A company required to furnish cost audit report and other documents to the Central Government under sub-section (6) of section 148 of the Act and rules made thereunder shall file such report and other documents using the XBRL taxonomy given in Annexure-III for the financial years commencing on or after 1st April, 2014 in e-form CRA-4 specified under the Companies (Cost Records and Audit) Rules, 2014. Companies can file this e-form for financial year commencing on or after 1st April 2014, for the following reasons:
  • Provisional unadopted financial statements
  • Adopted financial statements
  • Revised financial statements u/s 130
  • Revised financial statements u/s 131
Important points to note while filling the form
  1. Filing of this form is allowed only for the financial years starting on or after 1st April 2014. This is because this form is under Act of 2013 which came into force only on 1st April 2014. Provisions of companies Act, 2013 related to financial year and financial statements shall apply only in relation to financial year started on or after 1st April 2014. A Financial Statement related to any financial year started before 1st April 2014 shall be filed in a form prepared under the Companies Act, 1956.
  2. Nature of financial statements may be either:
  • Situation 1: Provisional Unadopted Financial Statement: No additional information is required to be given in this case.
  • Situation 2: Adopted Financial Statement: Where provisional unadopted financial statement was filed for same financial earlier, should be mentioned by using radio button. Whether such adopted financial statement is now adopted in Adjourned General Meeting or not. If such adopted financial statement is adopted in Adjourned General Meeting, dated of adjourned general meeting in which such adopted financial statement was adopted will be mentioned.
  • In case of One Person Company (OPC), answer of the question related to earlier provisional Financial Statement shall be Not Applicable.
  • Situation 3: Revised Financial Statements under Section 130: Where adopted financial statement was already filed and company wants to file revised financial statements, it needs to give some additional information. What is nature of revision? Whether only financial statement is being revised or Directors’ report or both? SRN number of Form INC – 28 (Copy of Central Government order) and SRN number of earlier AOC – 4 XBRL is require to be given. Date of order of competent authority shall be required to be filled.
  • Situation 4: Revised Financial Statements under Section 131: Where adopted financial statement was already filed and company wants to file revised financial statements, it needs to give some additional information. What is nature of revision? Whether only financial statement is being revised or Directors’ report or both? SRN number of Form INC – 28 (Copy of Central Government order) and SRN number of earlier AOC – 4 XBRL is require to be given. Date of order of competent authority shall be required to be filled.
Time Line
  1. Adoption of financial statement in case of OPC – 180 days form end of financial year
  2. Provisional unadopted financial statement other than OPC – 30 days from Actual date of AGM or due or extended due date
  3. Adopted Financial Statement other than OPC – 30 days from AGM or adjourned AGM.
  4. Revised Financial Statements under Section 130 – 30 days from order of competent authority
  5. Revised Financial Statement under Section 131 – 30 days from order of competent authority


Executive Consultant Vidhyaa Ragavendran,
Assistant Consultant

Legal Term

Piercing the Corporate Veil
A situation in which courts put aside limited liability and hold a corporation’s shareholders or directors personally liable for the corporation’s actions or debts. Veil piercing is most common in close corporations. While the law varies by state, generally courts have a strong presumption against piercing the corporate veil, and will only do so if there has been serious misconduct like abuse of the corporate form (e.g. intermingling of personal and corporate assets) or undercapatitalisation at the time of incorporation.
NewsBites

MCA Updates

  • Last date of filing forms AOC-4 (XBRL and non-XBRL) and MGT-7 have been extended till 30th Nov 2015 without additional fee.
  • New Form AOC-4 CFS (Form for filing consolidated financial statements and other documents with the Registrar) would be available for filing w.e.f. 1st Nov 2015. Version of INC-4 is modified w.e.f. 6th Nov 2015.
  • Limited Liability Partnership (Amendments) Rules, 2015
  • The Act comes in to force with effect from 19th Oct 2015. In the LLP Rules 2009, rule 33, 39, 40, Form 2, Form 4, Form 16, Form 19 and Form 30 are modified
  • Version of Form 8 LLP is modified w.e.f. 13th Nov 2015. Stakeholders are requested to plan accordingly.
  • Versions of Forms 2A LLP, 4A LLP are modified w.e.f 19th Oct 2015. Form 14 LLP have been withdrawn. Stakeholders are requested to plan accordingly.

SEBI Updates

  • Securities and Exchange Board of India (SEBI) by exercising its power under 11(1) and 11A of the Securities and Exchange Board of India Act, 1992 issued a circular dated 13th October, 2015 for uniform format of listing agreement incorporating revised disclosures and regulatory requirements applicable for listed entities.

Income Tax Updates

  • Taxation of income from off-shore Rupee Denominated Bonds
  • Finance Minister launches the “e-Sahyog” pilot project of the Income-tax Department
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