1. Proviso to Section 2(40) amended and included one person company, small company, dormant company private company (if such private company is a start-up) not to prepare the cash flow statement in financial statements.
2. Provision of acceptance of Deposit u/s 73 Shall not apply to a private company:
(A) which accepts from its members monies not exceeding 100% of aggregate of the paid up share capital, free reserves and securities premium account; or
(B) which is a start-up, for five years from the date of its incorporation; or
(C) which fulfils all of the following conditions, namely:
(a) which is not an associate or a subsidiary company of any other company;
(b) if the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fifty crore rupees, whichever is lower; and
(c) such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under this section:
Provided that the company referred to in clauses (A), (B) or (C) shall file the details of monies accepted to the Registrar in such manner as may be specified.”
3. For Section 92 for filing of Annual Return, the following proviso shall be substituted:
Provided that in relation to One Person Company, small company and private company (if such private company is a start-up), the annual return shall be signed by the company secretary, or where there is no company secretary, by the director of the company.”
4. As per Section 143, Auditor need not comment on internal financial control for the following company:
(i) which is a one person company or a small company; or
(ii) which has turnover less than rupees fifty crores as per latest audited financial slatement or which has aggregate borrowings from banks or financial institutions or any body corporate at any point of time during the flnancial year less than rupees twenty five crore.”.
5. Under Section 173, following companies are allowed to held 2 Board meeting in a FY:
One Person Company, small company, dormant company and a private company (if such private company is a start-up) shall be deemed to have complied with the provisions of this section if at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than 90.