Friday 19 September 2014


 As per the circular issued by Ministry of Corporate Affairs (MCA) i.e. “General Circular No. 34/2014” dated August 12, 2014 have announced its new scheme called “COMPANY LAW SETTLEMENT SCHEME 2014”.
It covers all the companies who have failed to file their annual reports, financial statements and related documents due on or before June 30, 2014 can file these documents before October 15, 2014.

Highlights of the Scheme:
1.    Scheme is valid from 15th August 2014 to 15th October 2014
2.    Only 25% of the additional fees is payable.
3.    Scheme applicable for forms 23AC, 23ACA, 23AC-XBRL, 23ACA- XBRL, 20B, 66, 23B, 21A
4.    Immunity from prosecution.
5.    Directors will not be disqualified u/s 164(2) of the companies act.
6.    Company can have simultaneous benefit of either going for  "Dormant" status or go for striking off. Both at 25% of actual fees.

Below mentioned are the consequences which arise if you did not file your ROC annual returns, the consequences are as follows:

Consequences of Non-Compliances
Penal and Prosecution
Section 92 read with 137 of the Companies Act 2013 provides for penalty at Rs  1000 per day extending up to Rs  10 Lacs and also Imprisonment of directors up-to a term of 6 months.
Disqualification of Directors
Also Section 164(2) provides for Disqualification of Director if the company has not filed annual returns for 3 or more consecutive years. The disqualification which was earlier only restricted to public companies is now also extended to Private limited Companies.
We would request you to kindly avail the benefit of this scheme at the earliest to avoid any show cause notice from Ministry of Corporate Affairs (MCA).3

This is an opportunity to ratify the defaults in ROC Annual fillings. 

CA Anand Mutha 

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