Being Compliance Ready Is the Need of the Hour!
Past few years have witnessed a thrust on cleansing the financial sphere by the Indian government. Moving ahead in lines with the same aim, the Ministry of Corporate Affairs (MCA) has been introducing steps to usher in transparency and accountability in corporate governance.
The MCA has introduced certain new e-Forms that will ensure a tighter grip on the functioning of the companies and these need to be filed within a specified time period.
e-Form MSME-1(Report delays of payment to MSME)
Date of Notification: MCA in its Notification dated January 22, 2019, has introduced Specified Companies (furnishing of information about the payment to micro and small enterprise suppliers) Order, 2019.
Applicable on: It is applicable on every specified company and all such companies are mandated to submit a half-yearly report to MCA in e-Form MSME-1, (if they buy goods or avail services of MSMEs and their payment has exceeded 45 days), clearly indicating-
- the due amount; and
- the cause of the delay.
For the period April to September: by October 31
For the period October to March: by April 30
Due Date of Filing: The Notification mandates that the said filing should take place within 30 days of the publication of its publication i.e. by February 20, 2019.
Current Status: The MSME-1 form is yet to be deployed at the MCA21 portal, hence, the date will certainly be extended.
Date of Notification: The MCA has notified the NFRA (National Financial Reporting Authority) Rules, on November 13, 2018.
Applicable on: It shall be applicable on all listed companies, listed body corporate, unlisted public companies (which have a paid up capital of Rs 500 crore or more; or turnover of Rs 1000 crore or more, outstanding loan, debentures, and deposit of Rs 500 crores), all banks, insurance companies and electricity companies.
Auditor of such companies shall file the annual return on or before April 30.
Due Date of Filing: The Notification mandates a one-time initial reporting within 30 days of deployment of the e-Form.
Current Status: The NFRA-1 is not yet deployed on the official website of MCA.
Purpose of these compliances: These steps taken by the MCA are to strengthen the present governance system of companies. The MSME-1 shall ensure a smooth flow of capital to such entities, thus promoting their healthy growth. Whereas, through NFRA-1 it shall monitor the auditing and accounting standards and enforce compliance.
Contact and Consult MUDS for complete clarity
With a dynamic team of professionals, MUDS offers best consultation and step by step guide to all kinds of compliance regulations.
“A stitch in time saves nine”; this is what needs to be understood by the companies! With the Notifications already in the public domain, the affected companies should be ready with all documentations needed for the various compliances.”
-Shweta Gupta, Founder and CEO, MUDS