Modification in section clause (b) of sub‑section (3) of section 209, 620 to Companies Act, 1956 - GSR 770(E), - Companies Law

Notification : No. GSR 770(E), dated 10 ‑ 9 ‑ 1990. Subject:- Modification in section clause (b) of sub ‑ section (3) of section 209, 620 to Companies Act, 1956 GSR 770(E).- In exercise of the powers conferred by sub‑section (1) of section 620 of the Companies Act, 1956 (1 of 1956), the Central Government hereby directs that the provisions of clause (b) of sub‑section (3) of section 209 of the said Act shall not apply to any Government company engaged in the promotion and development of industries, to the extent it relates to income from (a) interest on seed money loans or bridge loans; (b) interest on instalments due on the cost of industrial plots or sheds allotted to entrepreneurs; (c) claims from the Central Government or State Governments in relation to special rebate on the sale of handloom clothes as declared by the Ministry of Textiles (Office of the Development Commissioner for Handlooms) from time to time as a special measure for boosting the sale of handloom clothes produced in different parts of the country: Provided that such accrued income, which is not accounted for in the books of account, is disclosed by way of a note in the company s annual accounts. A copy of this notification has been laid in draft before both the Houses of Parliament as required by sub‑section (2) of section 620 of the said Act.