DEPOSITS NOW REQUIRE STATUTORY AUDITORS CERTIFICATE FOR ‘NO DEFAULT’ by CS M K BANSAL

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July 10, 2018

MCA makes statutory auditor certificate must for firms raising public deposits*

The Ministry of Corporate Affairs (MCA) has now stipulated that companies raising public deposits should attach a Statutory Auditor’s Certificate in the circular or circulars in the form of advertisements inviting deposits.

This move will come into effect from 15th August’ 2018.

The auditor certificate should certify that the company has not committed a default in repayment to deposits or in the payment of interest on such deposits, accepted either before or after the commencement of the new Company Law in 2013.

Also, where a default had occurred, the auditor has to certify that the company had made good the default and a period of five years had lapsed since the date of bringing it to a close, the MCA said.

 NBFCs excluded

This requirement will not be applicable to any non-banking finance company or any banking company as these companies come under the regulatory oversight of the Reserve Bank of India.