269 / 2021
Quote of the day
The month of October saw the Navratri festivities - of victory of good over evil, of fasting and introspection, of the power of Shakthi and the celebration of life in general in the dolls displayed, in the rangoli drawn, in the dandiya played, in the exquisite flower decoration of the deities and what have you ! A treat to the eyes, ears and taste buds. It also marked two important days – Breast Cancer (BC) and Mental Health (MH).
While there is increasing awareness on BC, MH lags behind as a poor cousin. The stigma attached, the refusal to acknowledge its presence, the denial that it needs special care, the lack of diagnosis at the right time, the openness to discuss about it and seek help – all of it continues even in educated sections of the society. While a few years ago, insurance coverage has become available, employability is still a challenge since there are pockets of ‘good days’ and ‘bad days’ affecting the stability of performance. I don’t think there is any sure shot solution to this except, acceptance and adjustments by the patient, his family and friends, employer with of course early medical intervention and counselling. The question is can we offer them an inclusive livelihood ?
While I was introspecting on this, I realised it is just not genes, education, fitness or family circumstances that trigger certain mental health conditions. It could also be one’s attitude in general, the environment we are living in, the responsibilities we take upon ourselves and the will to not succumb. MH like depression could both be the cause as well as the consequence. However, not one for Jayaram, a sugarcane juice seller in Mysore. Having lost his ‘captain’ job in a well-known star hotel in Mysore, he has reinvented himself as an entrepreneur with a difference, displaying his zest for life. No more ‘vanilla type’ sugarcane juice with just lime and ginger. He has come up with 15 different flavours including fruits, tamarind, gooseberry and a variety of medicinal leaves. It tastes amazingly refreshing and different. Many people who lost lives of dear ones and livelihoods during the pandemic gave up on themselves but the Jayarams of the world have displayed a rare courage and optimism to live and thrive. They are living with joy and spreading the good cheer as well…..as I saw it in his colourfully decorated sugarcane gaadi as well as his pleasant welcoming style carried from his hotel experience. He was very courteous and explained the ‘juice-menu’ enthusiastically urging us to try different flavours on each day. Must admit he has taken the sugarcane experience to an altogether different level hailing it as a health drink, which it indeed is. No wonder he has been covered by the local press of Mysore as ‘From cocktails to mocktails’ which he proudly displays behind his gaadi. So much for his marketing, PR, customer service and entrepreneurial skills. Reminds me of Swami Sivananda’s saying ‘Be Up and Doing’ that our Yoga teacher quoted in one of his classes. Resonates well with another of his explanations – Do Karma Yoga not just Karma, meaning whatever karma or action you do, do it joyfully and with awareness, with the enthusiasm of a child. This is one way of experiencing and reflecting ‘manah prasad’ or ‘happy mind’ which is the need of the hour for all of us !
Regulators may be able to extend the ‘last date’ for certain filings as we saw under the IT Act, GST Act, Companies Act & LLP Act but unfortunately as individuals, however well-known and wealthy and healthy we are, we cannot extend our ‘last date’ – not a moment more, not a moment less. Our expiry date is written the day our first cell takes birth – sometimes too long, sometimes too soon. Rarely an ideal date. What else can be said about the untimely death of Puneeth Rajkumar (son of the legendary actor Dr. Rajkumar), the Power Star of Sandalwood film industry who suffered a massive heartattack yesterday at a young age of 46 ! Not even the best medical care could ensure extension of his ‘last date’ !! I recall 25 years ago he was my co-passenger in a flight. A budding star even then, he had no airs about himself, no star tantrums. He quickly got into a conversation with me and came across as a young, bright lad, full of life. One can only wish that his next journey is longer, smoother and even more meaningful.
In this 269th issue of Samhita, we carry regulatory updates from MCA, GST and SEBI. The English section focusses on email etiquette with some interesting titbits. Do read up.
For any previous issues of Samhita and the readers’ feedback, please visit https://sharadasc.com/resource-center/.
Relaxation of additional fee for Annual filing forms
MCA vide Circular dated 29.10.2021 has allowed companies to file Forms AOC-4 / AOC-4 (XBRL) / AOC-4 (CFS) and Form MGT-7/7A for the FY ended 31.03.2021 till 31.12.2021 without payment of any additional fee. This would mean that companies can file above listed forms on payment of just the normal fee till 31.12.2021 irrespective of the original due date.
Relaxation of additional fee for filing FORM-8 for LLPs
MCA vide Circular dated 26.10.2021 has allowed LLPs to file Form 8 (Statement of Account and Solvency) until 30.12.2021 without payment of any additional fee. Pursuant to the earlier due date applicability, from 01.11.2021 an additional fee of Rs. 100 per day would have been levied for any delayed filing of the Form beyond 30.10.2021.
Extended due date for filing form CRA-4
Pursuant to the Rules, every Cost auditor is required to submit to the Board a Cost Audit Report within 180 days from closure of the financial year and the company is required file the Cost Audit Report in Form CRA-4 within 30 days of receipt of the Report.
In view of the pandemic situation, MCA vide Circular dated 27.09.2021 had given Cost Auditors a blanket extension upto 31.10.2021 to submit the Cost Audit Report to the Board of Directors of the company. Consequently, companies shall have time uptill 30.11.2021 for filing form CRA-4. This period has been further extended vide Circular dated 29.10.2021 granting companies time till 30.11.2021 to submit Form CRA-4.
Companies that hold their AGM as per the extension granted, shall file Form CRA-4 within 30 days of receipt of the Report consequent to such extension.
Online SCORES mechanism for obtaining login credentials
SEBI vide Circular dated 02.08.2019 automated the generation of login credentials for SCORES platform for redressing investor grievances for all new SEBI registered intermediaries (except brokers and depositories) thereby dispensing with the requirement of sending hard copies of emails to SEBI.
Vide Circular dated 14.10.2021, SEBI has introduced an online mechanism for obtaining SCORES credentials for all companies intending to list their securities on SEBI recognized stock exchanges. The SCORES credentials shall be sent to the e-mail id of the Compliance Officer/Dealing Officer as provided in the online form.
Revised Audit Report and Limited Review Report formats
SEBI vide notification dated 07.09.2021 notified the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2021, mandating entities having listed non- convertible securities to disclose financial results on a quarterly basis. Revised formats of the Limited Review/ Audit Reports (to be submitted to Stock Exchanges and placed on listed entity’s website) have been notified vide Circular dated 14.10.2021.
Revised formats for financial statements
SEBI vide notification dated 07.09.2021 notified the SEBI (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2021, mandating entities having listed non- convertible securities to disclose financial results on a quarterly basis. Revised formats of following financial statements were notified vide Circular dated 05.10.2021:
Standalone financial results on a quarterly basis and Standalone and consolidated financial results on an annual basis
Statement of assets and liabilities on half yearly basis
Format for Statement of cash flows on half yearly basis
Reasons for delay in disclosure of financial results
Clarification on rates of GST charged
CBIC has clarified the applicability of various tax rates vide Circular dated 06.10.2021. Highlights of the same are as follows:
It is clarified that service provided by way of cooking and supply of food, by cloud kitchens / central kitchens are covered under “restaurant service” and attract 5% GST [without ITC].
Where ice cream parlours sell already manufactured ice- cream and do not cook/prepare ice-cream for consumption like a restaurant, it is supply of ice cream as goods and not as a service, even if the supply has certain ingredients of service. Accordingly, it is clarified that ice cream sold by a parlour or any similar outlet would attract GST at the rate of 18%.
Services provided by any institutions/ NGOs under the central scheme of “Scholarships for students with Disabilities” where total expenditure is borne by the Government is exempt from GST.
It is clarified that overloading charges at toll plazas would get the same treatment as given to toll charges in respect of GST.
Services where vehicles are rented or given on hire to State Transport Undertakings or Local Authorities are eligible for the exemption irrespective of whether such vehicles are run on routes, timings as decided by the State Transport Undertakings or Local Authorities and under effective control of State Transport Undertakings or Local Authorities which determines the rules of operation or plying of vehicles.