12.03 kms in Aarey Forest

A 12.03 kms run in Aarey Forest on 28th October (posting late). Going to Aarey after a long time, so it was quite tough, but weather was very pleasant. No plan on any distances, but felt good so kept on running all the flat surfaces in Aarey (did not want to do too many hills). Aarey Forest is beautiful, a heaven in a mega city. Pity that the Chief Minister wants to destroy this beautiful forest for his stupid metro car shed project.

change in financial year

The Companies Act, 2013 when it was introduced had mandated that all companies will have a uniform accounting year i.e. April to March each year. But the Act had given exemptions to those companies who were holding or subsidiary or associate company of a company incorporated outside India and which were required to have a different financial year than from April to March, then such companies can make an application to the Tribunal for change in their financial year accordingly.

Many companies fell under that ambit and one of my client companies also was a subsidiary of a foreign holding company. Accordingly the application was made to the CLB (when it existed) and even the CLB officials were unaware at that time that such matters are required to come to them. The application and hearing was a farce and the request was granted automatically and mechanically. So much for ease of doing business. The companies act, 2013 when it got notified was replete with such draconian provisions.

Now vide the Companies Act, ordinance, 2018 that application process had been taken away and given to the Regional Director. Of course with the CLB having been extinguished, all such applications would have been going to the NCLT, which is a sheer waste of their time and resources.

In my view, it should be no approval and all that stuff. Company should just inform that it is changing its financial year because of the reasons specified. So much for ease of doing business. 

certificate of commencement of business

MCA has vide its Companies (Amendment) Ordinance 2018 inserted a new section 10A after the existing section 10 wherein companies incorporated after this Ordinance has come into force i.e. from 2nd November, 2018 are required to file a certificate of commencement of business before it commences business or exercises borrowing powers. Which means that unless this certificate of commencement of business is filed with the ROC, it cannot start issuing invoices and receiving moneys.

The declaration has to be filed by a Director of the company within a period of 180 days from the date of incorporation to the effect that the subscribers to the memorandum have paid in their subscription monies. The declaration will also include a verification about the registered office of the company. I guess the form of verification of the registered office i.e. form INC-22 will be modified to that extent.

Which means that the company can open a bank account and the bank account can be used only for accepting the subscription monies from the subscribers to the memorandum, but no other receipts can be made into that account unless the certificate of commencement of business has been filed. This is an onerous requirement which ensures that only genuine people start companies with an intention of doing business. We have seen many shell companies being incorporated with no business in it for years and years.

This requirement of certificate of commencement of business was there when the Companies Act, 2013 was promulgated in 2013 but subsequently removed by the MCA under the banner of "ease of doing business". Wonder what prompted the Ministry to bring this draconian requirement back into the statute books.

The penalty for non compliance with this section is huge. Rs.50,000 for the company and Rs.1000 per day for every officer in default. Max amount of penalty Rs.100,000/-

Where no declaration has been filed the ROC has now powers to strike off the name of the company from its records.

7.01 kms in Worli

7.01 kms in Worli Sea Face promenade to the Dr. Annie Beasant Road and then onto Worli Diary. It was a tough run with high humidity levels. There is lot of metro construction work going on Dr. Annie Beasant Road due to which roads were all narrow. It is only when you reach Podar Hospital that you get some space to run. Otherwise the roads are all barricaded. 

travel on S.V. Road

Today I had the opportunity to travel in an autorickshaw from Andheri to Goregaon via the S.V. Road. A couple of days ago, I had travelled via the JVPD, Link Road and it was madness to say the least. So tried a new route. First of all when I boarded the auto, there was a huge traffic jam from just after the Barfiwala flyover to the Andheri market. That is the biggest bottleneck on this road. They have not managed to increase the width of this road for whatever reasons.

After Andheri market it opens up a little and though there is traffic on the road it is a moving traffic so thank heavens for that. The next bottleneck is near the Jogeshwari station, where again the road narrows down considerably. 

Small bottlenecks again appear near the JVLR flyover signal, Behram Baug signal and the Oshiwara old furniture mart but the traffic is moving albeit slowly. At Oshiwara old furniture market, the goods have come down from the shops and footpath onto the roads without any concern or care for the people or traffic. Even the authorities have turned a blind eye to this rampant illegality going on. 

All in all, much better traffic in S.V. Road than on the Link Road though the initial jam at S.V. Road upto the Andheri market was a nightmare. 

travel under a Metro

Had an occasion to travel by auto rickshaw from Andheri west to Goregaon west via the JVPD, Link Road. Horrible travel is just an understatement, it was atrocious to say the least, exacerbated by the metro line construction going on from D.N. Road onwards. Two ambulances were stuck, pealing away, but no respite in sight from the unending chaos on the road. There are multiple bottlenecks on this stretch no less due to metro construction but even otherwise also. The barricades put up due to metro work is a huge hindrance as the roads have been narrowed down considerably leaving very little space for traffic to move. To cap it, the roads are in terrible condition with potholes at many places. The paver blocks have done the most damage on the roads in Mumbai. But absolutely the worst stretch is the link road from Goregaon/ oshiwara bus depot to shashtri nagar, the traffic was utterly crawling, it was maddening to say the least. Don't know how much of this traffic is going to get mitigated when the metro line is finally done, maybe for six months, but I guess then the traffic will be back to the same old snarls like before. Life of a Mumbaikar travelling under a Metro is an experience never to be forgotten.

change of address of Directors - DIR-6

MCA requires that any change in the particulars in the Director Identification Number (DIN) has to be filed via another form i.e. DIR-6.

Now here if the Director changes his address then he has to attach a plethora of documents from the latest copy of his electricity bill or telephone bill or mobile bill or bank statement. In a recent case we had attached a copy of his bank statement since the particular Director did not have the other specified documents. MCA came back with a query stating that the bank statement is not the latest. Now come on, how can the Director share his latest bank statement particulars showing how much money he has in the bank a/c as on a latest date. Has MCA gone out of its mind. This is nothing but paranoia going to the extreme. What is the guarantee that the bank statement is the latest is the proof that the Director is very much alive and kicking in India. Normally no Director goes personally to update his bank a/c pass book. He sends his messenger to do this menial job. Frankly it beats all rational logic. Sometimes, nay most of the times the govt. working is lunatic to say the least.