The 1st message I received on 1st February was from All India Radio, FM Rainbow 101.3 asking if I could share my thoughts on the Union Budget 2021 during an evening programme. I was sceptical if I could do justice and that too in Kannada. However, when Dr. Shankaranarayana, the Station Director assured me that I need to focus only on the women & children bit, I was slightly relieved. I heard intently to the Hon’ble Finance Minister Ms. Nirmala Sitharaman as she quoted Tagore’s lines “Faith is the bird that feels the light and sings when the dawn is still dark.” I heard her announcing that the budget is constructed on the 6 pillars of health and well-being, physical, financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D and minimum government and maximum governance. I caught the Minister talking about incentives for gig workers and night shift facility for women, which meant more women could enter and stay in the workforce, thanks to safety and security measures that employers are to provide. I listened carefully to the tax proposals but didn’t find anything specific to women and children. I was a bit nervous wondering what will I speak on the radio that evening. As they say, one hears only what one wants to. Only when Dr. Shankaranarayana (who incidentally is a qualified Company Secretary !) highlighted ‘Mission Poshan’ did I realise that I am guilty of focussing on the ‘India’ side of the Budget and ignoring the ‘Bharat’ side. Poshan 2.0 scheme in an umbrella scheme covering the Integrated Child Development Services (ICDS), Anganwadi Services, Poshan Abhiyaan, Scheme For Adolescent Girls and National Creche Scheme, with an outlay of Rs. 20,105 crore
It struck me that there is lot more to focus than just corporates and tax proposals. My thoughts travelled back to how my maid’s daughters looked forward to attending school only because of the mid-day meals scheme that ensured milk, eggs and a hot meal. With the pandemic shutting down schools, meals were the first calamity. Many such children were forced to go hungry and back to villages to work in the fields or worse still – to be married away underaged. That evening I connected the dots and emphasised on how Mission Poshan 2.0 could also get the children back to schools, how the spurt in girl-child marriages during the pandemic could be quelled through some of the schemes. The reasons and triggers for malnutrition, school drop-outs, child-marriage, early motherhood, failing health, poverty, rising debts – all are closely intertwined in a complex web that requires both Government intervention and societal efforts. The next morning when Lakshmi, my house-maid announced that while she didn’t understand most of what I spoke about the Budget, but caught my statement on child-marriage and malnutrition, I felt my 10 minute talk on the radio was worth it. I re-emphasised to her as to why she must allow her daughter to choose education and financial independence over marriage and children.
The Union Budget 20-21 is already a fortnight old but not old enough to be stale. Its impact is expected to be long term as per some experts who term it as a growth-oriented budget, an investment budget, a forward-looking budget, a historic budget, a bold budget and what not. As always, there are a few others who feel the whole budget exercise is redundant and must be scrapped like many other colonial vestiges of the past. Well, without taking any sides, our associate CA R Krishnamurthy has presented a dispassionate, comprehensive round up of the direct and indirect tax proposals in the Budget. A careful reading is recommended to understand the intricacies. Without a professional’s help, the provisions are neither easy to interpret nor implement.
There is a booster vaccine dose for One Person Companies, Small companies & Startups as you will get to read in the regulatory updates that this 254th issue of Samhita carries. Balaji suggests some good usages of phrases in English to express opinions and disagreements – it counts to say it. But it certainly counts to learn how to say it effectively ! Communication (in Latin) after all means ‘to share’. For any previous issues of Samhita and the readers’ feedback, please visit https://sharadasc.com/resource-center/.
Have ever wondered if there’s any difference between being fluent and being fast while speaking?
So, fluency is not only about being fast. Moderate rate of speech is always good when you speak a foreign language.
When you deliver your next presentation, talk to clients or when you attend meetings, give yourself a pause for half a second before every sentence. It can enhance your flow of thought, choice of words and fluency.
A few phrases that can be used at meetings to share your opinions:
In my opinion,…
I think that….
I believe that…
What I feel is…
A few phrases that can be used at meetings to disagree with others:
I am afraid I don’t agree with that.
I beg to differ.
On the contrary,..
I am not quite sure if that’s right.
That’s not always true.
On 1st February 2021, the Hon’ble Finance Minister Ms. Nirmala Sitharaman announced the most anticipated Union Budget 2021-22. While most experts in the field favour the overall proposals of the Budget, the opinion of the people at large is diverse!
Highlights of the Union Budget (focusing on Direct tax and Indirect taxes) have been carried as an article by CA, R. Krishnamurthy. The article covers the following topics broadly:
As part of the Union Budge, 2021-22, the Hon’ble Finance Minister Ms. Nirmala Sitharaman proposed a change in the definition of Small Company as defined under the Companies Act, 2013.
The change to the threshold limits of paid up share capital and turnover so proposed were notified by MCA which will take effect from 01.04.2021.
Paid up share capital increased from not exceeding Rs. 50 Lakhs to not exceeding Rs. 2 Cr
Turnover increased from not exceeding Rs. 2 Crore to not exceeding Rs. 20 Crores
With this, a very large number of companies do not need certification of e-forms by a practicing CS. However, support from the professionals for preparation and uploading of the forms will continue and the responsibility of the promoters as a “self-declared information” in the form will increase.
Following the announcement in Union Budget, 2021-2022 relating to One Person Company (OPC), MCA has notified the Companies (Incorporation) Second Amendment Rules, 2021 which shall come into force on 01.04.2021.
Earlier only resident individuals were allowed to incorporate OPCs. This restriction has been removed.
The period of stay in India for calculation of residency status has been reduced from 182 days to 120 days.
The restriction that an OPC can voluntarily convert itself into a public or private company only after completion of 2 years from date of incorporation has been removed.
Sub-rule 6 substituted which mentions that an OPC willing to be converted into a private company or public company shall alter it’s MOA and AOA and increase it’s paid up share capital, number of members and number of directors as required under relevant sections.
Earlier only private limited companies having Rs. 50 lakhs or lesser paid up share capital and annual average turnover not exceeding Rs. 2 Crores were allowed to voluntarily convert into an OPC. These threshold limits have been removed.
Form INC-5 has been removed and in place of existing Form INC-6 a revised form has been notified vide the Notification.
Merger / amalgamation of Small companies and start ups – now allowed
Vide Notification dated 01.02.2021, MCA has notified that two or more start-up companies (recognised by Department for Promotion of Industry and Internal Trade) / one or more start-up companies with one or more small companies, may enter into a scheme for merger or amalgamation.
Vide Notice dated 04.02.2021, DGFT has announced that w.e.f. 08.02.2021 a new e- Tariff Rate Quota (TRQ) System for imports, shall be introduced. All applicants seeking TRQ for imports are required to submit an online application on https://www.dgft.gov.in/ through the Importer’s dashboard. All existing applications pending for approval as on 08.02.2021 shall be automatically migrated to the new system.
RBI vide Guidance note on Risk-Based Internal Audit (RBIA) had clarified that RBIA shall undertake an independent risk assessment solely for the purpose of formulating the risk-based audit plan keeping in view the inherent business risks of an activity/ location and the effectiveness of the control systems for monitoring the inherent risks of the business activity. The requirement to carry on RBIA in addition to constitution of Risk Management Committee/ Department (RMC/RMD) has also been made applicable to following vide Notification dated 03.02.2021:
All deposit taking NBFCs
Non Deposit taking NBFCs having asset size of Rs. 5,000 Crores and above
Pursuant to the amendments to the SEBI (Prohibition of Insider Trading) Regulations, 2015, member of the promoter group and designated person are required to submit declarations under Regulation 7 in place of employees. Revised formats for making disclosure under Regulation 7 have been notified by SEBI on 09.02.2021, for the same.
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.
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