There are exceeding 5 lakh firms that have stopped their business operations whereas there are over 7 lakh new companies that were set up in the last six years.
The data record is from 1st April 2016 which stands with a total figure of 5,00,506 firms who get stoped their business operations. Meanwhile, 7,17,049 new business also gets enrolled under the companies act 2013.
“Minister of State for Corporate Affairs Rao Inderjit Singh also stated the ministry does not maintain data on event base”.
The discussion is towards answering the issue on the state-wise number of firms who stopped their operations after the conditions like demonetization GST and covid pandemic. In this fiscal year from 1st April 2021 with the sum of 22,557 companies deregistered while on the other side 1,09,098 new businesses have been started.
In the last 6 years, the highest number of firms were shuttered in 2017-18 at 2,36,262 and the number stood at 1,43,233 companies in 2018-19. Nearly 12808 firms closed their working in 2016-17 and in 2019-20 nearly 70,972 firms closed and in the previous financial year, it stood at 14674. According to the information, 1,55,337 new firms get enrolled in the current fiscal year and the number reveals 1,22,721 companies in 2019-20.
In the year 2016-17 the count of these firms was 97840 and in the year 2017-18, there were 1,08,075 firms. In the year 2018-19, there were nearly 1,23,938 companies who get enrolled.
The act does not define the term closed company said Singh and that firms come into issues after following the left procedure of law beneath specific laws. The corporate affairs ministry watches the provisions of the Companies Act, 2013, The Limited Liability Partnership Act, 2008, and The Insolvency and Bankruptcy Code, 2016.
When it is questioned that if the activities have been performed through the companies in India shall indeed be allowed as a CSR project the minister answered in an unwanted way.
“As per Rule 2(1)(d) of the Companies (CSR Policy) Rules, 2014, any activity undertaken by the company outside India except for training of Indian sports personnel representing any State or Union territory at national level or India at international level is not permitted as an eligible CSR activity, he answered.”
Beneath the companies act some of the specific profit-earning companies are needed to sell out 2% of their 3 years average yearly net profit. The minister said the CSR (Corporate Social Responsibility) structure is upon the grounds of the disclosure and that in the CSR legal framework, the word ‘Non-governmental Organisations (NGO)’ has been described.
The board has the power to avail the CSR activities on its own or via executing agencies. The enrollment of these agencies through the government was obligated dated 1st April of the current year. Until 31st October, a total of 17,130 agencies were registered with the MCA21 registry.
“On the basis of filings made by the companies in the MCA 21 registry, companies have spent a cumulative amount of Rs 20,150.27 crore in FY 2018-19, Rs 24,688.66 crore in FY 2019-20 and Rs 8,828.11 crore in FY 2020-21 respectively, mentioned by the Singh.”
The CSR filings made by the firms reveal that out of total CSR furnished nearly 60% of the expenditure was completed via executing agencies. In the next issue, the minister answered that the government opted for the important procedures to make the changes in the competition act 2002.
“The Competition Commission of India also has taken action to amend the Regulations issued by it from time to time as and when necessary to do so,”
