Exceptions and modifications with which sub-section (1) applies to a foreign company - GSR 59, - Companies Law

Superseded vide F. No. 1/23/2013-CL-V - S.O. 2463(E) - Dated 19-7-2016 Not. on : No. GSR 59, dated 6-1-1959. Subject:- Exceptions and modifications with which sub-section (1) applies to a foreign company GSR 59.- In exercise of the powers conferred by the proviso to sub-section (1) of section 594 of the Companies Act, 1956 (1 of 1956) (hereinafter referred to as the Act ), and in partial modification of the notification of the Government of India in the Ministry of Finance (Department of Company Law Administration), SRO No. 3216, dated 4-10-1957, the Central Government hereby directs that the requirements of clause ( d ) of sub-section (1) of the said section shall apply to a foreign company which is a shipping or airlines company (hereinafter referred to as the company ), subject to the following exceptions and modifications, namely :- 1. It shall be deemed sufficient compliance of the provisions of clause ( a ) of sub-section (1) of the said section 594 if, in respect of the period ending on or after the 31st day of December, 1956 a company submits to the appropriate Registrar of Companies in India in triplicate- ( i ) a copy of the authenticated balance sheet and profit and loss account (including documents relating to every subsidiary of the company) as submitted by it to the prescribed authority in the country of its incorporation under the provisions of the law in that country; and ( ii ) a copy of the balance sheet and profit and loss account referred to in item ( i ) above, prepared in accordance with the provisions of Schedule VI to the Act, subject to the following further modifications : ( a ) any information or particulars not required to be disclosed in the accounts prepared in the country of incorporation by virtue of any special statutes or orders in that behalf such as, the Companies (Shipping Companies) Exemption Orders, 1948, of the United Kingdom, need not be disclosed; ( b ) instead of the gross earnings together with all the relative operating costs chargeable thereat, only the net earnings shall be shown; ( c ) debts remaining unrealised after a period of three months need not be shown separately under the heading Loans and advances and required under note ( o ) to Part I of Schedule VI to the Act; ( d ) details classifying secured and unsecured loans and debts need not be shown except in respect of debts or loans from or to a body corporate in India, which information shall be disclosed by a note; ( e ) the list and other particulars required to be annexed to the balance sheet under section 372(9) of the Act need be only in respect of body corporate incorporated in India as are deemed to be in the same group as the company; ( f ) disclosure required in note ( i ) to Part I of Schedule VI to the Act of amounts due from other companies under the same management need not be only in respect of such dues from companies registered under the Act as are deemed to be under the same management; ( g ) details under current liabilities and provisions need not be disclosed to the extent of the exemption given in item ( a ) above; and ( h ) sub-divisions of cash and bank balances need not be shown in detail except that the amount relating to the Indian branch shall be indicated by a note. 2. It shall be deemed to be sufficient compliance of the provisions of clause ( a ) of section 594(1) if the balance sheet and profit and loss account as referred to in para ( ii ) above, if they are not certified by auditors appointed in the manner laid down in the Act, are audited by the auditors of the foreign company appointed at the annual general meeting in the country of its incorporation. 3. Notwithstanding anything contained in the above paragraph, the company shall, if so required by notice in writing from the Central Government, furnish to the Central Government such information with regard to its accounts as the Central Government may require.