Alerts & Updates

  • RBI grants in-principal approval for Payment Banks.

  • Online reporting with RBI.

  • Note on clarification issued by MCA.

Note on clarification issued by MCA

The Ministry of Corporate Affairs (MCA) has recently issued clarification with regard to whether a Company is required to provide the financial statements to all members, debenture holder of the Company while convening Annual General Meeting (AGM) at a shorter notice.

As per Section 101 of the Companies Act, 2013 (Act), though companies can convene AGM at a shorter notice, they are required to also circulate the financial statements and other relevant documents as stipulated under Section 136 of the Act at a shorter notice.

Further, as per the said clarification holding companies having one or more foreign subsidiary companies and where as per the relevant laws of the foreign country the accounts of such subsidiary/s are not required to be mandatorily audited, the holding company in India needs to prepare the accounts of such subsidiary company in accordance of the applicable provisions of the Act. Wherever such adherence is not possible adequate reasons for deviation is required to be disclosed and the unaudited accounts are required to be filed in compliance to Section 136 and Section 137 of the Act.

The said clarification dated July 21, 2015 is available on the enclosed link for quick reference:

- General Circular