JOURNAL SEPTEMBER 2021

~ The Observations of the Delhi High Court ~ Allied Laws Corner

During the course of investigation, the trial court the CrPC that binds investigating agencies to
ordered the CBI to produce and supply all the produce to the court documents that they don’t reply
documents to the accused including the documents upon nor there was any provision which mandated
collected or statements recorded in the course of the Magistrate to allow inspection of documents
investigation. The Court also ordered and permitted which were not filed in the Court. Lastly, the CBI
the accused persons to conduct the inspection of put forth that the accused does not have an
the documents kept at the CBI Warehouse. CBI ‘indefeasible right’ to claim all the documents from
challenged this order of the Trial Court and argued the investigation.
that the court had no authority to order for
production of documents that have not been filed The Court categorically referred to the earlier
and claimed that it is the duty of the prosecution to judgment of the Hon’ble Apex Court regarding the
prove the allegations against the accused. The CBI deficiencies in the Criminal Trial and held that it is
further argued that if all the documents are disclosed a settled law that a list of those documents, which
to the accused, it raises a possibility of tampering are seized but not relied on by the prosecution, also
the evidence and therefore, the accused cannot be should be furnished to the accused so that they can
allowed inspection of all the documents. seek appropriate orders for their production

The Hon’ble Delhi High Court reserving its order ~ Conclusion ~
on CBI’s plea, observed that the investigating
agencies cannot withhold the documents from the The celebrated INX Media case thus reiterated the
accused that might help the accused to prove their settled position of law and made it equivocally clear
innocence. Justice Mukta Gupta further went on to that the accused has the right to inspect and rely on
state that the trial can remain stayed until the all the documents even the ones which are not relied
investigation is complete. The Court further on by the prosecution, as it constitutes a part of right
observed that to fair trial, under the wider umbrella of right to life
under Article 21 of the Constitution, in order to
”I think the law has just gone berserk. We are ensure that the accused has a fair opportunity to
forgetting what the basic criminal law is and know about the charges and accusations levelled
proceeding in the way we want the law to proceed against him and he gets a reasonable opportunity
which is not permissible,” to defend himself.

The CBI further extended the arguments and went ❉❉❉
on to contend that there was no provision under

Ahmedabad Chartered Accountants Journal September, 2021 269

GujRERA Corner

Functions and duties of Promoter under RERA CA. Manan Doshi
[email protected]
Chapter III of The Real Estate (Regulation and
Development) Act, 2016 consist of Section 11 to f. The promoter shall be responsible for providing
18 which primarily discusses about Functions and and maintaining the essential services on
duties of promoters: reasonable charges till the taking over of
maintenance of project by the management
Section 11: Functions and duties of promoter. body/association of allotees.

a. Quarterly updates of: g. The promoter shall enable the formation of an
association of allotees under the laws applicable.
I. List of number and types of apartments It is worthwhile to note that in absence oflocal
booked laws the promoter has to form association of
allotee within 3 months of the majority of
II. List of garages booked allottees having booked their apartment/plot in
the project.
III. List of approvals taken and approvals
which are pending subsequent to h. The promoter shall execute a registered
commencement certificate conveyance deed of the apartment in favour of
allottee along with undivided proportionate title
IV. Status of project in the common areas to the association of
allottee
b. Advertisement or prospectus issued by the
promoter shall mention prominently the website i. The promoter shall pay ALL outgoings until
address of the authority and include the he transfers physical possession of the project
registration number obtained. to allotees which he has collected from the
allotees for payment of outgoings. Clause (g)
c. The promoter at the time of booking and issue to section 11 is reproduced below for
of allotment letter shall be responsible to make understanding purpose:
available to allottee information namely,
sanctioned plans along with specifications of “pay all outgoings until he transfers the
project, provisions of civic infrastructure and physical possession of the real estate project to
stage wise time schedule of completion of the allottee or the associations of allottees, as
project. the case maybe, which he has collected from
the allottees, for the payment of outgoings
d. The promoter shall be responsible for all (including land cost, groundrent, municipal
obligations, functions and responsibilities as per or other local taxes, charges for water or
agreement for sale till the conveyance of all the electricity, maintenance charges,including
apartment. mortgage loan and interest on mortgages or
other encumbrances and such other liabilities
e. The promoter shall be responsible to obtain payable to competent authorities, banks and
completion certificate or occupancy certificate financial institutions, which are related to the
or lease certificate (in case of leasehold land) project):
from relevant competent authority as per locals
laws.

270 Ahmedabad Chartered Accountants Journal September, 2021

Provided that where any promoter fails to pay GujRERA Corner
all or any of the outgoings collectedby him from
the allottees or any liability, mortgage loan and In case of Rohit chawla Vs M/s Bombay dyeing &
interest thereon before transferring the real Mfg. Co. Ltd. MahaRERA Tribunal held that “In
estate project to such allottees, or the the present matter, it is revealed from the various
association of the allottees, as the case may documents filed by Allottees that the lay out plan
be, the promoter shall continue to be liable, ls modified by the Promoter without consent of
even after the transfer of the property, to pay the allottees. In fact, amenities assured to be given
such outgoings and penal charges, if any, to at the time of commencement of transaction on
the authority or person to whom they are the basis of advertisement, broachers, etc. were
payable and be liable for the cost of any legal refused to be given later on at the time of execution
proceedings which may be taken therefor by of agreement for sale. Allottee have filed
such authority or person; comparative chart to show that what amenities
were agreed and subsequently denied and also
The proviso to clause g states that even if how plans have been changed. Thus, there is
promoter fails to pay any of the outgoings/ ample documentary evidence on record to show
liability relating to the project collected from that the Promoter committed breach of Section
the allotees, he shall continue to be liable even 12.So allottees are entitled for withdrawal from
if he transfer of the property to the association the project and to claim refund along with interest
of allottees. Further the promoter will also liable from the Promoter.”
to pay cost of any legal proceedings which may
take place if the outgoings are not paid. Section 13: No Deposit or advance to be taken by
promoter without first entering into agreement for
j. The promoter shall not create mortgage/charge sale.
of apartment which is already been sold to an
allottee. If at all any such charge/mortgage is The Promoter shall not accept a sum more than ten
created it shall not affect the rights and interest per cent of the cost of apartment/plot as an advance
of the allottee. payment/application fee from a person without first
entering into a written agreement for sale with such
k. The promoter may cancel the allotment only in person and register such agreement for sale under
terms of the agreement for sale the law time being in force.

Section 12: Obligations of promoter regarding Sub section 2 to section 13 states that the agreement
veracity of the advertisement or prospectus. for sale shall specify the particulars of the project
under development along with specifications and
Section 12 provides a remedy to the buyer if he has internal and external development works, dates and
been deceived by the builder. If the builder made a the manner in which payment has to be made by
false promise, prepared frivolous prospectus or allotees, date of possession of the project, the rate
advertisement about his apartment, building or plots of interest payable by the promoter to the allottee
then he shall return entire investment of the buyer and by the allottee to the promoter.
along with interest.
It is to be noted that the GujRERA has prescribed
Deception is the ground for invoking section 12 of model agreement for sale under rule 9 of The
the RERA. The promoter may deceive the buyer Gujarat Real Estate (Regulation and Development)
in any of these ways: (General) (Rules), 2017.

i. Giving incorrect information towards the real Section 14: Adherence to sanctioned plans and
estate project, project specifications by the promoter.

ii. Making false statement a. The promoter has to develop the project in
accordance with sanctioned plans, layout plans
iii. Exhibiting a false model apartment or flat and specifications approved by the competent

Ahmedabad Chartered Accountants Journal September, 2021 271

GujRERA Corner i. Any Conversion of the promoter entity under
any statute, of Partnership Firm into LLP/
authority. The promoter shall not make in Private Limited Company or conversion of
additions and alterations in the sanctioned plans, Private Limited Company or unlisted Co to an
layout plans and specifications and the nature LLP or otherwise;
of fixtures, fittings an amenities without the
consent of the allottees. ii. Proprietorship change by succession to legal
heirs; etc.
b. The promoter may make such minor additions
or alterations as may be required by the allottee, iii. Changes in internal shareholding
or such minor changes or alteration as may be
necessary dur to architectural and structural Section 16: Obligations of promoter regarding
reason duly recommended by an authorized insurance of real estate project
architect or engineer after proper declaration
and intimation to allotee. The promoter shall obtain insurance in respect of :

c. Any other alteration or additions to sanctioned i. Title of the land and building as a part of the
plans, layout plans and specifications of building real estate project
or common areas within the project cannot be
done without previous written consent of 2/3rd ii. Construction of the real estate project
allotees who have agreed to take apartments in
such building. Section 17: Transfer of title

d. In case of any structural defect or any other The promoter shall execute a registered conveyance
defect in workmanship, quality or provisions deed in favour of allottee along with undivided
of services or any other obligations of the proportionate title in the common areas to the
promoter as per the agreement for sale is bought association of allottees and hand over physical
to notice of the promoter within a period of five possession and other title documents, necessary
years by the allottee from the date of handing documents within specified period under local laws.
over the possession, it shall be the duty of the In case of absence of any local law such period is 3
promoter to rectify such defects without further months form the date of issuance of completion
charges within 30 days. certificate/occupancy certificate.

Section 15: Obligations of promoter in case of Section 18: Return of amount and compensation
transfer of a real estate project to a third party.
If at all the promoter fails to complete or is unable
If at all the promoter wishes to transfer or assign to give possession of apartment/building due to
his majority rights and liabilities in respect of a real discontinuance of business as a developer on
estate project to a third party without obtaining prior account of suspension or revocation of registration
written consent from 2/3rd allottees and without or for any other reason he shall be liable to:
prior written approval of the authority.
a. In case allottee wishes to withdraw from the
It may be noted that the GujRERA has issued project, return the amount to allottee with
Circular 23 dated 20th July 2020 stating procedure interest along with compensation.
for transferring/assigning rights and liabilities to a
third party. b. In case allottee do not wish to withdraw from
the project, the allottee shall be paid interest
“Majority rights” has nowhere been defined under for every month of delay till the handing over
RERA. However, there are different circulars issued the possession.
by GujRERA and MahaRERA as to what shall
not constitute to be transfer of majority rights which c. Compensate the allottees in case of any loss
is describes as under: caused to him due to defective title of the land

❉❉❉

272 Ahmedabad Chartered Accountants Journal September, 2021

Capital CA. Karan Vora
Markets [email protected]

Summary: - India’s Retail Inflation, CPI, eased to 5.59%
(Target is 4% ± 2%) in July 21 as result of drop
Domestic economic activity has started normalizing in food prices from 6.26% in the month of June
with the receding of the second wave of Covid-19 21 while the wholesale inflation eased
and the phased reopening of the economy as GDP marginally to 11.2%.
grows 20%YoY in Q1 FY21. Indian equity markets
have remained bullish in the month ofAugust. There - Inflation pressure was observed in US, UK and
has been a record number of IPOs in August with Euro area as well, highest in a decade, but
mixed performance on listing. temporary in eyes of many economists.

Key M&A& Private Equity Deal include Adani - GST collections for the month of July 2021 were
Group to acquire MBCPNL portfolio from Sadbhav Rs.1.16 lakh crore, again surpassing the Rs.1
Infrastructure and software startup Postman, which lakh crore mark.
is cofounded by ISB Alumni Ankit Sobti, raising
$225 million at a valuation of US$5.6 Billion. Trends in Secondary Markets:

Economic Update: BSE Sensex went up by 9.44% to close at 57,552
in August 2021. Nifty 50 closed at 17,132 higher
- India’s Gross Domestic Product (GDP) grew by by 8.69% from 15,763 in July closing. Sharp gains
20.1% in the first quarter of 2021-22, compared were on account of economic recovery, low interest
to the 24.4% contraction recorded in the same rate environment and strong earnings of corporates
quarter a year ago. The GDP though isstill 9.2% in Q1 FY22 with especially strong show by Large
lower than GDP in the same period in FY19- caps.
20.
Foreign Portfolio Investors (FPIs) invested Rs.
- Manufacturing and construction sectors grew 2083 Crore in the Indian equity markets in the
49.63% and 68.3% respectively and showed a month of August.
significant recovery of economy in April-June
post second wave of Covid-19.

- Index of Industrial Production (IIP) witnessed a
y-o-y growth of 13.6% in June 2021 as against
rise of 29.3% in May 2021, however it is still
lower than 2019 levels.

- Monetary Policy Committee (MPC) decided to
retain the prevailing repo rate at 4 per cent and
continue with the accommodative stance. It was
also decided to continue the accommodative
stance as long as necessary with an eye on
inflation by all accept one member.

Ahmedabad Chartered Accountants Journal September, 2021 273

Capital Markets Aug-21 Jul-21 Change%
57,552 52,587 9.44%
Equity Markets 17,132 15,763 8.69%
Sensex 23,174 21,754 6.53%
Nifty 50 41,470 39,190 5.82%
BSE 500 37,361 36,386 2.68%
BSE Bankex 26,570 26,156 1.58%
BSE Consumer Durables 14,581 13,481 8.16%
BSE Healthcare
BSE FMCG

Amongst the BSE indices, Almost all the indices CarTrade Tech Limited, NuvocoVistas Corporation
showed strong gains with many indiceslike Power, Limited, Chemplast Sanmar Limited and Aptus
IT, Telecom, Teck registered more than 10% gains. Value Housing Finance Limited in August 2021(the
highest IPO filings in 17 years) as against 5 main
China ordered cuts in steel output in the main board IPOs in July. There was one SME IPO of
producing region of Tangshen to control emissions. Gretex Corporate Services Limited in August as
It has decided to implement ultra-low emissions by against 2 SME IPOs July.
reducing crude steel production by 8.8 percent in
this year. This move to reduce output of steel by Performance of these IPOs was mixed as 5 of them
China had a direct impact on global prices of steel were at a premium and 5 of them at a discount, an
and iron ore which led to poor performance by under performance compared to June and July’s
Metal sector. stunning listing gains of IPOs, largely due to
Oversupply and aggressive valuations. Global
Primary market Update: Investors are being prompted to look for new
opportunities across Asia as China has imposed
There were 10 main board IPOs of Glenmark Life restrictions on technology companies. This has
Sciences Limited, Rolex Rings Limited, Windlas contributed to a record jump in initial public
Biotech Limited, Devyani International Limited, offerings from India and other Asian countries.
Krsnaa Diagnostics Limited, Exxaro Tiles Limited,

274 Ahmedabad Chartered Accountants Journal September, 2021

Capital Markets

Particulars Apr-21 May-21 · ARTL has concession agreements with the
I. Equity Issue 16,408 9,470 National Highway Authority of India (NHAI)
1 structured on the Hybrid Annuity Mode (HAM),
a. IPOs (i+ii) 3,009 0 Build-Operate-Transfer (BOT) and Toll-
i. Main Board 2,953 1 Operate-Transfer (TOT) models.
ii. SME Platform 0
56 25 Maharashtra Border Check Post Network
b. FPOs 0 3,847 Limited:
c. Equity Rights Issue 280 5,596
d. QIP/IPP 4,010 · MBCPNL, a subsidiary of Sadbhav
e. Preferential Allotment 9,110 22,887 Infrastructure Project Limited, is an integrated
II. Debt Issue 34,326 1,265 portfolio of 24 border check posts with exclusive
a. Debt Public Issue 2,316 service fee collection rights from commercial
b. Private Placement 21,622 vehicles for all traffic routes in and out of
32,010 Maharashtra until at least 2033, which covers
of Debt 32,357 20% of commercial road traffic in India.
Total Funds Mobilised 50,734
(I+II) · MBCPNL was incorporated in 2009 as a Special
Purpose Vehicle, for construction, operation and
Initial Public Offers: maintenance of roads and check-posts.

Mergers and Acquisitions and Private Equity Rationale:
deals:
· The acquisition is at an enterprise value of
M&A: Adani Group to acquire MBCPNL Rs.1,680 Crore implying an EBITDA multiple
portfolio From Sadbhav Infrastructure: of 7x. MBCPNL has turnover of Rs. 192 Crore
in FY21 and Rs. 221 Crore in FY20.
Transaction:
· MBCPNL has a business model underlined by
· Adani Road Transport Limited (‘ARTL’), a long term concession, good traffic growth,
wholly-owned subsidiary of Adani Enterprises inflation protection and robust margins.
Limited, has signed a definitive agreement with
Sadbhav Infrastructure Project Limited (‘SIPL’) · The acquisition of MBCPNL’s border checkpost
for acquisition of Maharashtra Border Check assets will enhance the bouquet of ARTL’s
Post Network Limited (‘MBCPNL’). ARTL business in highways and will help accelerate
will initially acquire 49% stake in MBCPNL ARTL’s growth. CEO of ARTL commented that
with an option to acquire additional stake in acquisition is part of Adani Group’s drive to
MBCPNL. create a portfolio of road networks banking on
group’s strength in logistics.
· 49% shares will be sold initially to ARTL, along
with an option for the buyer to acquire the · On the other hand Sadbhav group is actively
remaining stake, in one or more tranches. The trying to deleverage its capital structure by
consideration for sale would be at an enterprise monetizing number of assets. Company has
value of Rs. 1,680 Crore. recently sold six BOT and two annuity assets to
IndInfravit Trust, sold stake in AIIRL and raised
Adani Road Transport Limited: fund through NCD issuance to improve its
liquidity position.
· Adani Road Transport Ltd is a wholly owned
subsidiary of Adani Enterprises Ltd, the flagship
company of the Adani Group. ARTL is a
transport infrastructure developer involved in the
construction, operation and maintenance of
roads, highways and expressways.

Ahmedabad Chartered Accountants Journal September, 2021 275

Capital Markets architectures, and scale business processes.
Organizations are also adopting the API-first
PE: Software startup Postman raises $225 model to build and ship new products faster and
million : create products of higher quality with less code.

Transaction: - APIs have become the fundamental building
blocks of software and Postman has established
- Postman, a Saas Startup, has raised $225 million itself as a preferred platform for developers. It
in a funding round led by Insight Partners recently announced that its Public API Network
(existing investor) at a valuation of US $5.6 is now the largest API hub in the world, with
Billion. more than 75,000 APIs shared on the network.

- Other investors include Coatue, BatteryVentures, - Postman intends to utilize the funds to expand
BOND, existing investors CRV and Nexus its team, invest in its community of developers,
Venture Partners. Individual investors Gokul support students through API literacy programs
Rajaram of DoorDash and Girish and contribute to open source projects to nurture
Mathrubootham of Fresh works have also joined. API ecosystem.

Postman: - Insight Partner Jeff Horing commented that
Postman has the opportunity to become a key
- Founded in Bangalore in 2015, Postman is pillar of how enterprises build, deliver products,
headquartered in San Francisco and has an office and seamlessly enable partnerships across the
in Bangalore. Postman is a web-based platform ecosystem.
that allows businesses and developers to design,
develop and manage Application Programming Acknowledgements: RBI Bulletin
Interfaces (APIs).
( w w w. b u l l e t i n . r b i . o r g . i n ) , SEBI
- Postman has added more than 300 employees
across 13 countries since the beginning of 2020, (www.sebi.gov.in), NSE (www.nseindia.com),
doubling its head count. Its clientele include 98%
of the Fortune 500 and the likes of Sales force, BSE (www.bseindia.com)
Stripe, Kroger, Cisco, PayPal, and Microsoft.
❉❉❉
Rationale:

- Developers are adopting the API-first model to
build new applications faster, modernize legacy

276 Ahmedabad Chartered Accountants Journal September, 2021

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

Impairment of Assets - Annual Report 2020-21 increase in credit risk since initial recognition, then
the entity reverts to recognising impairment loss
Vedanta Limited allowance based on 12-month ECL.

· Impairment of financial asset: Lifetime ECL are the expected credit losses resulting
from all possible default events over the expected
In accordance with Ind AS 109, the Company life of a financial instrument. The 12-month ECL
applies expected credit loss (ECL) model for is a portion of the lifetime ECL which results from
measurement and recognition of impairment default events that are possible within 12-months
loss on the following financial assets. after the reporting date.

a) Financial assets that are debt instruments, ECL is the difference between all contractual cash
and are measured at amortised cost e.g., flows that are due to the Company in accordance
loans, debt securities and deposits with the contract and all the cash flows that the entity
expects to receive (i.e., all cash shortfalls),
b) Financial assets that are debt instruments discounted at the original EIR.
and are measured as at FVOCI
ECL impairment loss allowance (or reversal)
c) Trade receivables or any contractual right recognized during the year is recognized as income/
to receive cash or another financial asset expense in the statement of profit and loss. The
that result from transactions that are within balance sheet presentation for various financial
the scope of Ind AS 115. instruments is described below.

The Company follows ‘simplified approach’ for a) Financial assets measured at amortised cost:
recognition of impairment loss allowance on trade ECL is presented as an allowance, i.e., as an
receivable, contract assets and lease receivables. integral part of the measurement of those assets
in the balance sheet. The Company does not
The application of simplified approach does not reduce impairment allowance from the gross
require the Company to track changes in credit risk. carrying amount.
Rather, it recognises impairment loss allowance
based on lifetime ECLs at each reporting date, right b) Debt instrument measured at FVOCI: since
from its initial recognition. financial assets are already reflected at fair value,
impairment allowance is not further reduced
AT each reporting date, for recognition of from its value. Rather, ECL amount is presented
impairment loss on other financial assets and risk as ‘accumulated impairment amount’ in the
exposure, the Company determines whether there OCL.
has been a significant increase in the credit risk since
initial recognition. If credit risk has not increased For assessing increase in credit risk end impairment
significantly, 12-month ECL is used to provide for loss, the Company combines financial instrument
impairment loss. However, if credit risk has on the basis of shared credit risk characteristics with
increased significantly, lifetime ECL is used. If, in the objective of facilitating an analysis that is
a subsequent period, credit quality of the instrument designed to enable significant increases in credit
improves such that there is no longer a significant risk to be identified on a timely basis.

Ahmedabad Chartered Accountants Journal September, 2021 277

From Published Accounts from and its eventual disposal. The cash flows are
discounted using a pre-tax discount rate that reflects
The Company does not have any purchased or current market assessment of the time value of
originated credit-impaired (POCI) financial assets, money and the risks specific to the asset for which
i.e., financial assets which are credit impaired on estimates of future cash flows have not been
purchase/origination. adjusted. Value in use is determined by applying
assumptions specific to the company’s continued
Impairment of non-financial asset: use and cannot take into account future
development. These assumptions are different to
Impairment charges and reversals are assessed at those used in calculating fair value and consequently
the level of cash-generating units.A cash-generating the value in use calculation is likely to give a different
unit (CGU) is the smallest identifiable group of result to a fair value calculation.
assets that generate cash inflows that are largely
independent of the cash inflow from other assets or The carrying amount of the CGU is determined on
group of assets. a basis consistent with the way the recoverable
amount of the CGU is determined.
The company assesses at each reporting date,
whether there is an indication that an asset may be If the recoverable amount of an asset or CGU is
impaired. The company conducts an internal review estimated to be less than its carrying amount, the
of asset values annually, which is used as a source carrying amount of the asset or CGU is reduced to
of information to assess for any indication of its recoverable amount. An impairment loss is
impairment or reversal of previously recognised recognised in the statement of profit and loss.
impairment losses. Internal and external factors,
such as worse economic performance than Any reversal of the previously recognised
expected, changes in expected future prices, costs impairment loss is limited to the extent that the asset’s
and other market factors are also monitored to assess carrying amount does not exceed the carrying
for indications of impairment or reversal of amount that would have been determined if no
previously recognised impairment losses. impairment loss had previously been recognised.

If any such indication exists then an impairment Exploration and evaluation assets:
review is undertaken and the recoverable amount
use calculated, as the higher of fair value less costs In assessing whether there is any indication that an
of disposal and the asset’s value in use. exploration and evaluation asset may be impaired,
the company considers, as a minimum, the
Fair value less costs of disposal is the price that following indicators:
would be received to sell the asset in an orderly
transaction between market participants and does - The period for which the company has the right
not reflect the effects of factors that may be specific to explore in the specific area has expired during
to the entity and not applicable to entities in general. the period or will expire in the near future, and
Fair value for mineral and oil and gas assets is is not expected to be renewed.
generally determined as the present value of the
estimated future cash flows expected to arise from - Substantive expenditure on further exploration
the continued use of the asset, including any for and evaluation of mineral resources in the
expansion prospects, and its eventual disposal, specific area is neither budgeted nor planned.
using assumptions that an independent market
participant may take into account. These cash flows - Exploration for and evaluation of mineral
are discounted at an appropriate post tax discount resources in the specific area have not led to
rate to arrive at the net present value. the discovery of commercially viable quantities
of mineral resources and the company has
Value in use is determined as the present value of decided to discontinue such activities in the
the estimated future cash flows expected to arise specific area;
from the continued use of the asset in its present

278 Ahmedabad Chartered Accountants Journal September, 2021

- Sufficient data exist to indicate that, although a From Published Accounts
development in the specific area is likely to
proceed, the carrying amount of the exploration instrument improves such that there is no longer a
and evaluation asset is unlikely to be recovered significant increase in credit risk since initial
in full from successful development or by sale; recognition, then the entity reverts to recognising
and impairment loss allowance based on 12-month
ECL.
- Reserve information prepared annually by
external experts ELC is the difference between all contractual has
flows that are due to the company in accordance
When a potential impairment is identified, an with the contract and all the cash slows that the
assessment is performed for each area of interest in entity expects to receive (i.e., all cash shortfalls),
conjunction with the group of operating assets discounted at the original EIR. Lifetime ECL are
(representing a cash-generating unit) to which the the expected credit losses resulting from all possible
exploration and evaluation assets is attributed. default events over the expected life of a financial
Exploration areas in which reserves have been instrument. The 12-month ECL is a portion of the
discovered but require major capital expenditure lifetime ECL which results from default events that
before production can being, are continually are possible within 12 months after the reporting
evaluated to ensure that commercial quantities of date.
reserves exist or to ensure that additional exploration
work is underway or planned. To the extent that ECL impairment loss allowance (or reversal)
capitalised expenditure is no longer expected to be recognised during the period is recorded as expense/
recovered, it is charged to the statement of profit income in the statement of profit and loss.
and loss.
Impairment of non-financial assets:
VRL Logistics Limited
At the end of each reporting period, the company
Impairment of Financial Assets: assesses whether there is any indication that a non-
financial asset may be impaired. If any such
In accordance with Ind AS 109, the Company indication exists, the recoverable amounts are
applies the expected credit loss (“ECL”) model for estimated in order to determine the extent of the
measurement and recognition of impairment loss impairment loss (if any). An impairment loss is
on financial and credit risk exposures. recognised whenever the carrying amount of an
asset or a cash-generating unit exceeds its
The Company follows ‘simplified approach’ for recoverable amount. The impairment loss, if any,
recognition of impairment loss allowance on trade is recognised in the statement of profit and loss in
receivables. Simplified approach does not require the period in which impairment takes place.
the Company to track changes in credit risk.
Recoverable amount is higher of an asset’s or cash
Rather, it recognises impairment loss allowance generating unit’s net selling price and its value in
based on lifetime ECL at each reporting date, right use. Value in use is the present value of estimated
from its initial recognition. future cash flows expected to arise from the
continuing use of an asset and from its disposal at
For recognition of impairment loss on other financial the end of its useful life. A previously recognised
assets and risk exposure, the Company determines impairment loss is increased or reversed depending
whether there has been a significant increase in the on changes in circumstances. However, the carrying
credit risk since initial recognition. If credit risk has value after reversal is not increased beyond the
not increased significantly, 12-month ECL is used carrying value that would have prevailed by
to provide for impairment loss. However, if credit charging usual depreciation if there was no
risk has increased significantly, lifetime ECL is used. impairment.
If, in a subsequent period, credit quality of the
❉❉❉

Ahmedabad Chartered Accountants Journal September, 2021 279

From the
Government

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

INCOME TAX

1) CBDT has vide this circular extended the deadline for filing the various forms under the Income-
Tax Act, 1961due to difficulties and or non- availability of the utility for e-filing of certain forms:

Nature of Form Due date Extended Date Further Extension

Form 10A (application 30th June,2021 31st August vide 31st March, 2022 vide
for registration or
intimation or approval circular no. 12, dated this circular
u/s 10(23C), 12A,
35(1)(ii)/(iia)/(iii) or 25/06/2021
80G

Form 10AB (application 28th February, 2022 31st March, 2022 vide
for registration or this circular
approval u/s 10(23C),
12A, or 80G

Equalization Levy 30th June,2021 31st August,2021 31st December, 2021

Statement in Form No.1 vide circular No. 15, vide this circular

for the FY 20-21 dated 03/08/2021

Uploading declarations 15th July,2021 31st August vide 30th November,2021
received from recipients
in Form 15G/15H for circular no. 12, dated vide this circular
the quarter ending
30th June,2021 25/06/2021

Uploading declarations 15th October,2021 31st December,2021
received from recipients vide this circular
in Form 15G/15H for
the quarter ending
30th June,2021

Intimation to be made by 31st July,2021 in 30th September,2021 30th November,2021
vide this circular
a Pension Fund in respect pursuance of Rule 2DB vide circular 15 dt

of each investment made 03/08/2021

by it in India in Form

No. 10BBB for the

quarter ending

30th June,2021

280 Ahmedabad Chartered Accountants Journal September, 2021

GST Update GST Notifications & Circulars

Nature of Form Due date Extended Date Further Extension

Intimation to be made by 31st October,2021 in 31st December,2021
a Pension Fund in respect pursuance of Rule 2DB vide this circular
of each investment made
by it in India in Form
No. 10BBB for the
quarter ending 30th
September,2021

Intimation to be made by 31st July,2021 in 30th September,2021 30th November,2021
a Sovereign Wealth Fund pursuance of circular vide circular 15 dt vide this circular
in respect of investments No. 15, dated 03/08/2021
made by it in India in 22/07/2020
Form No. II SWF for
the quarter ending
30th June,2021

Intimation to be made by 31st October,2021 in 31st December,2021
a Sovereign Wealth Fund pursuance of circular vide this circular
in respect of investments No. 15, dated
made by it in India in 22/07/2020
Form No. II SWF for
the quarter ending
30th September,2021

Intimation by a 30th November,2021 in 31st December,2021
constituent entity in pursuance of Rule vide this circular
Form 3CEAC in 10DB
pursuance of section
286(1) of the Act

Report by a parent entity 30th November,2021 in 31st December,2021
vide this circular
or an alternate reporting pursuance of Rule

entity or any other 10DB

constituent entity in

Form 3CEAD in

pursuance of section

286(2) or (4) of the Act

Intimation on behalf of 30th November,2021 31st December,2021
an international group in in pursuance of Rule vide this circular
Form 3CEAE in 10DB
pursuance of provisio
to section 286(4) of the
Act

Ahmedabad Chartered Accountants Journal September, 2021 281

GST Update GST Notifications & Circulars

GOODS AND SERVICE TAX details of outward supplies of goods
or services or both under section 37
1) Extension of filing Application for in FORM GSTR-1 or using the
Revocation of cancellation of registration invoice furnishing facility, if he has not
furnished the return in FORM GSTR-
In view of the notification 34/2021 -Central 3Bfor preceding tax period;
dated 29th Aug 2021, where the due date of
filing of application for revocation of 2. This Rule will be implemented on GST
cancellation of registration falls between 1st Portal from 1st September, 2021. On
March, 2020 to 31st August, 2021, the time implementation of the said Rule, the
limit for filing of application for revocation of system will check that whether before
cancellation of registration is extended to 30th the filing of GSTR-1/IFF of a tax-period,
September, 2021. the following has been filed or not:

The benefit of said notification is extended to a) GSTR-3B for the previous two
all the cases where cancellation of registration monthly tax-periods (for monthly
has been done under clause (b) or clause (c) of filers),
sub-section (2) of section 29 of the CGST Act, OR
2017 and where the due date of filing of
application for revocation of cancellation of b) GSTR-3B for the previous quarterly
registration falls between 1st March, 2020 to tax period (for quarterly filers), as the
31st August, 2021. case may be. The system will restrict
filing of GSTR-1/IFF till Rule-59(6)
It is further clarified that the benefit of is complied with.
notification would be applicable in those cases
also where the application for revocation of 3. This check will operate on clicking the
cancellation of registration is either pending SUBMIT button of GSTR-1 and the
with the proper officer or has already been system will give an error message if the
rejected by the proper officer. condition of Rule-59(6) is not met. It may
be noted that records which have been
(GST New and Updates, dt31/08/2021) saved in GSTR-1 will remain saved and
filing of such records will be permitted
2) Implementation of Rule-59(6) on GST after Rule-59(6) is complied with.
Portal relating to restriction in filing GSTR
1 4. Implementation of Rule-59(6) on the GST
Portal will be completely automated,
1. Rule-59(6) of CGST Rules, 2017; inserted similar to the blocking & un-blocking of
vide Notification No. 1/2021 dated 1st e-way bill as per Rule-138E and facility
January 2021, provides for restriction in for filing of GSTR-1 will be restored
filing of GSTR-1 in certain cases : immediately after filing of relevant GSTR-
3B. No separate approval would be needed
a) a registered person shall not be from the tax-officer to restore the facility
allowed to furnish the details of for filing of GSTR-1.
outward supplies of goods or services
or both under section 37 in FORM 5. To ensure no disruption in filing GSTR-
GSTR-1, if he has not furnished the 1/IFF, taxpayers who have not filed
return in FORM GSTR-3B for their pending GSTR-3B, especially from
preceding two months; period November 2020 and afterwards
may do so at the earliest.
b) a registered person, required to furnish
return for every quarter under the (GST New and Updates, dt26/08/2021)
proviso to sub-section (1) of section
39, shall not be allowed to furnish the ❉❉❉

282 Ahmedabad Chartered Accountants Journal September, 2021

IT Corner Mr. Bhavin Goklani
[email protected]
Exploring “Format as Table” in MS Excel 4. A dialog box will appear, confirming the
Introduction selected cell range for the table.
Once you’ve entered information into a worksheet, 5. If your table has headers, check the box next
you may want to format your data as a table. Just to My table has headers, then click OK.
like regular formatting, tables can improve the look Alternatively, Table can be added using a
and feel of your workbook, but they’ll also help Shortcut Ctrl + T or Ctrl + L
to organize your content and make your data easier
to use. Excel includes several tools and predefined 6. The cell range will be formatted in the selected
table styles, allowing you to create tables quickly table style.
and easily.
1. To Format Data as a “Table”

Select the cells you want to format as a table.
In our example, we’ll select the cell
range A1:F11.

2. From the Home tab, click the Format as
Table command in the Styles group.

3.

7. Design / Table Design Tab

The Format as Table icon on the home ribbon
tab was added in Excel 2007. Unfortunately,
most people think it is a formatting feature.
Rather, it is a database option. By using the
Format as Table icon, you instruct Excel to treat
a table like a basic database.

Ahmedabad Chartered Accountants Journal September, 2021 283

IT Corner

Features of “Format as a Table” later versions they are required when using the
Relationships icon in the Data ribbon.
1. The table range automatically expands
(including the format) when you add new rows 10. Slicers Can be Connected to the Table for better
or columns to the table. Understanding of Table Formatted Data.

2. Filter icons are automatically added to the 11. Dedicated Tab Named “Design” is Available
header row. with various features and Options.

3. The headers are always visible as you scroll 12. Total Row is available automatically with
down the table. So here we need not to use the Drop Down Menu. Which can be used to have
feature of Freeze Panes feature. Count or Sum or other such result with no
efforts having Features of Subtotal Formula.
4. Structured references are automatically
created; these are like range names and will be 13. Bended Rows and Columns to understand
explained later. and read the data properly.

5. Using a formatted table as a data source for a 14. Convert to Range Option is available to
Pivot Table means that any extra rows or convert the table in Simple Table.
columns are automatically included when
the PivotTable is refreshed. 15. Name Can be given to table. So that we can
reference of that Name in the Formula.
6. Formulas are automatically copied down
columns. This occurs when creating or editing 16. Various Design Options/ Table Styles
formulas and when new rows are added. available for table. You can choose, modify,
and rechose any Design.
7. There are extra options on the right-click menu
and the Insert and Delete options work well Looking to the above benefits we can conclude that
with a formatted table. Format as a Table is Not only Formatting Feature,
but it is having Database Features also.
8. Some keyboard shortcuts work slightly
differently (in a positive way) when used inside ❉❉❉
formatted tables.

9. Formatted tables work seamlessly with Power
Query and PowerPivot. In Excel 2013 and

284 Ahmedabad Chartered Accountants Journal September, 2021

Association
News

CA. Rushabh M. Shah CA. Jay B. Parekh
Hon. Secretary Hon. Secretary

The August month is always expected to be full of festivals and rains, and it was no different. As we saw
record number of vaccinations happening in India with large populations of India getting the jab, the businesses
also reached to its normal course. Though we, as professionals, still await the normal functioning of the
Income Tax Portal, we are sure that the new system shall provide a seamless experience for the end-users.

1. Glimpses of previous events: Program Speaker Venue
Time
Information Technology

6th August 2021 – Webinar on Building CA. Varun Nirmal Zoom Platform
Friday a Cloud Accounting & YouTube Live
4.00 pm to 6.00 pm
practice

57 participants attended the program

Information Technology

16th August 2021 – MS Excel Workshop CA. Pathik Shah, 201, 2nd Floor,
Monday to (Experiential Learning)
18th August 2021 – CA. Rushabh Shah Darshak Building,
Wednesday
4.00 pm to 6.00 pm and Opp. Shrey Hospital,

CA. Bhavin Goklani Navrangpura,

Ahmedabad

20 participants attended the workshop and took the practical training. After the workshops,
the participants shared utilities made by them, and two best utilities were given awards.

Corporate and Allied Laws

20th August 2021 – Finalisation of Financial Mahesh Gupta Zoom Platform
Friday Statements – Common & YouTube Live
5.00 pm to 7.00 pm Mistakes from the view

point of regulators

46 participants attended the program

Ahmedabad Chartered Accountants Journal September, 2021 285

Association News

2. Forthcoming Programmes:

Time Program Speaker Venue

Shri K T Thakore and Shri C F Patel Memorial Full Day Seminar Hotel Novotel -
Ahmedabad
18th September 2021– Direct Taxes – Various Speakers
Saturday Way Forward Jaypee Residency
Manor - Mussoorie
RRC 50th Residential Various Speakers
Refresher Course
4th January 2022 –
TuesdayTo
8th January 2022 -
Saturday

3. Other Initiatives:

a. The Knowledge Clinic is started for the benefit of members of Chartered Accountants
Association Ahmedabad. Under this, the members can send their queries pertaining to Income
Tax, GST, Company Law, Audit, IFRS, FEMA, SEBI or Professional Ethics to the
Committee, and the expert panel will address them on a timely basis.

❉❉❉

ADVERTISEMENT RATES OF

AHMEDABAD CHARTERED ACCOUNTANTS JOURNAL FOR FY 2021-22

(Journal Advertisement size 10.5' length and 8' width letter size)

Page Monthly Quarterly Half yearly Yearly
(Single (Three (Six (Ten

Insertion) Insertions) Insertions) Insertions)

Back Cover (Four Colour) 15000 40000 80000 125000

Inside Front (Four Colour) 10000 27000 50000 85000

Inside Back Four Colour) 10000 27000 50000 85000

Inner Full Page (single Colour) 5000 14000 27500 42500

286 Ahmedabad Chartered Accountants Journal September, 2021

ACAJ Crossword Contest - 4

Across Down
1. Where the purpose of a trust or institution is 4. As per Section 3 of the Indian Evidence Act,

relief of the poor, education, yoga or medical 1872 a ___________ means any matter
relief, it will constitute ‘charitable purpose’ expressed or described upon any substance by
even if it incidentally involves the carrying on means of letters, figures or marks, or by more
of ___________ activities. than one of those means, intended to be used,
2. Section 14A of the Act states that for the or which may be used, for the purpose of
purposes of computing the total income, no recording that matter.
__________ shall be allowed in respect of 5. September 2021 was a pious month where Jain
expenditure incurred by the assessee in relation Community Celebrated __________.
to income which does not form part of the total 6. As per the judgement of Nararjuna Oil
income under this Act. Corporation Ltd. V/s. Asst. CIT (2020), a lump
3. Section 3 of the Black Money Act brings to sum payment made by the assessee for getting
charge two categories of items, viz., a long term lease does not amount to payment
undisclosed foreign Income and Undisclosed of _____.
_______ located Outside India.

4. 5

1.

2.

6
.
3.

Notes:

1. The Crossword puzzle is based on this issue of Prize Courtesy
ACA Journal.
Winners of ACAJ Crossword Contest – 3
2. Two lucky winners on the basis of a draw will
be awarded prizes. 1. CA. Pratik Kikani

3. The contest is open only for the members of 2. CA. Ajit Shah
Chartered Accountants Association and no
member is allowed to submit more than one ACAJ Crossword Contest 3 - Solution
entry.
Across: Down:
4. Members may submit their reply either
physically at the office of the Association or 1. Compliments 4. Will
by email at [email protected] on or
before 30-09-2021. 2. Inputtax 5. Exempt

5. The decision of Journal Committee shall be final 3. Ten 6. Registration
and binding.

❉❉❉

Ahmedabad Chartered Accountants Journal September, 2021 287





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