Extension of Due date for conducting AGM for FY 2020-21: MCA

The Ministry of corporate Affairs (MCA) ON 23rd September 2021 issued the Office Memorandum wherein it extended the time for holding of AGM for the Financial Year ended on March 31, 2021 for two months beyond the normal due date i.e. 30.09.2021.

The Central Government has received representations seeking extension of time for holding Annual General Meeting (AGM) for the financial year 2020-21 ending on 31st March 2021 citing many difficulties faced due to second wave of Covid-19 and consequent lockdowns etc.

Accordingly, it has been decided to advise the Registrar of Companies (RoCs) to accord approval for extension of time for a period of two Months beyond the due date by which companies are required to conduct their AGMs for the financial year 2020-21 ended on 31st March 2021. “Please take this action with utmost urgency and issue an order before the close of the office today and forward the copy of the order to this office before for consolidation and uploading it on the MCA21 website. Also display this order on the Notice Board of your respective offices,” the MCA in the Office Memorandum said.

The copy of notification given below:

Recommendations of 45th GST Council Meeting: for streamlining compliances in GST

The GST Council’s 45th meeting was held today in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has inter-alia made the following recommendations for streamlining compliances in GST.

1. Late fee for delayed filing of FORM GSTR-1 to be auto-populated and collected in next open return in FORM GSTR-3B.

2.Refund to be disbursed in the bank account, which is linked with same PAN on which registration has been obtained under GST.

3. Rule 59(6) of the CGST Rules to be amended with effect from 01.01.2022 to provide that a registered person shall not be allowed to furnish FORM GSTR-1, if he has not furnished the return in FORM GSTR-3B for the preceding month.

4.Rule 36(4) of CGST Rules, 2017 to be amended, once the proposed clause (aa) of section 16(2) of CGST Act, 2017 is notified, to restrict availment of ITC in respect of invoices/ debit notes, to the extent the details of such invoices/ debit notes are furnished by the supplier in FORM GSTR-1/ IFF and are communicated to the registered person in FORM GSTR-2B.

What compliance is required for a Nidhi company?

What compliance is required for a Nidhi company?

The same has been explained in section 406 of companies act 2013.

The stringent rules laid down for Auditors directors corporate governance rule are suomoto applicable. Erstwhile  Sec 623 of companies act 1956 is now replaced and a further concept under section 406 is applicable.

This is a concept developed more like concept of non profit organisation. It is done like concept of cultivating habit of thrift and saving among members receiving deposit and lending to its members only for mutual benefit


A Nidhi company shall be public company and have paid up equity share capital of 5 lakhs. After act is commenced no Nidhi company can issue preference shares.

If preference shares have been issued before the commencement of the act it shall be redeemed in accordance with the rules laid down.

Nidhi company shall have Nidhi Limited as part of its name.

Nidhi company shall ensure within 1 year from date of incorporation shall ensure the following compliance is duly complied.

• Net owned fund of 10 lakhs or more

• At least 200 members

• Unencumbered term deposit of not less 10% of outstanding deposit

• Ratio of net owned fund of not less than 1:20.

The statutory requirement are to be duly complied within 90 Days from the close of Financial year duly certified by a CA /CS /CWA in practice.

Rules of Nidhi Company

• Director shall be a member of Nidhi Company. Director shall hold office for term up to 10 consecutive years. The director shall be eligible for reappointment only after the expiry of 2 years of ceasing to be director. In order to be appointed as a director due compliance has to be done as laid down under section 152,164.

• The rotation of auditors shall also be applicable for Nidhi Company. In case of sole proprietor only one term of 5 consecutive years. In case of partnership firm two term of 5 consecutive years shall be appointed. A 2 year cooling period is also in force.

• The rules as against dividend is also envisaged clearly. A Nidhi Company shall not declare dividend exceeding 25% or any higher amount as specifically approved by regional director for reasons to be recorded in writing and further subject to conditions such as

• Amount is transferred to general reserve • No default in repayment of matured deposit and interest

• Complied with rules of Nidhi

• The auditor (statutory) shall also give a certificate that all rules have been complied and certificate shall be annexed to audit report .

CARO Reporting

The statutory auditor is bound to give CARO reporting As per CARO 2016 the following is to be reported.

Clause Xii

• Whether Nidhi Company has complied with net owned funds to deposit in ratio of 1.20 to meet liability.

• Whether Nidhi Company is maintaining 10% unencumbered term deposit as laid down under rules. Whether there has been default in repayment of interest and deposit.


A fine of Rs 5000 and further fine of Rs 500 for every officer who is default or contravened the provisions.