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The Corporate Affairs Ministry (MCA) has now stipulated that companies raising public deposits should attach statutory auditor certificate in the circular or circulars in the form of advertisement inviting deposits.
This auditor certificate should certify that the company has not committed default in the repayment of deposit or in the payment of interest on such deposits accepted either before or after the commencement of the new company law in 2013.
Also, where a default had occurred, the auditor has to certify that the company had made good the default and a period of five years had lapsed since the date of making good the default, the MCA has said.
However, this latest statutory auditor certificate requirement would not apply to a non-banking finance company or any banking company. This is because such companies come under the regulatory oversight of the Reserve Bank of India.
The latest MCA move requiring statutory auditor certification for companies inviting public deposits would come into effect from August 15. MCA has also enforced certain provisions of the Companies (amendment) Act 2017 related to deposits from August 15 this year.
Satisfaction of charge
MCA has now extended the time period for filing the particulars of satisfaction of charge from 30 days to 300 days. This is being seen as a relief to corporates. The new norm on satisfaction of charge has come into effect on July 5.
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