9911796707
TMI BlogChapter XXVI - Draft Rules under Companies Act, 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... t means the Companies Act, 2013 . (ii) Doubtful Asset means a borrowal account which has remained a non-performing asset for more than two years but less than three years. (iii) financial year means financial year as defined in sub-section (41) of section 2 of the Act . (iv) Loss Asset means a borrowal account which has remained a non-performing asset for more than three years or where in the opinion of the Board, a shortfall in the recovery of the loan account is expected because the documents executed may become invalid if subjected to legal process or for any other reason. (v) Member means a member as defined in sub-section (55) of section 2 of the Act . (vi) Net Owned Funds means the aggregate of paid up equity capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet: Provided that: (a) A reserve shall be considered as a free reserve if it is available for distribution as dividend. (b) The amount representing the proceeds of issue of preference shares shall not be included for calculating Net Owned Funds. (vii) Non-Performing Asset means a borrowal account in respect of w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... days from the close of the first financial year after its incorporation and where applicable, the second financial year, the Nidhi shall file a Return of statutory compliances in Form No. 26.1 along with such fee as provided in Annexure B with the Registrar duly certified by a company secretary in practice or chartered accountant or cost accountant. (iii) If a Nidhi is not in compliance with clauses (a) or (d) of sub-rule (i) above, it shall within 30 days from the close of the first financial year, apply to the Regional Director in Form No. 26.2 along with fee specified in Annexure B for extension of time and the Regional Director may consider the application and pass orders within 30 days of receipt of the application. (iv) If the failure to comply with sub-rule (i) of this Rule extends beyond the second financial year, the Nidhi shall not accept any further deposits from the commencement of the second financial year until clauses (a) and (d) of sub-rule (i) of this rule are complied with, besides being liable for penal consequences as provided in the Act. 7. General restrictions/prohibitions No Nidhi shall- (i) carry on the business of chit fund, hire purchase f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees: Provided that the account holders of savings account and recurring deposit only may hold at least one equity share of rupees ten. 9. Membership (i) No Nidhi shall admit any body corporate or trust as a member. (ii) Except as otherwise permitted under these Rules, every Nidhi shall ensure that its membership is not reduced to less than two hundred members at any time. (iii) No minor shall be admitted as a member. However, deposits may be accepted in the name of a minor, if they are made by the natural or legal guardian who is a member of the Nidhi. 10. Net owned Funds: Every Nidhi shall maintain Net Owned Funds (excluding the proceeds of any preference share capital) of not less than ten lakh rupees or such higher amount as the Central Government may specify from time to time. 11 Branches: (i) A Nidhi may open branches, only if it has earned net profits after tax continuously during the preceding three financial years. (ii) Subject to compliance with the aforesaid sub-rule: (a) A Nidhi may open up to three branches within the distric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the deposit. (h) Maturity period of the deposit. (i) Interest payable on the deposit. (j) The rate of interest payable to the depositor in case the depositor withdraws the deposit prematurely. (k) The terms and conditions subject to which the deposit may be accepted / renewed. (l) A summary of the financials of the company as per the latest two audited financial statements as given below: (i) Net Owned Funds (ii) Deposits accepted (iii) Deposits repaid (iv) Deposits claimed but remaining unpaid (v) Loans disbursed against (a) Immovable property (b) Deposits (c) Gold and Jewellery (vi) Profit before Tax (vii) Provision for Tax (viii) Profit after Tax (ix) Dividend per share (m) any other special features or terms and conditions subject to which the deposit is accepted / renewed. (ii) The application form shall also contain the following statements: (a) in case of non- payment of the deposit or part thereof as per the terms and conditions of such deposit, the depositor may approach the Registrar of Companies having jurisdiction over the Nidhi. (b) in case of any deficiency of the Nidhi in servicing its depositors, the depositor may approac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to mortgage loans, the maximum period of recurring deposits shall correspond to the repayment period of such loans granted by the Nidhi. (iii) Savings deposit account shall be opened, provided the maximum balance at any given time qualifying for interest does not exceed fifty thousand rupees at any point of time and the rate of interest shall not exceed two per cent above the rate of interest payable on savings bank account by nationalized banks. (iv) A Nidhi may offer interest on fixed and recurring deposits at a rate not exceeding the maximum rate of interest prescribed by the Reserve Bank of India which the Non-Banking Financial Companies can pay on their public deposits. (v) A Fixed Deposit Account or a Recurring Deposit Account may be foreclosed by the depositor subject to the following conditions: (a) a Nidhi shall not repay any deposit within a period of three months from the date of its acceptance; (b) where at the request of the depositor, a Nidhi repays any deposit after a period of three months, the depositor shall not be entitled to any interest up to six months from the date of deposit; (c) where at the request of the depositor, a Nidhi makes repayment of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified in clauses (a), (b), (c) or (d) above. (iii) For the purposes of sub-rule (ii), the amount of deposits shall be calculated based on the last audited annual financial statements. (iv) A Nidhi shall give loans to its members only against the following securities: (a) Gold, silver and jewellery Provided that the repayment period of such loan shall not exceed one year. (b) Immovable property Provided that the total loans against immovable property (excluding mortgage loans granted on the security of property by registered mortgage, being a registered mortgage under section 69 of the Transfer of Property Act, 1882) shall not exceed fifty percent of the overall loan outstanding on the date of approval by the board, the individual loan shall not exceed fifty percent of the value of property offered as security and the period of repayment of such loan shall not exceed seven years. (c) Fixed deposit receipts, National Savings Certificates, other Government Securities and insurance policies Provided that such securities duly discharged shall be pledged with the Nidhi and the maturity date of such securities shall not fall beyond the loan period or one year whichever is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtgage loans or jewel loans as contained hereunder. (2). Income including interest or any other charges on non-performing assets shall be recognised only when it is actually realised. Any such income recognised before the asset became non-performing and which remains unrealised in a year shall be reversed in the profit and loss account of the immediately succeeding year. (3). (a) In respect of Mortgage Loans, the classification of assets and the provisioning required shall be as under: NATURE OF ASSET PROVISION REQUIRED Standard Asset No provision Sub-standard Asset 10% of the aggregate outstanding amount Doubtful Asset 25% of the aggregate outstanding amount Loss Asset 100% of the aggregate outstanding amount (b) The estimated realisable value of the collateral security to which a Nidhi has valid recourse may be reduced from the aggregate outstanding amount, if the proceedings for the sale of the mortgaged property have been initiated in a court of law within the previous two years of the interest, income or instalment remaining unrealised. (4). Time li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -compliance, he shall specifically state the rules which have not been complied with. 24. Power to enforce compliance (i) For the purposes of enforcing compliance with the Rules prescribed under this Chapter, the Registrar of Companies may call for such information or returns from the Nidhi as he deems necessary and may engage the services of chartered accountants, company secretaries in practice, cost accountants, or any firm thereof from time to time for assisting him in the discharge of his duties. (ii) In respect of any Nidhi which has violated these rules or has failed to function in terms of the Memorandum and Articles of Association, the concerned Regional Director may appoint a Special Officer to take over the management of the Nidhi and such Special Officer shall function as per the guidelines given by such Regional Director. Provided that an opportunity of being heard shall be given to the concerned Nidhi by the Regional Director before appointing any Special Officer. 25. Penalty for non-compliance If a company falling under rule 3 contravenes any of the provisions of the rules prescribed herein, the company and every officer of the company who is in def ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
