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of <h1>MCA Circular: Defaulting Companies Must Update Financials Before Filing Event-Based Changes; Some Forms Now Accepted.</h1> The Ministry of Corporate Affairs issued a circular to ensure compliance with the Companies Act, 1956. It states that defaulting companies must update their Balance Sheets, Profit & Loss Accounts, and Annual Returns with the Registrar of Companies before any event-based information or changes are recorded. However, certain forms related to company operations, such as Form 2 (Return of Allotment) and Form 32 (Appointment of Directors), among others, will now be accepted from defaulting companies. This circular, effective from September 18, 2011, aims to facilitate corporate governance while addressing stakeholder interests.
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