Team News Riveting
New Delhi, March 16
The number of companies applying for bankruptcy has come down in 2020, the year that witnessed sharp economic slowdown due to COVID-19.
The data indicate Indian companies firmly fought the pandemic-induced economic crises. In 2020, the number of companies applying for bankruptcy was less than 2018 and 2019.
This was stated by Anurag Singh Thakur, Union Minister of State for Finance and Corporate Affairs, in a written reply to a question in Rajya Sabha today.
Thakur quoting the data provided by the National Company Law Tribunal (NCLT) said that a total of 324 companies had filed for bankruptcy during the period between 2018-2020. Of it, 149 in the year 2018, 103 in the year 2019 and 72 were filed in the year 2020.
The minister added that 8,330 applications in the year 2018, 12,091 in the year 2019 and 5,282 in the year 2020 were filed under the Insolvency and Bankruptcy Code (IBC). Therefore, it appears that the number of applications have not increased over the last three years.
As per the Companies Act 2013, companies are required to hold Annual General Meeting (AGM) within six months from the end of financial year. Therefore, financial statements and board reports containing disclosure about CSR, are to be filed in the MCA21 database within 30 days of the AGM. Thus, for the current financial year no filing has been made by CSR mandated companies.
