Overview of the MCA 21 Project (Mr. Avinash K. Srivastava, India)
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Transcript of Overview of the MCA 21 Project (Mr. Avinash K. Srivastava, India)
MCA21 e-Governance Project
of
Ministry of Corporate Affairs
Government of India
Presentation for CRF 2011
09.05.2011-12.05.2011
1
Vision and Charter
Vision
To facilitate corporate growth with enlightened regulation.
Charter Administration of
- Companies Act, 1956
- Limited Liability Partnership (LLP) Act , 2008
- Competition Act, 2002
- MRTP Act, 1969
- Partnerships Act, 1932
- Societies Registration Act, 1861
- Chartered Accountants Act, 1949
- Cost & Works Accountants Act, 1959
- Company Secretaries Act, 1980 2
Organisation structure & Functions
Organisation set-up
1. MCA – Head Quarter
2. Office of DG(CA) - being established
3. Field offices
• 6 Regional Directorate
• 20 Registrars of Companies
• 19 Official Liquidators
Functions1. Regulator
• Enforcement
• Inspections/Investigations etc.
2. Service delivery of regulatory action
• e-Governance
• Approvals
3. Develop Regulatory Framework
• Legislative proposals
4. Corporate Governance
5. Investor Education and Protection 3
Corporate Growth (beginning 1956)
Year Number
1957 29357
1960 26897
1970 29009
1980 56493
1990 202128
2000 542434
2010 (P) 84643429357 26897 29009
56493
202128
542434
846434
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1957 1960 1970 1980 1990 2000 2010 (P)
Number
4
Rapid Corporate Growth - Issues
Limited number of MCA offices and
manpower against rapid growth of
companies
Long, unmanageable queues
Slow manual collection & verification
process
Payment options limited
Paper sorting, storing/retrieval are
very cumbersome, time-consuming
and error prone
Information availability to stakeholder
is time consuming and error prone
Inadequate compliance monitoring
Quality deterioration in delivery of
services 5
Advent of MCA21 on 3 propositions
6
1. e-Governance is not about ‘e’
… but about Governance
2. e- Governance is not computerization
… it is the transformation of the
way Government serves its
citizens & businesses
3. e-Governance involves adoption of a
holistic approach to provide services
MCA21 is designed to be a true
e-Governance project in all respects
Business Drivers – the need for MCA21
• More than 700,000 corporates
• About 6 crore pages maintained in files
• One lakh charge registrations per year
• Millions of corporate representatives visit ROC office every year
• Physical presence of company representative required for all transactions
• Slow manual collection and verification process
• Unmanageable situation during peak filing season of Oct-Nov-Dec
• Mostly one office per state
• Ever-increasing stakeholder base
Ever-increasing corporates
Limited Access Points
Physical Presence
Long Queues
• Payments were to be made in person
• Only cash or Demand Draft accepted not even cheque
• Information availability to stakeholders was time consuming and inaccurate
Record Rooms Maintained
Manually
Limited Payment Options
• Paper overload doesn't permit other value added service
• Paper sorting, storage and retrieval was very cumbersome and time consuming
Paper Based Transactions
7
Previous Current
Cont…..
The Transformation
8
1. Business – enabled to register a company
and file statutory documents quickly and
easily
2. Public – to get easy access to records and
get their grievances redressed effectively
3. Professionals - to be able to offer efficient
services to their clients
4. Financial Institutions – to find registration
and verification of charges easy
5. MCA – to ensure proactive & effective
compliance and corporate governance
6. Employees - enabled to deliver best of
services
Nature of Service Prior to MCA21 After MCA21
Name Approval 7 days 1 day
Company incorporations 15 days 1-3 days
BS / AR Filing 60 days Instantaneous
Change in directors 60 days 3 days
Inspection of public
documents
Visit to ROC Online
Facilities for On-line end-end interaction with
MCA services on portal
Provides Any Time, Any Where access to MCA
services on a 24X7 basis
• Revenue Increase from 700 to 1200+ Cr
• ZERO Revenue Leakage
• National Charge Database Established
• Used by all Banks & FIs before loan
disbursal to companies
• Automation of all Internal Functions
• Transaction-wise Payment Reconciliation
Project Objectives and Realization
9
MCA21-Features
• Anytime Anywhere services (24*7*365) enabled
• Automated pre-scrutiny of e-forms
• Verification of credentials of the authorised signatory (DSC and role
check)
• Convenient multiple modes of payment (Credit cards, Internet banking
and physical challans)
• FIFO based, electronic workflow driven, paperless Back office
• Electronic record maintenance preventing quality deterioration
• Institutional arrangement for Project Management and public interface
(PMU)
• Defined performance metrics for Service Level maintenance
• Contractual enforcement of service levels, including a system of
incentives and penalties as part of the commercial terms10
Milestones
Sep, 2002: Project concept initiated
Oct, 2003: Bidding process initiated
Feb, 2004: Formal issue of RFP Document
Feb, 2005: Cabinet Approval
Mar, 2005: TCS Contract Signed
Feb, 2006: Coimbatore pilot launched
Mar, 2006: Delhi pilot launched
Jul, 2006: Completed Nationwide rollout
Sep, 2006: e-Filing mandated
Jan, 2007: Scanning/digitization completed
Jan, 2007: Provisional certification Accorded
11
Visible Achievements
Procedural uniformity across all offices
Speed and certainty of service delivery, with ease of access
Transparency – status of processing of filings and approvals
Problem of malpractices inherent with a paper-based system
addressed (such as ante-date filings, incomplete filings, replacing
documents, etc.)
Establishment of a dependable data for effective compliance
management
Platform for further processes refinement (e.g. central registry)
Empowerment of the citizen/investor with authentic data about
companies through the Internet
Introduced e-stamping from 13th Sept 2009 making incorporation
completely paperless
12
Recent Improvements (2009-10)
E-Stamping:
Introduced E-Stamp from September 2009 as secure, fast and clean
system of stamp duty collection
Joint initiative – MCA, States/ UT and Banks
Dispensed with effort and cost to physically visit the treasury and
saved time
A prominent Green initiative in MCA21 leading to reduction in paper
usage to the extent of 40 lakh pages so far
Emerged as a Model program for replication
New e-Form for rectification of error:Introduced new e-form (Form-68) in Mar’10; enables corporate to rectify mistakes in Incorporation documents through electronic process. 13
Recent Improvements (cont..)
“Company Law Settlement Scheme, 2010” gives
opportunity to the defaulting Companies to enable them to make their
default good by filing belated documents and to become a regular
compliant in future.
“Easy Exit Scheme, 2010” and “Easy Exit
Scheme, 2010” gives opportunity to the defunct companies to
get their names struck off from the register under Section 560 of the
Companies Act, 1956. The EES 2011 was closed on 30.04.2011. Total
36 thousand companies has applied for struck off under section 560 of
the companies Act, 1956 in both the schemes.
14
Recent Improvements (cont..)
Trouble free Peak Filing:
•October and November each year are the peak filing season for
Balance Sheets and Annual Reports
•The Ministry set in motion advance readiness action plan –
• software optimization
• hardware augmentation
• appeal to corporates to stagger filings through media campaigns, portal
message etc.
•More than 12.87 lakh filings were received in the months of Oct & Nov without
any hindrance which is 20% more than last year
•An all time high of 70,000 filings was recorded on 29th Oct 2010 that includes
22,000 balance sheets.
Integration with other regulators:
End-to-end integration with Trademarks Authority through NSDG for informed
regulation is nearing completion. 15
DIN process re-engineering
Application for DIN is being made on eForm and there is no need for submitting documents physically scanned documents along with verification by the applicant will be attached with the eForm and if the eForm is digitally signed by professional or by MD / Director / Secretary of the existing company, DIN shall be granted online. This will reduce the time taken for allotment of DIN from 7-10 days to 1-2 days.
Recent Improvements (cont..)
Challan Payment is not allowed for payment
upto Rs.50000/-
From 2, 3, 18, 32 are made as STP (State
through put process) w.e.f. 01.05.2011 and
eForms are to be added in this category. This
will reduce the ROC workload by around
40%.
Recent Improvements (cont..)
Recent Improvements (cont..)
Introduction of refund Process
There is no refund process in MCA21 for
refund of fee wrongly paid by the user till
recent. Now w.e.f.01.05.2011 the MCA has
allowed refund by way of filing a new refund
eForm for cases of Multiple payments,
incorrect payment or excess payments.
Operational Statistics (as on 31.01.2011)
Average portal hits/ pages viewed per day – 40 lac/ 5 lac
Total filings through the system – 126.76 lac
Peak filing on a single day (on 29.10.2010) – 70,034
Number of companies registered online – 3.42 lac
Company records viewed online – 15.58 lac
Total DIN issued – 20.02 lac
Number of E-stamp transactions – 1.65 lac
Amount of E-Stamp collected – Rs. 25837 lac
E-filing through VFO (Virtual Front Office) – 93%
Online payment transactions (by volume) – 64%
Revenue collection multiplied three fold
19
Impact on Service delivery efficiencies
Nature of Service Prior to MCA21 After MCA21
Name Approval: 7 days 1-2 days
Company Incorporation: 15 days 1-3 days
Change of Name: 15 days 3 days
Charge Regn./ Modification: 10-15 days 2 days
Certified Copy: 10 days 2 days
Registration of Other Documents
Annual Return 60 days Instantaneous
Balance-sheet 60 days -do-
Change in Directors 60 days 1-3 days
Change in Regd. Office Add. 60 days 1-3 days
Increase in Auth. Capital 60 days 1-3 days
Inspection of Public Documents On-line
Focus on delivery of all business critical services in 48 – 72 hours 20
Regulatory efficiency
Easily accessible disclosures of corporate processes and
decisions
Speedy and more effective enforcement action including
scrutiny and inspections without harassment.
Analysis of financial information of companies to detect
accounting and disclosure compliance
Easy to access registry of charges providing critical credit
information about the company.
Analysis of company data to develop risk management
systems to detect abnormalities in financial information filed by companies and assessment of possibility of fraud.
21
MCA21 – Best Practices in e-
Governance
‘Blue print’ Approach – RFP Document
Holistic outsourcing – PPP viability
Digitization of legacy – assembly line approach
RFO – Addressing Digital Divide
DSC – largest usage worldwide
Back office workflow – productivity management
Gateway – simplifying interoperability
Green project – eForm & eStamp (paper elimination)
22
Recognitions
Golden Icon’ in 11th National e-Governance Conference 2008
Dataquest IT Path Breaker Award 2006
“Skoch Challenger Award 2008”
‘Certificate of Excellence’ at Technology Sabha, 2008
Recognized as “a revolutionary step by the Government” in a survey conducted by Ernst & Young
Prime Minister Award for Excellence of Public Administration – 2009
The World Bank in its report has acclaimed E-stamping initiative of the Ministry as one of the significant achievement globally.
23
Current Issues
Finalisation of Exit Management Plan
Changing role of PMU
Formation of SPV
Government Secure Repository (GSR)
24
The Way Ahead
Integration with the other regulators - Income Tax, Trade Mark
Expansion to new services – LLP, OL
Early alerts – aid in prevention of corporate frauds
Data Mining
XBRL for annual statutory filing
25
Thank You
26