The assent of the President of India to the much awaited Companies (Amendment) Act, 2013 has brought the much needed relief to Corporates and other stake holders, not in the least the Chartered Accountant fraternity. Amendments such as removal of requirement of minimum share capital for private and public limited companies, relaxations on the approval of Related Party transactions, removal of requirement for declaration of commencement of business. For chartered accountants engaged in statutory audits the much needed relief has come in the form exclusion of one person companies, dormant companies, small companies and private limited companies (not being subsidiaries of public limited companies and having paid up capital of less than Rs.100 crores) not being considered for the purpose of limits under section 141(3)(g) of the Act. Another relief to CAs is on the reporting of frauds to the Central Government, the relief being in the form of an introduction of a threshold above which only the reporting obligation gets triggered. While the changes have been welcomed with open arms, it is still felt that much more needs to be done to remove the undue hardships that have been heaped upon companies. There is hope that this Government will bring about the required changes in due course. The total washout of the monsoon session of Parliament has put paid to the hopes of the citizens of the country that the present Government will deliver on its promises within the expected time frame. The disruptive politics that one has seen on the television screens during this session, preventing the Government from transacting business is an absolute insult not only to the citizens who brought these very people to Parliament, but to the nation at large.
The continuing fall in the oil prices globally on the one hand and the economic slump in China which has had a Domino effect on the Indian stock markets and the continuing crisis in Europe has raised several questions whether we are getting into the throes of a global recession of a kind not seen in decades. Reduced/deferred consumption in anticipation of further fall in prices could actually trigger a downward spiral in the deflation, with every fall further inducing delayed consumption.
Only time and God will/can tell where we are headed as a nation and as a planet.