Subsequent to this clarification, Corporate can proceed with any school of thought and stay assured of the form MGT-14 getting approved.
The Ministry of Corporate Affairs (MCA) recently issued clarifications on compliance filings regarding resolutions and agreements for companies. There had been many confusions stemming from the new Companies Act which was passed in 2013. Since the new government took over, the MCA has been issuing various Circulars, notifications and removal of difficulty orders to the 2013 law. The latest one being the decision to approve e-Form MGT-14 through Straight Through Process (STP) mode, except in case of certain matters, in order to ensure timely disposal of e-Forms.
MCA vide General Circular No 28/2014 dated 9 July 2014 issued a clarification that MGT-14 filed for purposes specified under Section 117 of the Companies Act, 2013 (Act, 2013) will be processed and taken on record using the STP mode with effect from 21 July 2014. However, MGT-14 filed for matters viz. Change of Name, Change of Object, Resolution for further issue of capital and Conversion of companies will be taken on record post the same is approved by concerned Registrar of Companies (RoC) official.
As we all are aware that Section 117 of Act, 2013 mandates filing of Form MGT-14 for various matters, which were already covered under Section 192 of the Companies Act, 1956. However, Section 117 additionally covers matters transacted under Section 179 (3) of Act, 2013 which is a list of 19 items. This step from the MCA for clearing the form filed for such matters through STP, will provide relief to Companies, as one need not worry about the approval of the forms filed.
Additionally, Companies in certain states were facing lot of difficulty in getting Form MGT-14 approved, especially the ones which were filed for taking note of disclosure of director’s interest and shareholding under Section 179 (3) (k) read with Rule 8 (5) of Companies (Meetings of Board and its Powers) Rules, 2014. One school of thought mandated attaching Form MBP-1 along with MGT-14 while another school of thought allowed attaching of only the copy of the Board resolution.
Subsequent to this clarification, Corporate can proceed with any school of thought and stay assured of the form MGT-14 getting approved. While this will not reduce the compliance burden of the secretarial team but will surely provide some relief.
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(Vinita Nair is a practising Company Secretary at Vinod Kothari & Co, and can be contacted at [email protected])
There is a need to urgently install security scanners at all main airports in India to control, in particular, the smuggling of fake currency notes and gold
Smuggling, according to the various newspaper reports, which appear from time to time, has actually increased. Smugglinf of fake Indian currency notes, so far proven to be originating from Pakistan, has also increased. The only difference now is that, from high denomination notes, this activity has gone down to lower levels and fakes of Rs5, Rs10, Rs50 and Rs100 have also hit the market.
How much inflation these fake currencies can cause is anybody's guess. Now, with the new relaxation that Indian (passengers) can carry Rs25,000 worth of Indian currency notes is only going to compound the problem. In the past, while exiting or arriving at the Indian airports one can buy duty-free items by paying in foreign currency. Now the rules have been relaxed, as per press reports, that one can buy these with rupees also. This offers another scope for hanky-panky practices!
Once, in a while, drug smugglers have also been caught coming into the country and taking drugs out of the country too. In addition to these, skins of endangered species are also being smuggled. Archeological artifacts, priceless statuettes from temples are also being smuggled and we come to know only when they surface outside the country!
Due to the crazy demand for gold, now we have couriers carrying them. The latest, in which a group of carriers were caught, due to their suspicious movement – which gave them away - but who had successfully cleared the customs hurdle earlier! In this particular case, it was again reported in the media, that when laxatives failed to dislodge the gold, apparently swallowed by them, could be brought out only through the natural medicine of making them to eat lots of bananas!
Regularly, West Africans have been caught with narcotics in their rectum, at great risk of their lives. In fact, a few years ago, the plastic bag containing the narcotics (heroin) burst in the stomach leading to the carrier's death.
Smuggling gold in secret compartments in hand baggage, checked in luggage and other ingenious methods have been caught but it is obvious that the number of “catches” is far less than those that "got away", scot free!
How can we prevent these? What steps are the government taking? What steps can the Government take to reduce, if not stop such activities, altogether?
First, and foremost, it is for the Customs Authorities to obtain and install new Security Scanner that is now available in most western countries. A couple of years ago, security scanner by "Visiom" was located in major airports at the security gate, after the passenger had completed the immigration formalities. Going through the scan was meant to be "voluntary".
The passenger had to leave personal belongings, such as mobile phones, keys, cameras, hat, coat etc to kept aside in a tray. Then, the passenger goes into a cabin, which is actually the scanner, stand erect, raise the arms, hold it for just three seconds, and then step out. The scanner would detect holographic image produced and the Screener who is of the same sex as the passenger will be
able to view the image, located in a different place, and therefore cannot "see" the actual person in the Cabin.
No recording of any kind takes place but if the passenger in the scanner cabin carries any material in person (in body) it will be seen by the examiner. If there are unusual objects, like "gold biscuits", packed materials in the stomach etc it will be clearly visible. For instance, if the person carries a bundle of currency notes, it will be visible!
The holographic machine is not dangerous to the health of the passenger. It uses millimetre waves which are reflected by the human body and these waves do not penetrate the skin. Thus the scanner helps the Customs staff to detect anything unusual that a passenger may be carrying. Improved versions would be now available.
While X-ray machines are useful to check the checked-in baggage, and other baggage on demand of the Customs inspectors, Security Scanners would prevent and detect anyone carrying anything in "person".
It is imperative that the Customs Department obtains further details from Airport Authorities in Washington, London, Paris and Tokyo to see if they can obtain some units immediately for installation in all the major airports which permit international flights.
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)
Employees attrition continues at 'worrisome' levels at Infosys during the June quarter
Infosys Ltd, the country's second largest software company reported a 21.6% increase in its consolidated net profit to Rs2,886 crore for the quarter ended 30 June 2014, mainly on growth in business from Europe and improved operational efficiency. The Bangalore-based company had reported a net profit of Rs2,374 crore in the year-ago period.
The consolidated revenue for the first quarter rose 13.3% to Rs12,770 crore from Rs11,267 crore in the year-ago period. For FY2015, the country's second-largest software services company expects revenues to grow 7%-9% in US dollar terms and 5.6%-7.6% in rupee terms.
“We continue to enjoy the confidence of our clients by demonstrating superior execution capability and value realization.” said SD Shibulal, chief executive and managing director of Infosys. “As I transition the CEO mantle to Vishal (Sikka), I am confident that he will leverage this strong foundation to take Infosys to greater heights," he added.
Rajiv Bansal, chief financial officer of Infosys, said, “We improved operational performance as a result of our cost optimisation initiatives and a focus on increasing productivity and utilisation”. This partially offsets the impact of compensation increases for employees this quarter, he added.
The company added 11,506 employees (gross), taking its headcount to 1,61,284 employees as on June 30, 2014. Its attrition rate was, however, higher at 19.5% for the quarter.
Infosys chief operating officer (COO) UB Pravin Rao said that employee attrition rates were 'worrisome' and that the company was implementing various initiatives to retain good talent.
At 3.42pm Friday, Infosys was trading 1% up at Rs3,325 on the BSE, while the 30-share benchmark Sensex was down 1.4% at 25,024.