Lok Sabha Question No. 37 (UNSTARRED), answered on 2020-09-14
Subject: Impact of Lockdown on Companies
Ministry: CORPORATE AFFAIRS
Asked by: Behanan Benny, Sisir Kumar Adhikari

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA

## UNSTARRED QUESTION NO.  37 ANSWERED ON MONDAY, SEPTEMBER 14, 2020 BHADRAPADA 23, 1942 (SAKA)

## IMPACT OF LOCKDOWN ON COMPANIES QUESTION

37: SHRI BENNY BEHANAN, SHRI SISIR KUMAR ADHIKARI: Will the Minister of CORPORATE AFFAIRS be pleased to state:

कॉर्पोरे ट कार्य मंत्री

- (a) whether a large number of companies have been affected by the contraction of economy due to the recent lock down in the country;
- (b) if so, the details thereof including the number of companies registered and closed down along with the number of unemployment registered during the period from April to August 2020, sector-wise and the State-wise; and
- (c) the corrective steps taken/ proposed to be taken by the Government in this regard ?

## ANSWER

(SHRI ANURAG SINGH THAKUR)

(

THE MINISTER OF STATE FOR FINANCE AND CORPORATE AFFAIRS

वित्त एिं कॉर्पोरे ट कार्य मंत्रालर् में राज्य मंत्री

श्री अनुराग व ंह ठाक ु र )

(a)& (b): The Government in the Ministry of Corporate Affairs (MCA) administers the provisions of Companies Act, 2013 and LLP Act, 2008. The information regarding contraction of economy due  to  the  recent  lock  down  in  the  country  is  not  maintained  by  MCA.  Further,  information regarding unemployment is also not maintained by MCA.

However,  number  of  Companies  registered  and  closed  during  April  to  August  2020  by  all Registrar of Companies (ROCs) is as given below:

|   No of Companies Registered from April to August 2020. | No of Companies Closed (Strike off) From April to August 2020   |
|---------------------------------------------------------|-----------------------------------------------------------------|
|                                                   51807 | 09 ( applications received prior to Covid period)               |

(c): MCA has taken steps to provide several incentives/ relaxation/concession during Lockdown period so as to reduce the burden of companies/LLPs during Covid-19 above said period which includes the following:

- (i) Introducing  Companies Fresh Start Scheme 2020 (CFSS) vide General Circular 12/2020 dated 30.03.2020  to  enable  companies  to  file  documents  without  additional  fees,  grating  immunity from prosecutions proceeding, etc.
- (ii)  Introducing LLP Settlement Scheme, 2020 providing similar benefits as CFSS 2020 for the benefits of LLPs.
- (iii) Introducing Special Provisions for enabling conduct of Board and General Meetings through Video conferences by Corporates vide General Circular No 14/2020.
- (iv)  Introducing  Special  provisions  for  filings  under  section  124  &125  r/w  IEPFA  (Accounting, Audit, Transfer and Refund) Rules 2016.
- (v) Introducing Special Relaxation in holding of General Meeting by Companies whose Financial Year  ended  on  31st  December  2019  vide  General  Circular  dated  21-04-2020  and  holding  it through Video conferences vide General Circular No. 20/2020 and 28/2020.
- (vi) Allowing corporates for  spending CSR  funds  for various activities which  includes Healthcare, sanitation and disaster management.

(vii)A general extension of 3 months to hold Annual General Meeting for the Financial year 20192020 beyond 30.09.2020 has been granted to all about 12 lakhs companies by issue of order by each ROC on 08.09.2020 without any requirement to file any application of the form and without payment of fee.

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