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Important Update – Annual Filings

 

As per a recent notification dated October 29, 2019, the Ministry of Corporate Affairs (“MCA”) has provided relief to the stakeholders by relaxing additional fees and extending the last date of filing for the following for the financial year which ended on March 31, 2019 to:

  1. Filing of forms for financial statements – November 30, 2019; and
  2. Filing of annual returns – December 31, 2019.

On failure to file the forms by the above due dates, an additional fees of INR 100/- per day for each day of default will become applicable.

Information to Include in Director’s Report

The following information must be mandatorily disclosed in the Director’s Report filed by the Board of Directors:

1 Dividend, if declared & amount, if any, carried forwarded to reserves
2 Details of ESOPs:

a. Options granted

b. Options vested

c. Options exercised, and

d. Total number of Options in force, if any

3 Information about the financial performance / financial position and details of the subsidiaries / associates/ JV
4 Details of loans, investments and guarantees by the company
5 Details relating to deposits, covering the following:

Accepted during the year;
Remained unpaid or unclaimed as at the end of the year;
Whether there has been any default in repayment of deposits or payment of interest thereon during the year and if so, number of such cases and the total amount involved (i) at the beginning of the year (ii) maximum during the year and (iii) at the end of the year.
Details of deposits which are not in compliance with the requirements of Chapter V of the Act

6 Website address
7 Disclosures under the Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013
8 Borrowing by the company
9 Director remuneration (for each director)
10 Details of transfer of shares during the financial year
11 Break up of related party transaction (1. Name of related party and nature of relationship and 2. Duration of the agreement)

Urgent reminder for filing of Form DIR 3 – KYC | 5 things you need to file the Form DIR 3 – KYC

As pointed out in our previous article (Directorship – Comply with MCA, KYC Guidelines), the Ministry of Corporate Affairs of the Government of India has decided to conduct a KYC check of all directors of all companies registered in India on an annual basis. As per the Ministry of Corporate Affairs, any person who has been allotted Director Identification Number (“DIN/DPIN”) on or before March 31, 2018 and the status of such DIN is ‘Approved’, needs to file form DIR 3 – KYC to update KYC details in the system of the Ministry of Corporate Affairs.

The KYC has to be filed on or before September 15, 2018.

You will require these 5 things to make this filing:

(i) A unique personal mobile number and a personal email id;

(ii) PAN number and Aadhar number;

(iii) Class 2 Digital Signature Certificate.

(iv) Form DIR 3 – KYC which has been filled in by you and certified by a practicing Chartered Account / Company Secretary or a Certified Management Accountant (Certified by the Institute of Cost Accountants of India); and

(v) A proof of permanent address which needs to be attached to the form. Bank statement, electricity bill, telephone / mobile bill which specifies the address of the director may be attached as address proof, provided that bank statement, electricity bill, telephone or mobile bill shall not be more than 2 months old.

Please remember that if you fail to file the Form DIR 3 – KYC by September 15, 2018, then the Ministry of Corporate Affairs shall mark your DIN as deactivated, and you will have to pay a fee of INR 5000 /- to file the form and reactivate your DIN.

For further details you can also refer to the FAQs on the Form DIR 3 – KYC issued by the Ministry of Corporate Affairs and the FAQs.

Click here to download the Form DIR 3 – KYC

Click here to download the Instruction Kit for Form DIR 3 – KYC

At LexStart we advise start-ups at various stages of growth on disclosure related compliances and non-disclosure arrangements. You can reach out to support@lexstart.in with any specific queries that you may have.


Disclaimer: Please note that the article above is for information purposes only and represents the views of the author and should not be construed as legal advice.

Directorship – Comply with MCA, KYC Guidelines

Ministry of Corporate Affairs (MCA), India would be conducting KYC (Know Your Customer) of Directors of all companies on an annual basis through a new e-form viz. DIR-3 KYC to be notified and deployed shortly with MCA.

Accordingly, every Director who has been allotted Director Identification Number (DIN) on or before March 31, 2018 and whose DIN is either (i) in ‘Approved’ status, or (ii) inactive due to disqualification of such Director would be mandatorily required to file form DIR-3 KYC on or before September 15, 2018 with MCA.

While filing the form, the Unique Personal Mobile Number and Personal Email ID of the Director would have to be mandatorily indicated and would be verified by One Time Password (OTP) to be sent to such Director’s registered mobile no.

The e-form should be filed by every Director using his own Digital Signature Certificate (DSC) with MCA and should be duly by a practicing professional (CA/CS/CMA).

Failure to comply with this provision will result in the DIN of such Director to be ‘Deactivated’ thus disqualifying such Director. Activation of DIN can then be done by paying requisite filing fees.