Anuradha Shukla By

Express News Service

NEW DELHI: The Centre is considering relaxation of the accounting norms for companies in view of their hardship in fulfilling compliance norms during the lockdown period.“Many corporate and business chambers have asked us to relax the accounting norms for the financial year 2019-20, extending the fiscal year to June 30 for accounting calculation.

The ministry is considering the request, "a senior official from the ministry of Corporate Affairs told this publication. Many companies have failed to comply with the March 31 deadline due to lockdown."

“The industry is demanding the extension of financial year till June 30, considering the COVID 19 situation and the global disruption. The books of accounts will not show the true and fair state of financial affairs of the companies, hence an extension of three months for ensuring normalcy would help the companies,” Sameer Mittal, managing partner of Sameer Mittal and Associates and President of the International Trade Council in India said.

He added that the companies are also demanding that in order maintain liquidity and avoid payment defaults the access to office for accounts and tally related work for releasing payments to suppliers and receipt from debtors should be provided.

According to the official, the ministry is already in consultation with the Institute of Chartered Accountants of India (ICAI).

“We are holding discussions with ICAI and some accounting firms, if it is possible and how. Will announce the measures after weighing all the pros and cons and viability,” the official added.Meanwhile, at least three members of ICAI have confirmed about the ongoing consultation, without refusing to further elaborate to avoid “speculation”.

Recently, the government had announced a host of measures as part of relaxations in compliance requirements like extending date of filing tax and also allowed firms to conduct board meetings through video conference and other audio visual means till June 30 to avoid physical contact in the wake of coronavirus outbreak.

Extension till june30

The industry has been demanding extension of financial year till June 30in view of their hardship in fulfilling compliance norms during the lockdown period, according to MCA officials aware of the matter.