Amendments to the Exemptions provided to Private Company

Amendments

  1. Private Company that is recognized as a start-up company by the Department of Industrial Policy and Promotion need not include Cash Flow statement in their financial statements.
  2. The exemption provided to Private companies for accepting Deposits has been expanded to include:
    1. A start-up, for five years from the date of its incorporation
    2. A Private Company that
      1. Is not an associate or a subsidiary company of any other company
      2. Has borrowings from banks or financial institutions or any body corporate which is less than twice its paid up share capital or fifty crore rupees, whichever is lower
      3. Has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits
  1. Small Companies need to provide only aggregate amount of remuneration paid to their directors and key managerial personnel in their Annual Report
  2. The Annual report of One Person Company, Small Company and Private Company can be signed by the company secretary, or where there is no company secretary, by the director of the company.
  3. The Auditor need not comment on the Internal Financial Controls of the Company if:
    1. It is a one person company or a small company; or
    2. which has turnover of less than rupees fifty crores as per latest audited financial statement or which has aggregate borrowings from banks or financial institutions or any body corporate at any point of time during the financial year less than rupees twenty five crore
  4. Private Company that is recognized as a start-up company by the Department of Industrial Policy and Promotion is required to conduct a minimum of one Board Meeting in each half of a calendar year and the gap between the two Board Meeting should not be less than 90 days.
  5. An interested Director can also be counted for Quorum after they disclose their interest.
  6. All exemptions provided to a Private Company stands withdrawn if they fail to file their financial statements or Annual returns with the Registrar.

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