Companies Act 2013 Current Affairs - 2019

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IRCTC Revenue doubles; 14% increase in profits

The earnings from internet ticketing services of IRCTC (Indian Railway Catering and Tourism Corporation) increased by 80.8% between the period April, 2019 and September, 2019. The earnings in the four-month period is Rs 199.3 crores. It was Rs 199.3 crore before April, 2019. The revenue has almost doubled.

IRCTC is an exclusive e-ticketing partner of the Indian Railways. This is the first time IRCTC is releasing its revenue after it entered the stock market in October, 14, 2019. Also, the sector has earned huge success in India’s path of Digitization.

Audit report

The report was released by IRCTC after its audit by the Serva Associates, Charted Accountant, New Delhi. The audit was conducted through the concerned auditor under Section 139 of Companies Act, 2013

Section 139 of Companies Act, 2013

  • The section deals with the appointment of auditors
  • The section under the act allows the public sector companies and other private companies to appoint auditors at the first annual meeting.

IRCTC

The IRCTC is one of the Miniratna companies of India. It is a subsidiary of the Indian Railways.

A Miniratna status is provided to the Public Sector Undertakings that satisfy the following criteria

  • The PSU should have continuously made profit in the last 3 years or it should have earned Rs 30 crore profit in one year

Committee on Companies Act, 2013 submits its report to Finance Ministry

Ministry of Finance and Corporate Affairs constituted the Company Law Committee in September 2019. The Committee submitted its report to the Finance Minister on November 18, 2019.

Objective of the Committee

The Committee was constituted to decriminalize the Companies Act, 2013. This is being done to provide Ease of Living for Corporate in the country.

Recommendations of the Committee

  • The committee has recommended amendments to 46 penal provisions associated with the law. The amendments are either to remove criminality or to allow rectification through alternate methods or to restrict punishment only to fine. Bottom line, the committee suggests to lenient punishments mentiones in the law
  • The Committee has recommended to provide further easing of living for law abiding corporate.
  • It also insisted on wider consultations during following decisions by the Ministry of finance
    • Permitting appeals in NCLT against the orders of Regional Directors
    • To review provisions on disqualification of directors
    • Reviewing provisions that debars audit firms.

Significance

With World Institutions decelerating growth rates of India, every step towards the financial flow in the country is important. Though India is an agricultural Economy, majority of the contribution towards its GDP is from the service sector. Therefore, it becomes important to provide Ease of Living for the corporates to boost the growth rate.