Entries by Vinod Kothari Consultants

SC gives purposive interpretation to section 238A of IBC:

Time lost in SARAFESI proceedings can be excluded from limitation period for IBC initiation -By Sikha Bansal and Urmil Shah [resolution@vinodkothari.com] The recent ruling of Supreme Court (SC) in Sesh Nath Singh v. Baidyabati Sheoraphuli Co-Operative Bank Ltd., Civil Appeal No. 9198 of 2019 (Ruling) partially addresses the persistent debate on the interplay between the Limitation Act, […]

MCA introduces a cartload of additional disclosures in the Financial Statements

-The amendments to be applicable from FY 2021-2022 onwards! Shreya Masalia and Harsh Juneja | Executives With the ever-increasing stringency in the regulatory framework and disclosure requirements under various provisions of law, MCA, vide notification dated March 24, 2021[1] has further prescribed a list of numerous additional disclosure required in the financial statements by amending […]

Downstream Investment Not to Result in Indirect Foreign Investment

For entities owned and controlled NRIs investing on non-repatriation basis Updated as on August 10, 2021 Shreya Masalia | Executive Foreign investments in equity instruments by a person resident outside India (PROI) is governed by Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (NDI Rules)[1] and the Consolidated FDI Policy[2] as amended from time to time. […]

Changes in Auditors’ Report and Financial Statements to reveal camouflaged financial transactions

Team Corplaw, Vinod Kothari & Company [corplaw@vinodkothari.com] [This version: 25th March, 2021] Accountants and auditors will have to grapple with a ton of new details and disclosures while preparing financial statements and audit reports, come financial year 2021-22. MCA brought, vide separate notifications dated 24th March, 2021 amendments in the Companies (Audit and Auditors) Rules,2014 […]

An Odd Scheme: Case for exclusion of schemes of arrangement from scheme of liquidation

Sikha Bansal, Partner [resolution@vinodkothari.com] The Article below has also been published on the IndiaCorplaw Blog, see here  The concerns around section 230 schemes in the background of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) have been partly addressed with the ruling of Supreme Court (SC) in Arun Kumar Jagatramka v. Jindal Steel and […]

Remunerating in a lean year: Statutory amendments for minimum remuneration to independent directors now effective

Payal Agarwal | Executive (payal@vinodkothari.com)   Highlights   Introduction Independent directors (IDs) are a crucial part of corporate governance structure; however, their remuneration is currently solely by way of sitting fees and a “profit-linked” commission[1]. Profit is something which is completely dependent on business models, a whole matrix of internal and external factors, and something […]