Simplified Exit Scheme extended for a further three months to allow eligible companies additional time to exit.
Extension of the Simplified Exit Scheme for a further three months effective 1 January 2004, issued by the Department of Company Affairs in response to representations and directed to Regional Directors and Registrars of Companies to implement the extended timeline for exits under the existing administrative scheme.

Applicability of Cost Accounting Records narrowed to products defined as infant milk foods or erstwhile milk food definitions.
The Rules are confined to companies engaged in the production, processing or manufacture of (i) infant milk foods as defined in the erstwhile Infant Milk Foods rules, 1974, or (ii) milk food as defined in the erstwhile Cost Accounting Records (Milk Food) Rules, 1986; a notification implementing this revision will follow.

Compliance certificate requirement: not needed where a company employs a whole time Company Secretary, per departmental clarification.
A company not required under law to employ a whole time secretary but which has voluntarily employed a full time Company Secretary is not obliged to obtain a compliance certificate from a Company Secretary in practice; therefore a company employing a whole time Company Secretary need not procure a separate compliance certificate for filing with the Registrar and attaching to the Board's report.

Preferential allotment rules and sweat equity rules circulated for unlisted companies; recipients asked to take action and acknowledge.
Two Gazette notifications - the Unlisted Public Companies (Preferential Allotment) Rules, 2003 and the Unlisted Companies (Issue of Sweat Equity Shares) Rules, 2003 - are forwarded to Regional Directors and Registrars of Companies for information and necessary action, with a request that receipt be acknowledged to the Department of Company Affairs.

Simplified Exit Scheme: companies formed after the amendment may avail it despite non-contribution to paid-up capital.
Companies incorporated after the Companies (Amendment) Act, 2000 that have not made the contributions to paid-up capital described in Section 3(1)(iii) and 3(1)(iv) are eligible to avail the Simplified Exit Scheme, provided they meet all other prescribed requirements.

Auditor's report compliance required under new Order; leniency for prior-year accounts, strict adherence mandatory thereafter.
Companies must comply with the Companies (Auditor's Report) Order, 2003 which replaces the prior auditor's report order and is effective from 1 July 2003; while the Government will not postpone or review the Order, it will take a lenient view of non compliance for accounts closed on or before 31 December 2003 provided those accounts carry the prior auditor's report, but strict compliance is required for accounts closing on or after 1 January 2004 and non compliance thereafter may attract legal action.

Director disqualification exclusion: government companies removed from disqualification rules under company law, shifting applicability and compliance duties.
Notification excludes government companies from the scope of the rules governing director disqualification under the Companies Act and forwards two Gazette notifications-one promulgating the disqualification rules and the other specifying the exclusion-to Regional Directors and Registrars of Companies for information and necessary action, with a request for acknowledgement of receipt.

Company law notifications: circulation of settlement scheme, declarations of additional nidhis and secretary appointment amendment.
Circulation of three company-law notifications: the Company Law Settlement (Jammu and Kashmir) Scheme, 2003; a notification declaring additional companies as Nidhis; and the Companies (Appointment and Qualifications of Secretary) (Amendment) Rules, 2003 establishing appointment on a population basis, forwarded to Regional Directors and Registrars of Companies for information and necessary action with a request to acknowledge receipt.

Constitution of National Advisory Committee on Accounting Standards circulated alongside amendments to deposit rules and Competition Act effective dates.
Notification constituting a National Advisory Committee on Accounting Standards under company law is circulated, along with a corrigendum on effective dates of specified Competition Act sections, amendments to the Companies (Acceptance of Deposits) Rules, 2003, and an amendment to a prior notification, directed to Regional Directors and Registrars of Companies for information and action.

Simplified Exit Scheme compliance: nil audited accounts and indemnity bonds required for strike-off, with defined exclusions and procedures.
Applicants under the Simplified Exit Scheme must submit nil audited accounts showing no assets or liabilities; all applicant directors must furnish indemnity bonds with at least two signatories, and paragraph 1(c) of the indemnity may be amended to reflect that the company has not carried on business since incorporation or for a specified period and does not intend to carry on its main objects. Section 25 companies and firms under inspection, investigation or implicated in market scams are excluded; prosecutions for minor offences may be withdrawn only after the final Gazette notice and ROC reports 45 days after scheme expiry.

Producer Companies General Reserves Rules circulated for compliance and acknowledgement by Regional Directors and Registrars of Companies.
Circulation of The Producer Companies (General Reserves) Rules, 2003 via Notification G.S.R. 641(E) is forwarded to all Regional Directors and Registrars of Companies for information and necessary action, with a request to acknowledge receipt.

Increase in sitting fee under companies rules circulated to Regional Directors and Registrars for implementation.
Increase in sitting fee under the Companies (Central Government's) General Rules and Forms effected by The Companies (Central Government's) General Rules and Forms (Third Amendment) Rules, 2003 as notified by G.S.R. 580(E). The Ministry of Finance, Department of Company Affairs has circulated this notification to all Regional Directors and Registrars of Companies for information and necessary action and requested acknowledgement of receipt.

Reconstitution of Investor Education and Protection Fund Committee amends prior notification; regional directors and registrars notified to acknowledge.
Reconstitution of the Investor Education and Protection Fund administration is effected by amending an earlier Gazette notification; Notification S.O. 815(E) dated 17.07.2003 amends Notification S.O. 1280(E) of 2001 and directs Regional Directors and Registrars of Companies to take necessary action and acknowledge receipt.

Declaration of Public Financial Institution status for NCDC under section 4A prompts circulation of related company law notifications.
The circular forwards Gazette notifications declaring the National Co-operative Development Corporation (NCDC) as a Public Financial Institution under section 4A of the Companies Act, 1956, and circulates related instruments including amendments to Companies Rules and the Companies (Auditor's Report) Order, 2003, for information and administrative acknowledgement by Regional Directors and Registrars of Companies.

Buy-back of securities rules circulated; recipients directed to take necessary steps, implement changes and acknowledge receipt promptly.
The Department transmitted Notification G.S.R. 348(E) dated 23.04.2003 - The Private Limited Company and Unlisted Public Limited Company (Buy-back of Securities) Amendment Rules, 2003 - directing Regional Directors and Registrars of Companies to note the amendment, take necessary action to implement the rules, and acknowledge receipt.

Rounding of financial statements clarified to apply to profit and loss accounts to ensure consistent presentation across statements.
The circular clarifies that the notification permitting rounding of balance sheet figures to prescribed denominations also applies by implication to the profit and loss account prepared under Schedule VI, so that both statements use the same simplified rounding procedure and present consistent figures to readers.

Rounding off figures permitted for balance sheets extends to profit and loss accounts to ensure consistent financial presentation.
The circular clarifies that Notification No. G.S.R. 545(E) permitting rounding of figures in the balance sheet to specified denominations may, by implication, be applied to the profit and loss account as well, because both statements form the annual accounts under Schedule VI, and consistent application aids readers through uniform presentation.

Name change permission for companies follows amendment of objects to undertake insurance broking permitted by regulator.
The Registrar of Companies may permit change of name of existing companies when they amend their objects to undertake insurance brokers' business, in light of the insurance regulator's notification permitting private sector companies to carry on insurance brokerage; the permission is contingent on formal alteration of corporate objects and is a partial modification of earlier guidance.

Companies Acceptance of Deposits amendments circulated; recipients instructed to take action and acknowledge receipt promptly.
The Department of Company Affairs circulated three notifications: The Companies (Acceptance of Deposits) Amendment Rules, 2003, its Second Amendment, and the Disposal of Records (in the Offices of the Registrars of Companies) Rules, 2003, directing Regional Directors and Registrars of Companies to take necessary action under the amended provisions and to acknowledge receipt of the notifications.

Company strike off notices: public publication and objection mechanism with ROC reporting for uncompleted strike-offs.
Annexure D requires the ROC to publish a public notice listing companies that have applied for striking off under the Simplified Exit Scheme and to invite written, substantiated objections within thirty days. Annexure E requires the ROC to report to the Department those applicants whose names could not be struck off, specifying reasons such as fee deficiencies, inadequate documentation, or objections from creditors, investors or the public.