Journal June 2022

Corporate CA. Naveen Mandovara
Law Update [email protected]

MCA Updates: said rules, or the date of
rejection of the application in
1. The Nidhi (Amendment) Rules, 2022: Form NDH-4, whichever is
later as referred to in the fourth
The Ministry has amended the Nidhi Rules, proviso shall be deemed to
2014 and made the following amendments: have been raised in pursuance
of Chapter V of the Act, and
Rule No. Effect of the amendment shall be subject to all the
requirements under that
Rule 3(1)(aa) “(aa) „Branch means a place Chapter, or under any other
(Inserted) other than the registered office provisions of the Act or the
rules made thereunder, as the
of Nidhi” case may be.
Provided also that nothing in
Fourth and “Provided also that no this rule shall apply to
Fifth Proviso company, which has not companies incorporated as
to Rule 3A complied with the Nidhi on or after the
(Inserted) requirements of this rule, or commencement of the above
said rules.”
fails to comply with such
requirement on or after the Rule 3B Criteria for applying in
commencement of the Nidhi (Inserted) NDH-4
(Amendment) Rules, 2022, or Public company desirous to be
in case the application declared as a Nidhi shall apply,
submitted by the company in in Form NDH-4, within a
Form NDH-4 is or has been period of one hundred twenty
rejected by the Central days of its incorporation for
Government, shall raise any declaration as Nidhi, if it fulfils
deposit from its members or the following conditions:
provide any loan to its 1) It has not less than two
members under the provisions hundred members; and
of these rules from the date of 2) It has Net Owned Funds
such non-compliance, or from of twenty lakh rupees or more
the date of the commencement etc.
of the above said rules, or the
date of rejection of the Rule 4(1) The limit of Equity Share
application in Form NDH-4, (Substituted) Capital of Rs. Five Lakh has
whichever is later.
Provided also that if any been changed by Rs. Ten
deposit raised by a company Lakhs and accordingly a Nidhi
after the date of non-
compliance, or the date of
commencement of the above

Ahmedabad Chartered Accountants Journal May, 2022 113

Corporate Law Update

shall be a public company and Rule 12 (1) After the word, “gold” the

shall have a minimum paid up (Inserted) word “silver” shall be inserted.

equity share capital of ten lakh Proviso to After the words, “approval of

rupees and shall comply with Rule 14 the Regional Director”, the

this requirement within a (Inserted) words “by making application

period of eighteen months of in Form NDH- 2 along with

commencement of fee specified in the Companies

amendment rules. (the Registration Offices and

Rule 5(5) “(5) The provisions of this rule Fees) Rules, 2014” shall be
(Inserted) shall not be applicable for the
companies incorporated as inserted.
Nidhi on or after the
commencement of the Nidhi Proviso to “Provided that in case of joint
(Amendment) Rules, 2022”.
Rule 15(1) shareholders, the loan shall be

(Inserted) provided to the member whose

name appears first in the

Register of members”.

Rule 6(d) “(d) acquire or purchase Rule 18 “18. Dividend. A Nidhi shall
(Substituted) securities of any other
(Substituted) not declare dividend
company or control the
composition of the Board of exceeding twenty-five per cent
Directors of any other
company in any manner in a financial year”.
whatsoever or enter into any
arrangement for the change of Rule 20 (6) After the word “gold”,
its management”;
(Inserted) wherever it occurs, the words

“or silver” shall be inserted.

Second and “Provided further that no

Third company which has not

Rule 6(l) “(l) raise loans from banks or Proviso to complied with the

(Inserted) financial institutions or any Rule 23A requirements of this rule, or

other source for the purpose of (Inserted) fails to comply with such

advancing loans to members of requirement on or after the

Nidhi”. date of commencement of the

Rule 9 Limit of Net Owned Funds has Nidhi (Amendment) Rules,

(Substituted) been changed from Rs. Ten 2022, or in case the application

Lakhs to Rs. Twenty Lakhs. submitted by the company in

Every Nidhi shall maintain Form NDH-4 is or has been

Net Owned Funds of not less rejected by the Central

than twenty lakh rupees or Government, shall raise any

such higher amount as the deposit from its members or

Central Government may provide any loan to its

specify from time to time and members under the provisions

shall comply with this of these rules from the date of

requirement within a period of such non-compliance, or the

eighteen months of date of commencement of the

commencement of said rules, or the date of

amendment rules. rejection of the application in

Rule 10 Procedural changes made Form NDH-4, whichever is

[Substituted/ pertaining the opening and later. Provided also that any

Inserted) closing branches. deposit raised by a company

114 Ahmedabad Chartered Accountants Journal May, 2022

Corporate Law Update

after the date of non- This Circular shall come into force for Public
compliance, or the date of Issues opening on or after May 01, 2022.
commencement of the above
said rules, or the date of [Circular No.: SEBI/HO/CFD/DIL2/CIR/P/
rejection of the application in 2022/45 dated 05.04.2022]
Form NDH-4, whichever is
later, as referred to in the 2. Clarification on applicability of Regulation
second proviso shall be 23(4) read with Regulation 23(3)(e) of the
deemed to have been raised in SEBI (Listing Obligations and Disclosure
pursuance of Chapter V of the Requirements) Regulations, 2015 in relation
Act, and shall be subject to all to Related Party Transactions:
the requirements under that
Chapter, or under any other The SEBI has specified that the shareholders’
provisions of the Act or the approval of omnibus RPTs approved in an
rules made thereunder, as the AGM shall be valid up to the date of the next
case may be. AGM for a period not exceeding fifteen months.

[F. No. 5/28/2020-CL-VII dated 19.04.2022] In case of omnibus approvals for material
RPTs, obtained from shareholders in general
For, detailed text, please refer: meetings other than AGMs, the validity of such
omnibus approvals shall not exceed one year.
https://www.mca.gov.in/bin/dms/
getdocument?mds=LTZyclKMNK0LX6Jw [Circular No.: SEBI/HO/CFD/CMD1/CIR/
M%252BaPeA%253D%253D&type=open P/2022/47 dated 08.04.2022]

SEBI Updates: 3. Securities and Exchange Board of India
(Listing Obligations and Disclosure
1. Revision of UPI limits in Public Issue of Requirements) (Fourth Amendment)
Equity Shares and convertibles: Regulations, 2022:

The SEBI has decided that all Individual The SEBI has notified the SEBI (Listing
Investors applying in Public Issues where the Obligations and Disclosure Requirements)
application amount is upto 5 Lakhs shall use (Fourth Amendment) Regulations, 2022, which
UPI and shall also provide their UPI ID in the shall come into force on the date of their
bid-cum-application form submitted with any publication in the Official Gazette.
of the entities mentioned herein below:
SEBI vide this notification has provided that
i. a syndicate member the listed entity shall comply with all the
procedural requirements as specified in
ii. a stock broker registered with a recognised Schedule VII of the SEBI (Listing Obligations
stock exchange (and whose name is and Disclosure Requirements) Regulations,
mentioned on the website of the stock 2015 with respect to transfer and
exchange as eligible for this activity) transmission of securities.
(‘broker’)
[Notification No. SEBI/LAD-NRO/GN/
iii. a depository participant (‘DP’) (whose 2022/80 dated 25.04.2022]
name is mentioned on the website of the
stock exchange as eligible for this activity) For, detailed text, please refer:

iv. a registrar to an issue and share transfer https://www.sebi.gov.in/legal/regulations/apr-
agent (‘RTA’) (whose name is mentioned 2022/securities-and-exchange-board-of-india-
on the website of the stock exchange as listing-obligations-and-disclosure-
eligible for this activity)
Continued to page 118

Ahmedabad Chartered Accountants Journal May, 2022 115

GujRERA Corner

Structural Defects liability under RERA CA. Manan Doshi
[email protected]
Section 14(3) of the RERA Act states that, “In case
any structural defect or any other defect in quality of goods and workmanship to get things
workmanship, quality or provision of services or done or left out things to be done, he could be held
any other obligations of the promoter as per the accountable for the same.
agreement for sale relating to such development is
brought to the notice of the promoter within a period Let us go through the meaning of structural defects
of five years by the allottee from the date of handing as defined by different states:
over possession, it shall be the duty of the promoter
to rectify such defects without further charge, within Structural Defects as per Haryana RERA Rules,
thirty days, and in the event of promoter’s failure to 2017:
rectify such defects within such time, the aggrieved
allottees shall be entitled to receive appropriate “Structural defects” means actual physical damage/
compensation in the manner as provided under this defects to the designated load-bearing elements of
Act.” the building, apartment or unit like faults, breakage
or cracks, appearing over time in elements such as
Quality of construction was one of the major load-bearing columns, walls, slabs, beams etc.
concern why RERA Act came into existence. which can affect the strength and stability of the
RERA Act makes sure that the promoter is bound apartment or the building and shall include any of
to provide quality in form of constructed units. the following namely:
Section 14 (3) eliminates the risk that allotee used
to face. “Structural Defects” is not specifically (i) defects due to design attributes of reinforced
defined under RERA Act, however states have cement concrete (RCC) or structural mild steel
framed rules to define Structural defects. (MS) elements of an engineered (structurally
designed) building structure,
Sub-clause (3) also ensures that in case any
structural defect or any other defect in the (ii) defects due to faulty or bad workmanship of
workmanship, quality or provision of services any RCC or MS work,
other obligations of the promoter as per the
agreement for sale relating to such development is (iii) defects due to materials used in such RCC or
brought to the notice of the promoter within a period MS work,
of five years by the allottee from the date of handing
over possession, it shall be the duty of the promoter (iv) major cracks in masonry work that are induced
to rectify such defects without further charge, within as a result of failures of RCC or MS work,
thirty days. If he fails to do so, the allottees are
entitled to receive compensation as provided under (v) any defect which is established to have occurred
the Act. This an important provision as it holds the on account of negligence, use of inferior
builder/promoter liable even after the project is materials or non-adherence to the regulatory
complete. Therefore, if the promoter used inferior codes of practice by the promoter.

Note: As per the HRERA Rules, 2017 the
promoter shall not be liable for any such structural/
architectural defect induced by the allottee, by means
of carrying out structural or architectural changes
from the original specifications/ design.

116 Ahmedabad Chartered Accountants Journal May, 2022

Structural Defects as per Telangana Rules, 2017: GujRERA Corner

“Structural defect or any other defect in foundation. Multiple cracks in several rooms is an
workmanship, quality or provision of services or indication of a major structural problem, for which
any other obligations of the promoter as per the an expert intervention should be sought.
agreement for sale relating to such development is
brought to the notice of the promoter within a period Faulty plumbing:
of five years by the allottee from the date of handing
over possession, it shall be the duty of the promoter Defects in the plumbing system happen due to old
to rectify such defects within such time, the or incompatible piping material used, as well as
aggrieved allottees shall be entitled to receive faulty fixtures and waste lines. Incorrect installation
appropriate compensation in the manner as provided of fixtures may lead to clogged drains, shower pan
under the Act”. leaks or toilet leaks. These also lead to mould
contamination.
Notwithstanding anything contained in the above
clause the following exclusions are made: Improper electrical wiring:

1. Equipment (lifts, generator, motors, STP, Improper electrical wiring in a house often lead
transformers, gym equipment etc.,) which carry to insufficient power, lack of overload protection
manufacturer’s guarantees for a limited period. and quite often dangerous wiring connections.

2. Fittings related to plumbing, sanitary, electrical, Non-functional heating and air-conditioning
hardware, etc., having natural wear and tear systems:
Allowable structural and other deformations
including expansion quotient A defect in the air conditioning and heating systems
in a building means inadequate cooling or heating.
3. The terms of work like painting etc., which are
subject to wear and tear.” Defects in flooring:

Examples of Structural Defect: Grout not holding the tile to the floor, water seeping
from under the foundation or exterior, buckling of
Weak foundation: hardwood floor, widening of the crack of the tile –
all of these hint at improper floor framework.
Foundation is the root of any house. What make a
house structurally sound are a compact structure of The RERA Act erroneously placed ‘structural
the foundation framing and the roof. The signs of defects’ and ‘bad workmanship’ in the same basket
poor foundation in a building can be spotted if you when it comes to allowing the buyer to trigger the
are unable to close windows and doors, there is compensation clause within 5 years. Section
inadequate draining from the foundation, the 14(3) of the RERA Act lays down that a promoter
concrete is crumbling or flaking, there are ruptures must rectify any structural defect or any other defect
or gaps, and if there is sloping, sagging or buckling in workmanship, quality, or provision of
of the foundation floors or walls. The presence of services within 30 days of the buyer bringing it to
trees near a building can also destabilise its their notice.
foundation and drains.
The Act provides the buyer with a 5 year window
Cracks on the walls: within which such defects can be brought up.
‘Structural defects’ refer to defects in the entire
Variations in moisture and temperature cause structure, i.e., the building. On the other hand,
frequent expansion and shrinkage of the concrete, ‘workmanship’ refers to defects within the unit,
causing cracks. Some minor cracks are static, which the allotted must identify within a year of
undetectable and harmless. However, it can be a taking possession of the unit. The Act gives the
cause for concern if the hairline crack continues to allotted so much time to bring them to the promoter’s
widen over a period of time and damages the notice, places a disproportionately heavy burden
on the promoter.

Ahmedabad Chartered Accountants Journal May, 2022 117

GujRERA Corner criteria. This Section does not define what are minor
alterations but it does define what are not minor
The Act should include a provision where in a alterations. So, increase in super area or the carpet
mandatory third party inspection of a project at the area, addition of columns or floors, addition of the
time of handover of the possession is made. While covered area of the building, etc. are not minor
the time period allowed for making claims against alterations. So any addition in building or any part
structural defects has to be five years. This has to cannot be made without prior intimation to the
be applicable from the date of completion of a allottee. This all has been done to protect the interest
project and not the handover of possession. On the of actual allottees of the land or otherwise it will
other hand, allowing claims against bad lead to encroachment of someone else’s property
workmanship should be limited to one year from right if consent has not been taken. It moreover
the date of handing over possession to the allottee. provides for rights of the buyer or allottee and post-
possession obligation upon the builder.
Summarizing section 14:
In case of a structural defect or any other defect in
Section 14 puts a mandatory obligation on workmanship, it shall be the duty of the promoter
promoters to adhere to the sanctioned plans and to rectify the same within thirty days and in the event
project specifications as approved by the competent of failure to do so, the aggrieved allottees shall be
authority which may be developing authority, entitled to compensation.
municipal corporation, town and country planning
department, etc., depending upon the land on which ❉❉❉
the building is to be constructed. Furthermore, it
says that no alteration, construction, additions will
be allowed in the building except if they fulfil certain

Continued from page 115 Corporate Law Update

requirements-fourth-amendment-regulations- Requirements) (Amendment) Regulations,
2022_58408.html 2022 shall come into force in the following
manner:
4. SEBI (Issue of Capital and Disclosure 1) for public issues of a size less than Rs.
Requirements) (Second Amendment)
Regulations, 2022: 10,000 crore and opening on or after April
1, 2022; with effect from April 1, 2022;
SEBI has notified the SEBI (Issue of Capital 2) for public issues of a size equal to or more
and Disclosure Requirements) (Second than Rs. 10,000 crore and opening on or
Amendment) Regulations, 2022, which shall after April 1, 2022; with effect from July
come into force on the date of their publication 1, 2022.
in the Official Gazette. [F. No. SEBI/LAD-NRO/GN/2022/82 dated
27.04.2022]
Vide this notification it is provided that the
amendments relating to regulations 32(3A), 49, ❉❉❉
129, 145, clause (10) and clause (15) of Part A
of Schedule XIII and Schedule XIV carried out
by the SEBI (Issue of Capital and Disclosure

118 Ahmedabad Chartered Accountants Journal May, 2022

Allied Laws Adv. Ankit Talsania
Corner [email protected]

Directorate of Enforcement v. Gagandeep Singh criminal activities that constitute offences under Part
& Ors. A and Part C of the schedule to PMLA.
In the High Court of Delhi
2022 SCC OnLine Del 514 It is the case of the Petitioner that one Mukhtiar
Singh and Swaran Singh were accused for being
Introduction found in possession of Heroin and subsequently,
the Respondents No. 1 and 2 were also arraigned
The Hon’ble High Court of Delhi in the instant as accused in the FIR on the statement of the co-
Criminal Revision Petition filed by the Petitioner accused Mukhtiar Singh and Sukhwant Singh,
under Section 397 of the Penal Code, 1860 read however, no recovery of contraband was made from
with Section 401 of the Code of Criminal the Respondents. Thereafter, learned Judge, Special
Procedure, 1973 and Section 47 of the Prevention Court, Amritsar took cognizance and Chargesheet
of Money Laundering Act, 2002 (PMLA) seeking was filed against all accused, including Respondent
setting aside of the order passed by the Special No. 1 and 2. The Respondent No. 1- Gagandeep
Judge, Patiala House Courts categorically held that Singh was charged, under Section 420 of the IPC
the offence of money laundering is threefold for cheating and under Section 468 of the IPC for
including the stages of placement, whereby firstly forging certain other documents with the intention
the criminals place the proceeds of crime to the of using them to cheat and under Section 471 of
general and genuine financial system, layering, the IPC for fraudulently using a genuine document
whereby such proceeds of crime are spread into that he knew to be forged, and Respondent No. 2-
various transactions within the financial system and Paramdeep Singh was charged under Section 25
finally, integration, where the criminals avail the of the NDPS Act for knowingly using a car as
benefits of crime as untainted money. conveyance for permitting it for the commission of
the offence.
Facts of the Case
The Petitioner further contended that the
The Petitioner initiated the criminal proceedings Respondents were found to be involved in an
against the respondents under PMLA on the basis international syndicate of laundering the money
of independent intelligence gathered by them generated out of drug trafficking in Australia and
regarding involvement of Respondents in money other countries. The “Operation Zanella” of the
laundering activities. An FIR bearing No. 29/2011 Australian Federal Police revealed that the proceeds
under Section 21/25/29/61 of the Narcotic Drugs of the crime were laundered by the Respondents.
and Psychotropic Substance Act, 1985 (hereinafter Subsequently, on 22nd November, 2014, a Criminal
“NDPS Act”) and 420/468/471/120B of the Indian Complaint under Section 45 of the PMLA was filed
Penal Code, 1860 (hereinafter “IPC”) was by the ED against all the Respondents for
registered by the State Special Operation Cell, commission of offence under Section 3 of the
Amritsar against the Respondents alongwith other PMLA, on the basis of investigation carried out for
accused, and a Mutual Assistance Request was also the alleged money laundering activities of the
issued by the Australian Competent Authority Respondents.
regarding the involvement of the Respondents in

Ahmedabad Chartered Accountants Journal May, 2022 119

Allied Laws Corner Judge while passing the impugned Order has not
appreciated that the documents relied upon, and the
The Respondents were acquitted of charges framed supplementary complaints filed also corroborated
against them by the learned Additional Sessions that Respondents No. 1 to 3 have committed the
Judge/Exclusive Court at Amritsar in FIR No. 29/ offence of money laundering under Section 3 of
2011 holding that the prosecution failed to lead any PMLA by laundering the ill-gotten funds, dealing
cogent or trustworthy evidence to prove that the with proceeds of crime generated through drugs and
Respondents entered into criminal conspiracy.After acquiring and concealing untainted property.
further investigation, a supplementary Complaint
was filed against the Respondents before the learned The Petitioner also submitted that the complaint as
Special Judge, Patiala House Courts, New Delhi, well as the documents filed alongwith the
based on the documents received from Australian complaints have been scrutinized by the Petitioner
Federal Police. A second supplementary complaint and they establish active involvement of the
was also filed on the basis of additional Respondents in transferring proceeds of crime on
documentary evidence received from the behalf of the Organised Crime Group, generated
Commonwealth Bank, Australia before the learned from drug trafficking. Further, the searches and
Special Judge, Patiala House, New Delhi. investigation carried out revealed that there were
certain properties worth Crores of Rupees and large
Considering all the material before it, the learned amount of currency in possession of the
Additional Sessions Judge, Patiala House Courts, Respondents, for which they were not able to
New Delhi passed the Order by which all the disclose the source of income.
Respondents No. 1 to 3 were discharged. It was
observed by the learned Additional Sessions Judge On the other hand, the counsel for Respondents
that as per the material available it cannot be opposed the instant Criminal Revision Petition and
established that the accused persons were involved submitted that there is no apparent error in the
in any offence involving money laundering and the finding of the learned Additional Sessions Judge
complaints have been made on the basis of suspicion while discharging the Respondents and the
of the Petitioner. It was further noted that any Respondents have not committed any offence as
suspicion which is not well founded cannot be alleged by the Petitioner. The Respondents
considered a prima facie proof. A criminal revision contended that the primary and principal condition
petition was filed by the petitioner under Section for initiation of investigation under the PMLA and
397 of the Penal Code, 1860 read with Section 401 to make out a case under Section 3 of the Act, is
of the Code of Criminal Procedure, 1973 and the commission of a scheduled offence from which
Section 47 of the Prevention of Money Laundering the proceeds of crime are culminating and that there
Act, 2002 seeking setting aside of the order passed is an umbilical cord connection between the
by the Special Judge, Patiala House Courts scheduled offence and the offence of money
whereby all the accused persons were discharged laundering. The Respondents further submitted that
on the ground that no prima facie case was made submitted that in the event of the proceedings under
out against them. the investigation/trial into the scheduled/predicate
offence result in recording of a finding that neither
Arguments of the Parties is the person concerned involved in any criminal
activity relating thereto, nor have any proceeds of
The counsel for Petitioner submitted that crime been derived or obtained therefrom, no
Respondents No. 1 to 3 were active members of proceedings/trial under PMLA can continue and
money laundering syndicate and were involved in the learned Special Judge has rightly discharged
transferring the proceeds of crime generated from the Respondents in view of the fact that the only
drug trafficking in Australia and the learned scheduled offence which was alleged against the
Additional Sessions Judge erred in concluding that
prima facie case was not made out against the
Respondents. The Petitioner contended that the

120 Ahmedabad Chartered Accountants Journal May, 2022

Allied Laws Corner and propriety of the order of the Subordinate Court
and stated that in its revisional jurisdiction, the Court
Respondents was under NDPS Act and even with shall not proceed into the enquiry of the records,
respect to the alleged schedule offences, the Special documents and other evidence in consideration
Court (NDPS), Amritsar, held that there was no before the Trial Court, but shall constrain itself to
involvement of the Respondents in the same. the findings of the lower Court in the impugned
order and to the question whether there is any patent
Findings of the Court illegality, error apparent on record or incorrectness.

The High Court firstly observed that the offence of The Bench remarked that the extent of exercise of
money laundering under the PMLA is layered and discretion by the Court was limited to the prima
multi-fold and includes the stages preceding and facie satisfaction of the Court and if the Court does
succeeding the offence of laundering money as not find reasonable grounds of suspicion against
well. Further, the Bench stated that the offence of the accused, it may discharge him of the offence
money laundering, is not to be appreciated in alleged against him. In this case, the Additional
isolation but is to be read with complementary Sessions Judge did not find any evidence brought
provisions. The bare perusal of the provisions of on record to show that the accused persons were
PMLA such as Section 2 to 4 of the Act establishes involved in the commission of the offences alleged
the pre-requisite relation between the commission against them and therefore this Court found no
of scheduled offences under the PMLA and the illegality or impropriety in the lower court’s decision,
subsequent offence of money laundering. The hence the petition was dismissed.
language of Section 3 clearly implies that the money
involved in the offence of money laundering is Conclusion
necessarily the proceeds of crime, arising out of a
criminal activity in relation to the scheduled Considering the arguments advanced by the parties,
offences enlisted in the Schedule of the Act. Hence, contentions made in the pleadings and on perusal
the essential ingredients for the offence of Section of the impugned Order, this Court does not find
3 of the PMLA become, first, the proceeds of crime, any cogent reason to interfere with the Order of the
second, proceeds of crime arising out of the offences learned Additional Sessions Judge, Patiala House
specified in the Schedule of the Act and third, the Courts, New Delhi in the revisional jurisdiction.
factum of knowledge while commission of the The Court interestingly observed that the offence
offence of money laundering. of money laundering under PMLA is layered, multi-
fold and includes stages preceding and succeeding
The Hon’ble High Court expressed that, since no the offence of laundering money.
scheduled offence was made out against the
Respondents, the Court found that an investigation ❉❉❉
and proceedings into the PMLA could not have
been established against the respondents at the first
instance. Further, Section 397 CrPC unequivocally
states that the High Court or Sessions Courts which
is exercising its revisional jurisdiction shall apprise
itself solely of the question of correctness, legality

Ahmedabad Chartered Accountants Journal May, 2022 121

Capital CA. Karan Vora
Markets [email protected]

Summary: · RBI’s step was long overdue and was expected,
however the sudden decision led to fall of
RBI, in an unscheduled meeting, has increased around 2.3% in the market. Number of banks
bank rates for the first time in last three years to like HDFC, Canara, BoM have increased their
address inflation concerns. While Indian Economy lending rates post hike by RBI.
is doing well with record GST collections in April,
Geopolitical concerns and inflationun certainties · As we have been covering from quite some time,
remain. Stock Markets are in a bearish grip due to globally Inflation is plaguing most of the
tightening of monetary policies by central banks countries due to factors like liberal central bank
across the world. policies post covid, abundant liquidity and
geopolitical factors like Ukraine war. Many
Key M&A Deal include massive announcement of central banks have now started to tighten
amalgamation of HDFC and HDFC Bank and PE monetary policies Eg. US, UK.
deal of healthtech firm Biofourm is raising $300
Mn growth capital from General Atlantic to become · India’s GST collection again hit all-time high of
a unicorn. Rs. 1.68 Lakh Crore in April on account of
increased compliance, better tax administration
Economic Update: and improved economic activity. Earlier in
March also the GST collection of Rs. 1.42 Lakh
· RBI took an unscheduled monetary policy Crore was a record. GST collections have now
decision on 4th May to increase interest rates for remained over Rs. 1 lakh Crore for consecutive
the first time in last three years; Repo rate is 10 months.
increased by 40 bps to 4.40% and CRR is
increased by 50 bps to 4.50%. Economic impact of Russia-Ukraine War:

· Urgency in increasing the rates in an · Russia-Ukraine war is still ongoing with large
unscheduled meeting is clearly to address number of casualties and has caused largest
inflation which is becoming broad based. Rate refugee crisis in Europe since World War II with
hike is one of the primary tool of RBI to control more than 6.1 million Ukrainians fleeing the
inflation as rate hike reduces the availability of country and a quarter of the population displaced.
credit. CRR is hiked to reduce excess liquidity
of approx. Rs. 87000 Crore from the system. · While Russia continues to assault and hold
territory in southern and eastern Ukraine in the
· Inflation accelerated to 7.79% in April 2022, areas around Kharkiv, Donetsk and Luhansk,
which is highest in eight years, above the RBI the western military powers believe that the
set limits of 4% ± 2% (Upper limit of 6%). Russian military advances is faltering.

· RBI governor said that RBI will engage in · Against expectations, the Russia has not
gradual withdrawal of liquidity in multi-year time defaulted on foreign debt and Ruble is close to
frame in non-disruptive manner beginning this prewar levels, however the western sanctions
year. should have long term impact on the economy.

122 Ahmedabad Chartered Accountants Journal May, 2022

Capital Markets companies like HDFC. Global markets have also
remained weak as investors expect tightening of
· This war has only complicated the post Covid policies by central banks to address inflation.
recoveries of number of low and mid income
economies due to global demand and supply Foreign Institutional Investors (FIIs) divested
chain shocks and inflation due to prices of Rs.40,652 Crore (Net Sales) while Domestic
foodand oil & gas. Institutional Investors (DIIs) invested Rs. 29,870
Crore (Net purchases) from the Indian equity
Sri Lanka Economic crisis: markets in the month of April 2022.

· As covered last month, Sri Lanka has been Equity Markets Apr-22 Mar-22 Change%
going through Economic crisis and protests are Sensex 57,061 58,569 -2.57%
still ongoing. Initially peaceful protestors have Nifty 50 17,103 17,465 -2.07%
asked for number of reforms. BSE 500 23,552 23,695 -0.61%
BSE Bankex 41,534 41,754 -0.53%
· As on date the PM Mahinda Rajapaksa has been BSE Consumer
forced to resign from his position on 9 May and Durables 42,667 42,272 0.93%
seasoned politician and Ex-PMRanil BSE Healthcare 24,341 24,304 0.15%
Wickremesinghe is appointed as the new PM BSE FMCG 14,082 13,335 5.60%
on 12 May along with the new cabinet.

Trends in Secondary Markets:

BSE Sensex started bullish in the month of April
and crossed 60,000 points on 5th April, however it
soon corrected and closed at 57,601 in April end
2022, down by 2.57% in the month. Nifty 50 closed
at 17,103 that is 2.07% correction in the month of
April. The correction was on account of inflation
concerns, climbing U.S. bond market yields,
strengthening dollar and weaker than expected Q4
results of IT companies like Infosys and blue chip

Ahmedabad Chartered Accountants Journal May, 2022 123

Capital Markets

· BSE Indices of power, utility, FMCG and Particulars Feb-22 Mar-22
Energy showed gains in April while IT, Tech
and telecom were down. I. Equity Issue 9,671 4,461
175
· While IT has corrected in month of April due to a. IPOs (i+ii) 6,831 0
over valuations, IT sector has shown consistent 175
growth. Top three IT service providers, TCS, i. Main Board 6,749 0
Infosys and HCL have added almost 2 lakh net
recruits in FY2022 showing robust growth in ii. SME Platform 82 878.9
revenue. 2,079
b. FPOs 0 1,329
· Infosys has recorded highest annual growth in 77,732
revenue in a decade, it’s MD commented that c. Equity Rights Issue 112.64
Infosys has robust deal pipeline to have 13 to 178
15% growth in 2023, unlikely to be impacted d. QIP/IPP 1,952 77,554
by prevailing geopolitical issues. Mindtree’s Q4
profit surged by 50% year on year. e. PreferentialAllotment 775

· Metal sector has also been bullish recently. Tata II.Debt Issue 49,999
steel MD commented that the steel prices will
remain higher in next decade compared to last a. Debt Public Issue 695
decade as China decreases its exports and the
demand improves around the globe. China has b. Private Placement of Debt 49,304
cut down its steel exports to meet its emission
goals. Total Funds Mobilised (I+II) 59,670 82,193

· Reliance Industries has reported 22.5% rise in Mergers and Acquisitions (M&A)and Private
Q4 profit on account of high oil refining margins Equity (PE)key deals:
due to Russia-Ukraine war, steady growth in
telecom and growth in retail business. M&A: HDFC to merge with HDFC Bank:

Primary market Update: Transaction:

There were three main board IPOs of Uma · In one of the largest deal of Indian financial
Exports Limited, Veranda Learning Solutions sector (provided that it is approved by RBI)
Limited and Hariom Pipe Industries Limited in Board of Directors of HDFC Limited (HDFC)
April 2022 as against none in March 2022. There and HDFC Bank Limited (HDFC Bank)
were three SME IPOs of Dhyaani Tile and announced a scheme of amalgamation of: (i)
Marblez Ltd., Sunrise Efficient Marketing Limited HDFC Investments Limited and HDFC
and Eighty Jewellers Limited as against four SME Holdings Limited, with and into HDFC Limited;
IPOs in March 2022. and (ii) HDFC Limited with and into HDFC
Bank.

· Shareholders of HDFC Limited will receive 42
shares of HDFC Bank (each of face value of
Re.1), for 25 shares held in HDFC Limited (each
of face value of Rs.2), and the equity share held
by HDFC Limited in HDFC Bank will be
extinguished as per the Scheme.

· As a result of this scheme HDFC Bank will be
100% owned by public shareholders and existing
shareholders of HDFC Limited will own 41%
of HDFC Bank.

124 Ahmedabad Chartered Accountants Journal May, 2022

Capital Markets · HDFC will get access to cheaper capital of
HDFC bank, made up of large current account
HDFC Bank Limited: saving account(CASA) balance.

· Headquartered in Mumbai, India, HDFC Bank · Since last few years, especially after IL&FS
Limited is a banking and financial services crisis, RBI has introduced stringent norms for
company. It is India’s largest private sector bank NBFCs to make them work like banks, like
by assets. regulation for increased reserves and liquidity
requirements. This made operations for NBFCs
· HDFC Bank has more than 68 million customers, like HDFC more challenging and made sense
6,342 branches and a full suite of credit, liability for a merger with HDFC Bank. In fact this trend
and distribution offerings with deep of conversion of large NBFCs to Bank should
relationships, insights and understanding of its only continue in future.
customers built over multiple decades.
· Market cheered the strategic rational of deal as
HDFC Limited: both HDFC and HDFC bank shares registered
gains of close to 10% on announcement of deal,
· HDFC Ltd is a housing finance company based however later on the share prices have fallen
in Mumbai, India. HDFC Ltd offers a range of substantially due to concerns about RBI
loan products. It has undertaken several approvals to merger and general correction in
consultancy assignments in housing finance in market.
various countries across Asia, Africa and East
Europe. PE: Biofourmis raises $300 Mn from General
Atlantic to become a unicorn:
· HDFC has a distribution network of 651
interconnected offices and 3 representative Transaction:
offices in Dubai, London and Singapore.
· Biofourmis, a healthtech startup announced that
Rationale: it has become a unicorn with $300 Million Series
D investment, at a valuation of $1.3 Billion, led
· The combined asset book of HDFC and HDFC by leading global private equity firm General
bank will make, combined entity second largest Atlantic.
bank after SBI, with the asset book almost
double the size of third largest bank, ICICI. · CVS Health (NYSE: CVS) and existing
investors also participated in the round.
· Combined entity will bring complementary
strengths of both entities with product leadership Biofourmis:
of HDFC and distribution and customer
leadership of HDFC bank to cross sale a · Biofourmisprovides advanced technology and
complete suite of financial products. clinical support for Care@Home and digital
therapies. It personalizes care and predicts
· Sources of funds of HDFC were drying up as clinical worsening before it happens.
number of Indian lenders had reached ceiling
on how much they could lend to HDFC. Post-
merger the combined entity will be able to
borrow more due to support of HDFC bank.

Ahmedabad Chartered Accountants Journal May, 2022 125

Capital Markets

· The platform, powered by machine learning and It believes that traditional RPM solutions are
advanced analytics, enables better healthcare, focused on “monitoring” as opposed to proactive
maximizes the effectiveness of high-value drugs, “management” of patients.
and lowers costs across the entire care
continuum. · General Atlantic said that they see a significant
trend towards virtual at-home care, which has
General Atlantic: become a critical alternative to in-person care
and Biofourmis is differentiated by technology
· General Atlantic, established 1980, is a leading solutions underpinned by its deep clinical
global growth equity firm with over four decades research and personalized treatments.
of experience in providing capital and strategic
support to over 445 growth companies · Kuldeep Singh Rajput, Founder &CEO of
throughout its history. Biofourmis said that “We are excited to partner
with General Atlantic, which shares our vision
· Fund has over $84 billion in assets under for the future of virtual care and the urgency to
management and has more than 215 investment bring the Biofourmis solution to customers and
professionals across the globe. patients across the globe.”

Rationale: · Earlier Biofourmishad raised $100 million Series
C funding round led by SoftBank Vision Fund
· With this fund raise, Biofourmis plans to scale in September 2020.
up its virtual care offerings which includes
delivering personalized and predictive in-home · To date, Biofourmis has raised a total of $445
care to acutely ill patients and expanding its million in funding. Existing investors include
recently announced virtual specialty care SoftBank Vision Fund 2, Openspace Ventures,
services, Biofourmis Care, to those patients with Mass Mutual Ventures, Sequoia Capital and
complex chronic conditions. EDBI.

· In parallel, Biofourmis plans to fund clinical Acknowledgements: RBI Bulletin
trials to advance the development of digital
therapies that work in conjunction with high- ( w w w. b u l l e t i n . r b i . o r g . i n ) , SEBI
value drugs to improve efficacy.
(www.sebi.gov.in), NSE (www.nseindia.com),
· It also plans on forming strategic partnerships
and accelerate the growth of its virtual care BSE (www.bseindia.com)
platform, Care@Home, which enables providers
and payers to remotely manage patients (RPM). ❉❉❉

126 Ahmedabad Chartered Accountants Journal May, 2022

From CA. Pamil H. Shah
Published [email protected]
Accounts

Revenue from Contracts with Customer on customary business practices which is derived
Summary of Significant Accounting Policies on the basis of crude price volatility and various
market demand – supply situations. Consideration
Reliance Industries Limited are determined based on its most likely amount.
Generally, sales of petroleum products contain
Revenue Recognition provisional pricing features where revenue is
initially recognised based on provisional price.
Revenue from contracts with customers is
recognised when control of the goods or services Difference between final settlement price and
are transferred to the customer at an amount that provisional price is recognised subsequently. The
reflects the consideration entitled in exchange for Company does not adjust short-term advances
those goods or services. The Company is generally received from the customer for the effects of
the principal as it typically controls the goods or significant financing component if it is expected at
services before transferring them to the customer. the contract inception that the promised good or
service will be transferred to the customer within a
Generally, control is transferred upon shipment of period of one year.
goods to the customer or when the goods is made
available to the customer, provided transfer of title Contract Balances
to the customer occurs and the Company has not
retained any significant risks of ownership or future Trade Receivables
obligations with respect to the goods shipped.
A receivable represents the Company’s right to an
Revenue from rendering of services is recognised amount of consideration that is unconditional.
over time by measuring the progress towards
complete satisfaction of performance obligations at Contract Liabilities
the reporting period.
A contract liability is the obligation to transfer goods
Revenue is measured at the amount of consideration or services to a customer for which the Company
which the Company expects to be entitled to in has received consideration (or an amount of
exchange for transferring distinct goods or services consideration is due) from the customer. If a
to a customer as specified in the contract, excluding customer pays consideration before the Company
amounts collected on behalf of third parties (for transfers goods or services to the customer, a
example taxes and duties collected on behalf of the contract liability is recognised when the payment
government). Consideration is generally due upon is made or the payment is due (whichever is earlier).
satisfaction of performance obligations and a
receivable is recognised when it becomes Contract liabilities are recognised as revenue when
unconditional. Generally, the credit period varies the Company performs under the contract.
between 0-60 days from the shipment or delivery
of goods or services as the case may be. The Interest Income
Company provides volume rebates to certain
customers once the quantity of products purchased Interest Income from a Financial Assets is
during the period exceeds a threshold specified and recognised using effective interest rate method.
also accrues discounts to certain customers based
Dividend Income

Dividend Income is recognised when the
Company’s right to receive the amount has been
established.

Ahmedabad Chartered Accountants Journal May, 2022 127

From Published Accounts

Hindustan Zinc Limited A contract liability is the obligation to transfer goods
or services to a customer for which the Company
Revenue recognition has received consideration (or an amount of
consideration is due) from the customer. If a
Sale of goods customer pays consideration before the Company
transfers goods or services to the customer, a
Revenue from contracts with customers is contract liability is recognised when the payment
recognised when control of the goods or services is is made or the payment is due (whichever is earlier).
transferred to the customer which usually is on Contract liabilities are recognised as revenue when
delivery of the goods to the carriers at an amount the Company performs under the contract.
that reflects the consideration to which the Company The Company does not expect to have any contracts
expects to be entitled in exchange for those goods or where the period between the transfer of the
services. Revenue is recognised net of discounts, promised goods or services to the customer and
volume rebates, outgoing sales taxes/ goods and payment by the customer exceeds one year. As a
service tax and other indirect taxes. Revenues from consequence, the Company does not adjust any of
sale of by-products are included in revenue. the transaction prices for the time value of money.
Sale of wind energy
Certain of the Company’s sales contracts provide Revenue from sale of wind power is recognised
for provisional pricing based on the price on the when delivered and measured based on rates as per
London Metal Exchange (LME), as specified in bilateral contractual agreements with buyers and at
the contract. Revenue in respect of such contracts rate arrived at based on the principles laid down
is recognised when control passes to the customer under the relevant Tariff Regulations as notified by
and is measured at the amount the entity expects to the regulatory bodies, as applicable.
be entitled – being the estimate of the price expected Dividends
to be received at the end of the measurement period. Dividend income is recognized in the statement of
Post transfer of control of goods, provisional pricing profit and loss only when the right to receive
features are accounted in accordance with Ind AS payment is established, provided it is probable that
109 ‘Financial Instruments’rather than Ind AS 115 the economic benefits associated with the dividend
and therefore the Ind AS 115 rules on variable will flow to the Company, and the amount of the
consideration do not apply. These ‘provisional dividend can be measured reliably.
pricing’ adjustments i.e. the consideration received Interest income
post transfer of control are included in total revenue Interest income from a financial asset is recognized
from operations on the face of the Statement of when it is probable that the economic benefits will
Profit and loss. Final settlement of the price is based flow to the Company and the amount of income
on the applicable price for a specified future period. can be measured reliably. Interest income is accrued
The Company’s provisionally priced sales are on a time basis, with reference to the principal
marked to market using the relevant forward prices outstanding and at the effective interest rate
for the future period specified in the contract and is applicable, which is the rate that exactly discounts
adjusted in revenue. estimated future cash receipts through the expected
life of the financial asset to that asset’s net carrying
Revenue from freight and insurance services is amount on initial recognition.
recognised over the period during which services Others Revenue
are rendered. Relating to insurance claims and interest on delayed
or overdue payments from trade receivable is
A contract asset is the right to consideration in recognized when no significant uncertainty as to
exchange for goods or services transferred to the measurability or collection exists.
customer. If the Company performs by transferring
goods or services to a customer before the customer ❉❉❉
pays consideration or before payment is due, a
contract asset is recognised for the earned
consideration when that right is conditional on
Company’s future performance.

128 Ahmedabad Chartered Accountants Journal May, 2022

From the
Government

CA. Ashwin H. Shah CA. Kunal A. Shah
[email protected] [email protected]

Goods and Service Tax · The taxpayers have also been provided with
the facility of turnover updation in case
1. Reporting 6% rate in GSTR-1 taxpayers feel that the system calculated
turnover displayed on their dashboard varies
A new tax rate of 6% IGST or 3% CGST+ 3% from the turnover as per their records.
SGST has been introduced on certain goods
vide Notification No. 02/2022 dated 31st · This facility of turnover update shall be
March 2022. Changes are being made on the provided to all the GSTINs registered on a
GST portal to include this rate in GSTR-1. As common PAN. All the changes by any of
a temporary measure, taxpayers who have to the GSTINs in their turnover shall be
report goods at this rate may do so by reporting summed up for computation of Annual
the entries in the 5% heading and then manually Aggregate Turnover for each of the
increasing the system computed tax amount to GSTINs.
6%. This can be done by entering the value in
the ‘Taxable value’ column next to 5% tax-rate · The taxpayer can amend the turnover twice
and then increasing the system computed tax- within the month of May, 2022. Thereafter,
amount to 6% IGST or 3% CGST + 3% SGST the figures will be sent for review of the
in the ‘Amount of Tax’ column under the Jurisdictional Tax Officer who can amend
relevant Table, namely B2B, B2C or Export, the values furnished by the taxpayer
as applicable. This will ensure that correct tax wherever required.
amount is reported in GSTR-1. Meanwhile, this
rate will be made available on the GST portal (GST News and Updates, dated 02/05/2022)
shortly.
Income Tax
(GST News and Updates, dated 10/05/2022)
1. Notification regarding Amendment in Form
2. Annual Aggregate Turnover (AATO) 3CF
computation for FY 2021-22
In exercise of the powers conferred by clauses
The functionality of AATO for the FY 2021- (i), (ii), (iii) and (iv) of first proviso to
22 has now been made live on taxpayers’ clause(23C) of section 10, ninth proviso to
dashboards with the following features: clause(23C) of section 10, sub-clauses (i) (ii),
(iii), (iv), (v) and (vi) of clause(ac) of sub-
· The taxpayers can view the exact Annual section (1) of section 12A, sub-section (3) of
Aggregate Turnover (AATO) for the section 12AB, first and fifth proviso to sub-
previous Financial Year (FY). section (1) sub-section (1A) of section 35,
clauses (i), (ii), (iii) and (iv) of first proviso to
· The taxpayers can also view the Aggregate sub-section (5) of section 80G, third proviso to
Turnover of the current FY based on the sub-section (5) of section 80G, clauses (viii)
returns filed till date.

Ahmedabad Chartered Accountants Journal May, 2022 129

and (ix) of sub-section (5) of section 80G, read From the Governments
with section 295 of the Income-tax Act, 1961
(43 of 1961), the Central Board of Direct Taxes 2. CBDT amends Income Tax rule 114 related to
hereby makes the following rules further to Application for allotment of a PAN and inserts
amend the Income-tax Rules, 1962 by new Rule 114BA. Transactions for the purposes
amending forms:- of clause (vii) of sub-section (1) of section
139A and Rule 114BB. Transactions for the
- 3CF purposes of sub-section (6A) of section 139A
and prescribed person for the purposes of clause
- 10A (ab) of Explanation to section 139A vide
Notification No. 53, dated 10/05/2022.
- 10AB
❉❉❉
- 10BD

- 10BE

(For Full Text and new amended forms ,
refer Notification No 51 , dated 09/05/2022)

ADVERTISEMENT RATES OF
AHMEDABAD CHARTERED ACCOUNTANTS JOURNAL

FOR FY 2021-22

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130 Ahmedabad Chartered Accountants Journal May, 2022

IT Corner CA. Rushabh Shah
[email protected]
Understanding ONDC (Open Network for
Digital Commerce) – the next UPI? But what if you could find every retailer on every
e-commerce app, irrespective of who onboarded
The Story them? What if you could fire up Paytm on a lazy
Sunday afternoon and order from a local Kirana
Remember what Dunzo (a grocery delivery app) store in Guntur, even if Paytm had never heard of
did in the early days when they were just starting them?
out?
Sounds like it would be a great thing.
They promised to deliver items from your
neighbourhood stores and they promised to do it in However, this begets a few challenges. For starters,
a timebound manner. And to achieve this objective, why would somebody like eSamudaay want their
they had to on board stores, help them digitize their retailers to be available on Paytm. After all, they
operations, offer them specialized solutions to did all the hard work, onboarding these small stores,
manage and catalogue their inventory and they had helping them with cataloguing and inventory and
to do it at scale. It was an unenviable task. getting them digital-ready. Why would they make
these stores available on a different app like Paytm?
But at the end of it all, they managed to on board
several thousand stores and they’re still building on Well, despite what you may think of Paytm, it offers
this each day. reach. You may not have downloaded the
eSamudaay app, but you probably have Paytm on
Or take for instance eSamudaay — a company that your phone. And if more deliveries flow through
does something very similar. If you downloaded the app, you could figure out ways how to reward
their app, you could find Sujatha General Store — eSamudaay in the process as well. So in effect, this
a small retailer in the coastal city of Udupi. You isn’t the greatest challenge. If anything both Paytm
could browse their catalogue, order a packet of and eSamudaay have strong incentives to make this
Nandini milk and you could get it delivered right happen.
to your doorstep.
The real challenge however is interoperability.
And if you’re wondering where this discussion is
heading to, well, here’s the thing. There are several How do you get the Paytm app and the eSamudaay
companies that are trying to take your mom and app to talk to each other. And how do you do it at
pop shops online. Some entities are focused on scale?
digitization. Others like Dunzo do everything —
from discovery to delivery. Unfortunately, they all Right now, there are many companies like
operate in silos. You can’t find Sujatha General eSamudaay, that are helping your local neighbour
Store on most e-commerce applications. And you stores go online, including retailers that are trying
probably didn’t even know eSamudaay existed until to go online on their own accord — using enterprise
now. solutions available on the market. And consumers
have several e-commerce apps at their disposal,
alongside Paytm. So you can’t have each individual

Ahmedabad Chartered Accountants Journal May, 2022 131

IT Corner will relay all the options available to him. This is
what he will see on Paytm.
entity trying to integrate with every other entity out
there. It would be a logistical nightmare. 1. Dunzo at Rs. 50

Instead, what you need is something in between 2. Goodbox at Rs. 70
— an open network pioneered and promoted by a
neutral entity that will help the likes of Paytm talk Rushabh chooses to go with Dunzo and he finally
to the likes of eSamudaay. They have to work on makes the payment.
the solution, set the ground rules, evangelize the
offering and push for adoption. I’ve embellished the example and simplified it for
greater clarity, but hopefully, the use case is
And that’s precisely what the Open Network for apparent by now. This is a game-changer and as
Digital Commerce (ONDC) is expected to do. The we speak, about 150 handpicked retailers on apps
commerce ministry is spearheading the initiative and like eSamudaay have already connected to the
the entity i.e. ONDC is structured as a non-profit ONDC network and are showcasing their wares to
organization with about 150 crores in funding. consumers on Paytm. It’s a pilot — a soft launch
currently happening in Delhi, Bengaluru, Bhopal,
And look we’re not just talking about retail Coimbatore and Shillong. And the products will
stores here. You could even onboard hotels, be delivered through Goodbox — the only logistics
restaurants, and last-mile delivery partners. If provider that has been onboarded so far.
everything goes according to plan, consumers
will have more choices and sellers will have a In all honestly, this could revolutionize digital
larger audience. Let us illustrate this commerce in India.
with another example quoted by ONDC in a
masterclass they conducted a few months ago. However, like all things, there are a
few unanswered questions here. For starters, who
On a Sunday afternoon, Rushabh logs into Paytm takes the liability when things go wrong? When
and searches for options to buy Atta. The ONDC you are interacting with just one entity, you know
network will kick into action and relay this search who to blame. But when you have so many moving
item to seller apps like eSamudaay. He then receives parts involved, it gets a bit challenging. There’s also
two options on the Paytm app. the question of discounts. Can small retailers really
compete with massive retailers who can offer deep
1. Gupta Kirana Store — Rs. 50 (without discounts?
delivery)
Well, we don’t know. But for now, everybody is
2. Nearshop (fulfilled by Modern Kirana store) excited about ONDC and the infinite potential it
— Rs. 150 (with delivery) holds. So we will just have to wait and see how the
pilot takes off.
Rushabh chooses to order the Atta through “Gupta
Kirana store”. However, since the store doesn’t ❉❉❉
facilitate deliveries, he will have to choose a
delivery option. Once again, he will search for
something near his location and the ONDC network

132 Ahmedabad Chartered Accountants Journal May, 2022

Association
News

CA. Jay B. Parekh CA. Mayur H. Modha
Hon. Secretary Hon. Secretary

71st Annual General Meeting

1 At the 71st Annual General Meeting of the members of the Chartered Accountants Association
Ahmedabad held on Saturday, 7th May 2022 at Shantinath Hall, Ahmedabad, the following Office
Bearers and Executive Committee Members have been declared elected for the year 2022-23.

Office Bearers President 2 CA. Shivang Chokshi Vice - President
1 CA. Sarju Mehta Hon. Secretary 4 CA. Mayur Modha Hon. Secretary
3 CA. Jay Parekh

Executive Committee Members

1 CA Jignesh Shah 2 CA Kshitij Patel 3 CA Vartik Choksi
4 CA Nirav Chokshi 5 CA Atul Shah 6 CA Uday Shah
7 CA Riken Patel 8 CA Jinand Shah 9 CA Rinkesh Shah

The following prizes and Medals were declared:

Best Article in Ahmedabad Chartered Accountants Journal

Name of the Trophy Name of the Recipient Name of the Article published in
the Journal
Shri U. R. Shah Memorial CA. Jainam P. Shah &
Funds Trophy for Best Article on CA Brij Shah “Cryptocurrency – Trending Global
Corporate and Other Laws. Currency: Accounting & Taxation”

Shri Gatorbhai Patel Shiva Pharma CA Sunil Talati “Taxation of Partnership Firm under
Foundation Trophy for Best Article section 9B and 45(4) of the Income
on Direct Taxes (Taxation) Tax Act, 1961”

Champaben Chandulal Shah CA Nitesh Jain “GST on Ice Cream – a cold affair”
Memorial Trophy

Best Study Circle Meeting Leader

Sr. Name of the Trophy Name of the Recipient Name of the Study Circle Meeting

1 Shri Dwarkadas B. Shah CA Palak Pavagadhi “Interactive Session on Provisions
of TDS, TCS and E-Filing portal 2.0“
Memorial Trophy for the Best Lead

Study Circle Meeting

in 2021-22

Ahmedabad Chartered Accountants Journal May, 2022 133

Association News

List of students, whose names have been declared for Medals / Prizes for the exams held in November
2020 and January 2021

Sr. Medal Name Award for Final Exam Attempt Name of the Recipent

1 Avinash J. Buddhdev CA Final Exams MAY 2021 Divesh Dilip Harpalani
DEC 2021 Saloni Manoj Golechha
Memorial CA Student Topper

Award (Cash Prize CA Final Exams

Rs. 11,000) Topper

2 Kantilal V. Patel Best Student in MAY 2021 Divesh Dilip Harpalani
Memorial Medal
(MAY 2021) A'bad

3 Mahendra M. Patel Best Student in DEC 2021 Saloni Manoj Golechha

Memorial Medal Ahmedabad

4 H. V. Vasa Best Student in MAY 2021 Divesh Dilip Harpalani
Memorial Medal Ahmedabad DEC 2021 Saloni Manoj Golechha

5 A. M. Thaker Best Lady Student MAY 2021 Astha Mukesh Maloo
Memorial Medal Saloni Manoj Golechha
in Ahmedabad DEC 2021

6 Chandulal M. Shah Highest marks in MAY 2021 Divesh Dilip Harpalani
Memorial Medal Saloni Manoj Golechha
Paper 1 – DEC 2021

Financial Reporting

7 VNS & BNS Social Highest marks in MAY 2021 Yesh Shreyas Chokshi
Welfare Medal Paper 2 – Strategic DEC 2021 Saloni Manoj Golechha
Financial
Management

8 Dhirubhai B. Shah Highest marks in MAY 2021 Amit Anilkumar Vidhani
Memorial Medal Paper 3 – Advanced DEC 2021
Auditing and Kashish Hemanshubhai
Professional Ethics Bavishi

9 Mansukhbhai J. Highest marks in MAY 2021 Yesh Shreyas Chokshi
Shah Medal Paper 4 – Corporate Saloni Manoj Golechha
and Economic Laws DEC 2021

10 Madhuben Prafulbhai Highest marks in MAY 2021 Divesh Dilip Harpalani
DEC 2021
Trivedi Memorial Paper 5 - Strategic Kashish Hemanshubhai
Bavishi
Medal Cost Management

and Performance

Evaluation

11 VNS & BNS Social Highest marks in MAY 2021 Hill Mahesh Shah
Welfare Medal Paper 6 – DEC 2021 Saloni Manoj Golechha
Elective Paper

12 A. M. Gang Highest marks in MAY 2021 Divesh Dilip Harpalani
Memorial Medal Paper 7 – Direct DEC 2021 Premal Brijesh Bhavsar
Taxes Laws &
International
Taxation

13 C. F. Patel Highest marks in MAY 2021 Divesh Dilip Harpalani
Memorial Medal Paper 7 – Direct DEC 2021 Premal Brijesh Bhavsar
Taxes Laws &
International
Taxation

134 Ahmedabad Chartered Accountants Journal May, 2022

Association News

Sr. Medal Name Award for Final Exam Attempt Name of the Recipent

14 Jagrutiben K. Shah Highest marks in MAY 2021 Hareshkumar Nileshkumar
Memorial Medal Paper 8 – Indirect DEC 2021 Patel
Taxes Laws Saloni Manoj Golechha

15 Sandesh Mundra Best Student for the MAY 2021 Saloni Manoj Golechha
Memorial Medal year 2020-21 -
Paper 8 – Indirect
Taxes Laws

16 Shri K. T. Thakore Best Student in MAY 2021 Saksham Jain
Memorial Medal Ahmedabad

17 Rameshchandra S. Best Student in DEC 2021 Simar Kaur Huda

Shah Memorial Medal Ahmedabad MAY 2021 Saksham Jain
DEC 2021 Simar Kaur Huda
18 B. S. Soni Best Student in

Memorial Medal Ahmedabad

19 Hasmukhbhai J. Patel Highest marks in MAY 2021 Nisha Kishor Mandavi
Simar Kaur Huda
Memorial Medal Paper 1 – Accounting DEC 2021

20 Shri V. R. Shah Best Student in DEC 2021 Riya Kunjankumar Shah
Memorial Medal Ahmedabad for
Paper 2 – Corporate
& Other Laws

21 Lalita Khanchand Highest marks in MAY 2021 Deep Hitendra Parikh
Tekwani Memorial Paper 3 – Cost and DEC 2021 Simar Kaur Huda
Medal Management
Accounting

22 VNS & BNS Social Highest marks in MAY 2021 Kirtikumar Vipulbhai
Welfare Medal Paper 4 – Taxation DEC 2021 Axay Niravbhai Shah

23 Rameshchandra S. Highest marks in MAY 2021 Parth Deepak Bansal
Kush Dhananjay Patel
Shah Memorial Medal Paper 5 – Advanced

Accounting DEC 2021

24 Nikhil M. Patel Highest marks in MAY 2021 Saksham Jain
Memorial Medal Paper 6 – Auditing DEC 2021 Simar Kaur Huda
and Assurance

25 Mansukhbhai J. Shah Highest marks in MAY 2021 Pervez Alam Jahagir
Medal Paper 7 – Enterprise DEC 2021 Kevin Mahendra Kothari
Information Systems
26 Office Bearers & Strategic MAY 2021 Prarthana Ronak Patwari
2018-19 (CAMS) Management DEC 2021 Riya Kunjankumar Shah
Medal Highest marks in
Paper 8 – Financial
Management &
Economics For
Finance

3. M/s V M. Vaghashiya & Co., Chartered Accountants, are appointed as Auditors of the Association
for the financial year 2022-2023.

4. The 1st Executive Committee Meeting:At the 1st Executive Committee Meeting held on 7th May 2022,
three senior members of the Association namely (a) CA. Chandrakant H. Pamnani, (b) CA. Yamal Vyas
and (c) CA. Devang Doctor have been co-opted as the members of the Executive Committee for the
year 2022-23. The Immediate Past President CA. Monish Shah shall also be a part of the Executive
Committee for the year 2022-2023.

Ahmedabad Chartered Accountants Journal May, 2022 135

Association News

The following Sub-Committees were formed: Legal & Representation (Indirect Taxes Committee)

Journal Committee Chairman CA. Priyam Shah

Chairman CA Rutvij Shah Convener CA Tapas Ruparelia

Convener CA Ashish Sharma EC Representative CA Monish Shah

EC Representative CA Uday Shah Past President CA Ashutosh Nanavaty

Past President CA Jayesh Sharedalal Members CA. Nitesh Jain

Members CA Monish Shah CA Pravin Dhandharia

CA Riken Patel CA Hem Chhajed

CA Ashok Kataria CA Bishan Shah

CA Pratik Kikani CA Punit Prajapati

CA Nirav Shah CA Amish Khandhar

CA Pratik Jain CA Rashmin Vaja

Residential Refresher Course Committee CA Rahul Patel

Chairman CA Chintan Doshi Information Technology Committee

Convener CA Monish Shah Chairman CA Rushabh Shah

EC Representative CA Devang Doctor Convener CA Ashish Sharma

Past President CA Shailesh Shah EC Representative CA Jinand Shah

Members CA Ashok Kataria

CA Priyam Shah Past President CA Ashwinkumar Shah

CA Bharat Vashi Members CA. Rutvij Shah

CA Maulik Desai CA Riken Patel

CA Abhishek Jain CA Abhishek Jain

CA Atul Shah CA Tarak Shah

Brain Trust Cum Workshop Committee CA Prasad Akhani

Chairman CA Prakash Nandola CA Pratik Jain

Convener CA Tarun Shah CA Shaleen Patni

EC Representative CA Riken Patel Publication Committee

Past President CA Kunal Shah Chairman CA Ashok Kataria

Members CA Nirav Choksi Convener CA Mohit Balani

CA Maulik Desai EC Representative CA Chandrakant Pamnani

CA Rutvij Shah Past President CA Chintan Doshi

Care4U Committee Members CA Gaurang Choksi

Chairman CA Monish Shah CA Rajni Shah

Convener CA Riddhi Sheth CA Priyam Shah

EC Representative CA Atul Shah CA Punit Prajapati

Past President CA Jayesh Mor

Members CA Rajni Shah CA Shailesh Shah

CA Rushabh Shah CA Prakash Sheth

CA Samir Shah CA Jayesh Sharedalal

CA Darshan Parikh CA Rutvij Shah

CA Harit Dhariwal CA Atul Shah

CA Rutvij Shah CA Manthan Khokhani

CA Kuntal Merchant Cultural and Entertainment Committee

Legal Representation-Direct Taxes Committee Chairman CA Devang Doctor

Chairman CA Rajni Shah Convener CA Mihir Pujara

Convener CA Ashok Kataria EC Representative CA Atul Shah

EC Representative CA Vartik Choksi Past President CA Ketan Mistry

Past President CA Sunil Talati Members CA. Chandrakant Pamnani

Members CA Samir Shah

136 Ahmedabad Chartered Accountants Journal May, 2022

Association News

Sports Committee Benevolent Fund Committee

Chairman CA Abhishek Jain Chairman CA Ajitkumar Shah

Convener CA Samirkumar Chaudhary Convener CA Prakash Sheth

EC Representative CA Jinand Shah EC Representative CA Jignesh Shah

Past President CA Raju Shah Past President CA Gaurang Choksi

Members CA Chintan Doshi Members CA Shailesh Shah

CA Maulik Desai CA Riken Patel

CA Saurabh Patel CA Ashwinkumar Shah

CA Vishal Jhanwar Corporate Laws Committee

CA Neerav Agarwal Chairman CA Anand Sharma

CA Rushabh Shah Convener CA Kunal Shah

Study Circle (Indirect Tax) Committee EC Representative CA Nirav Choksi

Chairman CA Hem Chhajed Past President CA Kaushik Patel

Co- Chairman CA Pravin Dhandharia Members CA Prakash Sheth

Convener CA Jenil Shah CA Devang Doctor

EC Representative CA Nirav Choksi CA Darshan Shah

Past President CA Niren Nagri CA Riken Patel

Members CA Monish Shah Banking and Finance Committee

CA Tapas Ruparelia Chairman CA Hitesh Pomal

CA Vaibhav Jajoo Convener CA Kandarp Trivedi

CA Priyam Shah EC Representative CA Yamal Vyas

CA Tarang Kothari Past President CA Mukesh Khandwala

CA Devam Sheth Members CA Abhishek Jain

CA Labdhi Shah CA Vikash Agrawal

CA Jay Dalwadi CA Anand Sharma

CA Parshwa Shah CA Hirak Shah

Study Circle (Direct tax ) Committee CA Rajni Shah

Chairman CA Utsav Hirani Members in Industries Committee

Convener CA Jay Sharma Chairman CA Satyapal Sadhwani

EC Representative CA Uday Shah Convener CA Hitesh Bhatia

Past President CA Deepak Shah EC Representative CA Kshitij Patel

Members CA Anuj Sharedalal Past President CA Anand Sharma

CA Uchit Sheth Members CA Ajitkumar Shah

CA Pratik Trivedi CA Hiranand Savlany

CA Rutvik Thakkar CA Ashutosh Nanavaty

CA Parth Gevaria Membership Development Committee

Professional Development Committee Chairman CA Abhinav Malaviya

Chairman CA Karan Vora Convener TO BE DECIDED

Convener CA Ronak Khandwala EC Representative CA Jignesh Shah

EC Representative CA Kshitij Patel Past President CA Ajitkumar Shah

Past President CA Sanjay Shah Members TO BE DECIDED

Members CA Mukesh Khandwala IBC and Allied Laws Committee

CA Darshan Shah Chairman CA Vikashkumar Jain

CA Rajni Shah Convener TO BE DECIDED

CA Bishan Shah EC Representative CA Rinkesh Shah

CA Riken Patel Past President CA Prakash Sheth

CA Jatin Banka Members TO BE DECIDED

Ahmedabad Chartered Accountants Journal May, 2022 137

Association News

5. Glimpses of previous events:

Time Program Speaker Venue

Indirect Tax

30th April 2022 – Saturday Webinar on Assessment CA. Priyam Shah Zoom Platform

5.00 pm and Audit under GST Act

Direct Taxes

26th April 2022 – Tuesday Webinar on Changes in CA Manthan Khokhani Zoom Platform
ITR Form for A.Y.2022-23

24th May 2022– Webinar on Direct Taxes CA Sunil Talati Zoom Platform
Tuesday
3.00 pm Home Refresher Course (Keynote),

from 19th May 2022 CA Jignesh Shah,

to 2nd June 2022 Adv.Vikram Vijayraghvan,

CA V Ramnath,

CA Rajesh Kadakia,

CA Yogesh Thar,

CA T Banushekar,

CA Dhinal Shah,

CA Radhakrishna Rawal,

CA Anup Shah,

CA Ameet Patel,

CA Rajan Vora

6. Forthcoming Programmes:

Time Program Speaker Venue

4TH June 2022, Saturday Study Circle Meeting on Adv. Tej Shah CAA
Effect of the Supreme Court Navrangpura
Judgment and consequential
issue of notices u/s 148A of Office

the Income Tax Act

18th June 2022, Saturday 1st Brain Trust Meeting on CA Kaushik C. Patel ATMA HALL
Amended Schedule III & & CA Krishnakant B.

CARO 2020 by Solanki
CA Kaushik C. Patel &
CA Krishnakant B. Solanki

on 18th June, 2022

23th June 2022, Thursday 51st Residential Refresher Adv. CA Tushar Hemani, Bamboo Saa

Course at Bamboo Saa CA Rutvij Shah, Resort & Spa,

Resort & Spa, Udaipur CA Ameet Patel, Udaipur

from 23rd June 2022 to CA Pramod Jain,

25th June 2022 CA Ajit Shah,

CA Atul Shah,

CA Nitesh Thakkar

138 Ahmedabad Chartered Accountants Journal May, 2022

7. Picture Gallery

7. Picture Gallery
Chartered Accountants Association Ahmedabad has come out with a publication “Specimen Financial
Statements as per Revised Schedule III (Division I - Non IND AS) to the Companies Act” written by
CA. Prakash Sheth.

Chartered Accountants Association Ahmedabad has come out with E-Book on “ A Comprehensive
Guide to Various Subsidies (Gujarat State)” written and compiled by CA. Abhishek Jain.

❉❉❉ 139

Ahmedabad Chartered Accountants Journal May, 2022

ACAJ Crossword Contest - 12

Across Down
4. Change of ___________ is not a valid ground
1. The 51st RRC of the Association is to be held
at ____________ for reopening of assessment proceedings.
5. As per section 194R, TDS @ 10% is to be
2. __________ notice has great significance in
adjudication proceedings as it ensures deducted in case of any __________ or benefit
compliance of principle of natural justice. provided to another person in cash or kind
where the value is above Rs. 20000.
3. _________ amount received by assessee from 6. Finance Act 2022 has provided one more
husband in terms of decree is a capital receipt. opportunity to assessees to disclose additional
income by way of an ____________ return.

6
5

1

24

3

Notes: Prize Courtesy

1. The Crossword puzzle is based on this issue of

ACA Journal.

2. Two lucky winners on the basis of a draw will

be awarded prizes. Winners of ACAJ Crossword Contest – 11
3. The contest is open only for the members of 1. CA. Deepali Shah
2. CA. Rutvik Thakkar
Chartered Accountants Association and no
member is allowed to submit more than one

entry. ACAJ Crossword Contest 10 - Solution

4. Members may submit their reply either Across: Down:

physically at the office of the Association or 1. Speaking 4. Twentyfive
by email at [email protected] on or 2. Environmental 5. Millions
before 20-06-2022. 3. Five 6. Einvoice
5. The decision of Journal Committee shall be final

and binding. ❉❉❉

140 Ahmedabad Chartered Accountants Journal May, 2022