Hi Folks
As we celebrate the 72nd Independence Day, the aspirations and hopes of our people soar like the ‘bird-machines’ in the sky. After all it is ‘freedom from’ a few things and ‘freedom to’ something. Not for a bit am I influenced by the tall claims of leaders speaking on this occasion. My ears are to the ground and I can sense it all around me in the everyday lives of ordinary people. It is not lost on me that amidst the din of economic freedom, political freedom and freedom of speech, indeed the common man has benefited over the years and is more empowered than before.
Vikram, the young, friendly neighbourhood dhobi chatted up with me recently after a hard day’s work. He had a two-wheeler, a smart phone, latest TV at home, 3 assistants to iron the clothes, pick up and drop at customer’s places and more than enough orders to be able to refuse a few. He said I bought a new business at a premium ! He added, compared to earlier years he is able to charge more for less work. Also the new generation customers living in nuclear families do not haggle about the prices unlike the older generation who want more for less. He wasn’t complaining about working until 10 pm every day after which he would enjoy time with his family. He was excited about his future. About being able to buy a piece of land in his hometown. About constructing a new home for his parents and farming. His ‘mast’ attitude uplifted me.
Lalita, the housemaid was content working in 2-3 homes. Well-dressed, with a smart phone in hand, latest gadgets at home, she found time to participate in ‘satsang’ every Sunday and shared her learnings from those ‘tattva’ sessions with my sister regularly. Heard a lot of this repeated by a motivational speaker / spiritual guru a few days later in a packed hall. I was amazed that Lalita living in a chawl was living and practising spirituality in her daily life. She had found freedom from her drudgery.
I am sure each of you will find many such Vikrams and Lalitas around you who are far different from their parents doing similar jobs decades ago when you were much younger. This is today’s Bharat doing us proud. Small stars of prosperity and hope that have risen from the masses and made a life for themselves. While this is true, what is also true is that Freedom needs to be enjoyed with restraint. Reckless use of the so-called free resources is resulting in calamity and untold misery which we are witnessing currently. With great power comes great responsibility. As a young nation, we are enjoying the power today but can we exercise it with restraint and responsibility ? Then and only then, the hard-fought ‘Freedom from’ and ‘Freedom to’ will be more enjoyable and long lasting.
At my work place, my team is coping with the sudden surge of compliance work related to Directors’ DIR3 KYC filing. This is changing ever so constantly and swirling like the rising waters in Kerala and Karnataka with little help or clarification from the Ministry. A request to all the clients to submit requested documents at the earliest so that we can help you with the KYC requirements. This 194th issue of Samhita carries some important changes to private placement provisions (related to issue of capital) brought about in the Companies Amendment Act, 2017. For any previous issues of Samhita and the readers feedback, please visit

Happy Reading

The MCA has notified Section 10 & Section 36 of the Companies (Amendment) Act, 2017 along with Rules shall be effective as follows:
Sl.No Notified Sections of CA, 2017 Sections of Amendments of CA, 2013 Title Changes made
1 S.10 S.42 read with Rule 14 of Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2018 w.e.f 7th August, 2018 Offer or Invitation for Subscription of Securities on Private Placement
  • Until Return of Allotment is filed, Capital received cannot be utilized by the Company.
  • Private Placement offer letter shall not contain any right of renunciation.
  • Time for filing Return of Allotment reduced to 15 days from 30 days.
  • Late filing attracts penalty of Rs. 1000/- for each day during which such default continues on Company, Promoters and Directors.
  • Penalty for non-compliance of the provisions of the section reduced.
  • Filing of Form PAS – 4 with the Registrar has been done away.
2 S.36 S.134 w.e.f 31st July, 2018 Financial Statement, Board’s Report, etc.
  • Earlier the CEO was required to sign the financial statements only if he was a Director of the company. Post amendment, irrespective of the fact that the CEO is appointed as the Director or not, he shall sign the financial statements.
  • Form MGT-9 formed a part of the Board’s report. This form does not have to be accompanied with the Board’s report and instead a link to the annual return hosted on the website shall be provided in the Board’s report.
  • The Central Government is empowered to prescribe an abridged Board’s Report for One Person Company and Small Company.
  • Information like appointment and remuneration policy and CSR policy – if they have been disclosed on the website, then only the salient features of the policy and the changes need to be disclosed in the Board’s report along with the web link.

Companies (Accounts) Amendment Rules, 2018 have been notified effective 31st July, 2018 requiring the following in the Board’s Report

  • A disclosure whether cost records are applicable to the company or not and if yes whether maintained as per rules specified.
  • A statement that Internal Complaints Committee under the Sexual Harassment of Women at workplace (Prevention, Prohibition and Redressal) Act, 2013 has been constituted.

Above matters need not be included in the Board’s Report of a One Person Company (OPC) and a Small Company. New Rule 8A has been inserted for these companies which require only a few disclosures in the Board’s Report as compared to normal companies.

A new Procedure for filling online application for Import Export Code (IEC) / modification in IEC/e-IEC has been laid down. IEC will henceforth be system generated & an applicant will have the facility of taking a print out of IEC. Further, a requirement of Digital Signature for submitting IEC application is done away with.

Reverse charge Mechanism w.r.t the integrated tax, for procurement from unregistered dealer’s deferred till 30th September, 2019.

➢ Due dates for filing quarterly Form GSTR-1 for turnover up to Rs. 1.5 crores.

Sl.No Quarter for which details in FORM GSTR-1 are furnished Time period for furnishing details in FORM GSTR-1
1 July – September, 2018 31st October, 2018
2 October – December, 2018 31st January, 2019
3 January – March, 2019 30th April, 2019

➢ Due dates for filing monthly Form GSTR-1 for turnover exceeding Rs. 1.5 crores for the months from July, 2018 to March, 2019 is 11th Day of each succeeding month.

Form GSTR 3B for the months from July 2018 to March 2019 shall be furnished electronically through the common portal, on or before the 20thday of the month succeeding such month.

Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. S. C. Sharada & Associates disclaims all liability on action taken without professional advice.

S. C. Sharada & Associates,
Company Secretaries. #405, 7th Cross, IV Block, Koramangala, Bangalore – 560 034 Phone : +91 80 25534374 , +91 80 25536618 Email: [email protected]

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