APPLICATION FOR NOT PROVIDING DEPRECIATION UNDER SECTION 205 (2) (C) OF THE COMPANIES ACT, 1956

 

 

Sl.No.

PARTICULARS

 

DETAILS

 

 

1.

Name of the Company

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2.

Authorised Capital of the Company

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3.

Year for which exemption/permission  is sought

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4.

Detailed reasons and justification in respect of the proposal.

 

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5.

Particulars of fee paid for the application.

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6.

A certified copy of the Board of Directors’ resolution for the exemption sought for indicating the specific proposal.

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7.

Whether a certified copy of Balance Sheet for the last 3 years attached.

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8.

 State whether the company is a Government or a Public/Private Limited company.

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9.

If the company is a Govt. company whether the concurrence of the administrative Ministry is obtained and if so a copy thereof.

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10.

A certificate from the company Secretary/Director certify that no relevant facts/materials to the proposal have been concealed or misrepresented.

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11.

An undertaking that the company will not come up with any public issue or private placement or invite any fresh deposits in the next 18 months.

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12.

If the exemption/permission is sought on the  ground to declare dividend, the rate of dividend and the total amount involve thereon  of dividend .

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13.

Has the company been declaring dividend in the past few years; if so, at what rates? At what rates does the company intend to pay dividend in the current year?

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14.

What is the shareholding of the promoters and their relatives in the company.

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15.

Was the company defaulting in its payments to creditors/bankers or has any plan to re-schedule its payments?

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16.

Whether the company has made any application for payment of managerial remuneration higher than the limits prescribed under Schedule XIII of the Companies Act.

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17.

What is the net worth of the company and how it is going to be affected by not providing for depreciation.

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18.

How the interest of the stakeholders other than shareholders going to be affected.  Current share prices?

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19.

Are there any special circumstances in the year for which exemption is sought? The reasons could be acts of God or general, pertaining to the economy or a sector as a whole or pertaining to business activities of the company alone.

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20.

In case exemption is sought on ground which are not internal to the company’s functioning or pertaining to the business activities of the company, the case should be supported by published facts and figures.

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21.

If the claim is made on grounds like improved technology, longer life of plant and machinery etc., supporting literature should be provided.

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22.

Detailed justification of public interest involved in the proposal.

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23.

Amount of depreciation that is proposed not t o be provided for ?

 

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24.

Number of years in which the deferred depreciation is proposed to be provided for indicating the specific year of its commencement.

 

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25.

How the company is going to make up for non-provision of depreciation at the time when replacement of plant and machinery etc. becomes due ?

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