Introduction from CEO

Welcome to the first edition of Zappy News Highlights. This newsletter contains an article about Annual Filing and a Legal Term and meaning. In future, you can expect information and articles related to recent changes in Acts and Laws, Blogs and Articles related to the recent trends in the market and industry events. On this occasion, I am glad to introduce Zappy Consults Private Limited (OPC) started in January 2015. Zappy is a Business Consultancy firm that excels in Financial Management, Company Secretarial, Legal and Administrative services. We are in association of several PCS and PCA firms like G.S. Bhide & Associates and CS Mansi Kate to name a few. We recruit and maintain skilled employees who are trained in their specialized stream. From new start-up Company to developing and matured one to declining / closing down a business, Zappy provides all corporate level solutions to the Board of Directors of such business organizations. Zappy also provides human resource and knowledge resource services to professionals like PCS and PCA firms. Zappy is looking ahead with great optimism. We are a strong, well-established organization, with three regional consultants and offices, with qualified and semi-qualified CS and others working with us. I appreciate you taking the time to read our newsletter and look forward to meeting you at the next ICSI meeting or other industry event.

Saranya Deivasigamani,
CEO

Annual Filing Season is on

Annual Return filing is not the same old process as we did in times of Companies Act, 1956. Now it is totally different, governed by a single section of the new act. First let us see how the law has been changed – Section 159, 160, 161, 162 & Schedule V deals with the Annual Return & related provisions under Companies Act, 1956. But in Companies Act, 2013 all these sections are combined together in one Section that is Section 92. The Single format of Annual Return is now divided in to three formats. They are:

Form MGT-7 – Annual Return
Form MGT-8 – Certificate by PCS.
Form MGT-9 – Extract of Annual Return

Every Company shall prepare its Annual Return in Form MGT-7. The time limit for submitting MGT-7 is within 60days from the date of AGM. If no AGM is held in any year, the Company has to file Annual Return within 60 days from the date on which the AGM should have been held together with the statement specifying the reasons for not holding the AGM with such fees or additional fees as may be prescribed, within the time as specified, under section 403(270 days). The Annual Return, filed by a Listed Company or Company having a paid up share capital of ten crore rupees or more or turnover of fifty crore rupees or more shall be certified by a PCS and the certificate shall be in Form MGT-8. The Extract of Annual Return to be attached with the Board’s Report [sec 134(3) (a)] shall be in Form MGT-9. Every company shall file a copy of the Annual Return with the Registrar. Every company shall file a copy of the Annual Return with the Registrar. The Annual Return can be kept at the registered office or at other place by passing a Special Resolution.

Authentication of Annual Return:

All Companies (Except OPC)

Annual Return shall be signed by –

A Director and the Company Secretary, or
Where there is no Company Secretary, by a PCS

OPC and Small Company Annual Return shall be signed by –

The Company Secretary, or
Where there is no Company Secretary, by the Director of the Company.

Penalty for delay:

The terms of penalties are also modified under the new act which gives no excuse to any of the stakeholders related to filing of Annual Return. The Penalties to each of the stakeholders are:

Company	Fine which shall not be less than . 50,000/- but which may extend to . 5,00,000/-
Officer	Imprisonment for a term which may extend to 6 months or Fine which shall not be less than .25,000/- but which may extend to .5,00,000/- or with both.
PCS	Fine which shall not be less than .50,000/- but which may extend to .5,00,000/-

Vidhyaa Ragavendran,
Assistant Consultant

Legal Term

Sequestration:

Noun (n). the act of a judge issuing an order that a jury or witness be sequestered (kept apart from outside contacts during trial).

Sequester:

Verb (v). to keep separate or apart. In so-called “high-profile” criminal prosecutions (involving major crimes, events or persons given wide publicity) the jury is sometimes “sequestered” in a hotel without access to news media, the general public or their families except under supervision, in order to prevent the jury from being “tainted” by information or opinions about the trial outside of the evidence in the courtroom. A witness may be sequestered from hearing the testimony of other witnesses, commonly called being “excluded,” until after he/she has testified, supposedly to prevent that witness from being influenced by other evidence or tailoring his/her testimony to fit the stories of others.