During the challenging time for everyone, companies are no exception. Preparation of the financials and submission for audit is challenging.
Derailment in the schedule has been taking place, particularly for small and medium unlisted companies. The employees, both at the end of the company and audit firm, have been finding it difficult to attend their regular office schedule.
Moreover, full staff team is not allowed to attend at one go. In companies, stock and assets verification and valuation, confirmations and reconciliations of party balances, impairment loss measurement, etc. are also moving at a very slow pace.
This has derailed finalisation of accounts and as a consequence, audit of accounts. Therefore, timelines provided in the Companies Act, 2013 for holding AGM and annual filings will be difficult to attain. This feedback is received from corporate sector.
Hence, extension of time for the same has been sought by the Companies
As per Section 96 (1) of the Companies Act, 2013, the Registrar may, for any special reason, extend the time within which any annual general meeting, other than the first annual general meeting, shall be held, by a period not exceeding three months.
In this regard, the Ministry of Corporate Affairs (Registrar of Companies of various States) have issued order dated 8th September, 2020 across the country to extend the time for holding of Annual General Meeting (AGM) for the financial year ended on 2019-20 by three months from the due date by which AGM ought to have been held
Even the companies would not be required to file applications for seeking such extensions through prescribed Form GNL-1.
Further, it has been clarified by the respective ROC’s that the extension shall cover the following:
– Pending application filed in Form GNL-1 for the extension of AGM for the financial year ended on 31.03.20 which is yet to be approved.
– Application filed in Form GNL-1, for the extension of AGM for the financial year ended on 31.03.20 which were rejected.
The ICAI has also uploaded the circulars/orders issued by the Ministry of Corporate Affairs (ROC) on the website.