India: Ministry Of Corporate Affairs proposes window of immunity for companies that deliver financial statements late

The Ministry of Corporate Affairs (MCA) is proposing a record-time condonation for Indian companies' delays in filing financial statements – both the proposal and approval occurred within a two-day window, from May 28th to 30th.

Since ’56, companies that did not submit their financial statements to the ROC (Register of Companies) by the end of October were legally liable. Starting May 30, 2010, the MCA grants a grace period of immunity to late businesses, exempting them from severe legal measures.

What is the Ministry of Corporate Affairs

The Ministry is primarily concerned with the administration of the Companies Act, 2013, the Companies Act, 1956, the Limited Liability Partnership Act, 2008, and other related Acts, as well as the rules and regulations framed thereunder, primarily to regulate the functioning of the corporate sector in conformity with the law.

The Ministry is also responsible for the administration of the Competition Act 2002 to prevent practices that have adverse effects on competition, to promote and sustain competition in markets, to protect the interests of consumers through the commission established under the act.

Furthermore, it exercises oversight over three professional bodies, namely the Institute of Chartered Accountants of India (ICAI), the Institute of Company Secretaries of India (ICSI), and the Institute of Cost Accountants of India (ICAI), which were established under three separate Acts of Parliament for the proper and orderly growth of the respective professions.

The Ministry also has the responsibility to perform the functions of the Central Government relating to the administration of the Partnership Act, 1932, the Companies (Donations to National Funds) Act, 1951, and the Societies Registration Act, 1980.

Source: MCA India