FILING OF NDH-3 FORM

[Mr. M. GOVINDARAJAN]

Section 406(1) of the Companies Act, 2013 defines ‘Nidhi’ or ‘Mutual Benefit Society” as a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhi or Mutual Benefit Society, as the case may be.  The Nidhi companies are public limited companies.  The Central Government framed Nidhi Rules, 2014.    Rule 2 of the Rule provides that these rules shall apply to,-

• every company which had been declared as a Nidhi or Mutual Benefit Society under sub-section (1) of section 620A of the Companies Act, 1956;
• every company functioning on the lines of a Nidhi company or Mutual Benefit Society but has either not applied for or has applied for and is awaiting notification to be a Nidhi or Mutual Benefit Society under sub-section (1) of section 620A of the Companies Act, 1956; and
• every company incorporated as a Nidhi pursuant to the provisions of section 406 of the Act.
• every company declared as Nidhi or Mutual Benefit Society under sub-section (1) of section 406 of the Act.

Forms

A Nidhi company is to file the following forms-

• NDH - 1
• NDH - 2
• NDH - 3
• NDH - 4

The procedure for filing NDH - 1 and NDH -2 has already been discussed in my previous articles.

NDH - 3

NDH - 3 form is a half-yearly return to be filed by a Nidhi Company.  This form shall be filed within 30 days from the end of the half year.  For example - for the half year - October 2022 - March 2023 is to be filed within 30.04.2023.  This form is filed to Registrar of Companies duly certified a practicing Company Secretary, practicing Chartered Accountant or a practicing Cost Accountant.

This form has 9 points for which particulars are to be furnished.  Wherever space is not sufficient, separate sheet containing the required details shall be attached.

1. Corporate Identification Number of the company is to be filled.  Then ‘Pre-Fill’ button is clicked.  Then all the information in point 2 will appear.
2. Name of the Company, address of the company and e-mail id of the company.
3. In this point the details of branch offices are to be furnished-

1. Total Number of the branches;
2. Number of branches opened during the half year;
3. Number of branches closed during the half year;

For the purposes of (ii) and (iii) the following information to be furnished for each branch-

• Name of the Branch;
• Address;
• City;
• District;
• State;
• Pin Code.

4. Membership - the following details are to be furnished-

• Total number of members at the beginning of the half year;
• Number of persons admitted during the half year;
• Number of persons who have ceased to be members during half year;
• Total number of members at the end of the year.

5. Deposits - The details of deposits collected by the Nidhi company during the half year period are to be furnished as detailed below-

Details of deposits-

• Fixed Deposit;
• Recurring Deposit;
• Savings Deposit;
• Cumulative deposit;
• Others, if any.

For each deposit the following are to be furnished-           

• Balance of deposit at the beginning of the half year;
• Received during the half year;
• Repaid during the half year;
• Balance of deposit at the end of the half year.

6. Loans - the details of loans given by the Nidhi Company to its members during the half year period are to be furnished as detailed below-

Nature of loans-

• Loans against immovable property;
• Loans against jewels;
• Loans against deposits;
• Other loan, if any (Specify particulars);

For each loan the following are to be furnished-

• Balance of loan at the beginning of the half year;
• Disbursed during the half year;
• Realized during the half year;
• Balance of loans at the end of the half year.

7. Details relating to litigation, if any - in this point the Nidhi Company has to furnish the details of litigation during the half year.  If there is no litigation ‘0’ is to be filled in all boxes.

• No. of cases at the beginning of the half year and amount involved;
• No. of cases filed during the half year and amount involved;
• No. of cases disposed during the half year and amount involved;
• No. of cases at the end of the half year and amount involved.

8. Financial summary of the Company-

1. Ratio of Net owned funds to Deposits;
2. Total amount of unencumbered Term deposits;
3. Number of banks where deposits have been placed.  The details of banks where deposits have been placed are to be furnished-

• Sl. No.
• Name of the Scheduled Commercial Bank/Post Office;
• Address;
• Amount of Deposit (in Rupees).

4. Percentage of unencumbered deposits to the total deposits outstanding;
5. Paid up share capital;
6. Amount of preference paid up share capital-

1. Outstanding at the beginning of the half year;
2. Redeemed during the period;
3. Outstanding at the end of the half year.

7. Net owned fund.

9. Half year end dated.

Attachments

The following are to be attached along with this form-

• Copy of advertisement along with copy of intimation given to the Registrar;
• List of all members with PAN and complete residential address;
• Amount of deposit accepted from each member;
• List of all members who joined during the period with PAN and complete residential address.
• List of all members who ceased during the period with PAN and complete residential address.
• Optional documents (If any)

Declaration

The declaration may be given by the Director or Manager or CEO or CFO or Company Secretary duly signed digitally.  The declaration is as below-

I am authorized by the Board of Directors of the Company vide resolution number  dated to sign this form and declare that all the requirements of Companies Act, 2013 and the rules made there under in respect of the subject matter of this form and matters incidental thereto have been complied with. I also declare that all the information given herein above is true, correct and complete including the attachments to this form and nothing material has been suppressed. It is hereby further certified that the professional (Name and Type i.e. CA/CS/CWA/ to Given) certifying this form has been duly engaged for this purpose.

* Designation

* To be digitally signed by

*DIN of the director; or DIN or PAN of the manager

or CEO or CFO; or Membership number of the company Secretary.

Certificate by practicing professional

This form is to be certified by the practicing professional viz., Practising Company Secretary, Practising Chartered Accountant, Practising Cost Accountant.   The professional is to give the following declaration-

I declare that I have been duly engaged for the purpose of certification of this form. It is hereby certified that I have gone through the provisions of The Companies Act, 2013 and Rules there under for the subject matter of this form and matters incidental thereto and I have verified the above particulars (including attachment(s)) from the original/certified records maintained by the Company/applicant which is subject matter of this form and found them to be true, correct and complete and no information material to this form has been suppressed. I further certify that:

1. The said records have been properly prepared, signed by the required officers of the Company and maintained as per the relevant provisions of The Companies Act, 2013 and were found to be in order;
2. All the required attachments have been completely and legibly attached to this form;
3. It is understood that I shall be liable for action under Section 448 of The Companies Act, 2013 for wrong certification, if any found at any stage.

The professional is to sign this form digitally indicating whether he is an associate member or fellow member and to indicate his Certificate of practice number.

Fees

The fee payable for NDH - 3 is based on the share capital-

• Less than Rs.1,00,000/- - fee will be Rs.200/-
• 1,00,000 to 4,99,999 - fee will be Rs.300/-
• 5,00,000 to 24,99,999 - fee will be Rs.400/-
• 25,00,000 to 99,99,999 - fee will be Rs.500/-

If this form is filed beyond 30 days additional fees, as detailed below, is also to be paid-

• Up to 30 days - 2 times of normal fees;
• More than 30 days and up to 60 days - 4 times of normal fees;
• More than 60 days and up to 90 days - 6 times of normal fees;
• More than 90 days and up to 180 days - 10 times of normal fees;
• More than 180 days - 12 times of normal fees.

Penalty for non filing

Rule 24 provides that if a Nidhi company contravenes any of the provisions of the rules the company and every officer of the company who is in default shall be punishable with fine which may extend to Rs.5000/-.  If the contravention is a continuing one, with a further fine which may extend to Rs.500/- for every day after the first during which the contravention continues.