Regulatory updates

Regulatory updates

Updates from Ministry of Corporate Affairs (MCA)

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The MCA has notified the second and third provisos to sub-section (1) of section 403 of the Companies Act, 2013 on 11 January 2022. As per these provisos, where there is a delay in submission, filing, registration or recording of the documents, facts or information required or authorised to be registered under the Companies Act, 2013, subject to any legal action or liability under the Companies Act, 2013, entities would need to pay additional fees, as is prescribed (refer notifications 1 and 2). These provisions would be effective from 1 July 2022. Further, revised fees have been notified for the delay in filing of forms other than for increase in nominal share capital under Section 92/137 of the Companies Act, 2013 or forms for filing charges (refer notification 3).

Relaxation on levy of additional fees

The MCA vide circular dated 14 February 2022 has provided a relaxation on levy of additional fees on annual financial statements/return filings for the financial year ended 31 March 2021. Therefore, no additional fees will be levied

  • Upto 15 March 2022 , for filing of e-forms AOC-4, AOC-4 (CFS), AOC-4 XBRL and AOC-4 (non-XBRL)
  • Upto 31 March 2022, for filing forms MGT-7/MGT-7A

During the said period, only normal fees would be payable.

To access the text of the Companies (Amendment) Act, 2017, please click here

To access the text of the Companies (Amendment) Act, 2020, please click here

To access the text of MCA notifications, please click 1, 2 and 3

To access the text of MCA circular dated 14 February 2022, please click here

Action points for auditors

The management is responsible for compliance with laws and regulations. Section 403 of the Companies Act, 2013 requires submission, filing, registration or recording of documents, facts or information on a timely basis, however an additional fee would be applicable in case of delay in filing of information. SA 250, Consideration of Laws and Regulations in an Audit of Financial Statements mentions that non-compliance with laws and regulations may result in fines, litigations or other consequences for an entity that may have a material effect on the financial statements. Thus, auditors should consider this in their audits of financial statements

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