BIG Company = Cash Flow |
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Small Co Sec 2 (85) as per Co act 2013 | ‘‘small company’’ means a company, other than a public company,— (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or (ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees: Provided that nothing in this clause shall apply to— (A) a holding company or a subsidiary company; (B) a company registered under section 8; or (C) a company or body corporate governed by any special Act; |
Small Company |
Big Company |
Private Co | Public CO |
Paid Up Capital Up To or Less Than 50 Lacs | Paid Up Capital More than 50 Lacs |
Turnover upto 2 Cr and Less Than 2 Cr | Turnover More Than 2 Cr |
Both Paid and Turnover Condition Must be Satisfied | Any Condition Paid and Turnover be Satisfied |
Cash Flow |
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Definition 2(40) |
“financial statement” in relation to a company, includes— (i) a balance sheet as at the end of the financial year; (ii) a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year; (iii) cash flow statement for the financial year; (iv) a statement of changes in equity, if applicable; and (v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv) Provided that the financial statement, with respect to One Person Company, small company and dormant company, may not include the cash flow statement; It means all the companies whether private or public needs to include cash flow statement in its financial statement except the One Person Company, small company and dormant company. Now we have to check the definition of One Person Company, small company and dormant company |
Not applicable to | Applicable to |
Small Co | Public |
OPC | Listed |
Dormant | XBRL |
BIG | |
Format | Since the Companies Act, 2013 does not lay down any format for preparation of cash flow statement, companies will need to follow AS 3 in this regard. In respect of listed companies, the listing agreement requires the indirect method for preparing cash flow statements. Thus, under the Companies Act, 2013, non-listed companies will have a choice of either applying the direct or indirect method under AS 3 to prepare the cash flow statement. Due to the listing agreement requirement, that choice will not be available to listed companies |
Category Archives: Corporate Law
Private company can accept unsecured loans even from a relative of director without any limit 15-09-2015
Private company can accept unsecured loans apart from director even from a relative of a director of the company without any limit…
Without any upper limit of amount, private company can accept unsecured loans apart from director even from a relative (as per definition) of a director of the company with simple declaration saying the relative has not borrowed same from others.
Deposit Accepted Before 1-4-2014 From Members / Director Relatives Is Permissible under the New Act 2013 Circular 30-3-2015 MCA
Deposited Accepted before 1-4-2014
From members / Director Relative Is Permissible under the New Act
AS Per This Circular Any Deposit Accepted From
Shareholder
Director Relative
Hold As on 01-04-2014 Are also Exempted In the New Act.
But If any one Taken it After 1-4-2014 It is not Exempted
Subject To Necessary Disclosure In the Financial Statement
As per the circular issue relaxation is provided to private companies who have accepted loans from their members, Directors and Relatives of Directors before 1st April,2014.
To avail the benefit the companies are required to make disclosure about unsecured loans accepted from their members ,Directors and Relatives of Directors for unsecured Loans accepted before 1st April,2014.
General Ctrcular No. O5/2O15 F. No. 1/8/2013-CL-V Government of India Ministry of Corporate Affairs sth Floor, A Wing, Shastri Bhavan, Dr R.P. Road, New Delhi. Datedt 3otn Match, 2Ol5 To All Regional Directors, All Registrars of Companies, All sta.keholders. Subject: Amounta recelved by prlvate companles frorrr their membete, dlrectora or thelr relatlves before l.t Aprll, 2014 – Clarlflcatlon regardlag appllcability of Companles (AcceptlDce of Depo3ltsl Rule8.20l4 Sir, Stakeholders have sought clarifications as to whether amounts received by private companies from their members, directors or their relatives prior to 1st April, 2014 shall be considered as deposits under the Companies Act, 2013 as such amounts were not treated as ‘deposits’ under section 58A of the Companies Act, 1956 and rules made thereunder. 2.The matter has been examined in consultation with RBI and it is clarified that such amounts received by private companies prior to 16t April, 2Ol4 shall not be treated as ‘deposits’ under the Companies Act,2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after lsi April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the fi nancial statement. 3. Any renewal or acceptance of fresh deposits on or aiter 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 20 13 and rules made thereunder. 4.This issues with the approval of the competent authority. Y
ours faithfullv. ri, I lrlJlsalky”n,nt
http://www.mca.gov.in/Ministry/pdf/General_Circular_5-2015.pdf
Companies (Indian Accounting Standards) Rules, 2015 MCA 16-02-2015 39
Companies (Indian Accounting Standards) Rules, 2015
The Ministry of Corporate Affairs has issued a Notification dated 16th February, 2015 and has notified the road map for the applicability of the Indian Accounting Standards (Ind AS) for compliance by the class of companies specified in the said roadmap.
Date | 16-02-2015 |
No of Accounting Standard | 39 |
Rule | The Companies (Indian Accounting Standards) Rules, 2015 |
Thirty Nine (39) Indian Accounting Standards shall continue to comply with Accounting Standards as prescribed in the Companies (Accounting standards) Rules, 2006.
Companies (Indian Accounting Standard) Rules, 2015
Now Small Company : Paid Up Capital Up To 50 Lacs ++AND++ Turnover upto Rs. 2 crores (Earlier OR)
Removal of Difficulties Dated 13-02-2015
Removal of Difficulties w.r.t Section 2 (85) “Small Company”:
Now a Company needs to satisfy both the conditions i.e. paid up capital upto Rs. 50 lakhs AND Turnover upto Rs. 2 crores, to be classified as Small Company.
ordinary course of its business.
http://mca.gov.in/Ministry/
Dated: 13-02-2015
MCA – Circular – Extension of time for filing of notice of appointment of the cost auditor in Form CRA-2 vide circular no. 2/2015 Form CRA-2 without any penalty/late fee is hereby extended upto 31st March, 2015.
MCA – Circular – Extension of time for filing of notice of appointment of the cost auditor in Form CRA-2 vide circular no. 2/2015 Form CRA-2 without any penalty/late fee is hereby extended upto 31st March, 2015.
In continuation to the General Circular No. 42/2014, the last date of filing of Form CRA-2 without any penalty/late fee is hereby extended upto 31st March, 2015.
http://www.mca.gov.in/Ministry/pdf/General_Circular_02_2015.pdf
Circular No
No. 1/40/2013-CL-V-Part
Government oflndia
Mlnistry of Corporate Affalrs
sth Floor,’A’ Wing, Shastri Bhawan,
New Delhi: 110001
Dated: 11.h February, 2015
To
All Regional Directors,
All Registrars of Companies,
All Stakeholders
Subiect Extension oftlme for filing of Notlce ofappointment ofthe Cost
Auditor ln Form CM-2.
Sir,
In continuation to the General Circular No. 42/201,4, the last date of
filingof Form CM-2 withoutany penalty/late fee is hereby extended upto 31$
March.2015.
2. This issues with the approval ofcompetent authority.
Yours faithfully,
(Kamna Sharrna)
Assistant Director
Tel:233A7263
Small Company Require only Two Board Meeting As per Co Act 2013
As per Section 173 of Companies Act, 2013, For a small Company : minimum 1 board meeting should be conducted in each half of the calendar year. First half of the calender year I conducted one board meeting in February 2015. Then now in the second half of the calendar year I will conduct the board meeting with disclosure and annual accounts in September 2015. As last date of financial year is 31st December 2015. Disclosure will still be valid as November meeting is the first meeting of the company in that financial year
Date | Resolution Passed In the Board Meeting | Meeting No |
01/02/2015 | General Matter | M1 |
01/09/2015 | Disclosure of Interest | M2 |
01/09/2015 | Account Sign and Approval | M2 |
01/09/2015 | Directors Report Sign Approval | M2 |
Two Meeting Must for Each Calender year 01-01-2015 to 31-12-2015 | Complied | |
Disclosure in the First Meeting of Financial Year 01-4-2015 to 31-03-2016 | Complied | |
One meeting in each half of the Calender year | Complied | |
Gap Shoud not Be Less than 90 Days | Complied | |
NB: | ||
Board Meeting Sec 173 as per Co act 2013 | 173. (1) Every company shall hold the first meeting of the Board of Directors within thirty days of the date of its incorporation and thereafter hold a minimum number of four meetings of its Board of Directors every year in such a manner that not more than one hundred and twenty days shall intervene between two consecutive meetings of the Board: Provided that the Central Government may, by notification, direct that the provisions of this sub-section shall not apply in relation to any class or description of companies or shall apply subject to such exceptions, modifications or conditions as may be specified in the notification. (2) The participation of directors in a meeting of the Board may be either in person or through video conferencing or other audio visual means, as may be prescribed, which are capable of recording and recognising the participation of the directors and of recording and storing the proceedings of such meetings along with date and time: Provided that the Central Government may, by notification, specify such matters which shall not be dealt with in a meeting through video conferencing or other audio visual means. (3) A meeting of the Board shall be called by giving not less than seven days’ notice in writing to every director at his address registered with the company and such notice shall be sent by hand delivery or by post or by electronic means: Provided that a meeting of the Board may be called at shorter notice to transact urgent business subject to the condition that at least one independent director, if any, shall be present at the meeting: Provided further that in case of absence of independent directors from such a meeting of the Board, decisions taken at such a meeting shall be circulated to all the directors and shall be final only on ratification thereof by at least one independent director, if any. (4) Every officer of the company whose duty is to give notice under this section and who fails to do so shall be liable to a penalty of twenty-five thousand rupees. (5) A One Person Company, small company and dormant company shall be deemed to have complied with the provisions of this section if at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days: Provided that nothing contained in this sub-section and in section 174 shall apply to One Person Company in which there is only one director on its Board of Directors. |
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Small Co Sec 2 (85) as per Co act 2013 | (85) ‘‘small company’’ means a company, other than a public company,— (i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or (ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees: Provided that nothing in this clause shall apply to— (A) a holding company or a subsidiary company; (B) a company registered under section 8; or (C) a company or body corporate governed by any special Act; |
Companies Act amendment Bill tabled and Passed in Lok Sabha 16-12-2014 and it Rajya Sabha Turn Now
Companies Act, 2013 (Act) was notified on 29th August, 2013. |
The government has moved amendments to the Companies Act in the Lok Sabha. The bill seeks to amend seven key provisions. Finance Minister Arun Jaitley said, “After a detailed consideration, some minor amendments are required in the principal act. Now, most of them are indented for one purpose – the ease of doing business and in some cases, they were oversight which were left out. Now it is only to rectify those and in rectification of those mistakes provision in the Bill itself. The advice of the law ministry was that these changes could not be covered and therefore, these small consequential amendments have arisen because of that.” As a part of the amendments, related party transactions (RPT) are set to get simpler, as companies will only need an ordinary resolution and not a special resolution. In addition, auditors will have to report on fraud to the government, which are only above a particular threshold. Any fraud below the threshold can be reported only to the audit committee of the company. The threshold will depend on profit or turnover of the company. Meanwhile, the government is also looking to strengthen the National Companies Law Tribunal to speed up winding up of companies. These will be the key changes to the Companies Act |
Download Bill |