COMPANIES (APPLICATION FOR EXTENSION OF TIME OR EXEMPTION UNDER SUB-SECTION (8) OF SECTION 58A) RULES, 1979

 

[GSR 244(E), DATED 12-4-1979]

__________________________

 

 

In exercise of the powers conferred by sub-section (8) of section 58A, read with sub-section (1) of section 642 of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following rules, namely :-

 

 

Short title and commencement.

 

1.   (1) These rules may be called the Companies (Application for Extension of Time or Exemption under Sub-section (8) of Section 58A) Rules, 1979.

 

(2)   They shall come into force on the date of their publication in the Official Gazette.

 

Form of application for grant of extension of time or exemption under sub-section (8) of section 58A.

 

2.  Every company seeking extension of time or exemption under sub-section (8) of section 58A of the Companies Act, 1956 (1 of 1956), shall apply in Form 1 appended to these rules and furnish the particulars specified therein.

 

Fee to be paid along with the application.

 

3.  Every application made under rule 2 shall be accompanied by a demand draft drawn in favour of the Pay and Accounts Officer, Department of Company Affairs, New Delhi towards payment of requisite fee as specified in the Companies (Fees on Applications) Rules, 1968.

 

Publication of notice in newspapers before making application.

 

4.  Before making an application under rule 2, the company shall publish a general notice to the members of the public at least once in an English daily newspaper and at least once in a newspaper published in the language of the region having wide circulation in the region in which the registered office of the company is situated, in the manner specified in Form 2 appended to these rules.

 

 

 

 

 

 

 

 

 

 

 

FORM 1

 

[See rule 2 of the Companies (Application for Extension of Time or Exemption

under Sub-section (8) of Section 58A) Rules, 1979]

 

Information required in respect of application for extension

of time or for exemption under sub-section (8) of

section 58A of the Companies Act, 1956

 

PART A

BASIC DATA

 

1.      Name of the company and the address of the registered office

2.      Date of incorporation

3.      Date of commencement of business

4.      Financial year of the company

5.      Name and address of statutory auditors of the company

6.      Name(s) and address(es) of directors of the company, indicating executive position held, if any, in other companies and in case of nominee directors, the names of institutions which they represent.

7.      Whether the company is registered under the MRTP Act?

8.      The main business in which the company is engaged indicating the location of factories, etc.

9.      The date on which the last annual general meeting was held and whether the audited accounts were placed in the annual general meeting.

10.  Names, designations and addresses of the officers of the company to whom powers have been delegated for acceptance/repayment of deposits.

11.  Equity/Preference shares held by each of the following indicating separately the percentage of the same bears to the total equity/preference share capital of the company:

 

(a)              controlling block:

 

                      (i)shares held by directors and their relatives

(ii)   other companies in the same management

               

     (b)               Central/State Government(s)

     ( c)              Financial institutions

[by individual name(s)]

     (d)                nationalised banks

[by individual name(s)]

      (e)              non-residents :

 

(i)      companies not incorporated in India

                             (ii)  foreign nationals.

 

(f)             shareholders not covered in (a) to (e) above holding one per cent or more of the equity shares

      (g)              others:

   

(i)   companies

                        (ii)  Individuals

 

12.  Names and addresses of brokers/agents appointed by the company for procurement of deposits, together with terms of appointment, the rate of commission paid and copies of agreement, if any.

13.  Names and addresses of the financial institutions from which the company has accepted long-term loans, the amounts of such loans, and the name of the leading financial institution, if any.

      

 

PART B

FINANCIAL DATA

     

14.  Effective capital employed by the company on the closing date of last balance-sheet (please indicate the date)

 

(i)      Paid-up capital

(ii)  Share premium

(iii)  Reserves and surpluses

(iv)      (a)  Free reserves

(b)    Other than free reserves

 

(v)     Long-term loans

   (a)  secured

(b)    unsecured

Total                                                            

 

     Less:                                                                                 

     Accumulated loss, preliminary expenses or other intangible asset

     Net effective capital employed.

 

15.  Working results of the company for the last 3 years

 

Year           Year           Year

ending       ending       ending

    on            on              on

…….         ……..        ………

     Rs.          Rs.             Rs.

 

(i)       paid-up capital

(ii)   Effective capital employed

        [see Item No.14]

                  (iii)   Turnover

                  (iv)  Net profits under section 198 of the Act

                  (v)   Dividend declared

                          (rate and quantum)

 

 

 

16.  Net worth and liquidity position of the company during the last 3 years as in Annexure I

 

 

Year           Year           Year

ending       ending       ending

    on            on              on

…….         ……..        ………

     Rs.          Rs.             Rs.

 

 

 

 

 

17.  Cash flow statement indicating information

      (as in Annexure II) in respect of -

           

(a)  preceding 3 years

(b)   current financial year

(c)   the next three years

indicating in particular how the company proposes to generate surplus for payment of deposits.

 

18.  Please indicate the outstanding liability as on the date of application towards repayment of loans and interest to each of the financial institutions from which money has been borrowed and also the amounts repayable towards principal and interest to each of them in the current financial year and during each of the next 3 financial years.

 

19.  Please furnish the following information relating to the position of deposits as on the date of application or as near thereto as circumstances may permit, but not earlier than 60 days from the date of application (The date as on which information is furnished should be indicated)               

 

 

 

                                     (A) Information as per Part A and Part B of                            No        Amount                                                              Form prescribed under rule 10 of the Companies                                Rs.

                                         (Acceptance of Deposits) Rules,     1975.

 

       (B)     (1) Total number of outstanding deposits.

     (2) The amount of outstanding deposits

                 (3) The break-up of outstanding deposits as                                                               per following tables :

 

(i)      amount of deposits which are overdue

(a)   for 2 years and more

(b)   for one year and more but less than 2 years

(c)   for 6 months and  more but less than 1 year

(d)   for 3 months and more but less than 6 months.

(e)   For less than 3 months

Total [Overdue deposits]

           (ii) Break-up of over due deposits as follows:

 

Particulars :

Less than Rs.1,000

More than Rs.1,000 but

Les than Rs.5000

Rs.5000 or more

 

                        (iii) Deposits which are  not overdue –

(a)       Amounts of deposits which will become repayable by 31st March next

(b)       Amounts of deposits which will become repayable in each of the next half year from  April to September and October to March during the next 3 years.

(c)       Amounts of deposits which will become due for repayment after the third year mentioned in (b) above

TOTAL deposits [Overdue and not over due]

 

20.  Please furnish the following information about payment of interest on deposits as on the date for which information is furnished against item 19:

 

(a) Amounts of interest already due for payment but remaining unpaid –

     

(i)                  for 2 years and more

(ii)                for 1 year and more but less than 2 years

(iii)               for 6 months and more but less than one year

(iv)              for 3 months and more but less than 6 months

(v)                for less than 3 months.

 

(b)              Amounts of interest on deposits payment of which will become due –

(i)                  by 31st March next

(ii)                in each of the next half years from April to September and October to March during the next three years

 

21.  Please furnish one copy of each of the return filed with the Registrar of Companies under rule 10 of the Companies ( Acceptance of Deposits) Rules 1975 as on 31st March, 1975 onwards.

22.  Reasons for reduction in turnover, if any, during the last 3 years, the net profits (pre-tax/post-tax) during the next 3 years may be furnished. 

 

Notes :

 

(i) The company should give up-to-date information in respect of all questions in this part.

 

    (ii)  In case the last date of the financial year for which the audited accounts are available is more than 12 months prior to the filling of this form, the information as on the next financial year on the basis of the proforma accounts of the company may be furnished even though they may not be audited.

   (iii)    In case the company has prepared quarterly or half yearly balance sheet/profit and loss accounts, the information should be furnished as on the latest available date in the current financial year as per such accounts.

 

 

 

PART C

PROPOSAL(S) AND REASONS

 

23.  proposal(s) for exemption/extension:

 

(a)         Please indicate in detail exemption from what and/or extension for which is/are sought quoting the relevant provisions of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

(b)         Please indicate the period for which exemption/extension is sought.

(c)         Please furnish a detailed time bound scheme of repayment of deposits during the period for which exemption/extension is sought.

(d)         Please give detailed justification for seeking exemption/extension

(e)         If the question of granting exemption/extension is considered, is the company agreeable to pay the entire amount of interest already due, as indicated in item 20(a) within 3 months from the date of granting, if any, of the exemption/extension?

(f)           If exemption/extension is granted will the company agree to give an undertaking for repayment of interest in future on due dates?

 

24.  Has the proposal for exemption/extension been approved by the board of directors?  If so, please furnish a copy of the resolution.  (If not, the company should take immediate steps to obtain such approval.  It is suggested that this form duly filled-in-draft may be placed before the board of directors for consideration)

 

25.  If extension is sought for repayment of deposits  accepted before 1-2-1975, i.e., the repayment of deposits mentioned in sub-section (3) (a) of section 58A, please furnish the following details:

No.       Amount

                  Rs.

(i)  Amounts of such deposits repayment of which has become overdue as on the date of application

(a)                                  for 3 years and more

(b)                                  for 2 years and more but less than 3 years

(c)                                  for 1 year and more but less than 2 years

(d)                                  for 6 months and more but less than 1 year

(e)                                  for 3 months and more but less than 6 months

(f)                                    for less than 3 months

 

TOTAL

 

            (ii) Deposits which are not overdue -

                

(a)       Amount of deposits which will become payable by 31st March next

(b)       Amount of deposits which will become repayable in each of the next half years from April to September and October to march during the next three years

(c)       Amount of deposits which will become due for repayment after the 3rd year mentioned in (b) above.

(iii)  Amount of interest which has already become repayable on such deposits and has remained unpaid on the date of application:

No.        Amount

                  Rs.

(a)    for 3 years and more

(b)    for 2 years and more but less than 3 years

(c)    for one year and more but less than 2 years

(d)    for 6 months and more but less than 1 year

(e)    for 3 months and more but less than 6 months

(f)      for less than 3 months.

    

          (iv)  Reasons for which the deposits and interest thereon, if any, could not be repaid.

 

26.              If extension is sought for repayment of deposits accepted before 1.2.1975, in contravention of directions issued by the Reserve Bank of India which became repayable by 1st April, 1975 under sub-section (3)(c) of section 58A, please furnish the following information:

 

(i)                  period in which such deposit was taken and the total amount of deposits, which was accepted initially in contravention of the directions issued by the Reserve Bank of India.

(ii)                Number and amount of such deposits, repayment of which is outstanding as on the date of application.

(iii)               Amount of interest, if any, due on such deposits but remaining unpaid as on the date of application.

 

27.              If extension is sought for repayment of deposits accepted after 1.2.1975 in contravention of the Companies (Acceptance of Deposits) Rules, 1975, which became repayable under sub-section (4) of section 58A, please furnish the following information:

 

(i)                  Please indicate which particular rule has been contravened and when, the circumstances in which the rules have been contravened and the amount involved.

(ii)                If deposits have been accepted in excess of prescribed limits please furnish the following details:

 

(a)               Deposits taken initially in excess of the limit prescribed in rule 3(2)(i) of the Companies (Acceptance of Deposits) Rules, 1975.

(b)               Amount of such deposits outstanding as on the date of application.

(c)               Amount of interest, if any, due on such deposits but remaining unpaid as on the date of application.

 

(iii)               (a)        Deposits taken in excess of the limit prescribed in rule 3(2)(ii) of the Companies (Acceptance of Deposits) Rules, 1975

Period in which excess deposits were taken

(b)               Amount of such deposits outstanding as on the date of application.

(c)               Amount of interest, if any, due on such deposits but remaining unpaid as on the date of application.

 

(iv)              Reasons for which excess occurred and why the excess and the interest thereon, if any, could not be repaid.

 

28.              Whether the company has accepted or renewed any deposits even after the excess mentioned in item 27 above was known? If so, please indicate:

 

(i)                  The number of deposits since accepted/renewed

(ii)                The number and amount accepted/renewed in each month after the excess was known

(iii)               The reasons for accepting/renewing deposits in contravention of the rules

 

29.              Whether the company is presently accepting/renewing such deposits?

30.              Whether the company had approached the RBI in the past for any exemption from its directors? If so, whether such exemption was allowed?  Please give copies of relevant correspondence.

31.              Full details of the investment made by the company in the shares and debentures of other bodies corporate.

32.              Is there any scope for disinvestment of such shares, if any?

33.              Full details of the loans granted by the company to other bodies corporate.

34.              Why were the loans mentioned in item 33 above not withdrawn for repayment of deposits?

35.              Full details of the cash and bank balances and easily realisable securities and investments according to the latest balance-sheet of the company.

36.              Why can’t the surplus funds available as per cash flow statement be utilised for repayment of deposits

37.              Is there any liquidation proceedings against the company filed by any depositor pending before any High Court? If so, please furnish the details

38.              Is there any civil suit against the company filed by any depositor for recovery of deposits pending before any Court?  If so, please furnish the details.

39.              Is there any scheme of repayment approved by the High Court?  If so, please furnish the details.

40.              Is there any scheme of rehabilitation of the company approved by the financial institutions/Bankers?  If so, please furnish the details.

41.              Has any show-cause notice been received by any of the directors for contravention of the provisions of section 58A of the Act?  If so, please furnish details thereof

42.              Is there any suit pending against the company and/or its directors for contravention of any one or more of the provisions of the Companies Act, 1956?  If so, please furnish the details thereof.

43.              Please indicate licensed capacity, the installed capacity and production during each of the last 2 years and estimate of production during the current year and next two financial years.

44.              Whether the undertaking owned by the company is in full production at present?  If not, please give details and reasons thereof.

45.              Details of interruption in production during the last 3 years such as strikes/lock-outs, etc., and reasons thereof.

46.              Details of expansion plan/investment plan of the company during the next 3 years.  Please indicate whether the company has  obtained any letters of intent, etc.

47.              Full details of the mortgages and other encumbrances of the assets of the company.

48.              Details of the difficulties experienced by the company in achieving the full production and sales and how the company proposes to overcome these difficulties.

49.              Details of contracts in which directors are interested.

50.              Details of selling agency arrangements, if any, in which the directors are interested.

51.              Details of office/place of profits held by the relatives of directors, if any.

52.              What are the conditions which the company is prepared to undertake if exemption/extension is granted in particular in respect of the following items:

 

(i)                  Composition of the board of directors by taking the nominees of depositors or financial institutions.

(ii)                Restriction on repayment of deposits held by directors and their relatives (give details).

(iii)               Give protection or security to depositors for repayment of deposits.

(iv)              Non-acceptance and non-renewal of further deposits.

(v)                Professionalisation of management

(vi)              Any scheme of reorganizations subject to the supervision of the Court.

(vii)             Restrictions on declaration of dividend to shareholders during the period of extension, if any, granted.

(viii)           Immediate payment of interest already due and assurance for payment of interest in future on due dates.

(ix)              In any other manner.

 

53.              Any other information which the company wants to furnish.

54.              Please furnish the following enclosures:

 

(i)                  One copy each of the articles of association of the company.

(ii)                One copy each of the audited accounts of the company together with directors’ report and auditors’ report for the last 3 years of the company.

(iii)               A copy of the resolution of the board of directors in support of the proposal.

(iv)              One copy of each quarterly, half-yearly or other proforma accounts of the company subsequent to the latest audited accounts.

(v)                One copy each of the advertisement issued in newspapers pursuant to rule 4 of the Companies (Acceptance of Deposits) Rules, 1975.

(vi)              Application fees prescribed (please furnish a crossed demand draft in favour of Pay and Accounts Officer, Department of Company Affairs, New Delhi, drawn at Punjab National Bank, Barakhamba Road, New Delhi).

 

55.              The newspapers in which the company has published notices regarding the intention to apply to Central Government for exemption as in Annexure III and date of publication (press cutting should be attached).

 

 

Date…………….

……………………………….

Signature    

……………………………….

Name of person(s)

……………………………….

Designation

 

 

 


ANNEX I

 

FINANCIAL AND LIQUIDITY POSITIONS OF THE COMPANY

ACCORDING TO THE BALANCE SHEETS OF THE

LAST THREE YEARS

 

 

Year ended on

Year ended on

Year ended on

1.

2.

3.

4.

 

Rs.

Rs.

Rs.

Current Assets (including investments other than trade investments in subsidiary and/or managed companies)

Less:

Current Liabilities (including short-term loans and liabilities)

(A)               Liquid surplus

Add:

(a)               Fixed Assets

(b)               Trade investments and investments in subsidiary and/or managed companies

Less:

Long-term loans and liabilities

(B)              Net worth as on….(date of balance-sheet)

 

Note I: In making the above computation of net worth, adjustments in respect of the following items shall be made:

(i)                  Intangible assets, e.g., goodwill, etc.

(ii)                Doubtful assets, e.g., doubtful and bad debts, etc.

(iii)               Deferred revenue expenditure

(iv)              Accumulated losses

(v)                Arrears of depreciation

(vi)              Arrears of preference shares dividend

(vii)             Any other amount, appearing in the balance-sheet, required to be deducted in accordance with accounting practices.

                                                                        TOTAL

 

 

 

RECONCILIATION OF NET WORTH PAID-UP CAPITAL

Add:

Reserves

            (Please specify details)

Less:

Intangible assets and any other amount required to be deducted

 (vide Note above)

Net worth as on ……… (date of balance-sheet)

 

Note II : If the net worth of the company as indicated in column 4 is less than its paid-up capital, please indicate in details what steps are prepared to be taken to improve the net worth.

 

 

 

ANNEX II

CASH FLOW STATEMENTS

 

 

Three previous years

Current Year

Next Three years

 

Year ended on

Year ended on

Year ended on

Year ended on

Year ended on

Year ended on

Year ended on

1.

2.

3.

4.

5.

6.

7.

8.

A.SOURCE OF FUNDS

Sales and other income

Less cost of sales and other expenditure (excluding depreciation)

Net profit before tax and depreciation

Opening balance of cash

Additional capital raised

Increase in other loans (other than deposits)

Increase in deposits received

Decrease in current assets (other than cash)

Increase in current liabilities

Any other item to be specified

 

                        TOTAL

 

 

 

 

 

 

 

B. USE OF FUNDS

Increase in capital assets

Increase in investments

Secured loans repaid other loans repaid (other than deposits)

Deposits repaid

Increase in current assets (other than cash)

Decrease in current liabilities

Tax payments

Dividends

Any other item (to be specified)

Closing Balance of Cash

 

                        TOTAL

 

 

 

 

 

 

 

 

 

 

FORM 2

[See rule 4]

 

Name of Company ………………………………………

Registered Office…………………………………………

 

Notice is hereby given that the above named Company proposes to apply to the Central government for extension of time to comply with, or for exemption from, all or any of the provisions of section 58A of the Companies Act, 1956 relating to deposits from public.  A copy of the application made is available for inspection at the registered office of the company during the working hours.  Any interested person may send his objections, if any, to the Central Government by means of letter addressed to the Secretary, Department of Company Affairs, 5th Floor,’ A’ Wing, Shastri Bhawan, New Delhi, within thirty days from the date of publication of this notice.