In a bid to ensure transparency and efficiency in service delivery,the government today relaxed certain procedures and rules for companies covered by the governments e-initiative MCA 21. The Director Identification Number (DIN),which is required by directors on the boards of listed and unlisted companies,will now be available online immediately,which at present takes 4-5 days. Directors will be have to file all details electronically with the ministry of corporate affairs to obtain DIN,MCA joint secretary Avinash Srivastav told reporters here. DIN applications will be filed in e-form DIN-1 and scanned documents,in support of the particulars of the applicant,will be attached with the e-form. No physical documents will be accepted. This will make the process less time consuming and more transparent, he said. He added that if the e-form is digitally signed by professionals like practicing Chartered Accountant or Company Secretaries,the DIN will be allotted by the system online immediately. As per section 253 of the Companies Act,no director can be appointed on a company board if he has not been allotted DIN by the government. Also,now all the companies which have not filed their statutory annual filings will be given a dormant status and such firms will not be allowed to file any other e-form with the minister until all pending documents are filed. This has been done so that public is careful in dealing with such companies having dormant status, Srivastav said. The government is also planning to introduce XBRL (eXtensible business reporting language) technology from next fiscal. This would allow the companies to file their annual reports in digital format. At present,companies file their annual returns and balance sheets with the Ministry of Corporate Affairs (MCA) by filing an e-form. To start with,MCA will make companies with paid-up capital of Rs 5 crore and above to file their annual returns and balance sheets using XBRL. We estimate 20,000 companies to be covered in the first phase. This can later be extended to other sets of companies, he added.
