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ComplianceChecklistforsmallcompaniesunderCompaniesAct2013|CASA

ComplianceChecklistforsmallcompaniesunderCompanies
Act2013
PostedDate:02Apr2015,06:13:20pm|PostedByCsdiveshgoyal
Yourrating:NoneAverage:4.50

COMPLIANCE CHECKLIST FOR SMALL COMPANY UNDER COMPANIES ACT

2013

TherearetwocategoriesofPrivateLimitedCompanyforcompliances
purpose:
A. SmallCompany
B. NonSmallCompany
SMALLCOMPANY:
LetsfirstdiscusswhatisSmallCompany:
INTRODUCTION:
TheconceptofSmallCompanyhasbeenintroducedforthefirsttime
by the Companies Act, 2013. The Act identifies some companies as
smallcompaniesbasedontheircapitalandturnoverforthepurpose
ofprovidingcertainrelief/exemptionstothesecompanies.Mostofthe
exemptionsprovidedtoasmallcompanyaresameasthatprovidedtoaOnePersonCompany.
DEFINITION:
Section2(85)definesaSmallCompanyas
smallcompanymeansacompany,otherthanapubliccompany,
1. PaidUpSharecapitalofwhichdoesnotexceedfiftylakhrupeesorsuchhigheramountasmaybeprescribed
AND
1. Turnoverofwhichasperitslastprofitandlossaccountdoesnotexceedtwocrorerupeesorsuchhigheramountasmaybe
prescribed:

ProvidedthatnothinginthisSectionshallapplyto
1. aholdingcompanyorasubsidiarycompany
2. acompanyregisteredunderSection8or
3. acompanyorbodycorporategovernedbyanyspecialAct

CLARIFICATIONBYMCA:
(a)Insection2,inclause(85),insubclause(i),forthewordoroccurringattheend,thewordandshallbesubstitutedand
SALIENTFEATURES:
Onlyaprivatecompanycanbeclassifiedasasmallcompany.
Holdingcompany,subsidiarycompany,charitablecompanyandcompanygovernedbyanySpecialActcannotbeclassifiedasa
smallcompany.
Forasmallcompany,bothconditionstobefulfilledthepaidupcapitalshouldnotexceedRs.50Lacortheturnoverasperlast
statementofprofit&lossshouldnotexceedRs.2Crore.
The status of a company as Small Company may change from year to year. Thus the benefits which are available during a
particularyearmaystandwithdrawninthenextyearandbecomeavailableagaininthesubsequentyear.
Forqualifyingasasmallcompany,itisenoughifboththecapitalandturnoverarelessthanprescribedlimitItisnotsufficientifonly
oneoftherequirementismetwithoutmeetingtheotherrequirement.
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EXAMPLES:
I. APvt.Ltd.IshavingturnoverofRs.1.60CroreandpaidupCapitalofRs.30lacason31.04.2014.
STATUS:SMALLCOMPANY(TillCapitaldoesntexceed50LacduringF.Y.1415)
1. APvt.Ltd.IshavingTurnoverofRs.5CroreandpaidupCapitalofRs.30Lacon31.04.2014.
2. : SMALL COMPANY upto 13th February, 2014 and NON SMALL COMPANY w.e.f. 13th February, 2015 (Because of MCA
Circulardated:13thFebruary,2015)
3. APvt.Ltd.IshavingTurnoverofRs.1.60CroreandpaidupCapitalofRs.80Lacon31.04.2014
4. : SMALL COMPANY upto 13th February, 2014 and NON SMALL COMPANY w.e.f. 13th February, 2015 (Because of MCA
Circulardated:13thFebruary,2015)
5. APvt.Ltd.IshavingTurnoverofRs.5CroreandpaidupCapitalofRs.80Lacon31.04.2014
6. :NONSMALLCOMPANYW.E.F.1stApril,2014

RELIEFS/BENEFITSAVAILABLETOASMALLCOMPANY:
S.No.

Section

Natureofcompliance

Precautiontobetaken

Remarks

Minimumtwoboardmeetingheld
duringeverycalendaryear:Inthiscase
minimumgapbetweenbothmeetings
mustbeatleast90days.
1.

173(3)

No.ofBoardMeetings

IfmorethantwoBoardMeetingsheld
duringtheyear,thennorequirementof
minimumtimegapbetweenthe

Documentsrequiredtobe
preparedforBoard
Meeting:

ASPERANNEXUREA
BELOW

meetings
Note:
Time:AGMshallbecalledduring

GeneralMeeting

96

AnnualGeneralmeeting

Day:AGMshouldnotbeheldon

SmallCompanyinadditionto
1.

Timegapbetweentwo

BusinessHour.

mustnotmorethan15

NationalHoliday.

othermeetingsmustholdone

monthor

Place:AGMshallbeheldateither

AnnualGeneralMeetingevery

Within6monthfromthe

Registeredofficeofcompanyor

year.

Atsomeotherplacewithinthecity,town

orvillageinwhichregisteredofficeof

theCompanyissituates.

endoffinancialyearof
company

Thereshouldbe21cleardaysnoticefor
callingofGeneralMeeting.

1.

101

OtherImportantProvision
Noticecanbesendbyfollowingmodes:
relatingtothisis:
Electronicmodeor

Writing
ASPERANNEXUREB
Processforsendingofnoticethrough
BELOW
emailgiveninRule18ofChapterVII.

NoticeofGeneralMeeting

MBP1Everycompanyshall
AtFirstMeetingofBoardof Imp.Note:
Director:
takedisclosureofinterestof

INGENERALPRACTICE
***Aspersection179(3)
Ifdirectorofacompanydealsinshares
everydeclarationof

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1.

ComplianceChecklistforsmallcompaniesunderCompaniesAct2013|CASA

184(1)

directorfromeverydirectorof

andthereisfrequentchangein

interestofdirectortobe

companyatfirstmeetingof

ShareholdingofCompaniesthenthere
filedeforminMGT14.

Boardofdirectorseveryyear.

willbechangeindisclosureofinterest

Whereverthereisanychange

ofdirectorineveryMeeting.Directorwill shareholdingor

Ifthereischangein

Atthemeetingwheneverthere giveMBP1beforeeverymeeting.

directorshipisrequiredto

isanychangeinInterest:

Ifthereisnochangeininterestof

befiledineveryBoard

ininterestofdirector,the

directorthendirectorwillgive

Meeting.

directorwillgiveMBP1to

declarationofnonchangeofshare

Companyattheboardmeeting

holdingordirectorshipateveryboard

heldaftersuchchange.

meeting,untilthereisnochange.

ResolutionfordisclosureofInterestof
directorwithROC.

1.

179(3)

MGT14

ResolutionforAdoptionofBalance

sheet

Insmallcompanythereare

ResolutionforadoptionofDirectors
EXAMPLE
Report.
ASPERANNEXUREC

manypurposeswhere
companyisrequiredtofile

MGT14withROC.Mandatory MostImp:IncaseofSmallCompany
purposearefollowing:

CompanycanholdSingleBoard

Meetingforalltheabovementioned

BELOW

threeresolutions.

SmallCompanyisrequiredtofileevery
1.

AOC1

yearineformAOC1Statement
containingsalientfeaturesoffinancial
statementofCompany

1.

92

Companyisrequiredtofile
eformAOC1within30
daysfromthedateofAGM

MGT7

Companyisrequiredtofileineform

Companyisrequiredtofile

MGT7AnnualReturnofCompany

eformMGT7within60

daysfromthedateofAGM

Note:
IfSmallCompanydontpassanyOTHERresolutionsanddontconductanyworkforwhichotherformsarerequiredto
befiledbycompanywithROCthenonlyabovementionedthreeformsaremandatoryforSmallCompanyforafinancial
1.

yearunderCompaniesAct,2013.

ForGeneralawarenesstherearemorethan50resolutionsunderCompaniesAct,2013forwhichcompanyarerequired
tofileformMGT14withROC
ForF.Y.201415Annual
ReturnMGT7isofnear40
Thisyeartherearemajorchangesin

pages.Manydisclosures

formatsofAnnualReturnandnumerous andinformationare
1.

92

PreparationofAnnualReturn

informationsaretobecompliedand

requiredtofillunder

disclosedinnewform(MGT7).

annualreturn.Preparation

ofAnnualReturnitselfa
bigtaskunderCompanies
Act,2013.

SamelikeAnnualReturnformatand
requirementsofDirectorsReporthas
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alsochanged.DirectorsReportwillbe
1.

134

PreparationofDirectors
Report

basedonthetransactionsofthe

Section134dealswith

Company.PreparationofDirectors

disclosurestobegivenin

reportisnotsameforallthe

DirectorReport.

Companies.Therefore,preparationof
Directorsreportisgoodexerciseunder
CompaniesAct,2013.
Therearelotsofresponsibilities
imposedonAuditorsunderCompanies
Act,2013.Auditorhastocheckmany
provisionsofCompaniesAct,2013and
Accountingstandardsforpreparationof
AuditorsReport.CompaniesAct,2013
1.

145

PreparationofAuditorsReport

imposeresponsibilitiesonAuditor.

UndercompaniesAct,2013auditorwill
beappointingfor5financialyears.
EveryyearinGeneralMeeting
shareholderwillratifytheauditor.
Incaseofnonretificationitwill
consideredascasualvacancyofauditor
ANNEXUREA
DocumentsrequiredtobepreparedforBoardMeeting:
i. NoticeofMeeting
ii. AgendaofMeeting
iii. AttendancesheetofMeeting
iv. MinutesofMeeting
v. LeaveofAbsence,ifany
vi. MBP1orDeclarationifnochange
vii. CertifiedtruecopyofResolution,ifrequiredtobefiled

ANNEXUREB

I. ThingstobementionintheNotice:
Place,Day,Dateand
HourofMeeting
Astatementofthebusinessbetransactedassuchmeeting.
NoticeofMeetinggivento:
EverymemberofCompanyorlegalrepresentativeofanydeceasedmemberortheassigneeofaninsolventmember
TheauditoroftheCompany
ToeverydirectorofCompany.
Callingonshorternotice:
GeneralMeeting(includingAnnualGeneralMeeting)canbecalledonshorternotice,if:
i. Consentisgiveninwritingor
ii. Byelectronicmode
Bynotlessthan95%ofmemberentitledtovoteatsuchmeeting
i. AuditortoattendGeneralMeeting:
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ii. AlltheNoticeandotherCommunicationsrelatingtoGeneralMeetingshallbeforwardedtotheAuditoroftheCompany.
iii. TheAuditorwillattendalltheGeneralMeetingoftheCompany.

ExemptedOnly

WhenauditorwillsendletterforexemptionfromattendanceinGeneralMeetingtoCompanyandCompanymaygrantleavetohimfor
notattendingtheGeneralMeetingbypassingresolutionattheGeneralMeeting.
Ifanyonewant(DraftletterfromauditortoCompanyAndCompanytoAuditorattachedattheendandresolutionforexemption)then
mailmeatcsdiveshgoyal@gmail.com.......

a. IfauditorisnotexemptedbytheCompanythenAuditorhimselforhisauthorizedrepresentative(whoshallalsobequalifiedtobe
anauditor)willattendthegeneralmeetingandwillbeheardatsuchmeetingonanypartofthebusinesswhichconcernshimas
auditor.

DocumentsrequiredtobepreparedforGeneralMeeting:
i. NoticeofMeeting.
ii. Explanatorystatement.
iii. MinutesofMeeting.
iv. AttendancesheetsignedfromMember,Directors&Auditor.
v. Ifauditorarenotpresentatthemeetingthen:
Leaveofabsencefromtheauditor.
AcceptanceofLeaveofabsencefromtheauditor.
CTCofresolution,ifrequiredtobefiled.
ANNEXUREC

Example
i. IfSmallcompanyholdsfirstBoardmeetingoffinancialyearafterfinalizationofaccountse.g.inSeptember,then:
CompanywilltakeMBP1inthatBoardMeeting
AdoptBalanceSheetandDirectorsReportinsameBoardMeeting.
FileoneMGT14forallthreeabovementionedresolutions.
MostImportantterms:
BusinessHour:9:00a.m.to6:00p.m.
NationalHoliday:AdaydeclaredasNationalHolidaybytheCentralGovernment.
21Cleardays:excludebothdateofissueofnoticeanddateofreceiptofnotice.
Ingeneral21cleardaysmean23days.
(AuthorCSDiveshGoyal,GOYALDIVESH&ASSOCIATESCompanySecretaryinPracticefromDelhiandcanbecontactedat
csdiveshgoyal@gmail.com)
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