Clarification under section 232(6) of the Companies Act, 2013 - whether the 'acquisition date' for the purpose of Ind-AS 103 (Business Combinations) would be the 'appointed date' referred to in section 232(6).

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..... , Shastri Bhavan, Dr R.P. Road, New Delhi Dated: 21st August, 2019 To All Regional Directors, All Registrars of Companies, All Stakeholders. Subject: Clarification under section 232(6) of the Companies Act, 2013 Sir, Several queries have been received in the Ministry with respect to interpretation of the provision of section 232(6) of the Companies Act, 2013 (Act). Clarification has be .....

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..... so requires that every company in relation to which the order is made shall file a certified copy of the order with the Registrar of Companies for registration within 30 days of the receipt of certified copy of the order. 3. In Marshall Sons & Co. India Ltd. v. ITO [223 1TR 809], it was held by the Hon'ble Supreme Court that every scheme of amalgamation has to necessarily provide a date with .....

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..... date on which the scheme of amalgamation shall take effect and tie the same to the occurrence of an event. Thus, the Court rejected the argument that the 'appointed date' in the scheme should necessarily be a specific calendar date. 5. Section 232(6) of the Act states that the scheme shall be deemed to be effective from the 'appointed date' and not a date subsequent to the 'a .....

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..... and date of transfer of control for the purpose of conforming to accounting standards (including Ind-AS 103 Business Combinations). c) Where the 'appointed date' is chosen as a specific calendar date, it may precede the date of filing of the application for scheme of merger/amalgamation in NCLT. However, if the 'appointed date' is significantly ante-dated beyond a year from the d .....

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