lR;eso t;rs

FIFTY-FIRST

ANNUAL REPORT

ON THE WORKING AND ADMINISTRATION OF THE COMPANIES ACT, 1956 YEAR ENDED MARCH 31, 2007

MINISTRY OF CORPORATE AFFAIRS GOVERNMENT OF INDIA NEW DELHI

The Report has been prepared in pursuance of Section 638 of the Companies Act, 1956, which lays down that the Central Government shall cause a general Annual Report on the Working and Administration of the Act to be prepared and laid before both Houses of Parliament within one year of the close of the year to which the Report relates. It covers the period from April 1, 2006 to March 31, 2007.

New Delhi

CONTENTS

CHAPTER CHAPTER I General Review CHAPTER II Review of Corporate Sector CHAPTER III Applications and Documents received under different Sections of the Companies Act, 1956 CHAPTER IV Corporate Management CHAPTER V Inspections, Investigations, Prosecutions, Oppression & Mismanagement, Cost Audit, Investors Education and Protection Fund, Investor Protection and Vanishing Companies CHAPTER VI Liquidation of Companies CHAPTER VII Mobilization of Funds by the Corporate Sector Chapter VIII Financial Aggregates of Corporate Sector APPENDIX STATISTICAL STATEMENTS (I TO XXV)

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CHAPTER I

General Review

Ministry of Corporate Affairs

The Report relates to the 51st year of the Working & Administration of the Companies Act, 1956, namely, the financial year ending 31st March, 2007.

of the Companies Act, 1956. Certain powers of the Central Government under the Companies Act have been delegated to the Regional Directors. They have also been declared as Heads of Department. There is an Inspection Unit attached to the office of every Regional Director for carrying out the inspection of the books of accounts of companies under Section 209A of the Companies Act, 1956. 1.1.3 Registrars of Companies (ROCs) appointed under Section 609 of the Companies Act, 1956 covering various States and Union Territories are vested with the primary duty of registering companies floated in the respective States and the Union Territories and ensuring that such companies comply with statutory requirements under the Act. These offices function as registry of records, relating to the companies registered with them, which are available for inspection by members of the public on payment of the prescribed fee. The Central Government exercises administrative control over these offices through the respective Regional Directors. 1.1.4 The Official Liquidators are officers appointed by the Central Government under Section 448 of the Companies Act, 1956 and are attached to various jurisdictional High Courts. The Official Liquidators are under the administrative charge of the respective Regional Directors, who supervise their functioning on behalf of the Central Government. In the conduct of winding-up of affairs of the companies, however, Official Liquidators act under the directions and supervision of the High Courts. At the same time, the Central Government have the responsibility under Section 463 of the Companies Act, 1956 of exercising

Organisational set-up
1.1.1 The Ministry of Corporate Affairs continues to deal with the working and administration of the Companies Act, 1956. The Ministry has a three tier organisational set-up for administration of the Act, namely, the Secretariat at New Delhi, the Regional Directors at Mumbai, Kolkata, Chennai and Noida (U.P.) and the Registrars of Companies in States and Union Territories. The Official Liquidators who are attached to various High Courts functioning in the country are also under the overall administrative control of the Ministry. The set-up at the Headquarters includes two Joint Secretaries, an Economic Adviser, Cost Adviser, two Directors of Inspection and Investigation and other officials providing expertise on legal, accounting, economic and statistical matters. It also includes the Company Law Board (CLB) and its four Benches located at New Delhi, Mumbai, Kolkata and Chennai, besides the Principal Bench at New Delhi and the additional Principal Bench at Chennai. 1.1.2 The four Regional Directors are in-charge of the respective regions, each region comprising a number of States and Union Territories. They supervise the working of the offices of the Registrars of Companies and the Official Liquidators working in their regions. They also maintain liaison between the respective State Governments and the Central Government in matters relating to the administration

overall control over the Official Liquidators to ensure that they faithfully perform their duties and duly observe all the requirements imposed on them under the Act or the Rules there-under.

passed by the Company Law Board, application under Section 634A of the Companies Act, 1956 for enforcing the orders are entertained. During the year 2006-07, 1206 applications were considered under Section 58A(9) of the Companies Act, 1956 and 45QA of the RBI Act, 1934 of which 709 were disposed of. Under other Sections of the Companies Act, 1956, 6230 petitions were considered out of which 5065 petitions were disposed of during the year. This includes 820 cases compounded under Section 621A of the Companies Act, 1956. 1.2.4 As against the sanctioned strength of 9 Members (including Chairman and Vice-Chairman) the constitution of the Company Law Board as on 31st March, 2007 was as follows:1. 2. Shri S. Balasubramanian, Chairman Shri K.K. Balu, Vice Chairman, Addl. Principal Bench, Chennai Shri C.D. Paik, Member, Western Region, Mumbai 4. Smt. Vimla Yadav, Member, Northern Region, New Delhi 1.2.5 In respect of companies for which schemes have been sanctioned for repayment of public deposits, a Hardship Committee has been constituted for each of those companies. The Hardship Committee meetings are held every month/quarter to decide claims based on merits in respect of each case in the manner directed by CLB in its order. The working of Committees has been revamped since October, 2006 to ensure 100% refund on hardship ground. 1.2.6 The details of petitions/applications received and disposed of by all the Regional Benches including the Principal Bench and Additional Principal Bench during the period from 1.04.2006 to 31.03.2007 are given in Table 1.1.

Company Law Board

1.2.1 The Company Law Board has been functioning as an independent quasi-judicial body w.e.f. 31.5.1991 set up by the Central Government under Section 10E of the Companies Act, 1956. The Company Law Board has framed Company Law Board Regulations, 1991 prescribing the procedure for filing applications/petitions before it. The Central Government has also prescribed fees for making applications/petitions before the Company Law Board under the Company Law Board (Fees on applications and Petitions) Rules 1991. 1.2.2 The Board has its Principal Bench at New Delhi and Additional Principal Bench at Chennai. It has Regional Benches at Mumbai, Kolkata, Chennai and New Delhi. The matters falling under Sections 235, 237(b), 247, 248, 250, 388B, 408 and 409 and matters falling under Chapter VI of Part VI of the Companies Act,1956 and under Section 2A of the Monopolies and Restrictive Trade Practices (MRTP) Act are dealt with by the Principal Bench at New Delhi and Additional Principal Bench, Chennai in so far as Southern Region is concerned. In order to reduce the pendency due to shortage of Members, Single Member Bench has been entrusted to hear all types of cases from September, 2002 onwards. 1.2.3 Petitions/Applications under Sections 17, 18, 19, 58A, 58AA, 79/80A, 111/111A, 113/113(3), 117, 117B, 117C, 118, 141, 144, 163, 167, 186, 196, 219, 269, 284, 304, 307, 614 , 621A and 643A of the Companies Act, 1956 and Section 45QA of the Reserve Bank of India Act, 1934 are filed before Regional Benches. In case the company fails to comply with the directions contained in the orders so

3.

Table 1.1
Consolidated Statement of Petitions/ Applications received, disposed of and pending during the period from 1.4.2006 to 31.3.2007
Composition of Bench & Section 1 Opening Balance Received as on 1.4.2006 during theyear 2 3 T otal Disposed of (Col. 2 & 3) during the year 4 5 Pending as on 31.3.2007 6

Single Member Bench

Sec. 17 Sec. 18/19 Sec. 45QA of RBI Act. Sec. 58A(9) Sec. 58AA(1) Sec. 79 Sec. 80A Sec. 113/113(3) Sec. 117 C Sec. 141 Misc. Applications Sec. 163 Sec. 167 Sec. 186 Sec. 196 Sec. 219 Sec. 284 Sec. 614 Sec. 621A Sec. 634A Total (a) 75 2 458 586 17 1 1 15 216 50 10 7 13 1 2 2 1 3 146 30 1636 744 29 43 119 10 0 3 55 2 2399 65 2 4 3 4 1 8 1 868 73 4433 819 31 501 705 27 1 4 70 218 2449 75 9 17 4 6 3 9 4 1014 103 6069 756 29 414 295 4 0 0 61 41 2394 59 5 9 3 4 3 7 2 820 102 5008 63 2 87 410 23 1 4 9 177 55 16 4 8 1 2 0 2 2 194 1 1061

Double Member Bench

Sec. 111 Sec. 634 A Total (b) Total (a+b) 128 1 129 1765 100 1 101 4534 228 2 230 6299 111 0 111 5119 117 2 119 1180

Principal Bench and Additional Principal Bench

Cases u/s. 235,237,247,250, 388(b), 397/398, 408, 409 and Interlocutary Applications. Grand Total 418 2183 719 5253 1137 7436 655 5774 482 1662

Petitions/Applications considered and disposed of by the Company Law Board during the period from 1.4.2006 to 31.3.2007 Single Member Bench

Double Member Bench

Principal Bench and Additional Principal Bench

4 4

MCA21 E-Governance Project

1.3.1 The Ministry of Corporate Affairs (MCA) has implemented an e-Governance initiative called MCA21 e-Governance Project. It is built on the Governments vision to introduce a service-oriented approach in the design and delivery of Government services. The Project offers availability of all registry related services including filing of documents, registration of companies and public access to corporate information through a secure portal. The portal services can be accessed/ availed from anywhere, at any time that best suits the corporate entities, professionals and the public at large. Thus, MCA21 enable efficient delivery of services and supervision of corporate processes through the use of modern information technology and computers in an easy and transparent manner. 1.3.2 The objective of the e-governance program is to improve the speed and certainty in delivery of MCA services in a transparent manner. This improvement is ensured primarily through the mechanism of secure electronic filing (e-filing) and easy online payment for all the services provided by the Registrar of Companies. It is, therefore, a significant step towards an end-to-end paperless delivery of the Government services with widespread use of Digital Signatures to carry out e-filing in a secure manner in conformity with the Information Technology Act, 2000. Starting with the launch of the first pilot on February 18, 2006 from Coimbatore and the major launch of the second pilot from Delhi by the Honble Prime Minister on March 18, 2006, the programme was rolled out at all the ROC locations in a phased manner by September 4, 2006. Electronic filing, using Digital Signatures, was made compulsory from September 16, 2006 with the amendment in the Companies Act, 1956. The facility for online payment through Credit Card and Internet Banking has also been provided on the portal through a secure payment gateway, to ensure prompt recognition of payment and delivery of services.

1.3.3 The solution architecture provides for a Data Centre, which has been set-up at Delhi and a Disaster Recovery Centre at Chennai. In the event of any technology break-down or disruption of services from the Data Centre, the services can be restored within a time-frame of twelve hours by taking recourse to the Disaster Recovery Centre. The project has been designed with provision for interoperability and interface with other Government Departments/ Ministries. 1.3.4 Keeping in view that the stakeholders including corporate entities and the public may face certain difficulties in the beginning in switching over from the manual filing system to an electronic filing system, facilitation centres at 52 locations across the country have been established to provide complete range of services for e-filing of documents to the st akeholders who do not have the necessary computing/ IT infrastructure or capability to use the same for e-filing from their own locations. The Project provides for continuation of this support for a period of three years from the Project Implementation Completion date without any charge to the stakeholders. Besides, a scheme for Certified Filing Centres (CFCs) managed through the practising professionals was introduced following the concept of user charges. About 900 such CFCs have been authorised throughout the country. 1.3.5 A concept of Director Identification Number (DIN) has been introduced to create a comprehensive and authentic database on the Directors. The DIN in the form of a unique identifier for an existing Director or a future intending director, containing personal information would help in fixing the identity of the person and also co-relate his participation in other companies, past or present. 1.3.6 The increased outreach and easy accessibility has increased the rate of compliance by the companies. The compliance rate of filing of Annual Returns and the Balance Sheets by the companies

has registered an increase of 60% over the previous year. The operational statistics, as on March 31, 2007, are as under: SL.No. 1 Description 2 Number 3

Filling Status as on March 31, 2007 1 2 3 4 5 6 7 8 9 10 11 12 Average portal hits per day Peak Portal hits (29-Nov-2006) Maximum number of documents filed on a day (29-Nov-2006) Total filings done till date Companies registered online Total DIN issued till date Company records viewed online Number of Balance Sheets filed Number of Annual Returns filed Number of DIN-3 filed E-filing through VFO Online Payment transactions 20 lakhs 65 lakhs 36,242 18.33 lakhs 44,008 5.04 lakhs 2 lakhs 3.11 lakhs 3.14 lakhs 1.42 Lakhs 90% 33%

1.3.7 The project was recognized with the award of a path-breaking initiative for the year 2006. In a survey of the Chief Financial Officers (CFO) of top companies conducted by the Ernst & Young and aired on the CNBC, 92% of the CFOs unanimously qualified this initiative as a revolutionary step by the Government.

1.4.2 The Ministry has notified the Companies (Amendment) Act, 2006 with effect from 16 t h September, 2006 and 01st November, 2006 which provides for allotment of Director Identification Number (DIN) to the existing and intending directors who are on the Board of Companies registered under the Companies Act, 1956. The Amendment Act further provides for filing of returns/documents and other records/applications by the companies through electronic media. 1.4.3 Pursuant to the provisions of the Companies (Amendment) Act, 2006, the Ministry has notified the Companies (Electronic Filing and Authentication of Documents) Rules, 2006 effective from 16 t h September, 2006 and the Companies (Director Identification Number) Rules, 2006 effective from 01st November, 2006.

Legislative Changes made to Rules relating to MCA-21 e-governance Project and Companies ( Accounting Standards) Rules.
1.4.1 The Ministry has taken up an exercise for notifying amendments to various rules and regulations made under the Companies Act, 1956 so as to make the rules and regulations and forms prescribed there-under compatible with Ministrys eGovernance programme, namely, MCA21.

Revision of Companies Act,1956

1.5 With regard to comprehensive revision of Companies Act, a concept paper on Company Law was placed on Ministrys website on 4.8.2004. Wide consultations were held on the basis of responses received. An expert Committee headed by Dr. J.J. Irani was also setup to advise the Government on issues relating to company law. The committee submitted its Report on 31st May 2005. The final proposal for comprehensive amendments to the Companies Act, 1956 are being prepared in the form of a comprehensive Bill and being vetted by the Legislative Department of M/o Law & Justice. Once finalized, a new Companies Bill would be introduced in the Parliament with appropriate approvals.

notified by the Central Government in exercise of powers under section 211(3C) of the Companies Act, 1956. The Central Government notifies ASs after obtaining the recommendations of the National Advisory Committee on Accounting Standards (NACAS) constituted under section 210 A of the Companies Act, 1956. 1.6.4 With effect from December 7, 2006, 28 Accounting Standards, i.e., AS 1 to 7 and AS 9 to 29, have been notified by the Central Government under the Companies Act, 1956 on the recommendation of National Advisory Committee on Accounting Standards (NACAS). 1.6.5 Prior to this, from 1977, the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India used to issue Standards of Accounting for Members of the profession of Chartered Accountancy to follow. 1.6.6 The Accounting Standards are notified by the Government keeping in view international developments wherein International Accounting Standards/ International Financial Reporting Standards (IASs/IFRSs) are issued by the International Accounting Standards Board (IASB). The approach adopted is that of convergence with international norms laid down by IASs/IFRSs

Accounting Standards
1.6.1 Pursuant to the provisions of section 21(3C) and 210A of the Companies Act, 1956, the Ministry in consultation with National Advisory Committee on Accounting Standards has notified the Companies (Accounting Standards) Rules, 2006. 1.6.2 The paradigm shift in the economic environment in India during last few years has led to increased attention being devoted to accounting standards as a means towards ensuring potent and transparent financial reporting by corporates. Further, increase in the volume of capital raised cross-border has also generated considerable interest in common internationally accepted accounting principles. Initiatives taken by International Organisation Securities Commission (IOSCO) towards propagating International Accounting St andards (IASs)/ International Financial Reporting Standards (IFRSs), issued by the International Accounting Standards Board (IASB), as a uniform language of business to protect the interests of international investors have brought into focus the need for development of Accounting Standards. 1.6.3 In India, Accounting Standards (ASs) are

NationalAdvisory Committee on Accounting Standards

1.6.7 In 1999, the provisions (section 210A) for setting up a National Advisory Committee on Accounting Standards (NACAS) were inserted in the Companies Act, 1956 through Companies (Amendment) Act, 1999. NACAS was set up to advise the Central Government on the formulation and laying down of accounting policies and accounting standards for adoption by companies or class of companies under the Companies Act, 1956. This body is presently chaired by Shri Y.H.Malegam, renowned Chartered Accountant. The other

members of this Committee are representatives from: (a) Central Government (in the Ministry of Corporate Affairs); (b) Central Board of Direct Taxes (CBDT); (c) Comptroller and Auditor General of India (C&AG); (d) Reserve Bank of India (RBI); (e) Securities and Exchange Board of India (SEBI); (f) Institute of Chartered Accountants of India (ICAI); (g) Institute of Cost and Works Accountants of India (ICWAI); (h) Institute of Company Secretaries of India (ICSI); (i) Chambers of Commerce (Two representatives); and (j) A person with background in accountancy, finance or business management from a recognized academic Institution. 1.6.8 The NACAS examines recommendations made by ICAI regarding accounting standards in the light of the international practices and their relevance in Indian context before making recommendations to the Central Government for prescribing them under the Companies Act, 1956.

AS 9 AS 10 AS 11

Revenue Recognition Accounting for Fixed Assets The Effects of Changes in Foreign Exchange Rates

AS 12 AS 13 AS 14 AS 15 AS 16 AS 17 AS 18 AS 19 AS 20 AS 21 AS 22

Accounting for Government Grants Accounting for Investments Accounting for Amalgamations Employee Benefits Borrowing Costs Segment Reporting Related Party Disclosures Leases Earnings Per Share Consolidated Financial Statements Accounting for Taxes on Income Accounting for Investments in Associates in Consolidated Financial Statements

Present status of Accounting Standards in India

1.6.9 So far, 29 Indian Accounting Standards on the following subjects have been issued: AS 1 AS 2 AS 3 AS 4 Disclosure of Accounting Policies Valuation of Inventories Cash Flow Statements Contingencies and Events Occurring after the Balance Sheet Date AS 5 Net Profit/Loss for the Period, Prior Period Items and Changes in Accounting Policies AS 6 AS 7 AS 8 Depreciation Accounting Construction Contracts Accounting for Research and Development (Withdrawn pursuant to AS 26 becoming mandatory)

AS 23

AS 24 AS 25 AS 26 AS 27

Discontinuing Operations Interim Financial Reporting Intangible Assets Financial Reporting of Interests in Joint Ventures Impairment of Assets Provisions, Contingent Liabilities and Contingent Assets

AS 28 AS 29

Amendments made to the Acts governing the Chartered Accountants Act, 1949, Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980.
1.7.1 The Professional Services are provided by the members of the Institute of Chartered Accountants

of India (ICAI), the Institute of Cost and Works Accountants of India (ICWAI) and the Institute of Company Secretaries of India (ICSI). The professionals such as the chartered accountants, cost accountants and the company secretaries, trained by these Institutes, provide a range of service to corporate entities and have a major role to play, especially in the new economic scenario, where many companies are raising funds from the capital market and are required to conduct their operations in the interest of a wide range of stakeholders. To ensure that in this new environment the professionals do their job with due diligence, are accountable for their work and are able to exploit new opportunities becoming available with the opening up of the world economy, the Acts governing these Institutes viz. the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Company Secretaries Act, 1980 were amended in 2006. 1.7.2 The main features of the Amendments were providing for an institutionalized disciplinary mechanism which could ensure well-considered yet expeditious disposal of the complaints against members of the Institutes and as such bringing out greater accountability of the members, providing for establishment of a Quality Review Board having outside experts to review the quality of services provided by the members of the Institutes, bringing out transparency in the financial affairs of the Institute providing greater autonomy to the Councils in the matters of fixing various fees, enabling the members of the Institutes to form multi-disciplinary firms and offer multi-professional services in a competitive and commercial manner, etc. 1.7.3 The Amendment Acts also provide for framing rules by the Central Government on certain aspects governed by the Acts so as to ensure proper implementation of the provisions of the Acts. In accordance with the provisions of the Amendment Acts, all the required rules, indicated below, have

already been notified:-

Institute of Chartered Accountants of India

(i) The Chartered Accountants (Nomination of Members to the Council) Rules, 2006 The Chartered Accountants (Amendment) Regulations, 2006 (iii) The Chartered Accountants (Election to the Council) Rules, 2006 (iv) The Chartered Accountants (Election Tribunal) Rules, 2006 (v) The Appellate Authority (allowances payable to, and other terms and conditions of service of Chairperson and members and the manner of meeting expenditure of the Authority) Rules, 2006. (vi) The Chartered Accountants Procedures of Meetings of Quality Review Board, and Terms and Conditions of Service and allowances of the Chairperson and members of the Board Rules, 2006. (vii) The Chartered Accountants (Procedure of Investigations of Professional and Other Misconduct and conduct of Cases) Rules, 2007.

(ii)

Institute of Cost & Works Accountants of India

(i) The Cost and Works Accountants (Nomination of Members of the Council) Rules, 2006 The Cost and Works Accountants (Election Tribunal) Rules, 2006 (iii) The Cost and Works Accountants (Election to the Council) Rules, 2006

(ii)

(iv) The Cost and Works Accountants (Procedures of Meetings of Quality Review Board, and Terms and Conditions of Service an allowances of the Chairperson and members of the Board) Rules, 2006

(v)

The Cost and Works Accountants (Procedure of Investigations of Professional and Other Misconduct and conduct of Cases) Rules, 2007

(iv) The Company Secretaries Procedures of Meetings of Quality Review Board and Terms and Conditions of Service and Allowance of the Chairperson and Members of the Board Rules, 2006 (v) The Company Secretaries (Procedure of Investigations of Professional and Other Misconduct and conduct of Cases) Rules, 2007.

Institute of Company Secretaries of India

(i) The Company Secretaries (Nomination of Members to the Council ) Rules,2006 The Company Secretaries (Election to the Council) Rules,2006 (iii) The Company Secretaries (Election Tribunal) Rules,2006

(ii)

Notifications, Circulars and Department Circulars

1.8 During the period from 1.4.2006 to 31.3.2007, the following Notifications, Circulars and department Circular were issued:-

NOTIFICATIONS :Sl.No. Notification Number 1. S.O.-1273 (E) Date 9.8.2006

Subject Constitution of Advisory Committee namely National Advisory Committee on Accounting Standards (NACAS). Notification of the Cost and Works Accountants (Amendment) Act, 2006. Notification of the Company Secretaries (Amendment) Act, 2006. Notification of provision of the Chartered Accountants (Amendment) Act, 2006

2.

S.O.-1274 (E)

8.8.2006

3.

S.O.-1275 (E)

8.8.2006

4.

S.O.-1276 (E)

8.8.2006

5.

S.O.-1277 (E)

8.8.2006

Notification of provision of the Company Secretaries (Amendment) Act, 2006

6.

S.O.-1278 (E)

8.8.2006

Notification of provision of the Cost and Works Accountants (Amendment) Act, 2006

7.

GSR.-488 (E)

18.8.2006

Notification of the Cost and Works Accountants (Nomination of Members of the Council) Rules, 2006... Notification of the Company Secretaries (Nomination of Members of the Council) Rules, 2006. Notification of the Chartered Accountants (Nomination of Members of the Council) Rules, 2006. Amendment to the Companies Regulations, 2006. Amendment to the GSR-978 (E) dated 28.5.1963 published in the Gazette under section 620A of the Companies Act, 1956.

8.

GSR.-489 (E)

18.8.2006

9.

GSR- 490 (E)

18.8.2006

10. 11.

GSR-497 (E) GSR-517(E)

21.8.2006 31.8.2006

10

Sl.No. Notification Number 12. GSR-525 (E)

Date 31.8.2006

Subject Corrigendum to GSR-148(E) dated 8.3.2006in respect of the Cost Audit Report (Amendment) Rules, 2006. Corrigendum to GSR-147(E) dated 8.3.2006 in respect of the Companies (appointment of Sole Agents) Amendment Rules, 2006.

13.

GSR-526 E)

31.8.2006

14.

GSR-533 (E)

5.9.2006

Notification of the Company Secretaries (Election of the Council) Rules, 2006. Notification of the Chartered Accountants (Election of the Council) Rules, 2006. Notification of section 6 of the Company Secretaries (Amendment) Act, 2006.

15.

GSR-534 (E)

5.9.2006

16.

S.O.-1439 (E)

5.9.2006

17.

S.O.-1440 (E)

5.9.2006

Notification of section 6 of the Chartered Accountants (Amendment) Act, 2006.

18.

GSR.-546 (E)

8.9.2006

Notification of declaration 34 more Companies as Nidhi Companies.

19.

GSR-556 (E)

14.9.2006

Notification of the Companies (Third Amendment) Regulations, 2006. Notification of the Companies (Electronic filing and authentication of document) Rules, 2006. Notification of Section 4 of the Companies (Amendment) Act, 2006. Notification of the Companies (Central Governments) General Rules and Forms (Second Amendment) Rules, 2006.

20.

GSR-557 (E)

14.9.2006

21.

S.O.-1529 (E)

14.9.2006

22.

GSR-555 (E)

14.9.2006

23.

GSR-648 (E)

19.10.2006

Notification of Section 2 and 3 of the Companies (Amendment) Act, 2006.

24.

GSR-649 (E)

19.10.2006

Notification of the Companies (Director Identification Number) Rules, 2006.

25.

GSR-650 (E)

19.10.2006

Notification of the delegation of Powers under section 266-A and 266-B of the Companies (Amendment) Act, 2006 to the Regional Director, Joint Director, Deputy Director, Assistant Director posted in the Office of Regional Director, Northern Region.

26.

S.O.-1844 (E)

26.10.2006

Notification of the Scheme for filing of Statutory Documents and other Transactions of Companies in Electronic Mode.

11

Sl.No. Notification Number 27. GSR-621 (E)

Date 4.10.2006

Subject Corrigendum to GSR-557 (E) dated 14th September, 2006 in respect of the Companies (Electronic Filing and Authentication of Documents) Rules, 2006.

28.

GSR-708 (E)

17.11.2006

Notification of the Chartered Accountants (Election Tribunal) Rules, 2006.

29.

GSR-709 (E)

17.11.2006

Notification of the Company Secretaries Rules, 2006.

(Election Tribunal)

30.

GSR-710 (E)

17.11.2006

Notification of the Cost and Works Accountants Tribunal) Rules, 2006

(Election

31.

GSR-711 (E)

17.11.2006

Notification of the Appellate Authority (Allowances payable to, and other terms and conditions of service of Chairperson and Members and the members of meeting expenditure of the Authority) Rules, 2006.

32.

GSR-712 (E)

17.11.2006

Notification of the Cost and Works Accountants (Election to the Council) Rules, 2006. Notification of the provision of the Company Secretaries (Amendment) Act, 2006. Notification of the provision of the Cost and Works Accountants (Amendment ) Act, 2006

33.

S.O.-1983 (E)

17.11.2006

34.

S.O.-1984 (E)

17.11.2006

35.

S.O.-1985 (E)

17.11.2006

Notification of the provision of the Chartered Accountants (Amendment ) Act, 2006

36.

GSR-734 (E)

27.11.2006

Notification of the Cost and Works Accountants procedures of Meeting of Quality Review Board, and terms and conditions of service and allowances of the Chairperson and members of the Board Rules, 2006.

37.

GSR-736 (E)

27.11.2006

Notification of the Company Secretaries procedures of Meeting of Quality Review Board, and terms and conditions of service and allowances of the Chairperson and members of the Board Rules, 2006.

38.

GSR-735 (E)

27.11.2006

Notification of the Chartered Accountants procedures of Meeting of Quality Review Board, and terms and conditions of service and allowances of the Chairperson and members of the Board Rules, 2006

39.

GSR-739 (E)

7.12.2006

Notification of the Companies (Accounting Standards) Rules, 2006.

12

Sl.No. Notification Number 40. GSR-14 (E)

Date 9.1.2007

Subject Notification of Amendment to proviso to rule-4 of the Companies (Director Identification Number) Amendment Rules, 2006.

41.

S.O.-20 (E)

9.1.2007

Notification of Companies as Public Financial Institution under section 4A of the Companies Act, 1956.

42.

GSR-81 (E)

12.1.2007

Corrigendum to the Notification No.GSR- 712 (E) dated 17.11.2006 in respect of Cost and Works Accountants (Election to the Council) Rules, 2006.

43.

GSR-111 (E)

27.2.2007

Notification of the Company Secretaries (Procedures of Investigations and professional and other misconduct and conduct of cases) Rules, 2007.

44.

GSR-112 (E)

27.2.2007

Notification of the Chartered Accountants

(Procedures of

Investigations and professional and other misconduct and conduct of cases ) Rules, 2007 45. GSR-113 (E) 27.2.2007 Notification of the Cost and Works Accountants (Procedures of Investigations and professional and other misconduct and conduct of cases) Rules, 2007. 46. S.O.-339 (E) 9.3.2007 Notification of the Constitutions of National Advisory Committee on Accounting Standards (NACAS). Corrigendum to the Notification No.734 (E) dated 27.11.2006 in respect of Cost and Works Accountants Procedures of Meeting of Quality Review Board and terms and conditions of services and allowances to the Chairperson and members of the Board Rules, 2006. 48. GSR-225 (E) 22.3.2007 Corrigendum to the Notification No.708 (E) dated 17.11.2006 in respect of the Chartered Accountants (Election Tribunal) Rules, 2006. 49. GSR-226 (E) 22.3.2007 Corrigendum to the Notification No.710 (E) dated 17.11.2006 in respect of the Cost and Works Accountants (Election Tribunal) Rules, 2006. 50. GSR-227 (E) 22.3.2007 Corrigendum to the Notification No.709(E) dated 17.11.2006 in respect of the Company Secretaries (Election Tribunal) Rules, 2006 51. GSR-265 (E) 29.3.2007 Amendment to the proviso to rules 4 of the Companies (Director Identification Number) Amendment Rules, 2007.

47.

GSR-224 (E)

22.3.2007

13

CIRCULARS :Sl.No. Circular Number 1. 05/2006 Date 3.4.2006 Subject Amendment to the Companies (Appointment of Sole Agents) Rules, 1975. 2. 06/2006 12.6.2006 Gazette Notification of Ministry of Law and Justice (Legislative Department) regarding the Companies (Amendment) Act, 2006 (No.23 of 2006) published on 30.5.2006. 3. 07/2006 17.8.2006 Circulation of Notification, S.O.-1273 (E) dated 9.8.2006 regarding Constitution of Advisory Committee namely National Advisory Committee on Accounting Standards (NACAS). Circulation of Notification, S.O.-1274 (E) dated 8.8.2006 regarding Cost and works Accountants (Amendment) Act, 2006. Circulation of Notification, S.O.-1275 (E) dated 8.8.2006 regarding Company Secretaries (Amendment) Act, 2006. Circulation of Notification, S.O.-1276 (E) dated 8.8.2006 regarding provision of the Chartered Accountants (Amendment) Act, 2006. Circulation of Notification, S.O.-1277 (E) dated 8.8.2006 regarding provision of the Company Secretaries (Amendment) Act, 2006. Circulation of Notification, S.O.-1278 (E) dated 8.8.2006 regarding provision of the Cost and Works Accountants (Amendment) Act, 2006 4. 08/2006 29.8.2006 Circulation of Notification No. GSR-488 (E) published on 18.8.2006 regarding Cost and Works Accountants (Nomination of Members of the Council) Rules, 2006. Circulation of Notification No. GSR-489 (E) published on 18.8.2006 regarding Company Secretaries (Nomination of Members of the Council) Rules, 2006. Circulation of Notification No. GSR-490 (E) published on 18.8.2006 regarding Chartered Accountants (Nomination of Members of the Council) Rules, 2006 Circulation of Notification No. 497 (E) dated 21.8.2006 regarding Amendment of the Companies regulations, 1956.

14

Sl.No. Circular Number 5. 09/2006

Date 7.9.2006

Subject Circulation of Notification No.GSR-517(E) published on 31.8.2006 regarding Amendment in GSR-978 dated 28.5.1963 published in the Gazette under section 620A of the Companies Act, 1956.

6.

10/2006

19.9.2006

Circulation of GSR -525 (E) dated 31.8.2006 in respect of Corrigendum with reference to GSR-148(E) dated 8.3.2006 regarding read with Cost Audit Report (Amendment) Rules, 2006 in place of Cost Audit Report Rules, 2006 in Hindi version. Circulation of GSR-526 (E) dated 31.8.2006 in respect of corrigendum with reference to S.O.-147(E) dated 8.3.2006 regarding Companies (Appointment of Sole Agents ) Amendment Rules, 2006 read with GSR-147(E) in place of S.O.147 (E).

7.

11/2006

19.9.2006

Circulation of Notification No. GSR- 534(E) dated 5.9.2006 regarding the Central Government makes a Company Secretaries (Election to the Council) Rules, 2006. Circulation of Notification No. GSR- 533(E) dated 5.9.2006 regarding the Central Government makes a Chartered Accountants (Election to the Council) Rules, 2006. Circulation of Notification No. S.O.-1439(E) dated 5.9.2006 regarding Company Secretaries (Amendment) Act, 2006. Circulation of Notification No. S.O.-1440(E) dated 5.9.2006 regarding Chartered Accountants (Amendment) Act, 2006. Circulation of Notification No. GSR-546(E) dated 8.9.2006 regarding 34 more companies declared as a Nidhi Companies. Circulation of Notification No.556 (E) dated 14.9.2006 regarding the Central Government makes a Regulations, this is called (Third Amendment) Regulations, 2006. Circulation of Notification No.557 (E) dated 14.9.2006 regarding the Central Government makes a Rules, this is called the Companies (Electronic filing and Authentication of Documents) Rules, 2006. Circulation of Notification No. S.O.-1529(E) dated 14.9.2006 regarding Companies (Amendment) Act, 2006, enforcement of section 4 of the Act.

15

Sl.No. Circular Number 8. 12./2006

Date 4.10.2006

Subject Circulation of Notification No.GSR-555 (E) dated 14.9.2006 regarding the Companies (Central Governments) General Rules and Forms (Second Amendment) Rules, 2006.

9.

13/2006

31.10.2006

Circulation of Notification No.GSR.-648(E) dated 19.10.2006 regarding the Section 2 and 3 of the Companies (Amendment) Act, 2006. Circulation of Notification No.GSR.-649(E) dated 19.10.2006 regarding the Companies (Director Identification Number) Rules, 2006. Circulation of Notification No.GSR.-650(E) dated 19.10.2006 regarding the delegation of powers under section 266-A & 266-B of the Companies (Amendment) Act, 2006 to the Regional Director, Joint Director, Deputy Director, or Assistant Director posted in the office of Regional Director, Northern Region.

10

14/2006

20.11.2006

Circulation of Notification No. S.O.-1844(E) dated 26.10.2006 regarding Scheme for filing of Statutory Documents and other transactions by Companies in Electronic Mode.

11

15/2006

6.12.2006

Circulation of Notification No.621 (E) dated 4.10.2006 regarding corrigendum to GSR-557(E) dated 14.9.2006 in respect of the Companies (Electronic Filing and Authentication of Documents) Rules, 2006. Circulation of Notification GSR-708(E) dated 17.11.2006 regarding Chartered Accountants (Election Tribunal) Rules, 2006. Circulation of Notification GSR-708(E) dated 17.11.2006 regarding Company Secretaries (Election Tribunal) Rules, 2006. Circulation of Notification GSR-710(E) dated 17.11.2006 regarding Cost and Works Accountants (Election Tribunal) Rules, 2006. Circulation of Notification GSR-712(E) dated 17.11.2006 regarding Cost and Works Accountants (Election to the Council) Rules, 2006

16

Sl.No. Circular Number

Date

Subject Circulation of Notification GSR-711(E) dated 17.11.2006 regarding Appellate Authority (Allowances payable to and other terms and condition of service of Chairperson and Members and the members of meeting expenditure of the Authority) Rules, 2006. Circulation of Notification S.O.-1983 (E) dated 17.11.2006 regarding Company Secretaries (Amendment) Act, 2006. Circulation of Notification S.O.-1984 (E) dated 17.11.2006 regarding Cost and Works Accountants (Amendment) Act, 2006. Circulation of Notification S.O.-1985 (E) dated 17.11.2006 regarding Chartered Accountants (Amendment) Act, 2006. Circulation of Notification GSR.-734 (E) dated 27.11.2006 regarding Cost and Works Accountants procedures of Meeting of Quality Review Board, and Terms and conditions of service and allowances of the Chairperson and members of the Board Rules, 2006. Circulation of Notification GSR.-736 (E) dated 27.11.2006 regarding Company Secretaries procedures of Meeting of Quality Review Board, and Terms and conditions of service and allowances of the Chairperson and members of the Board Rules, 2006

12

1/2007

11.1.2007

Circulation of Notification GSR.-735 (E) dated 27.11.2006 regarding Chartered Accountants procedures of Meeting of Quality Review Board, and Terms and conditions of service and allowances of the Chairperson and members of the Board Rules, 2006. Circulation of Notification GSR-739(E) dated 7.12.2006 regarding the Companies (Accounting Standards Rules, 2006. Circulation of Notification GSR-14 (E) dated 9.1.2007 regarding Amendment to proviso to rule-4 of the Companies (Director Identification Number)Amendment Rules, 2006 Circulation of Notification S.O.-20 (E) dated 9.1.2007 regarding the two Companies as Public Financial Institution under section 4A of the Companies Act, 1956.

17

Sl.No. Circular Number 13 2/2007

Date 12.2.2007

Subject Filing of Form DIN-3 under the Companies (Director Identification Number) Rules, 2006. GSR-81(E) dated 12.1.2007, corrigendum GSR-712(E) dated 17.11.2006 in respect of Cost and Works Accountants (Election to the Council) Rules, 2006.

14

3/2007

22.2.2007

15

4/2007

14.3.2007

GSR-111(E) dated 27.2.2007 regarding Notification of the Company Secretaries (procedures of Investigations of Professional and other misconduct and conduct of Cases) Rules, 2007 GSR-112(E) dated 27.2.2007 regarding Notification of the Chartered Accountants (procedures of Investigations of Professional and other misconduct and conduct of Cases) Rules, 2007 GSR-113(E) dated 27.2.2007 regarding Notification of the Cost and Works Accountants (procedures of Investigations of Professional and other misconduct and conduct of Cases) Rules, 2007 S.O.-339(E) dated 9.3.2007 regarding Notification of the Constitution of National Advisory Committee on Accounting Standards (NACAS).

DEPARTMENTAL CIRCULAR 1. 03/2006 6.9.2006 Processing of documents automatic taken on file by the Registrar of Companies on the basis of straight through process (STP).

18

Revenue Receipts & Expenditure : 2002-03 to 2006-07

1.9 The Revenue Receipts and Actual

Expenditure incurred under the Companies Act, 1956/MRTP Act, 1969 during the last five years are indicated in the table :-

Year (1) 2002-03 2003-04 2004-05 2005-06 2006-07

Revenue Receipts (Rs. crore) (2) 324.30 399.69 474.31 728.22 1037.98

Expenditure (Rs. crore) (3) 36.61 50.35 46.29 74.21 122.19

19

CHAPTER II

Review of Corporate Sector

2.1 Growth of the Corporate Sector in terms of registration of new companies in different categories, companies at work, liquidation of companies and data on foreign companies during the year 2006-07 are reviewed in this chapter.

of new companies registered during the year was equivalent to 7 per cent of the companies at work as on 31.3.2007. The authorised capital of 51708 companies with liability limited by shares registered during the year aggregated to Rs. 72,510.90 crore. 2.2.2 Of the 51708 companies with liability limited by shares registered during the year, 1950 were public limited companies with an authorised capital of Rs. 47297.45 crore and 49758 were private limited companies with an aggregate authorised capital of Rs.25213.45 crore. Table 2.1 sets out the pattern of registration of new companies during the year 200607. State-wise distribution of companies limited by shares registered during the year 2006-07 is given in Statement-I ( Appendix).

Company registration
2.2.1 During the year 2006-07, 51971 companies were registered under the Companies Act, 1956. These included 116 Government companies with liability limited by shares, 51592 non-Government companies limited by shares, 22 non-Government companies with unlimited liability and 241 nonGovernment companies with liability limited by guarantee and associations not for profit. The number

Table 2.1 Companies registered during the year 2006-07

Government Number Type of Company 1 I. Liability limited by Shares (i) (ii) Public Limited Private Limited Sub-Total II. III. Unlimited Liability Liability limited by Guarantee and Associations not for profit Total 52 64 116 0 0 12723.15 88.75 12811.90 0.00 0.00 1898 49694 51592 22 241 34574.30 25124.70 59699.00 3.70 180.00 1950 49758 51708 22 241 47297.45 25213.45 72510.90 3.70 180.00 2 Authorised Capital
(Rs. crore)

Non-Government Number Authorised Capital

(Rs. crore)

Total Number Authorised Capital

(Rs. crore)

116

12811.90

51855

59882.70

51971

72694.60

20

2.2.3 Industrial Activitywise distribution of companies registered during the year 2006-07 is indicated in Table 2.2 below:

Table 2.2 Registration of Companies Limited by Shares : Distribution by Industrial Activity during the year 2006-07
Sl. No. Industrial Classification Public Number Authorised Number Capital (Rs. Crore) Private Total Authorised Capital (Rs.Crore)

Authorised Number Capital (Rs. Crore)

1 1 2 3 4 5 6 7 8 9 10

2 Agriculture and Allied Activities Mining and quarrying Manufacturing Electricity, Gas and water Companies Construction Trade, Hotels and Restaurants Transport, Storage & Communication Finance, Insurance, Real Estate & Business Services Community, Personal and Social Services Unclassified Total

3 55 46 511 109 352 375 71 294 115 22 1950

4 240.41 6492.55 2978.84 9328.97 2648.23 12328.15 5224.85 7068.84 424.81 561.80 47297.45

5 1237 551 9875 504 8483 17495 1609 6657 2778 569

6 295.03 326.15 5818.58 299.11 4246.98 5922.18 1018.44 6155.12 913.68 218.18

7 1292 597 10386 613 8835 17870 1680 6951 2893 591 51708

8 535.44 6818.70 8797.42 9628.08 6895.21 18250.33 6243.29 13223.96 1338.49 779.98 72510.90

49758 25213.45

Activity - wise Distribution of Newly Registered Compnies (2006-07)

21

2.2.4 The number of companies with liability limited by shares registered during the last five years from 2002-03 to 2006-07 is given in Table 2.3. This shows that the number of new companies with liability

limited by shares registered during the year 2006-07 was lower by 4.28 per cent over the new companies registered during the previous year.

Table 2.3 Registration of New Companies Limited by Shares during the years 2002-03 to 2006-07
Year Public Limited Number Authorised Capital (Rs. Crore) 3 2340.54 11077.89 5228.77 7688.11 47297.45 Private Limited Number Authorised Capital (Rs. Crore) 5 3262.22 6065.60 6248.20 11894.10 25213.45 Number Total Authorised Capital (Rs. Crore) 7 5602.76 17143.49 11476.97 19582.21 72510.90

1 2002-03 2003-04 2004-05 2005-06 2006-07

2 1065 1233 1393 1890 1950

4 22986 28843 38666 52130 49758

6 24051 30076 40059 54020 51708

Registration of New Companies Limited by Shares during the years 2002-03 to 2006-07

22

Companies at work
2.3.1 There were in all 7,50,364 companies at work

as on 31st March, 2007, as summarised in Table 2.4 below.

Table 2.4 Companies at work as on 31st March, 2007

Sl. No. I. Type of Company Companies Limited by Shares (a) Government Companies Public Limited Private Limited Sub-Total (a) (b) Non-Government Companies Public Limited Private Limited Number of Companies

1098 571 1669 89556 652453 742009 743678 520 3846 2310

Sub-Total (b) Total (a+b) II. III. IV. Companies with Unlimited Liability Companies limited by Guarantee and Associations not for profit Foreign Companies (as defined under Section 591 of the Companies Act)

Grand Total 2.3.2 St ate-wise and Industrial Activity-wise distribution of companies limited by shares at work as on 31st March, 2007 is given in statements V to X (Appendix) respectively. 2.3.3 The Companies limited by shares at work

750354 Companies Act,1956 i.e. the years 1956-57 to 200607. It will be observed that the companies limited by shares have recorded a phenomenal growth. The number of such companies at work increased by 25.33 times from 29357 at the end of 1956-57 to 743678 at the end of 2006-07. 2.4.2 Unlike companies limited by shares, the companies limited by Guarantee and Associations not for profit at work in the country have not shown much variation in their number over the period. Their number at the end of 1956-57 was 1364 which increased to 3846 at the end of 2006-07. 2.4.3 The first company with unlimited liability was registered in 1973-74. The number of such companies at the end of 2006-07 was 520. 2.4.4 Besides the companies registered under the

recorded a growth of 1.6 per cent during 2006-07 (i.e. as on 31.3.2007 as compared to 31.3.2006). The growth in number of Companies limited by shares at work between 31.3.2003 and 31.3.2007 was 21.5 per cent, private limited companies grew by 21.9 per cent compared to 18.5 per cent in case of public limited companies.

Long Term Trends

2.4.1 Statement XI (Appendix) gives the data on growth of the corporate sector by various categories of companies at work during operation of the

23

Companies Act,1956 there are Branches of Foreign companies, as defined under Section 591 of the Companies Act, operating in the country. The number of Branches of Foreign companies operating in the country, which was 551 at the end of 1956-57 remained almost constant till 1973-74. With the coming into force of the Foreign Exchange Regulation Act, 1973, on 1.1.1974, the number of such Branches recorded gradual decline till the end of 1980-81 when there were 300 such branches. Their number has increased thereafter and as on 31.3.2007, the figure is reported to be 2310.

GOVERNMENT COMPANIES Registration of New Companies:

2.5.1 During the year 2006-07, 116 Government companies were registered with an authorised capital of Rs. 12811.90 crore. State-wise distribution of Government companies limited by shares registered during the year 2006-07 is given in St atement II (Appendix). 2.5.2 Table 2.5 shows trend in registration of Government companies during the last five years.

Table 2.5 Registration of New Government Companies during 2002-03 to 2006-07

Public Limited Year Number Authorised Capital (Rs. crore) 3 333.44 9053.60 2402.30 3948.65 12723.15 Private Limited Number Authorised Capital (Rs. crore) 5 525.00 5.00 6.00 224.20 88.75 Total Number Authorised Capital (Rs. crore) 7 858.44 9058.60 2408.30 4172.85 12811.90

1 2002-03 2003-04 2004-05 2005-06 2006-07

2 19 25 17 18 52

4 3 1 2 6 64

6 22 26 19 24 116

Government companies at work:

2.6 There were 1352 Government companies limited by shares at work in the country as on 31st March, 2006. After taking into account the newly registered companies, conversion between Government and Non-Government companies, mergers, amalgamation and liquidation as reviewed in the preceding paragraphs, there were 1669 Government companies limited by shares at work in the country as on 31st March, 2007. Of these 1669 companies, 1098 were public limited and 571 were private limited companies.

NON-GOVERNMENT COMPANIES Registration of New Companies:

2.7 During the year 2006-07, 51592 NonGovernment companies limited by shares were registered in the country with an authorised capital of Rs. 59699.00 crore. Of these, 1898 were Public limited companies with aggregate authorised capital of Rs. 34574.30 crore and 49694 were Private limited companies with aggregate authorised capital of Rs. 25124.70 crore. State-wise distribution of NonGovernment companies limited by shares registered during the year 2006-07 is given in Statement III (Appendix). Table 2.6 below indicates the trend in registration of new Non-Government companies limited by shares during the last five years.
24

Table 2.6 Non-Government Companies Limited by Shares New Registration

Public Limited Year Number Authorised Capital (Rs. crore) 3 2007.1 2024.3 2826.5 3739.5 34574.3 Private Limited Number Authorised Capital (Rs. crore) 5 2737.2 6060.6 6242.2 11669.9 25124.7 Total Number Authorised Capital (Rs. crore) 7 4744.3 8084.9 9068.7 15409.4 59699.0

1 2002-03 2003-04 2004-05 2005-06 2006-07

2 1046 1208 1376 1872 1898

4 22983 28842 38664 52124 49694

6 24029 30050 40040 53996 51592

State-wise Distribution:
2.8 Out of 51592 Non-Government companies registered during the year 2006-07, 36134 companies or 70 per cent of the total were registered in the 5 States/ Union Territories, viz. Delhi, Maharashtra, West Bengal, Tamil Nadu and Andhra Pradesh. Delhi occupied the top position with 13040 new registration (25.3 per cent) followed by Maharashtra (18.3 per cent), West Bengal (11.4 per cent), Tamil Nadu (8.1 per cent) and Andhra Pradesh (7.0 per cent). The other States and Union Territories together accounted for 15,855 registrations of new non Government companies.

Industrial Activity Pattern:

2.9 Table 2.7 shows the distribution of NonGovernment companies by broad activity classification registered during the year 2006-07. The largest number of companies registered during the year viz. 17850 companies or 34.60 per cent of the total, belonged to the group Trade, Hotel and Restaurants followed by 10364 or 20.1 per cent of the total registered under the group of Manufacturing.

Table 2.7

Industrial Activity pattern of Non-Government Companies limited by share registered during 2006-07
S. No. 1 1 2 3 4 5 6 7 8 9 10 Number of Companies Number Per cent 2 3 4 Agriculture and Allied Activities 1288 2.50 Mining and quarrying 592 1.15 Manufacturing 10364 20.09 Electricity, Gas and water Companies 592 1.15 Construction 8823 17.10 Trade, Hotels and Restaurants 17850 34.60 Transport, Storage and Communication 1667 3.23 Finance, Insurance, Real Estate & Business Services 6939 13.45 Community, Personal and Social Services 2887 5.60 Unclassified 590 1.14 Industrial Classificaiton Authorised Captial (Rs. Crore) Per cent 5 6 535.28 0.90 5498.64 9.21 7769.45 13.01 4408.53 7.38 6870.37 11.51 18246.96 30.57 1236.47 2.07 13021.15 21.81 1332.27 2.23 779.88 1.31

Total

51592

100.00

59699.00

100.00

25

Non-Government Companies which ceased to work:

2.10 During the year 2006-07, 17818 NonGovernment companies limited by shares were reported to have ceased to work either by going into liquidation or their names having been struck off under Section 560(5) of the Companies Act. The

aggregate paid-up capital of these companies was Rs. 21305.34 crore. State/ Region-wise distribution of companies which ceased to work during 2006-07 is shown in Statement IV (Appendix). Table 2.8 shows the details of liquidated and struck off companies during the last five years.

Table 2.8 Non-Government Companies which ceased to work during 2002-03 to 2006-07
Voluntary Liquidations Number Paid-up Capital
(Rs Crore)

Year

Liquidations under Companies Courts Order struck off Number Paid-up Number Paid-up Capital Capital
(Rs Crore) (Rs Crore)

Total Number Paid-up Capital

(Rs Crore)

1 2002-03 2003-04 2004-05 2005-06 2006-07

2 21 21 5 8 NA*

3 4.30 19.01 0.00 1.99 NA*

4 58 53 20 59 NA*

5 0.00 0.01 0.00 0.07 NA*

6 872 424 1752 1313 NA*

7 617.60 0.04 73.31 10.54 NA*

8 951 498 1777 1380 17818

9 621.90 19.06 73.31 12.6 21305.34

NA* = Information is not available.

Non-Government Companies Limited by shares at work:

2.11.1 There were 7,42,009 non-Government companies limited by shares at work in the country as on 31st March, 2007. These comprised 89,556

Public limited companies and 6,52,453 Private limited companies. 2.11.2 The non-Government companies at work as on 31.3.2007 registered 1.53 per cent increase over the previous year in terms of number of companies.

Non-Government Companies Limited by Shares at work during (1994-2007)

No. of Companies

Year

26

Non-Government Companies with Unlimited liability

2.12 During the year 2006-07, twenty two (22) nonGovernment companies with unlimited liability were registered. These companies were registered in the state of Delhi (9), West Bengal (5), Maharashtra (4),

Andhra Pradesh (2), Himachal Pradesh (1) and Karnataka (1). Taking into account 498 companies with Unlimited Liability already at work in the Country as on 31.03.2006, there were 520 companies with Unlimited Liability as on 31.03.2007. Table 2.9 gives state-wise distribution of Non-Government companies with unlimited liability during 2006-07.

Table 2.9
State-wise distribution of Non-Government Companies with Unlimited liability during 2006-07
State / Union Territory Number of Companies registered during 2006-07 4 0 0 9 1 0 0 5 0 0 2 0 0 1 0 0 22 Number of Companies at work as on 31.3.2007 179 72 33 117 18 18 3 15 45 2 3 8 4 1 1 1 520

Maharashtra Gujarat Goa,Daman & Diu Delhi Karnataka Punjab Chandigarh West Bengal Tamil Nadu Bihar Andhra Pradesh Uttar Pradesh Madhya Pradesh Himachal Pradesh Kerala Orissa Total

Companies with Liability limited by Guarantee and Associations not for profit:
2.13 There were 3605 Guarantee companies and Associations not for profit at work in the country as on 31.3.2006. 241 such companies were registered under the Companies Act during the year 2006-07. The total number of Guarantee companies and Associations not for profit at work, therefore, in the country as on 31.3.2007 was 3846.

Foreign Companies:
2.14 The number of foreign companies which are reported to have places of business in the country as on 31.3.2007 is 2310. Table 2.10 gives the countrywise distribution of such foreign companies as on 31.3.2006 and 31.3.2007. 2.15 Statistical information given above is as generated under MCA21 system.

27

Table 2.10 Distribution of Foreign Companies defined Under Section 591 of the Companies Act,1956 by their country of incorporation as on 31.3.2006 and 31.3.2007
Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Country of incorporation of the Foreign Companies United Kingdom United States of America Japan France Germany Italy Canada Hong Kong Pakistan Bangladesh Netherland Switzerland Sweden Australia Panama Belgium Thailand Nepal UAE Others Total Number of Companies as on 31.3.2006 329 437 157 80 96 39 37 94 5 9 56 33 22 52 12 24 15 4 15 524
2040

Number of Companies as on 31.03.2007 349 486 176 94 104 48 39 102 5 10 66 38 25 62 13 24 17 4 18 630

2310

Growth of Foreign Companies in India (31.3.2000 -31.3.2007)

28

CHAPTER-III

Applications and Documents Received Under Different Sections of the Companies Act, 1956
3.1.1 The receipt and disposal of applications and documents under various Sections of the Companies Act, 1956 during the year 2006-07, except those relating to managerial personnel, are reviewed in this Chapter. Applications relating to managerial personnel are dealt with in Chapter IV. 3.1.2 The applications and documents are received either by (i) Regional Directors / Registrars of Companies and (ii) the Central Government / the Company Law Board. These have been reviewed separately under respective sub-heads.

Application and Documents received by the Regional Directors/Registrars of Companies Applications received under Sections 20, 166(1) and 210(4)
3.2.1 Applications received during the year 2006-07 in the Offices of the Registrars of Companies under Sections 20, 166(1) and 210(4) of the Companies Act aggregated to 2,06,639. Of the total applications received during the year, 1,28,548 applications related to availability of names under Section 20. The break-up of applications received during the last three years is given in Table 3.1.

Table 3.1 Applications received under Sections 20, 166(1) and 210(4) of the Companies Act, 1956 during the years 2004-05, 2005-06 and 2006-07
2004-05
Subject/ Section Brought forward from previous year Received during the year Total Brought forward from previous year

2005-06
Received during the year Total

2006-07
Brought Received forward during the from previyear ous year Total

1 1. Availability of name (Section 20) 2. Extension of Annual General Meeting (Section 166(1)) 3. Extension of Financial year [Section 210(4)] 4. Others (Misc.) Total

2 534 2

3 94148 1080

4 94682 1082

5 4854 0

6 98897 1060

7 103751 1060

8 4921 0

9 128548 992

10 133469 992

2 5716 6254

150 120788

152 126504

3 4885 9742

108 179886

111 184771

1 4793 9715

104 76995

105 81788

216166 222420

279951 289693

206639 216354

3.2.2 Taking into account the 2,06,639 applications received during the year under review and 9,715 applications brought forward from the previous year, the number of applications considered during the year

came to 2,16,354. Of these, 1,91,935 applications were allowed, 16,167 were rejected and 8,252 were under examination/ consideration at the end of the year. Table 3.2 gives Section-wise details of disposal of the applications during the year 2006-07.
29

Table 3.2 Disposal of applications received under Sections 20, 166(1) and 210(4) of the Companies Act during the year 2006-07
Subject/Section Brought forward from the previous year Received during the year Total Col. 2 & 3 Allowed during the year Rejected during the year Pending at the end of the year

1 1. Availability of Name (Section 20) 2. Extension of Annual General Meeting (Section 166(1)) 3. Extension of Financial year (Section 210(4)) 4. Others (Misc.) Total

2 4921 0

3 128548 992

4 133469 992

5 113935 885

6 15652 79

7 3882 28

104

105

79

15

11

4793 9715

76995 206639

81788 216354

77036 191935

421 16167

4331 8252

Documents filed under Sections 159, 160 and 220

3.3.1 The statutory documents filed by companies may be broadly classified under 3 categories viz. (i) Annual Returns (Sections 159 and 160), (ii) Balance Sheets and Profit and Loss Accounts (Section 220) and (iii) Other Documents. In all 16,25,717 documents were filed by the companies with the Registrars of Companies during the year 2006-07. Of these,

3,13,689 were Annual Returns under Sections 159 and 160 of the Act., 3,17,778 were Balance Sheets and Profit and Loss Accounts filed under Section 220 of the Act, and the remaining 9,94,250 documents were filed under the miscellaneous provisions of the Act. The number of documents filed with the Registrars of Companies during the last three years are given in Table 3.3.

Table 3.3
Documents received under Sections 159, 160, 220 etc. of the Companies Act, 1956 during the years 2004-05 , 2005-06 and 2006-07
Nature of document and Section concerned 2004-05 Brought Received forward during the from previyear ous year 2 3 Total Brought forward from previous year 5 2005-06 Received during the year 6 Total 2006-07 Brought Received forward during the from previyear ous year 8 9 Total

10

1. Annual Returns (Sections 159&160) 2. Balance Sheets & Profit & Loss Accounts (Section 220) 3 Other (Misc.) Total

22667 25793

332896 339932

355563 365725

64845 72949

316520 317326

381365 390275

32184 40641

313689 345873 317778 358419

52040 100500

807117

859157

99048 236842

967369 1066417 1601215 1838057

113315

994250 1107565

1479945 1580445

186140 1625717 1811857

30

3.3.2 Taking into account the 16,25,717 documents received during the year under review and 1,86,140 documents brought forward from the previous year, the total number of documents requiring scrutiny during the year was 18,11,857. Of these, 17,38,854

documents were taken on record as being in order, 33,952 were returned for rectification of defects and 40,051 remained pending at the end of the year. Section-wise details of disposal of documents are shown in Table 3.4.

Table 3.4
Disposal of applications received under Sections 159, 160 and 220 etc. of the Companies Act during the year 2005-06
Nature of documents and Section concerned 1 Brought forward from the previous year 2 Received during the year 3 Total Col. 2 & 3 Taken on record Returned for rectification 6 Pending at the end of the year 7

1. Annual Returns (Section 159 & 160) 2. Balance Sheets and Profit & Loss A/c (Section 220) 3. Others (Misc.) Total

32184 40641

313689 317778

345873 358419

339940 351702

4475 5377

1458 1340

113315 186140

994250 1625717

1107565 1811857

1047212 1738854

23100 32952

37253 40051

Inspection of Documents Under Section 610(1)(a)

3.4 During the year 2006-07, 1,53,258 documents were inspected in the Office of the Registrars of Companies by shareholders and members of the public under Section 610(1)(a) of the Companies Act,1956. The fees realised by the Registrars of Companies on this account amounted to Rs. 77,16,050. The number of documents inspected in the previous year (2005-06) was 1,30,764 and the amount of fee realised was Rs 67,30,875. The largest number of documents inspected during the year under review was of the Registrar of Companies, Delhi i.e. 46493 documents representing 30.34 per cent of the total. The number of documents in the office of the Registrar of Companies, Mumbai (viz. 36121 representing 23.57 per cent) came next, followed by documents inspected in the Office of the Registrars of Companies, Chennai, West Bengal and Gujarat ( viz. 14022, 9392 and 7117 respectively) in

that order. The documents inspected in the offices of these five Registrars of Companies together accounted for 73.83 per cent of the total documents inspected under this Section in the offices of all the Registrars of Companies during the year.

Issue of Certificates and certified copies of documents under Section 610(1)(b).

3.5 The number of certificates of incorporation and certified copies of documents issued during the year 2006-07 by the Registrars of Companies under Section 610(1)(b) of the Companies Act totalled 27,998 and fees realised on this account amounted to Rs. 70,78,276. During the year 2005-06, 22,812 certificates of incorporation and certified copies of documents were issued and fee of Rs. 85,25,741 was realised.

Conversion of Companies under Section 31 and 43A

3.6 There were 978 conversions of companies

31

from private to public and vice-versa during the year 2006-07. Of these, 669 conversions from private to public and 275 from public to private were by alteration of articles of association under Section 31 of the Act. Remaining 34 conversions, were from private to public (31) and public to private (3) took place under Section 43A of the Act.

Complaints
3.8.1 During the year 2006-07, 6,489 complaints were received in the offices of the Registrars of Companies and in the Headquarters, at New Delhi from shareholders and members of the public. The number of complaints received in the previous year was 9,720. 3.8.2 During the year 2006-07, 26,892 complaints were considered including 20,403 complaints brought forward from the previous year. Of these, action was taken on 6,216 complaints after necessary scrutiny and inquiry and 20,676 complaints remained pending at the end of the year. Table 3.5 gives the comparative position regarding the complaints received and disposed of during the last three years.

Special Resolutions under Section 314

3.7 During the year 2006-07, 713 resolutions were passed under Section 314 of the Companies Act, 1956 by 712 companies for regularisation of the appointment of 713 Directors . In the previous year, 574 resolutions were passed by 567 companies regularizing the appointment of 567 Directors and 19 relatives of Directors in the offices of profit.

Table 3.5 Complaints received and disposed of during the year 2004-05, 2005-06 and 2006-07
Year Brought forward from the previous year 2 12475 18839 20403 Received during the year 3 14181 9720 6489 Total Col. 2 & 3 Disposed of during the year 5 7817 8156 6216 Pending at the end of the year 6 18839 20403 20676

1 2004-2005 2005-2006 2006-2007

4 26656 28559 26892

Nature of Complaints
3.9 The grounds of complaints varied in nature 812 complaints or nearly 12.5 per cent of the total number of complaints received during the year 2006-07 related to non-payment of public deposits by companies. The other grounds on which a large number of complaints received related to non-receipt of Balance-sheets (9.1 percent), non-receipt of notice (6.2), non-payment of dividend (6.0 percent ) and nonissue of shares (5.1). The break-up of complaints according to their nature is shown in Table 3.6.

32

Table 3.6 Nature of complaints 2006-07

Sl. No. Nature of complaint s Brought forward from the previous year Received Percentage during of the total the year receipts Total Col. 3+4 Disposed of during the year Percentage Pending of the total at the disposal end of the year

1 1 2 3 4 5 6 7 8 9

2 Received by Registrars of Companies: Non-payment of public deposits Mismanagement Non-payment of dividend Non-receipt of Balance Sheets Non-receipt of Notices Non-registration of Transfer of Shares Non-issue of Share certificates Improper holding of meetings Non-holding of Annual General Meetings

3 782 22 187 320 119 20 71 12 32 43 1 16 1 5 1 301 18470 20403

4 812 91 387 590 401 271 330 32 76 171 22 72 12 18 4 1728 1472 6489

5 12.5 1.4 6.0 9.1 6.2 4.2 5.1 0.5 1.2 0.0 2.6 0.3 1.1 0.2 0.3 0.1 26.6 22.7 100.0

6 1594 113 574 910 520 291 401 44 108 214 23 88 13 23 5 2029 19942 26892

7 1105 112 519 706 504 263 395 42 107 213 23 82 13 23 4 1829 276 6216

8 17.8 1.8 8.3 11.4 8.1 4.2 6.4 0.7 1.7 3.4 0.4 1.3 0.2 0.4 0.1 29.4 4.4 100.0

9 489 1 55 204 16 28 6 2 1 1 0 6 0 0 1 200 19666 20676

10 Non-receipt of Dividend warrant 11 Misappropriation 12 Fraud/ Embezzlement 13 Misapplication of funds 14 Improper election of Directors 15 Failure to allow inspection of Minute Books 16 Other complaints (Miscellaneous) Received by Headquarters, New Delhi: 17 General complaints Total

ROC-wise distribution of complaints

3.10 The Registrar of Companies, Mumbai received the largest number of complaints during the year 2006-07, viz. 1,911 (29.4 per cent of the total) followed by the Registrars of Companies, Punjab/H.P./ Chandigarh, Andhra Pradesh, Delhi/Haryana and West Bengal who received 696, 355,332, and 316 complaints respectively. These Registrars of

Companies together accounted for 3,610 (55.6 per cent of the total number of complaints) complaints received during the year. The ROC-wise break-up of complaints received during the year 2006-07 is given in Table 3.7. In addition 1472 complaints were received at the Headquarters (22.7 per cent of the total number of complaints).

33

Table 3.7 ROC-wise break-up of complaints received during 2006-07

Sl. No. State/Union Territory Brought forward from the previous year Received during the year Percentage of Total receipts Total Col. 3+4 Disposed Percentage Pending of during of at the the year grand total end of disposal the year

2 Received by Registrars of Companies:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Andhra Pradesh Assam Bihar Delhi/ Haryana Goa Gujarat Jammu & Kashmir Karnataka Kerala Madhya Pradesh Maharashtra(Mumbai) Pune Orissa Pondicherry Punjab/H.P./Chandigarh Rajasthan Chennai Coimbatore Uttar Pradesh West Bengal Received at the Headquarters, New Delhi Grand Total

955 0 0 0 34 138 0 56 0 0 369 2 0 0 146 4 212 2 15 0 18470 20403

355 8 10 332 6 261 1 28 113 131 1911 111 39 4 696 272 164 56 203 316 1472 6489

5.5 0.1 0.2 5.1 0.1 4.0 0.0 0.4 1.7 2.0 29.4 1.7 0.6 0.1 10.7 4.2 2.5 0.9 3.1 4.9 22.7 100.0

1310 8 10 332 40 399 1 84 113 131 2280 113 39 4 842 276 376 58 218 316 19942 26892

594 8 10 328 13 388 1 84 109 131 2152 109 39 4 798 272 357 49 201 293 276 6216

9.6 0.1 0.2 5.3 0.2 6.2 0.0 1.4 1.8 2.1 34.6 1.8 0.6 0.1 12.8 4.4 5.7 0.8 3.2 4.7 4.4 100.0

716 0 0 4 27 11 0 0 4 0 128 4 0 0 44 4 19 9 17 23 19666 20676

Applications considered and disposed of by the Regional Directors and Registrars of Companies.
3.11 The powers and functions of the Central Government in respect of some Sections of the Companies Act,1956 have been delegated to the Regional Directors located at Kolkata, Mumbai,

Chennai and Noida (U.P.) and to the Registrars of Companies. Table 3.8 below shows the disposal of applications dealt with by the Regional Directors/ Registrars of Companies under the delegated powers. It would be seen that during the year under review 96,273 applications including 12,862 brought

34

forward from the previous year were considered. The largest number of applications, viz. 70,975 ( 73.72 per cent of the total ) were considered under Section 108(1D) of the Act regarding extension of time for

registration of transfer of shares. Out of the total 96,273 applications, 90,807 were disposed of during the year leaving 5,466 applications pending as on 31st March, 2007.

Table 3.8 Applications considered and disposed of by the Regional Directors and Registrars of Companies under various Sections of the Companies Act, 1956 during the year 2006-07
Sl. Section of the Companies Act and the No. subject matter of the application Applications pending as on 31.3.2006 Applications Total Applications Applications received ( Col. 3+4) disposed of pending during the during the as on year year 31.03.2007 2006-07 2006-07

1 1 2 3 4 5 6 7 8 9

2 21 - Change of name by company 22 - Rectification of name company 25 - Grant of licence 25(8) - Alteration in Memorandum & Articles of Association 31 - Alteration in Articles through Special Resolution 108(1D) - Extension of time for Registration of transfer of shares 224(3)(7) - Appointment and remuneration of Auditors Section 394-A amalgation of companies (pub/pvt. Companies) by RD 555(7)(b) - Company liquidation Accounts

3 499 33 115 40 60 152 23 205 319 11416 12862

4 6462 79 160 62 3921 70823 23 916 308 657 83411

5 6961 112 275 102 3981 70975 46 1121 627 12073 96273

4 6441 58 183 67 3843 70820 17 971 136 8271 90807

5 520 54 92 35 138 155 29 150 491 3802 5466

10 560 striking of name of the companies in the Register maintained by ROC

Total

Applications received by the Central Government and Company Law Board Invitation and acceptance of Deposits under Section 58A
3.12.1 Section 58A of the Companies Act, 1956 which came into force on 1.2.1975, regulates the invitation and acceptance of deposits by non-banking non-

financial companies. The Companies (Acceptance of Deposits) Rules, 1975 framed in pursuance of subsection (1) of Section 58A of the aforementioned Act, prescribe the limits, manner and conditions subject to which deposits may be invited and accepted by these companies either from the public or from their members. These Rules prescribe every company to

35

advertise at the time of inviting deposits, a summarized financial position of the company for the preceding two financial years. The rules lay down the following conditions governing the acceptance of deposits: Ceiling limits of deposits with reference to the companys net worth Maximum period of 36 months for which the deposits can be accepted. Maximum rate of brokerage, which can be paid by the company to brokers through whom the deposits are collected. Maintenance of liquid assets to the extent of 15% of deposits maturing during the year to be invested in specified securities in order to safeguard the interests of depositors. Maximum rate of interest payable on deposits 3.12.2 Under the proviso to sub-section (7) of Section 58A, the Government is empowered to exempt a class of companies from all or any of the provisions of Section 58A. The Ministry has granted exemption vide Notification GSR No. 1075E dated 29.12.1989 from the provisions of sub-section (1) to (6) of Section 58A in respect of acceptance of deposits through issue of Commercial paper by companies which satisfy the eligibility criteria laid down by Reserve Bank of India in the Non-Banking Companies (Acceptance of Deposits through Commercial Paper) Directions 1989. The said Notification has come into force on and from 1.1.1990. 3.12.3 Sub-section (8) of Section 58A of the Companies Act,1956 empowers Central Government, if it considers necessary for avoiding any hardship or for any other just and sufficient reason, to grant extension of time to a company or class of companies to comply with or exempt any company or class of companies from all or any of the provisions of Section

58A either generally, or for a specified period subject to such conditions as may be specified, either prospectively or retrospectively from a date not earlier than the commencement of the Companies (Amendment) Act, 1974. In case exemption is to be granted for a class of companies, it is to be done after consultation with Reserve Bank of India. 3.12.4 Sub-sections (9) & (10) of Section 58A Act empower the Company Law Board to take cognizance of any case of non-repayment of deposits on maturity and direct the company to make repayment of such deposits within such time and subject to such conditions, as may be specified in the order. Non-compliance of the orders of the Company Law Board would attract penalty by way of imprisonment, which may extend to three years and shall also be liable to a fine of not less than Rs. 500/ - for every day till such non-compliance continues.

(A) Applications Disposed of by the Central Government (a) Applications for exemption/extension of time under Section 58A(8).
3.13 During the period with effect from 1.4.2006 to 31.3.2007, 10 applications for exemption/extension of time under Section 58A (8) of the Companies Act, 1956 were received in addition to 23 applications brought forward from the previous year. Out of the total 33 applications 18 applications were disposed of during the said period, and 15 applications were under examination as on 31.3.2007.

(b) Reduction of Equity Share Capital under Section 101

3.14 As of 01.04.2006, 4 (four) applications made under Section 101 were pending. During the year 1(one) more application was received. Out of these 5 (five) cases, 3 (three) cases were considered and disposed of with issue of orders. 2 (two) cases were pending as on 31.03.2007.

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(c) Restriction on Acquisition/Transfer of certain shares under Section 108A

3.15.1 Under section 108A, prior approval of the Central Government is required to be obtained for acquisition/transfer of shares by or to, an individual, firm, group constituent of a group body corporate or bodies corporate under the same management in relation to dominant undertaking provided there is any increase in dominance as a result of such an acquisition or transfer of shares. 3.15.2 During the period from 1.4.2006 to 31.3.2007, 2 applications were received, while no application was brought forward from the previous year. Out of these 2 applications, 1 application was disposed of

during the year and 1 application was under examination as on 31.3.2007. (d) Permission to Government Companies Under Section 166 3.16 The Central Government has powers under Section 166(1) & (2) of the Companies Act, 1956 to grant extension of time by three months to Government Companies for holding Annual General Meetings (AGM) and for change of venue of AGM to a place other than where the registered office of the company is situated. The number of applications for extension of time and change of venue received and disposed of during the year 2006-07 are given in Table 3.9.

Table 3.9 Applications under Section 166 received and disposed of during 2006-07
Section of Companies Act,1956 Nature of Applications Pending at the beginning Received duing the Year T otal Col. 3+4 Disposal during the year Request accepted 1 166(1) 2 Annual General Meeting (Extension of time) Annual General Meeting (Change of venue) TOTAL 3 0 4 191 5 191 6 187 Request rejected 7 3 8 1 Pending as on 31.3.2007

166(2)

28

28

28

219

219

215

(e) Payment of Dividends under section 205(1)(c) and 205A (3)

3.17.1 Proviso (c) to Section 205(1) of the Companies Act, 1956 empowers the Central Government to allow any company, if it thinks necessary to do so in the public interest to declare any dividend for any financial year out of the profits of the company for that year or any previous year or years without providing for depreciation. During the

year 2006-07, 6 applications were received under this Section. Of these, 1 application was considered and 5 applications were under consideration as on 31.3.2007. 3.17.2 Section 205A(3) of the Companies Act, 1956 makes it obligatory for a company to seek prior approval of the Central Government where owing to inadequacy or absence of profits in any year, it

37

proposed to declare dividend out of the accumulated profits earned in the previous years and transferred to the reserves and where declaration of dividend is not in accordance with the Rules, namely, the Companies (Declaration of Dividend out of Reserves) Rules, 1975 framed under the said section. 3.17.3 During the year 2006-07, one (1) application was received under this section, while no application was brought forward from the previous year. The said application was disposed of during the year under review and same application was pending as on 31.3.2007.

(h) Accounts of Subsidiaries Under Section 212(8)

3.20 Section 212 of the Companies Act, 1956 provides that the Balance sheet of a holding company should include certain documents of its subsidiaries. However sub-section (8) thereof empowers the Central Government to exempt a holding company from the requirements of including in balance sheet the said documents of subsidiary companies. 443 applications, including 63 brought forward from the previous year were considered by the Central Government under this Section during the year 200607. Of these, 427 applications were disposed of and 16 were under examination as on 31.3.2007.

(f) Permission for Reduction in rate of Depreciation

3.18 As of 01.04.2006, nil application made under Section 205(2)(c) & (d) was pending. During the year 6(six) applications were received. Out of these 6 (six) cases, 1 (one) case was considered and disposed of with issue of orders. 5 (five) cases were pending as on 31.03.2007.

(i) Appointment of Cost Auditors under Section 233B(2)

3.21 Consequent upon the launch of MCA-21 Programme under e-Governance, Companies under Cost Audit have started filing applications for appointment of Cost Auditors and the Cost Audit Reports through electronic mode from September 2006. In compliance with Section 233B(2) of the Companies Act, 1956, 1588 applications were received for approval of appointment of cost auditors and exemption/withdrawal from cost audit during the year 2006-07 as against 1458 applications received during the previous year 2005-06. The amount of fees collected on these applications aggregated to Rs.29.44 lakh during the year 2006-07 as against Rs. 27.31 lakh received during the previous year 2005-06.

(g)

Annual Accounts Under Section 211

3.19 Part II of Schedule VI to the Companies Act,1956 dealing with the preparation of Profit and Loss Accounts provides that the manufacturing and other companies should give by way of notes, additional data in regard to turnover, installed capacity, licensed capacity, actual production, raw material consumed, opening and closing stock of good produced etc. Some of the Companies which on account of certain difficulties, are unable to comply with the said provisions to furnish the additional data, can approach the central Government for order under section 211(4) of the Companies Act, 1956 for exemption from furnishing this information. During the year 2006-07, 253 applications including 38 brought forward from the previous year were considered by the Central government. Of these, 242 applications were disposed of and 11 applications were under examination at the end of the year.

(j) Appointment of Sole Selling/Buying Agents Under Section 294AA (1), (2) & (3)
3.22.1 Sub-Section (1) of sub-section 294AA of the Companies Act, 1956 requires that where the Central Government is of the opinion that the demand for goods of any category is substantially in excess of the production or supply of such goods and that the services of the Sole Selling Agents will not be

38

necessary to create a market for such goods, the Central Government may, by notification in the Official Gazette, declare that Sole Selling Agent shall not be appointed by a company for the sale of such goods for such period as may be specified in the declaration. At present, the said prohibition on appointment of Sole Selling Agents exists only in respect of Bulk drugs, drugs and Formulations which has been extended for a period of three years w.e.f. 23.2.2004 vide Notification No. GSR 130(E) dated 23.2.2004. 3.22.2 Sub- sections (2) and (3) of Section 294-AA of the Companies Act, 1956 require the companies to obtain approval of Central Government for appointment of Sole Selling Agents. Sub-section (2) applies to those companies, in which the Sole Selling Agents either by themselves or through their relatives, hold paid-up-capital of Rs. 5 lakhs or 5 per cent of the paid-up-capital of the company, whichever is less. Sub-section (3) applies to the companies whose paidup capital is Rs. 50 lakh or more. 3.22.3 During the year 2006-07, 6 applications were received under sub-sections (2) & (3) of Section 294AA of the above said Act while 9 applications were brought forward from the previous year. Out of the total 15 applications, 8 applications were disposed of and 7 applications were pending at various stages of consideration as on 31.3.2007.

are interested and to other body corporate falling within the ambit of clauses (d) & (e) of sub-Section (1) of the said Section 3.23.2 During the year 2005-06, the Central Government received 32 applications and 27 applications were brought forward from the previous year under Section 295. Out of these 59 applications, 36 applications were disposed of and 23 applications were pending as on 31.3.2007

(l) Contracts in which Directors are interested under Section 297

3.24.1 Section 297(1) of the Companies Act, 1956, as amended by the Companies (Amendment) Act, 1974 which came into force with effect from 1st February, 1975 makes it obligatory for companies having paid-up share capital of not less than Rs. 1 crore to seek prior approval of the Central Government in respect of any contract to be entered into (a) for sale, purchase or supply of goods, material or service or supply of goods, material or service or (b) for underwriting the subscription of any share or debentures of the company with a Director of the company or his relatives, a firm in which such a Director or relative is a partner, any other partner in such a firm or a private company of which a Director is a member or Director. The powers of Central Government to accord approval under Section 297(1) of the Companies Act, 1956 have been delegated to Regional Directors with effect from 19.8.1993. This has been done with the twin purposes of decentralisation and expeditious disposal. 3.24.2 During the period from 1.4.2006 to 31.3.2007, Regional Directors considered 1541 applications including 555 applications brought forward from the previous year. Out of these, 1239 applications have been decided leaving a balance of 302 applications under consideration with Regional Directors as on 31.3.2007.

(k) Loan to Directors, giving guarantee or providing security in connection with a loan-Section 295
3.23.1 Section 295 of the Companies Act, 1956 requires all public companies or their subsidiaries to obtain the previous approval of the Central Government before making any loan to, or giving any guarantee or providing any security in connection with a loan made by any other person to, or to any other person by their directors, relatives of such directors, firms or private companies in which such directors

39

(m) Amalgamation/ Merger between Government companies under Section 391394.

3.25 As of 01.04.2006, 3 (three) applications made under Section 391-394 were pending. During the year no application was received. Out of these 3 (three) cases, 2 (two) cases were considered and disposed of with issue of orders. 1 (one) case was pending as on 31.03.2007.

Nidhi Companies vide Notification GSR 545 (E) dated 8.9.2006, bringing the total number of Companies notified as Nidhi Companies to 291 as on 31.3.2007. 3.28.2 During the year under review, the Central Government received 118 applications under Section 620A of the Companies Act, 1956 while 84 cases were brought forward from the previous year. Out of these 202 applications, 123 applications were disposed of and 79 applications were under examination for approval of the Central Government as on 31.3.2007.

(n) Amalgamation of companies under Section 394A

3.26 During the year 2006-07, 916 notices were received under this Section, while 205 were brought forward from the previous year. Out of total of 1121 notices, 971 were disposed of and 150 cases under examination as on 31.03.2007.

(q) Companies struck off under Section 560.

3.29 As of 31.03.2006, 38826 number of cases were pending. During the year 18066 cases were received. 17659 cases were disposed of leaving a total of 39233 cases pending as on 31.03.2007.

(o) Amalgamation/ Merger of Government companies on public interest under Section 396
3.27 As of 01.04.2006, 5 (five) applications made under Section 396 were pending. During the year no application was received. Out of these 5 (five) cases, 3 (three) cases were considered and disposed of with issue of orders. 2 (two) cases were pending as on 31.03.2007.

(r) Applications under section 81(1) and (3)

3.30 During the period from 1.4.2006 to 31.3.2007, 2 applications for further issue of share capital including 1 pending as on 31.03.2006 were considered. Out of which 1 application was considered and 1 application was pending as on 31.03.2007.

B. Applications/Appeals disposed of by Company Law Board

3.31.1 Section 111 of the Companies Act, 1956 provides for transferors or transferees of shares in a company to appeal to the Central Government against the refusal of the company to register the transfer or transmission of shares, or against the failure within the prescribed time limit, to register the transfer or transmission of shares, or to intimate its refusal to register the transfer or transmission of shares. Powers under this Section are delegated to the Company Law Board Benches. 3.31.2 As on 31st March , 2006, 128 appeals under Section 111 were pending with the Company Law Board. During the year 2006-07, 100 appeals were

(p) Power to modifyAct in its Applications to NIDHI, etc. under Section 620A of the Companies Act.
3.28.1 Under this section the Central Government is empowered to declare by notification in the official gazette certain special type of Non-Banking Financial Companies as Nidhi companies or Mutual Benefit Societies as the case may be and direct that certain provisions of the Companies Act, 1956 shall not apply and/or, as the case may be, shall apply with certain exceptions, modifications and adaptations to the said Nidhis. During the period from 1.4.2006 to 31.3.2007 the Central Government declared 34 companies as

40

received. Thus 228 appeals were considered during the year. Of these, 111 appeals were disposed of and 117 appeals were pending disposal for non-

compliance of various formalities as on 31.03.2007 as per the Companies (Appeals to the Central Government) Rules, 1957.

41

CHAPTER IV

Corporate Management

Appointment of Managerial Personnel

4.1.1 This Section deals with statutory applications relating to the appointment of and payment of remuneration to Managing Directors, Whole-time Directors and Managers of Public Limited Companies and of Private Limited Companies which are subsidiaries of Public limited companies under Section 269, 198/309, 310 and 388 of the Companies Act, 1956 in accordance with provisions of Schedule XIII to the said Act, as amended from time to time. 4.1.2 In order to bring greater transparency in processing of various statutory applications, the status reports of these applications have already been made available on the website of the Ministry of

Company Affairs which has been appreciated by the applicant companies. Further, to bring about quicker disposal of cases and ushering in an era of eGovernance, the prescribed application forms are being revised and simplified. 4.1.3 It has been observed that applications received are generally deficient in several respects. In order to have complete information in the initial stage itself, Form Nos. 25A and 26 have been revised and are proposed to be made more effective for administration of the Companies Act, 1956. 4.1.4 The details of receipt and disposal of statutory applications for the periods from 01.04.2006 to 31.03.2007 are given in Table 4.1 below

Table 4.1 Applications received and disposed of by the Central Government under Sections 259, 268,269,309, 310 and 314(1B) of the Companies Act, 1956 during 2006-07.
Under Sections Nature of Applications Brought forwardas on 1.4.2006 Received during the year Total (Col. 3+4) Disposed of during the year Pending as on 31.03.2007

1 259 268

2 Increase in number of Directors Amendment of provisions in the articles of Association relating to Managing Director or Whole time Director. Appointment/reappointment of Managing Director or Whole-time Directors/managers Remuneration of Directors for rendering professional services.

3 8 8

4 15 18

5 23 26

6 13 19

7 10 7

269/ Schedule XIII 309(1B)

184

478

662

479

183

10

45

55

46

42

Under Sections

Nature of Applications

Brought forwardas on 1.4.2006

Received during the year

Total (Col. 3+4)

Disposed of during the year

Pending as on 31.03.2007

1 309(4) (5B)

2 Remuneration to Director other than Managing Director under Whole time appointment/waiver of sums refundable by Directors Increase in the remuneration of any Director Appointment/continuance of relative of Director to hold any office or place of profit in the company which carries total monthly remuneration of not less than Rs. 50000 per month Total

3 10

4 14

5 24

6 16

7 8

310 314 (1B)

35 27

174 104

209 131

172 92

37 39

282

848

1130

837

293

Applications on Managerial Appointment considered and disposed of by the Central Government during 2006-07

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CHAPTER V

Inspections, Investigations, Prosecutions, Oppression and Mismanagement, Cost Audit, Investors Education and Protection Fund, Investor Protection and Vanishing Companies.
Inspections
5.1.1 Section 209A of the Companies Act, 1956 empowers the Registrar of Companies or the officers duly authorised by the Central Government, to undertake inspection of the books of accounts and other records of companies. Several officers of the Ministry have been authorised under this Section to undertake inspections. 5.1.2 Broadly, inspections are undertaken to serve one or more of the following objects: (i) to verify compliance by companies of various provision of the Companies Act,1956; (ii) to verify whether the company accounts represent a true and fair picture of the companys finances and whether the same have been disclosed in a manner consistent with Companies Act; (iii) whether the companys funds have been siphoned off, applied or diverted in a manner violative of the provision of the Act and whether the company management has misused its fiduciary position for any personal advantage in violation of the Act; (iii) (iv) whether there are acts of mis-management or oppression which adversely affect the interest of company stakeholders, or which may adversely prejudice such interests, which may reference received from other Govt. Departments/Agencies pointing out violations of the provisions of the Companies Act, 1956 or other irregularities. (ii) (v)

merit the company to be wound up on just and equitable grounds under the Act; whether statutory auditors have carried out their duties properly while certifying true and fair view of the state of affairs of the company; (vi) to examine legal action under Companies Act if the company has made a default in filing its balance sheet and profit and loss account or annual return for any five consecutive financial years with the Registrar. 5.1.3 Inspections under Section 209A of the Companies Act, 1956 of the books of accounts of the company are mainly ordered on the basis of: (i) complaints received in the Ministry of Corporate A ffairs or in its field offices about mismanagement in respect of maintenance of books of accounts as prescribed under Section 209 of the Act, delay in transfer of share/ debentures, delay in payment of dividend, nonpayment of deposits or interest thereon etc.; violations/irregularities noticed on scrutiny of documents including Auditors remarks filed in the office of the Registrar of Companies;

44

5.1.4 Details of the number of inspections conducted by the Ministry of Company Affairs during last 4 financial years are as under: Year 2003-04 2004-05 2005-06 2006-07 Number 109 181 253 220

31.3.2007, the Government has filed petition/ application before Company Law Board under Sections 408 and 402 read with section 406 of the Act in respect of one company. 5.3.2 As per section 237(b) of the Companies Act, the Central Government may file petition before Company Law Board seeking order for investigation of the company. As on 31.3.2007 one petition was pending before Company Law Board. 5.3.3 During the period from 1.4.2006 to 31.3.2007, 3 cases have been disposed of in Honble High Court while 11 cases are still pending under Section 397/ 398 R/w 406/408 & 237(b) of the Act. SLPs are pending in Honble Supreme Court, one filed by Usha India vs UOI and other Padmini Tech. Ltd. Vs. UOI..

Follow up of the report of Joint Parliamentary Committee (JPC) on Stock Market Scam.
5.2 The Government had set up a Joint Parliamentary Committee (JPC) to investigate the Stock Market Scam. JPC submitted its report in December 2002. The Ministry of Company Affairs was asked to furnish Action Taken Report on certain recommendations of the JPC concerning this Ministry. Status reports in respect of points concerning MCA are forwarded regularly to JPC Cell in the Department of Economic Affairs who is monitoring the follow up action on the JPC Report from time to time.

Investigations
5.4.1 The Investigation cases of companies u/s 235/ 237 of the Act are entrusted to the Serious Fraud Investigation Office (SFIO) on the following grounds/ criteria. (i) Where the size of the alleged fraud is estimated to be at least Rs. 50 crore or more, or; Such companies which are listed or where the paid up capital of the company is more than Rs. five crores, and 20% or more capital is subscribed by the public; or (iii) When the alleged fraud involves widespread public concern estimated to affect at least more than 5000 persons; or (iv) Where investigation requires specialized skills and multi-disciplinary approach. 5.4.2 The Ministry of Corporate A ffairs has constituted an Expert Committee to advise the Government on issues concerning the Serious Fraud Investigation Office vide Order No. 2/1/2004. CL-V dated 23rd February 2006. The Expert Committee constituted under the Chairmanship of Shri Vepa

Action taken under Section 408/402/406/ 388/237(b) of the Companies Act .

5.3.1 Section 397/398 of the Companies Act, 1956 provides for filing of application before Company Law Board for relief in cases of oppression, mismanagement or apprehension of mismanagement of the affairs of the Company. Section 408 of the Act empowers the Central Government to appoint such number of persons on the Board of the company as directed by Company Law Board on the reference/application made by the Government to safeguard the interest of the company or its shareholders or the general public. In addition, the Central Government can also file petitions under Section 402 read with Section 406 of the Act for disgorgement of assets against the Directors of the Company when they indulged in misappropriation/ misfeasance. During the period from 1.4.2006 to

(ii)

45

Kamesam and six other members is to make recommendations to the Government on:(a) Assessment of the need for and details of a separate status to govern the constitution and functioning of SFIO; (b) The nature and details of the legislative changes as may be required in existing laws, to enable effective functioning of SFIO including prosecution of offences detected by it; (c) The mechanism for referral of cases to SFIO and coordination of activities of SFIO with other agencies/organizations of the Central and State Governments, including investigating agencies; (d) (e) Powers of SFIO and its investigating officers; Specification of offences and penalties to enable effective conduct of investigation agencies and the need for special Courts for trial of corporate fraud cases; and

(f)

Other matters consequential to or in pursuance of the above.

5.4.3 The expert Committee was to submit its report to the Ministry within three months from the date of its constitution. However, the period for submission of the report by Expert Committee has been extended upto June, 2007. 5.4.4 During the year 2006-07, 3 cases to SFIO and 1 case to Regional director, Chennai for investigation under Section 235/237 of the Companies Act, 1956 have been ordered by the Ministry. During the current year 18 including 16 K.P. Group Investigation Reports have been received, which have been processed. 5.4.5 During the year 2006-07, 17 Investigation

Reports under section 241 of the Companies Act, 1956 have been furnished by Serious Fraud Investigation Office (SFIO) in respect of the Companies as indicated in table 5.1.

Table- 5.1
Sl. No. Investigation Report submitted Sl. No. Investigation Report submitted

1. Triumph International Finance India Ltd 2. N H Securities Ltd 3. K N P Securities Pvt Ltd 4. N V Parekh Securities Pvt Ltd

10. Classic Credit Ltd 11. Saimangal Investrade Ltd. 12 Classic Shares and Stock Broking Services Ltd 13. Goldfish Computers Pvt Ltd.

5. Panther Fincap and Management Services Ltd. 14. Nakshatra Software Pvt Ltd. 6. Pather Investrade Ltd 7. Panther Industrial Products Ltd. 8. Triumph Securities Pvt Ltd. 9 Luminant Investrade Pvt Ltd. 15. Chitrakoot Computers Pvt Ltd. 16. Manmandir Estate Development Pvt. Ltd. 17. Morepen Laboratories Ltd.

5.4.6 Till 31.03.2007, 360 cases of prosecution have already been filed in the different Courts against the

persons involved in fraudulent activities in the companies as indicated in table 5.2.

46

Table- 5.2
Sl.No. Name of Company No. of cases filed under Company Law No. of cases Total cases filed under filed IPC Financial years in which complaint was filed 05-06 05-06 05-06 05-06 05-06 06-07 06-07 06-07 06-07 06-07

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Daewoo Motors India Ltd. Design Auto Systems Ltd. Bonanza Biotech Ltd Vatsa Corporation Ltd. Mardia Chemicals Ltd. Soundcraft Industries Ltd. Kolar Biotech Ltd. Adam Comsof Ltd DSQ Software Ltd. Koshika Telecom Ltd.

21 11 16 106 22 35 25 21 23 34

02 02 01 08 01 09 04 04 02 -

23 13 17 114 23 44 29 25 25 34

5.4.7 During the period from 1st April, 2006 to 31st March, 2007 three cases were ordered for investigation under section 235/237 of the

Companies Act by the Central Government under separate orders. Details of their present position is given below :-

S.No. 1. 2. 3.

Name of Company Shonk Technologies International Ltd. Shonk Technologies Ltd. Morepen Laboratories Ltd.

Present position Investigation under progress -doReport submitted.

5.4.8 Twenty Six (26) companies are under various stages of investigation as on 31.3.2007, the details of which are in Statement XXIV.

as on 31.3.2006 and 10601 prosecutions (Table 5.3) were instituted during the year 2006-07 against 2668 companies and their officers. Thus, in all 56306 prosecutions were pursued in the courts during 200607. Out of these, 8509 prosecutions were disposed of and 47797 were pending at the end of the year. State-wise details are given in the StatementXXV.

Prosecution
5.5.1 A total of 45705 prosecutions, launched under the Companies Act, were pending in various courts

47

Table - 5.3 Nature of Defaults and number of prosecutions Filed during 2006-07
Sl. Section of the No. Companies Act, 1956 or a Rules 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2 49 58A(1) 58A(9) 63 68 68A 75 97 113 143 146 147 149 150 159/162 165/168 166/168 171/172 192 193 Nature of defaults Number of Cases filed during the year 4 1 17 1 4 5 13 3 11 1 1 34 17 2 3 4907 4 73 6 4

3 Investments of company to be held in its own name Acceptance of Deposits Repayment of Deposits Criminal liability for mis-statements in prospectus Penalty for fraudulently inducing persons to invest money Personation for acquisition, etc., of shares Return as to allotments Notice of increase of share capital or of members Limitation of time for issue of certificates Companys register of charges Registered office of company Publication of name by company Restrictions on commencement of business Register of members Annual return to be made by company having a share capital Statutory meeting and statutory report of company Annual General Meeting Length of notice for calling meeting Registration of Certain resolutions and agreements Minutes of proceedings of general meetings and of Board and other meetings

11

21

198

Overall maximum managerial remuneration and managerial in case of absence or inadequacy of profit 1 4

22

205A

Unpaid dividends to be transferred to special dividend account

48

Sl. Section of the No. Companies Act, 1956 or a Rules 1 23 24 25 26 27 28 2 207 209A 210 211 217 218

Nature of defaults

Number of Cases filed during the year 4 3 53 35 98 39

3 Penalty for failure to distribute dividends within forty two days Inspection of books of accounts etc. of companies Annual Accounts and balance sheets Forms and contents of Balance sheets and profit and loss account Boards report Penalty for improper issue, circulation or publication of balance sheet or profit & loss account Right of member to copies of Balance sheet and auditors report Three copies of balance sheet etc. to be filed with Registrar Penalty of non-compliance of auditor with sections 227 and 229. Power of Registrar to call for information or explanation Minimum number of directors Right of persons other than retiring directors to stand for directorship Appointment of managing or whole time director or manager to require Government approval only in certain cases Vacation of office by directors Certain powers to be exercised by Board only at meeting Loans to directors etc. Boards sanction to be required for certain contracts in which particular directors are interested

1 4 5025 2 10 2 2

29 30 31 32 33 34 35

219 220 233 234 252 257 269

4 1 8 9

36 37 38 39

283 292 295 297

9 5 2

40 41 42

299 300 301

Disclosure of interests by director Interested director not to participate or vote in Boards proceedings Register of Contracts, companies and firms in which Directors are interested

11 6 4 3

43 44 45

303 307 371/370

Register of Directors managing agents, secretaries and treasurers etc. Register of Directors share holdings etc. Penalty for contravention of Section 369, 370 and 370A

49

Sl. No.

Section of the Companies Act, 1956 or a Rules

Nature of defaults

Number of Cases filed during the year

1 46 47 48 49

2 372 374 383A 614A

3 Purchase of shares by company of other companies Penalty for contravention of Section 372 or 373 Certain Companies to have secretaries Powers of Courts trying offences under the Act to direct the filing of documents with the Registrar

4 4 1 23

30 6

50 51

628 629A

Penalty for false statements Penalty where no specific penalty is provided elsewhere in the Act

24 54
10601

52

Others

Total

5.5.2 Comparative data showing the progress of prosecutions during the last five years from 2002-03 to 2006-07 is given in Table 5.4.

Table 5.4 Progress of Prosecutions : 2002-03 to 2006-07

S.No

Subject 2 Number of companies prosecuted during the year Number of prosecutions started during the year Number of prosecutions pending at the beginning of the year Number of prosecutions disposed during the year Convictions Number of prosecutions ending in acquittals Number of prosecutions withdrawn or otherwise disposed of (including condonations) Number of prosecutions pending at the end of the year Total fine imposed ( in rupees) Total amount awarded as cost to Registrar (in rupees) Percentage of conviction to total cases decided Average number of prosecutions per company prosecuted Average fine imposed per case ending in conviction(in Rs.)

2002-03 3 2133 9154 39899 5467 2804 441 866 43580 5953475 1051490 51 5 2123.2

2003-04 4 1954 6552 45763 4563 2665 370 990 45562 5988662 1526107 58 3 2247.2

2004-05 5 2560 8129 45562 4630 3099 164 890 49061 5229401 1561426 66 2 1687.4

2005-06 6 1265 5128 49061 8484 2686 185 1763 45705 7159012 2140825 32 7 2665.3

2006-07 7 2668 10601 45705 8509 2273 310 4576 47797 5814261 2729661 27 3 2558.05

1 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

50

Oppression and Mismanagment

5.6 Three applications under section 399(4) of the Companies Act, 1956 relating to request and seeking authorisation for filing petitions for prevention of oppression and mismanagement were processed and permission to appear before the Honble Company Law Board has been granted by the Central Government.

S.No. Name of the Industries 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. Cosmetic & Toiletries Cycle Dry Cell batteries Dyes Electric Cables and Conductors Electric fans Electricity Electric Lamps Electric Motors Electronic Products Engineering Industries Fertilizers Footwear Formulations Industrial Alcohol Industrial Gases Insecticides Jute goods Milk food Mining and metallurgy Motor vehicles Nylon Paper Petroleum Industry Plantation Products Polyester Rayon Refrigerators Room Air conditioners Shaving Systems Soaps and Detergents Steel Plants Steel tubes & pipes Sugar Telecommunications Textiles Tyres and Tubes Vanaspati

Cost Audit
5.7.1 In exercise of the powers conferred by sub section (1) of the Section 642 read with clause (d) of sub Section (1) of Section 209 of the Companies Act, 1956, the Central Government nofify the Cost Accouinting Records Rules from time to time with respect to various industries requiring every company covered under these Rules to maintain cost accounting records from the financial year on or after the publication of these Rules. 5.7.2 The Cost Accounting Record Rules (CARRs) prescribe the manner in which cost records are to be maintained so as to have cost data base to be utilized by industries to improve upon their performance and face competitive environment, and by various Government agencies like revenue authorities, regulatory bodies and other institutions for meeting their respective objectives. Cost Accounting Records Rules have been notified in respect of 44 industries as indicated in Table 5.5.

Table 5.5 Cost Accounting Record Rules notified under Section 209(1)(d) of the Companies Act, 1956.
S.No. Name of the Industries 1. 2. 3. 4. 5. 6. Aluminium Batteries- other than Dry Cell Batteries Bearings Bulk Drugs Cement Chemicals including caustic soda, soda ash and sulphuric acid

51

5.7.3 The Ministry took up an exercise for framing of Cost Accounting Records Rules on activities relating to Shipbuilding and Aircraft in consultation with the Ministry of Defence and PSUs, which is in progress. 5.7.4 To simplify/rationalize the existing Cost Accounting Records Rules and synchronize them with the likely technological changes in the manufacturing process and perceptional shift in the accounting methods and policies, the existing rules are reviewed periodically from time to time and necessary amendments are notified accordingly. During the year 2006-07, the Cost Accounting Records (Electricity Industry) Rules, 2001 have been amended and published on 27th June, 2006 vide G.S.R. No. 387 (E). An exercise has also been taken up to review the existing Cost Accounting Records Rules relating to Bulk Drugs and Formulation on the

basis of a reference received from National Pharmaceuticals Pricing Authority (NPPA), Department of Chemical & Petrochemicals. 5.7.5 In pursuance to the recommendations of the Committee on Sub-ordinate Legislation (14th Lok Sabha) in its 1st Report, presented to the Lok Sabha on 2 nd December, 2004, the Ministry has framed internal policy guidelines on Cost Accounting Records Rules and Cost Audit. 5.7.6 Under section 233B(1) of the Companies Act, 1956, cost audit orders are issue on eligible companies from time to time to get their cost records audited by a practicing Cost Accountant. On the basis of recommendations made by various regulatory authorities, Cost Audit orders were issued on 61 companies during the year 2006-07 as per details given in table 5.6.

Table 5.6 List of Companies on which Cost Audit Orders were issued for the first time during the year 2006-07
S. Number of No. Companies covered by Cost Audit Product/ Industry Recommending Authority Relevant CARRs

41

Tea/Coffee

Tea/Coffee Board

Cost Accounting Records (Plantation Products) Rules, 2002 Cost Accounting Records (Electricity Industry) Rules, 2001 Cost Accounting Records (Formulations) Rules, 1988 and Cost Accounting Records (Bulk drug) Rules, 1974 Cost Accounting Records (Electronic Products) Rules, 2001 Cost Accounting Records (Petroleum Industry) Rules, 2002 during the corresponding period of the previous year i.e., 2005-06.

Electricity

Delhi Electricity Regulatory Commission

Pharma ceutical

National Pharmaceuticals Pricing Authority Commissioner of Central Excise Ministry of Petroleum & Natural Gas

Electronic Products Petroleum Products

12

5.7.7 The number of Cost Audit Reports received during the year 2006-07 was 1363 as against 1356

52

Investor Education and Protection Fund (IEPF)

5.8.1 Investor Education and Protection Fund (IEPF) has been established under Section 205C of the Companies Act, 1956 by way of Companies (Amendment) Act, 1999 for promotion of investors awareness and protection of the interests of investors. 5.8.2 Under IEPF, various programmes on investor education and awareness have been funded and organized through Voluntary associations or organisations registered under IEPF. A total number of 62 such organizations have been registered under IEPF. 5.8.3 During the period from 01.04.2006 to 31.03.2007, the Ministry has launched following awareness/ educational campaigns through Electronic as well as Print Media.:(i) Three series of advertisement on investor education were issued in national as well as regional languages newspapers. Through these advertisements, the efforts had been madet o educate investors for investing in IPOs, market instruments, Mutual Funds etc. (ii) In addition to above said educative message, NGOs/VAs involved in investoreducation and protection activities, especially those with a rural outreach, were invited to apply for financial assistance under IEPF. Further, organizations, which were keen to carry out the research on the subjects of investor education/protection and related issues, were also invited to submit their proposals to the IEPF. (iii) Investor Education message were aired on All India Radio and Doordarshan through Prasar Bharati to create awareness on the issues concerning investors and about the IEPF. (iv) An Investor Helpline namely www.watchoutinvestors.com. Project was (v)

launched under IEPF through Midas Touch Investors Association to provide an online mechanism for redressal of grievances.. Beside, a website, namely

www.watchoutinvestors.com. had also been launched earlier tohelp the investors to protect themselves from unscrupulous promoters, companies and entities. The website is a national registry of economic defaulters and covers informationon convictions by various regulatory bodies. (vi) Under the Capacity building programme the Training of Trainers programmes were conducted through India Institute of Capital Market (IICM), Mumbai especially, for the new organizations active at Taluka level.

Investor Protection Cell

5.9.1 Investor Protection Cell (IPC) of the Ministry of Corporate Affairs was set up in 1993 to deal with investors grievances. It receives a large number of complaints from the aggrieved investors. The complaints relate to the following issues. 1. 2. 3. 4. 5. 6. 7. 8. 9. non receipt of annual report non receipt of dividend amount non refund of application money non payment of matured deposits and interest thereon non receipt of duplicate share non registration of transfer of share non issue of share certificates non receipt of debenture certificate non issue of right bonus share

10. non issue of interest on late payment 11. non redemption of debenture and interest thereon 12. non receipt of share certificate on conversion

53

5.9.2 With a view to improving the processing of investors grievances, a new system for on line lodging of complaints by investors and depositors have been built in MCA-21 e-governance programme of the Ministry. The new system facilitates investors and depositors to electronically lodge their complaints with the IPC without the requirement of sending their grievances in writing through post. The system issues complaint number as acknowledgement online for future reference and is available on the website of Ministry of Corporate Affairs i.e. www.mca.gov.in. 5.9.3 In order to actively associate the field offices in Investor grievances redressal function, a nodal team headed by a designated officer has been set up in all offices of Registrar of Companies /Regional Directors. 5.9.4 The IPC has received about 1472 complaints at Headquarters during the period from 1.04.2006 to 31.3.2007 from the investors/depositors. Out of this 276 complaints have been settled. For rest of the complaints, action has been initiated through the jurisdictional Registrar of Companies. 5.9.5 The Ministry also co-ordinates with the Reserve Bank of India, Department of Economic Affairs and Security and Exchange Board of India for redressal of complaints wherever such complaints pertain to these agencies. 5.9.6 An website namely www.investorhelpline.in has been launched under Investor Education and Protection Fund by Midas Touch Investor Association to provide a mechanism for redressal of grievances and to create awareness, free of cost. This website was launched in September 2006. 5.9.7 During the period from September 2006 to 31st March, 2007 Midas Touch Investor Association have received 2431 complaints and settled 478 complaints.

Vanishing Companies
5.10.1 The Capital Market had witnessed a boom period during 1993-94 and 1994-95 when many new companies tapped the capital market and collected funds from the public through public issue of shares/ debentures. Some of these companies defaulted in their commitments made to the public while mobilising funds. The Securities and Exchange Board of India (SEBI) had identified 229 companies by October 2000, which came out with IPOs during the period 1992-1998, as vanishing. 5.10.2 Finance Minister in his Budget Speech on 27.2.99 had, inter alia, stated that a joint mechanism between SEBI and (the then) Department of Company Affairs (DCA) would be set up for taking stringent action against unscrupulous promoters who raised moneys from investors and misused them. Accordingly, a Coordination and Monitoring Committee (CMC), co-chaired by Secretary, Department of Company Affairs (the then) and Chairman, SEBI was set up in March, 1999 to settle the policy issues regarding the delinquent companies/ promoters and to monitor the progress in regard to action against the vanishing companies and their promoters/directors. A representative of Ministry of Finance, Department of Economic Affairs has been inducted as member of CMC for better co-ordination in respect of policy issues concerning vanishing companies. 5.10.3 The CMC is assisted by four Task Forces, one each corresponding to a Region, falling under the jurisdiction of four Regional Directors of Ministry of Corporate Affairs. Other members of these Task Forces are representatives of SEBI, Regional Stock Exchange, a Nodal Officer each nominated by the concerned State Governments and the concerned Registrars of Companies. The main responsibility of these Task Forces is to identify the companies which

54

are not traceable after mobilizing funds from the public/ investors, to suggest/take appropriate action in terms of Companies Act or SEBI Act or any other law applicable, and monitor the action initiated in different cases. 5.10.4 For identifying a company as vanished, following Criteria has been adopted: (i) Companies, which have not complied with listing requirements/filing requirements of Stock Exchange/ROC respectively for a period of 2 years; (ii) No correspondence has been received by the Exchange from the company for a long time; (iii) No office of the company is located at the mentioned registered office address at the time of Stock Exchange inspection. All the conditions laid down have to be met for treating a company as vanishing and companies satisfying one or more but not all conditions are not to be considered as vanishing. 5.10.5 Of the 229 companies earlier identified as vanished, CMC, in its meetings, held on 25.02.2003, 15.01.2004, 23.11.2004 and 18.3.2005 deleted the names of 44, 63, 7 and 1 companies respectively from the list of vanishing companies as these companies were found to be regular in filing statutory returns, etc, resulting in the number of vanishing companies being reduced to 114.

provisions of the Companies Act, 1956 and under the Indian Penal Code: (i) Prosecutions have been filed under Sections 62/63,68 and 628 of the Companies Act, 1956 against 107 vanishing companies for misstatement in prospectus/ fraudulently inducing persons to invest money/ false statement made in the offer documents etc. (ii) Prosecutions have been filed under the Companies Act, 1956 for non-filing of statutory returns; (iii) FIRs have been Filed/ Registered under the Indian Penal Code against 102/95 vanishing companies, their promoters/Directors. (iv) A Monitoring Committee (MC) was set up in August 2004 for closely monitoring all cases of prosecutions launched under the Companies Act, 1956 and FIRs filed/registered under the Indian Penal Code against vanishing companies and their Directors. This Committee is co-chaired by Secretary, Ministry of Company Affairs (presently know as Ministry of Corporate Affairs) and Chairman, SEBI and includes senior officials of various State Governments and the Commissioner of Police, Delhi or his representative. State authorities concerned have nominated Nodal Officers for effective coordination with the Registrar of Companies. (v) The latest position regarding Region-wise cumulative action taken against vanishing companies, their Directors/Promoters, is given below:

5.10.6 Following steps have been taken/ are being taken by the Ministry against the vanishing companies and its promoters/ directors under the relevant

55

Region wise distribution of vanishing companies

Subject Northern Region Number of vanishing companies Number of companies against Which prosecutions filed under Sections 62/63, 68 & 628 of the Companies Act, 1956 Number of companies against which prosecutions filed for non-filing of statutory returns. Number of companies where FIRs filed. Number of companieswhere FIRs registered. 16 15 45 43 14 13 27 24 102 95 16 47 11 20 94 17 17 Western Region 49 48 Eastern Region 14 11 Southern Region 34 31 114 107 Total

(vi)

Petitions have also been filed with the Company Law Board (CLB) under Sections 397/398/402/ 408 read with Section 406 of the Companies Act, 1956 in respect of two selected vanishing companies to disgorge the properties/monies fraudulently obtained by promoters/Directors of these two vanishing companies. The Company Law Board has dismissed the petition in case of M/s. Nuline Glassware (India) Ltd., (presently known as M/s. Pur Opale Creations Ltd.) against which the Ministry has filed an appeal before the Gujarat High Court. The other case of M/s. AVI Industries Ltd. is pending for adjudication by the Company Law Board.

Website of the Ministry (www.mca.gov.in) for wider public information. (ix) A Website www.watchoutinvestors.com has been sponsored by the Ministry under Investors Education and Protection Fund (IEPF) and created by Prime Investors Protection Association and League, to help the investors protect themselves against unscrupulous promoters, companies and entities. This website is a national web-based registry covering entities including companies, intermediaries and, wherever available, persons associated with such entities, who have been indicted for an economic default and/or for non-compliance of laws/guidelines. It enables investors to do a free, fast and userfriendly search on such entities/persons before making any new investments and for continuously reviewing their existing portfolio vis-a-vis such entities. (x) The details of Vanishing Companies and their promoters/directors have been published in the Newspapers to facilitate investors to come

(vii) The recommendations of the Expert Committee set up by the Ministry to advise the Government on the new Company Law with regard to protecting the interest of the investors are being examined in the Ministry from the point of view of providing a legal framework for safeguarding investors interests. (viii) Details of Vanishing Companies and their promoters/directors have been placed on the

56

forward and lodge their complaints against these companies in order to help the Police authorities in their investigation and prosecution launched against them in the Courts. (xi) The Ministry has accorded sanction to the Registrar of Companies (RoC) for prosecution of auditors of M/s. Western India Industries Ltd, M/s. Kiev Finance Ltd. and of M/s. Vini Metaspin Steels Ltd. for contravention of provisions of Companies Act, 1956. Accordingly, prosecutions have already been launched by the concerned RoCs. The case filed against the auditor of M/s. Vini Metaspin Steels Ltd. was dismissed by the Honble Special Judge for Economic Offences at Hyderabad. The concerned RoC has already filed appeal before the Honble High Court, Andhra Pradesh against the dismissal order. (xii) The concerned Task Forces are reviewing the working of Vanishing Companies, which had been deleted from the list, very closely with a view to keep a close watch so that such companies do not indulge in fraudulent activities again.

(xiii) The Task Forces have also been instructed to scrutinize the list of companies, which had come out with IPOs during 1998-2001. (xiv) Besides taking action against these companies and their promoters/directors undert h e Companies Act and the Indian Penal Code, the Ministry is implementing an e-Governance project under which the identity of directors has been built in through the introduction of a Director Identification Number (DIN). (xv) SEBI has invoked powers granted to it under Section11/Section 11 B of the SEBI Act, 1992 and has issued orders against the vanishing companies and their promoters/Directors prohibiting them from associating in any way with the capital market activities. This order also prohibits them from dealing in securities and from accessing the capital market for a period of 5 years, which is the maximum permissible under the SEBI regulation. SEBI has debarred 100 companies and 378 Directors.

57

CHAPTER VI

Liquidation of Companies

6.1 6444 companies were under liquidation as on 31.03.2006 and 324 companies were taken into liquidation from 01.04.2006 to 31.03.2007. After taking into account 115 companies finally wound up,

the total number of companies under liquidation as on 31.03.2007 were 6653. The distribution of companies in liquidation by their mode of winding up from 01.04.2006 to 31.03.2007 is given in table 6.1:-

Table 6.1
Sl. No. Subject Pending as on Received during the 31.3.2006 Total (Col-3+4) period 1.4.2006 to 31.03.2007 5 1343 150 5272 Disposed of during the period 1.4.2006 to 31.03.2007 6 11 12 92 Pending as on 31.03.2007

1 1. 2. 3. 4

2 Members Voluntary winding up Creditors Voluntary winding up Winding up by Court Winding up subject to supervision of Court. Total

3 1268 148 5025

4 75 02 247

7 1332 138 5180

03 6444

00 324

03 6768

00 115

03 6653

58

CHAPTER - VII

Mobilization of funds through various sources by the corporate sector

Resources Raised by Corporate Sector
7.1.1 During the period 2002-03 to 2006-07, resources raised through equity issues increased considerably i.e from Rs.1257 crore in 2002-03 to Rs. 27622 crore in 2006-07 (an increase of Rs. 26365 crore). While public issue of debt issues declined to zero level in 2006-07 as against Rs. 2613 crore in 2002-03, private placement of debt issues increased from Rs.66948 in 2002-03 to Rs.145571 crore in 2006-07 (i.e an increase of Rs. 78, 623 crore) indicating an increasing preference for private placement of debt issues. Taking in account these, entire one can note an increase in resource mobilization by Corporate Sector to the extent of Rs.102375 crore during the past five years. Resources raised by corporate sector during the last five years from 2002-03 to 2006-07 is given in Table 7.1.

Table 7.1 Resources Raised by Corporate Sector

(Rs. crore) Year Equity Issues* Debt Issues Public Issues Private Placements ** Total Resource Mobilisation

2002-03 2003-04 2004-05 2005-06 2006-07

1257 18948 24388 27382 27622

2613 4324 3867 0 0

66948 63901 83405 96473 145571

70818 87172 111660 123750 173193

*includes CCPS and Offer for Sale ** Includes negligible amount of equity Source: RBI, SEBI. 7.1.2 Resource mobilized through new capital issues by Non-Government Public Ltd Companies has increased from Rs. 207 crore in 2002-03 to Rs. 10264 crore in 2005-06 ( i.e an increase by Rs. 10057 crore) . The Provisional Estimates for 2006-07 indicates that this amount is likely to reach the level of Rs.26659 crore i.e an increase of Rs. 16395 Crore over the previous year. Resource mobilized through new capital issues during the last five years from 2002-03 to 2006-07 is given in Table 7.2.

59

Table 7.2 New Capital Issues by Non-Government Public Limited Companies

(Rs. crore) Year 2002-03 2003-04 2004-05 2005-06 2006-07(p) P: Provisional Source: RBI Total No. of Issues 9 38 54 131 118 Amount 1878 3722 13079 21154 31600 No. of New Issues 3 9 22 77 73 Amount 207 1384 4778 10264 26659

7.1.3

Resource mobilization from primary market

increased from Rs. 4070 crore in 2002-03 to Rs.33508crore in 2006-07(i.e an increase of Rs. 29438 crore during the five year period). The funds mobilised from public and the existing( i.e Right Issues) shareholders of the companies also reveals an upward trend during this five year period i.e from Rs.3639 crore in 2002-03 to Rs 29796 crore in 200607 for public issues and from Rs.431 crore in 200203 to Rs.3710 crore in 2006-07 under Right Issues. Though the number of issues by the listed companies increased, actual resource mobilization declined considerably as compared to the previous three

years. However, resources mobilised through Initial Public Offers (IPOs) increased from Rs. 1039 crore in 2002-03 to Rs. 28504 crore in 2006-07 (i.e an increase of Rs. 27465 crore). During the five year period from 2002-03 to 2006-07, the number and amount of resources mobilised through equity issues at par declined by 4 and Rs. 131 crore respectively. On the contrary, the number and amount raised through equity issues at premium during the same period increased by 108 and Rs 31575 crore respectively. Resources mobilized from primary market during the last five years from 2002-03 to 2006-07 is given in Table 7.3.

60

Table 7.3 Resources Mobilized from Primary Market

(Rs crore) Total Public No 26 57 60 27382 33508 85 29796 39 3710 47 5002 77 28504 103 23294 36 4088 60 16446 79 10936 28256 34 24640 26 3616 37 14507 23 13749 6 10 2 23272 35 22265 22 1007 36 19838 21 3434 14 4070 14 3639 12 431 20 3032 6 1039 6 143 360 420 372 12 Amt No Amt No Amt No Amt No Amt No Amt Rights Listed IPOs At Par Category-wise Issuer Type Equities At Premium No 11 37 49 128 119 Amt 1314 18589 23968 27000 32889

Year

2002-03

2003-04

2004-05

2005-06

139

2006-07

124

61

7.1.4 Industry wise Classification of Capital Raised during the last five years from 2002-03 to 2006-07 is given in Table 7.4. It may be observed that resources raised by Banking Industry in 2006-07 declined by Rs10249 crore as compared to previous year. However, resources raised by Cement & Construction industry in 2006-07 increased by Rs. 1727 crore as

compared to 2005-06. Telecommunication Industry raised Rs 2994 crore in 2006-07 as against zero level in the previous year. With the exception of Engineering, Paper & Pulp, Power, Healthcare industry there was increase in resource mobilisation in other Industries in 2006-07 as compared to previous year.

Table 7.4 Industry wise Classification of Capital Raised (Rs crore)

Industry No. Banking/FIs Cement &Construction Chemical Electronics Engineering Entertainment Finance Food Proceessing Healthcare Information Technology Paper&Pulp Plastic Power Printing Telecommunication Textile Others Total 12 2 4 2 3 3 3 6 2 5 1 0 2 1 2 0 12 60 2004-05 Amount 11311 169 128 61 133 154 116 317 109 5095 60 0 5854 130 25 0 4595 28256 No. 12 11 2 2 6 7 7 9 10 15 4 0 6 1 0 13 34 139 2005-06 Amount 12439 1020 128 54 1124 710 824 427 651 902 182 0 2164 43 0 771 5944 27382 2006-07 No. 5 13 5 9 2 8 9 9 2 12 1 3 1 2 3 15 25 124 Amount 2190 2747 147 480 465 1219 2765 634 208 2077 15 106 30 121 2994 1064 16246 33508

62

7.1.5 Size-wise Classification of Capital Raised during the last five years from 2002-03 to 2006-07 is given in Table 7.5. Higher resource mobilization is observed for large issues. An amount of Rs 29938 Crore was collected by the companies through an issue size exceeding Rs.100 crore during 2006-07 where as only Rs. 3801 crore was raised during 2002-03 under the same category. Amount raised

through issue size of less than 50 crore and 100 crore were Rs. 1129 crore and 2386 crore respectively. Number of issues under these categories increased considerably as compared to the numbers of issues during 2002-03. Small sized issues are not encouraging as in 2006-07 there were only 3 issues by companies in the category of less than Rs 5 crore and 6 issues in the category of less than Rs. 10 crore.

Table 7.5 Size-wise Classification of Capital Raised (Rs. crore)

Year Total No 2002-03 2003-04 2004-05 2005-06 2006-07 26 57 60 139 124 Amount 4070 23272 28256 27382 33508 No 2 6 2 6 3 <5cr Amount 6 16 3 20 10 >5cr-<10cr No 1 5 5 4 6 Amount 8 36 44 32 45 >10cr-<50cr No Amount 10 16 17 47 40 255 330 461 1325 1129 >50cr-<100cr No 0 5 11 33 31 Amount 0 351 723 2189 2386 >100cr No 13 25 25 49 44 Amount 3801 22539 27025 23815 29938

7.1.6 Sector-wise and Regionwise Distribution of Capital Mobilized during the last five years from 200203 to 2006-07 is given in Table 7.6. It may be observed that resource mobilised by private sector increased from Rs. 1897 crore in 2002-03 to Rs. 31728 crore in 2006-07 i.e by Rs.29831 crore during the five year period. However public sector mobilised only Rs. 1779 crore in 2006-07 as against Rs. 18660 crore in 2003-04. Western Region (WR) is indicating

highest level of resource mobilisation as compared to rest of the regions i.e Rs. 22964 crore in 2006-07 as against Rs.6706 crore by Southern Region (SR), Rs.3673 crore by Northern Region (NR) and Rs.165 crore by Eastern Region (ER). While resource mobilization in NR and ER in 2006-07 has declined over the previous year, one may observe a steady increase in resource mobilization by SR during the same period.

63

Table 7.6 Sector-wise and Region wise Distribution of Capital Mobilized

(Rs. crore)
Sector-wise Private * Amt 4070 23272 28256 27382 33508 122 31728 2 1779 28 3673 5 165 131 20199 8 7183 30 5389 13 1495 56 55 55 17162 5 11094 8 8725 7 204 34 39 4612 18 18660 15 14576 7 636 21 6826 17951 14963 22964 18 1897 8 2173 1 78 3 117 13 3358 No Amt No Amt No Amt No Amt No Amt Public Northern Eastern Western Region -wise Southern No 9 14 11 40 36 Amt 588 1235 1377 5535 6706

Year

Total

No

2002-03

26

2003-04

57

2004-05

60

2005-06

139

2006-07

124

* Joint sector issues, if any, has been clubbed with private sector for the respective period.

64

CHAPTER - VIII

Financial Aggregates of Corporate Sector

8.1.1 Corporate sector today is one of the major driving forces of economic development of the country. The growing importance of corporate sector demands greater transparency and availability of corporate data in terms of comprehensiveness, reliability and timeliness. The corporate sector is studied for various aspects like its size and composition, growth & restructuring and financial performance focusing on capital structure, profitability measures and debt repayment capacity to ascertain financial vulnerability of Indian companies. It is also studied to assess the impact of regulatory framework which enables to introduce further reforms in regulation of companies. Further, the growth potential of a country is measured through the estimates of gross domestic saving and investment. The estimate of gross domestic saving (GDS) for the Indian economy is compiled for three major institutional sectors viz., public sector, private corporate and household sector wherein the contribution of private corporate sector was 15 to 17 percent during the tenth plan period. 8.1.2 With the launch of MCA21; the e-governance programme of the Ministry, a huge data repository has been created as a by product of the services provided by the Ministry. A major drive has been taken up to clean, correct and validate the database which has been built up progressively due to e-filling being

mandated and transfer of legacy documents forming a part of electronic registry. Having overcome the initial problems of making the e-governance system operational, the focus of the Ministry is now on the data management, mining and its value exploitation by way of introduction of value added series. 8.1.3 As an initial step in this direction, the paid up capital, one of the important and extensively used population parameter of the sector in estimating other financial indicators, has been compiled using the MCA21 data repository.

Methodology
8.2 All companies limited by shares registered under Companies Act, 1956 are required to file their Annual Returns under section 159 and Balance Sheet under Section 220 of the Companies Act, 1956. Since the launch of MCA21 and e-filing having been mandated these documents are filed electronically. The financial parameters contained in these documents are captured from the relevant documents and accompanying attachments. To estimate Paid up capital, data of 486059 companies, as available in the electronic registry, was consolidated and aggregated at state as well as industrial activity level. The aggregation is done separately for both public and private companies within government and nongovernment categories. The detailed tables are shown in Statements XII to XXIII.

65

66

Appendix
Statistical Statements (I to XXV)

67

68

STATEMENT- I Registration of New Companies : Region/State-wise Distribution 2006- 07

( Rs. in Crore) Region/State No. of Comp anies Authorised Capital

Public 1
Northern Region Haryana Himachal Pradesh Jammu & Kashmir Punjab Rajasthan Uttar Pradesh Uttaranchal Chandigarh Delhi Total Eastern Region Arunachal Pradesh Assam Bihar Jharkhand Manipur Meghalaya Mizoram Nagaland Orissa Tripura West Bengal Total Western Region Chhatisgarh Gujarat Madhya Pradesh Maharashtra Dadra & N Haveli Goa Daman & Diu Total Southern Region A & N Island Andhra Pradesh Karnataka Kerala Tamil Nadu Puducherry Lakshdweep Total GRAND TOTAL

Private 3
542 208 61 743 1,735 1,364 136 353 12,575 17,717 23 203 556 202 5 26 6 7 526 8 5,740 7,302 266 2,131 764 9,050 43 638 1 12,893 6 3,464 3,068 1,200 4,014 93 1 11,846 49,758

Total 4
566 212 65 793 1771 1430 145 371 13060 18413 24 213 566 210 5 31 6 8 553 8 5899 7,523 277 2253 806 9457 46 642 1 13,482 6 3626 3155 1244 4162 96 1 12,290 51,708

Public 5
663.80 7.10 8.05 96.45 66.85 172.75 30.75 38.50 20,134.75 21219.00 5.00 1315.90 2.75 25.05 0.00 6.80 0.00 2.10 1055.15 0.00 4332.68 6,745.43 116.82 513.04 158.30 12,774.45 45.05 1.60 0.00 13,609.26 0.00 1619.62 2836.10 160.20 1106.24 1.60 0.00 5,723.76 47,297.45

Private 6
384.19 97.57 21.89 196.82 330.04 348.29 61.85 59.02 5,363.58 6863.25 14.88 85.87 398.22 51.46 1.08 16.62 1.95 1.25 159.92 5.17 1656.77 2,393.19 70.31 711.07 177.25 6,966.27 1.59 92.28 0.01 8,018.78 1.60 2,139.46 2,242.73 313.73 3,209.34 31.36 0.01 7,938.23 25,213.45

Total 7
1047.99 104.67 29.94 293.27 396.89 521.04 92.60 97.52 25498.33 28082.25 19.88 1401.77 400.97 76.51 1.08 23.42 1.95 3.35 1215.07 5.17 5989.45 9,138.62 187.13 1224.11 335.55 19740.72 46.64 93.88 0.01 21,628.04 1.60 3759.08 5078.83 473.93 4315.58 32.96 0.01 13,661.99 72,510.90

2
24 4 4 50 36 66 9 18 485 696 1 10 10 8 0 5 0 1 27 0 159 221 11 122 42 407 3 4 0 589 0 162 87 44 148 3 0 444 1,950

69

STATEMENT- II Registration of New Government Companies : Region/State-wise Distribution 2006-07

( Rs. in Crore) Region/State No. of Companies Public 1 Northern Region Himachal Pradesh Punjab Rajasthan Uttar Pradesh Delhi Total Eastern Region Arunachal Pradesh Assam Bihar Jharkhand Orissa West Bengal Total Western Region Gujarat Madhya Pradesh Maharashtra Dadra & Nagar Haveli Total Southern Region Andhra Pradesh Karnataka Tamil Nadu Puducherry Total GRAND TOTAL 0 1 0 0 1 52 10 6 7 1 24 64 10 7 7 1 25 116 0.00 0.05 0.00 0.00 0.05 12,723.15 3.19 7.17 1.31 0.01 11.68 88.75 3.19 7.22 1.31 0.01 11.73 12,811.90 0 0 8 2 10 20 2 1 1 2 10 16 2 1 9 4 20 36 0.00 0.00 28.90 20.00 5,100.35 5,149.25 70.00 0.05 0.01 0.06 0.52 70.64 70.00 0.05 28.91 20.06 5100.87 5,219.89 2 Private 3 Total 4 Authorised Capital Public 5 Private 6 Total 7

1 3 0 1 3 6 14

0 0 2 0 1 1 4

1 3 2 1 4 7 18

5.00 1310.00 0.00 10.00 1000.15 4009.00 6334.15

0.00 0.00 5.15 0.00 0.10 0.02 5.27

5.00 1310.00 5.15 10.00 1000.25 4009.02 6339.42

3 5 8 1 17

2 0 18 0 20

5 5 26 1 37

16.00 20.80 1202.85 0.05 1239.70

0.02 0.00 1.14 0.00 1.16

16.02 20.80 1203.99 0.05 1240.86

70

STATEMENT- III Registration of New Non-Government Companies: Region/ State-wise Distribution 2006-07
( Rs. in Crore) Region/ State 1 Northern Region Haryana Himachal Pradesh Jammu & Kashmir Punjab Rajasthan Uttar Pradesh Uttaranchal Chandigarh Delhi Total Eastern Region Arunachal Pradesh Assam Bihar Jharkhand Manipur Meghalaya Mizoram Nagaland Orissa Tripura West Bengal Total Western Region Chhatisgarh Gujarat Madhya Pradesh Maharashtra Dadra & Nagar Haveli Goa Daman & Diu Total Southern Region A & N Island Andhra Pradesh Karnat aka Kerala Tamil Nadu Puducherry Lakshdweep Total Grand Total Number of Companies Public Private Total 2 24 4 4 50 28 64 9 18 475 676 0 7 10 7 0 5 0 1 24 0 153 207 11 119 37 399 2 4 0 572 0 162 86 44 148 3 0 443 1,898 3 542 206 61 742 1,734 1,362 136 353 12,565 17,701 23 203 554 202 5 26 6 7 525 8 5,739 7,298 266 2,129 764 9,032 43 638 1 12,873 6 3,454 3,062 1200 4,007 92 1 11,822 49,694 4 566 210 65 792 1,762 1,426 145 371 13,040 18,377 23 210 564 209 5 31 6 8 549 8 5,892 7,505 277 2,248 801 9,431 45 642 1 13,445 6 3,616 3,148 1,244 4,155 95 1 12,265 51,592 Authorised Capital Private 6 384.19 27.57 21.89 196.77 330.03 348.23 61.85 59.02 5,363.06 6,792.61 14.88 85.87 393.07 51.46 1.08 16.62 1.95 1.25 159.82 5.17 1656.75 2,387.92 70.31 711.05 177.25 6,965.13 1.59 92.28 0.01 8,017.62 1.6 2,136.27 2,235.56 313.73 3,208.03 31.35 0.01 7,926.55 25,124.70

Public 5 663.80 7.10 8.05 96.45 37.95 152.75 30.75 38.50 15034.40 16069.75 0.00 5.90 2.75 15.05 0.00 6.80 0.00 2.10 55.00 0.00 323.68 411.28 116.82 497.04 137.50 11,571.60 45.00 1.60 0.00 12,369.56 0 1,619.62 2,836.05 160.20 1,106.24 1.60 0.00 5,723.71 34,574.30

Total 7 1,047.99 34.67 29.94 293.22 367.98 500.98 92.60 97.52 20,397.46 22,862.36 14.88 91.77 395.82 66.51 1.08 23.42 1.95 3.35 214.82 5.17 1980.43 2,799.20 187.13 1208.09 314.75 18,536.73 46.59 93.88 0.01 20,387.18 1.6 3,755.89 5,071.61 473.93 4,314.27 32.95 0.01 13,650.26 59,699.00

71

STATEMENT - IV Non-Government Companies which ceased working (both liquidated and struck-off) : Region/State-wise Distribution - 2006 - 07
( Rs. in Crore) Region/S tate Public 1 Northern Region Haryana Himachal Pradesh Jammu & Kashmir Punjab Rajasthan Uttar Pradesh Uttaranchal Chandigarh Delhi Total Eastern Region Arunachal Pradesh Assam Bihar Jharkhand Manipur Meghalaya Mizoram Nagaland Orissa Tripura West Bengal Total Western Region Chhatisgarh Gujarat Madhya Pradesh Maharashtra Dadra & Nagar Haveli Goa Daman & Diu Total Southern Region A & N Island Andhra Pradesh Karnataka Kerala Tamil Nadu Puducherry Lakshdweep Total Grand Total 2 23 7 0 60 49 137 4 36 336 652 0 0 40 17 0 0 0 0 27 0 3 87 0 74 2 465 1 0 0 542 0 40 65 78 198 0 0 381 1662 No. of Companies Private Total 3 261 38 0 381 324 636 34 178 3,778 5630 0 5 125 68 1 1 0 0 107 0 20 327 0 499 5 5763 1 0 0 6268 0 334 938 1118 1541 0 0 3,931 16,156 4 284 45 0 441 373 773 38 214 4,114 6282 0 5 165 85 1 1 0 0 134 0 23 414 0 573 7 6228 2 0 0 6810 0 374 1003 1196 1739 0 0 4312 17,818 Public 5 0.02 0.43 0.00 1.56 3118.40 1603.74 0.05 1.08 4.01 4729.29 0.00 0.00 410.81 3017.35 0.00 0.00 0.00 0.00 292.68 0.00 0.86 3721.70 0.00 38.75 5.00 16.98 0.00 0.00 0.00 60.73 0.00 803.23 0.72 11.72 20.42 0.00 0.00 836.09 9347.81 Paid up Capital Private 6 1.38 1.50 0.00 12.85 6,381.21 36.45 0.69 5.24 15.52 6,454.84 0.00 0.11 1490.43 2629.11 0.03 0.70 0.00 0.00 2.95 0.00 0.86 4124.19 0.00 11.51 0.01 225.92 0.00 0.00 0.00 237.44 0.00 978.03 139.11 3.35 20.57 0.00 0.00 1141.06 11,957.53 Total 7 1.40 1.93 0.00 14.41 9,499.61 1640.19 0.74 6.32 19.53 11,184.13 0.00 0.11 1901.24 5646.46 0.03 0.70 0.00 0.00 295.63 0.00 1.72 7845.89 0.00 50.26 5.01 242.90 0.00 0.00 0.00 298.17 0.00 1781.26 139.83 15.07 40.99 0.00 0.00 1977.15 21,305.34

72

STATEMENT - V Companies Limited by Shares at work as on 31st March, 2007 (State-wise Distribution)
Sl.
No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 2 ANDHRA PRADESH ASSAM BIHAR JHARKHAND GUJARAT HARYANA HIMACHAL PRADESH J&K KARNATAKA KERALA MADHYA PRADESH CHHATISGARH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DELHI GOA DAMAN & DIU LAKSHDWEEP PUDUCHERR Y Total

STATE / UT

Public
No. 3 6,235 370 1,179 459 6,691 975 352 250 2,603 2,511 1,632 278 20,173 47 92 0 44 1,006 2,339 1,858 7,909 5 5,114 264 10,384 4 15 1,331 60 15,337 224 43 2 868 90,654

Private
No. 4 43,775 4,995 7,552 2,959 42,588 6,292 1,880 2,069 35,987 15,082 9,573 1,493 146,886 194 553 45 262 7,529 12,644 19,595 51,644 119 21,296 1,503 80,719 79 296 5,348 187 124,639 3,960 129 4 1,148 653,024

Total
No. 5 50,010 5,365 8,731 3,418 49,279 7,267 2,232 2,319 38,590 17,593 11,205 1,771 167,059 241 645 45 306 8,535 14,983 21,453 59,553 124 26,410 1,767 91,103 83 311 6,679 247 139,976 4,184 172 6 2,016 743,678

73

STATEMENT- VI Government Companies Limited by Shares at work as on 31st March, 2007 (State-wise Distribution)
Sl.
No.

STATE / UT 2 ANDHRA PRADESH ASSAM BIHAR JHARKHAND GUJARAT HARYANA HIMACHAL PRADESH J&K KARNATAKA KERALA MADHYA PRADESH CHHATISGARH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DELHI GOA DAMAN & DIU LAKSHDWEEP UDUCHERRY Total

Public
No.

Private
No.

Total
No.

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

3 37 16 45 15 55 16 6 20 49 86 52 9 149 5 4 0 3 67 4 39 87 2 95 12 78 2 2 26 2 106 6 1 1 1 1,098

4 40 23 5 8 9 15 12 3 26 25 0 0 143 8 3 3 3 24 2 4 21 28 4 13 4 39 0 4 0 84 3 0 0 15 571

5 77 39 50 23 64 31 18 23 75 111 52 9 292 13 7 3 6 91 6 43 108 30 99 25 82 41 2 30 2 190 9 1 1 16 1,669

74

STATEMENT- VII Non-Government Companies Limited by Shares at work as on 31st March, 2007 (State-wise Distribution)
Sl.
No. 1 2

STATE / UT

Public
No. 3

Private
No. 4

Total
No. 5

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

ANDHRA PRADESH ASSAM BIHAR JHARKHAND GUJARAT HARYANA HIMACHAL PRADESH J&K KARNATAKA KERALA MADHYA PRADESH CHHATISGARH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DELHI GOA DAMAN & DIU LAKSHDWEEP PUDUCHERRY Total

6,198 354 1,134 444 6,636 959 346 230 2,554 2,425 1,580 269 20,024 42 88 0 41 939 2,335 1,819 7,822 3 5,019 252 10,306 2 13 1,305 58 15,231 218 42 1 867 89,556

43,735 4,972 7,547 2,951 42,579 6,277 1,868 2,066 35,961 15057 9573 1,493 146,743 186 550 42 259 7,505 12,642 19,574 51,616 115 21,283 1,499 80,680 79 292 5,344 187 124,555 3,957 129 4 1,133 652,453

49,933 5,326 8,681 3,395 49,215 7,236 2,214 2,296 38,515 17,482 11,153 1,762 166,767 228 638 42 300 8,444 14,977 21,393 59,438 118 26,302 1,751 90,986 81 305 6,649 245 139,786 4,175 171 5 2,000 742,009

75

STATEMENT- VIII Companies limited by shares at work as on 31st March, 2007 Distribution by IndustrialActivity

Sl. No. 1 1 2 3 4 5 6 7 8 9 10

Industrial Classification

Public No.

Private No. 4 16068 6842 172848 2987 42965 89120 21034 159687 30278 111195 653024

Total No. 5 19939 7576 196219 3894 45955 95367 22491 182131 33343 136763 743678

2 Agriculture & Allied Activites Mining & Quarrying Manufacturing Electricity, Gas & Water Companies Construction. Trade, Hotels and Restaurants Transport,Storage & Communication Finance, Insurance, Real Estate & Business Services Community, Personal & Social Services Unclassified Total

3 3871 734 23371 907 2990 6247 1457 22444 3065 25568 90654

76

STATEMENT- IX Government Companies limited by shares at work as on 31st March, 2007 Distribution by Industrial Activity

Sl. No. 1 1 2 3 4 5 6 7 8 9 10

Industrial Classification 2 Agriculture & Allied Activites Mining & Quarrying Manufacturing Electricity, Gas & Water Companies Construction. Trade, Hotels and Rest aurants Transport,Storage & Communication Finance,Insurance,Real Estate & Business Services Community, Personal & Social Services Unclassified Total

Public No. 3 64 40 318 97 58 43 55 174 84 165 1098

Private No. 4 26 17 156 14 39 50 15 106 39 109 571

Total No. 5 90 57 474 111 97 93 70 280 123 274 1669

77

STATEMENT- X Non-Government Companies limited by shares at work as on 31st March, 2007 Distribution by Industrial Activity

Sl. No. 1 1 2 3 4 5 6 7 8 9 10

Industrial Classification

Public No.

Private No. 4 16042 6825 172692 2973 42926 89070 21019 159581 30239 111086 652453

Total No. 5 19849 7519 195745 3783 45858 95274 22421 181851 33220 136489 742009

2 Agriculture & Allied Activites Mining & Quarrying Manufacturing Electricity, Gas & Water Companies Construction. Trade, Hotels and Restaurants Transport,Storage & Communication Finance,Insurance,Real Estate & Business Services Community, Personal & Social Services Unclassified Total

3 3807 694 23053 810 2932 6204 1402 22270 2981 25403 89556

78

STATEMENT- XI

Companies at work 1956-57 to 2006-07

Companies Limited by Shares As on 31st March Government Comp anies Number Estimated Paid-up Capital ( Rs. Crore) Non-Government Companies Number Estimated Paid-up Capital ( Rs. Crore) Total Companies Number Estimated Paid-up Capital ( Rs. Crore) Companies with unlimited liability (No.) Companies limited by Guarantee and Association not for profit (No.) Foreign companies as defined under Sec. 591 of the Companies Act, 1956 (No.)

1 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006(R) 2007(P)

2 74 91 104 125 142 154 160 176 183 214 232 241 259 282 314 352 390 450 573 651 701 745 782 825 851 894 943 973 980 1020 1053 1104 1134 1160 1167 1180 1190 1203 1199 1216 1220 1223 1229 1245 1266 1261 1283 1309 1328 1352 1669

3 72.6 256.8 428.9 477.2 547.0 629.7 786.2 960.8 1114.9 1247.7 1391.5 1559.3 1714.9 1790.6 2064.4 2369.1 2998.4 4645.1 4966.0 6122.3 7174.5 8527.6 8315.2 10070.3 11442.6 13309.3 16734.9 19510.6 22447.0 27087.8 32872.7 37169.3 42572.4 47450.7 54484.6 57911.0 61163.4 67380.5 73299.5 76962.8 84317.8 88958.9 95918.4 102849.9 109745.6 120505.2 130482.3 146358.3 155814.1 167614*(1136) 173324*(1194)

4 29283 28189 27299 26772 26007 24821 25462 25756 26038 26551 26795 27103 27765 28727 30008 31915 33966 37035 40007 42755 45165 47549 50736 55668 61863 71508 81960 93291 108329 123359 139617 157220 179194 200968 223285 249181 275664 304422 352093 407926 449730 483277 510761 541189 567834 587985 610872 640203 678321 730817 742009

5 1005.0 1049.5 1086.7 1141.5 1271.5 1389.4 1470.3 1640.0 1727.9 1878.4 2009.8 2114.5 2259.4 2299.9 2439.2 2571.7 2750.1 2985.9 3234.8 3497.2 3705.2 4070.4 4260.0 4536.3 4914.1 5626.2 6321.4 6989.8 8149.7 9506.8 11095.1 12954.8 15131.1 17192.7 20313.3 26731.3 32891.7 46441.4 62719.2 87125.6 106200.8 128689.7 167440.9 215960.4 247501.2 285248.0 326576.4 352432.5 498207.5 451538*(478870) 476166*(484865)

6 29357 28280 27403 26897 26149 24975 25622 25932 26221 26765 27027 27344 28024 29009 30322 32267 34356 37485 40580 43406 45866 48294 51518 56493 62714 72402 82903 94264 109309 124379 140670 158324 180328 202128 224452 250361 276854 305625 353292 409142 450950 484500 511990 542434 569100 589246 612155 641512 679649 732169 743678

7 1077.6 1306.3 1515.6 1618.7 1818.5 2019.1 2256.5 2600.8 2842.8 3126.1 3401.3 3673.8 3974.3 4090.5 4503.6 4940.8 5748.5 7631.0 8200.8 9619.5 10879.7 12598.0 12575.2 14606.6 16356.7 18935.5 23056.3 26500.4 30596.7 36594.6 43967.8 50124.1 57703.5 64643.4 74797.9 84642.3 94055.1 113821.9 136018.7 164088.4 190518.6 217648.6 263359.3 318810.3 357246.8 405753.2 457058.7 498790.8 654021.6 619152*(480006) 649490*(486059)

1 4 15 43 47 62 78 176 219 252 282 295 298 299 309 319 303 317 330 337 349 375 392 419 420 427 449 461 479 490 496 496 498 520

9 1364 1356 1323 1180 1169 1143 1153 1162 1162 1161 1152 1160 1188 1206 1220 1242 1262 1294 1326 1337 1356 1381 1414 1447 1478 1496 1536 1598 1677 1739 1817 1881 1954 2041 2117 2192 2262 2350 2416 2506 2578 2652 2727 2824 2918 3007 3108 3244 3432 3605 3846

10 551 561 572 565 569 564 582 580 582 579 578 581 564 561 543 541 538 540 510 481 482 473 358 315 300 311 320 326 324 335 371 401 420 469 489 507 529 565 619 679 772 871 956 1045 1141 1285 1497 1654 1840 2040 2310

* Paid up Capital data for companies (nos given in parenthesis) as compiled from MCA21.

79

STATEMENT - XII Paid-up Capital of Companies Limited by Shares as on 31st March, 2006 State-wise Distribution
(Revised) ( Rs.in crore) PUBLIC Sl. No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 ASSAM BIHAR CHHATISGARH GUJARAT HARYANA HIMACHAL PRADESH J&K JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DELHI GOA DAMAN & DIU LAKSHDWEEP PUDUCHERRY TOTAL STATES / UT NO. 2 ANDHRA PRADESH 3 2,941 188 500 165 3,838 554 293 234 133 495 1,427 1,077 7,495 4 34 0 9 616 1,916 1,225 5,540 4 3,141 114 9,222 0 6 1,026 36 9,108 182 38 1 628 52190 PAID-UP* CAPITAL 4 20683 2926 506 570 44124 15111 2707 395 783 24613 4880 8620 77662 22 2389 0 120 4583 6245 9253 27380 13 18942 560 31182 0 17 1631 632 87833 1307 345 7 276 396317 NO. 5 19697 4385 2608 1171 22489 3110 1560 1891 1091 21090 10986 39526 51638 280 361 71 1983 3101 7348 14388 32570 93 13890 445 72540 0 232 4712 42 83762 2957 106 3692 4001 427816 PAID-UP* CAPITAL 6 22071 2326 545 680 8621 3239 4532 1358 3363 17336 2188 25840 25028 109 236 39 621 1090 800 2666 13585 80 3679 3117 30097 0 37 740 55 44428 1138 110 1075 2006 222835 NO. 7 22638 4573 3108 1336 26327 3664 1853 2125 1224 21585 12413 40603 59133 284 395 71 1992 3717 9264 15613 38110 97 17031 559 81762 0 238 5738 78 92870 3139 144 3693 4629 480006 PAID-UP* CAPITAL 8 42754 5252 1051 1250 52745 18350 7239 1753 4146 41949 7068 34460 102690 131 2625 39 741 5673 7045 11919 40965 93 22621 3677 61279 0 54 2371 687 132261 2445 455 1082 2282 619152 PRIVATE TOTAL

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

80

STATEMENT - XIII Paid-up Capital of Government Companies Limited by Shares as on 31st March, 2006 State-wise Distribution
(Revised) ( Rs.in crore) PUBLIC Sl. No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 STATES / UT NO. 2 ANDHRA PRADESH ASSAM BIHAR CHHATISGARH GUJARAT HARYANA HIMACHAL PRADESH J&K JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DELHI GOA DAMAN & DIU LAKSHDWEEP PUDUCHERRY T OTAL 3 24 11 34 8 56 12 5 19 7 33 82 41 85 1 4 0 2 56 4 33 59 2 67 10 54 0 1 21 1 74 9 2 1 2 820 PAID-UP* CAPITAL 4 3198 1612 200 5 16294 10802 43 233 245 14911 1837 5075 15227 0 2221 0 120 1771 296 3771 3894 13 10231 333 4427 0 1 202 5 42376 105 6 7 3 139464 NO. 5 14 24 2 1 5 4 10 4 5 14 18 2 58 10 7 3 3 19 0 9 18 1 2 3 27 0 3 2 0 35 2 0 0 11 316 PAID-UP* CAPITAL 6 8241 168 99 360 2 1 4220 1094 3062 309 302 178 1590 11 89 20 3 515 0 34 4 8 0 3057 2786 0 2 15 0 1502 2 0 0 476 28150 NO. 7 38 35 36 9 61 16 15 23 12 47 100 43 143 11 11 3 5 75 4 42 77 3 69 13 81 0 4 23 1 109 11 2 1 13 1136 PAID-UP* CAPITAL 8 11439 1780 299 365 16296 10803 4263 1327 3307 15220 2139 5253 16817 11 2310 20 123 2286 296 3805 3898 21 10231 3390 7213 0 3 217 5 43878 107 6 7 479 167614 PRIVATE TOTAL

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

81

STATEMENT - XIV Paid-up Capital of Non-Government Companies Limited by Shares as on 31st March, 2006 State-wise Distribution
(Revised) ( Rs.in crore)
PUBLIC Sl. No. STATES / UT NO. PAID-UP* CAPITAL NO. PAID-UP* CAPITAL NO. PAID-UP* CAPITAL PRIVATE TOTAL

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

2 ANDHRA PRADESH ASSAM BIHAR CHHATISGARH GUJARAT HARYANA HIMACHAL PRADESH J&K JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DELHI GOA DAMAN & DIU LAKSHDWEEP PUDUCHERRY TOTAL

3 2917 177 466 157 3782 542 288 215 126 462 1345 1036 7410 3 30 0 7 560 1912 1192 5481 2 3074 104 9168 0 5 1005 35 9034 173 36 0 626 51370

4 17485 1314 306 565 27830 4309 2664 162 538 9702 3043 3545 62435 22 168 0 0 2812 5949 5482 23486 0 8711 227 26755 0 16 1429 627 45457 1202 339 0 273 256853

5 19683 4361 2606 1170 22484 3106 1550 1887 1086 21076 10968 39524 51580 270 354 68 1980 3082 7348 14379 32552 92 13888 442 72513 0 229 4710 42 83727 2955 106 3692 3990 427500

6 13830 2158 446 320 8619 3238 312 264 301 17027 1886 25662 23438 98 147 19 618 575 800 2632 13581 72 3679 60 27311 0 35 725 55 42926 1136 110 1075 1530 194685

7 22600 4538 3072 1327 26266 3648 1838 2102 1212 21538 12313 40560 58990 273 384 68 1987 3642 9260 15571 38033 94 16962 546 81681 0 234 5715 77 92761 3128 142 3692 4616 478870

8 31315 3472 752 885 36449 7547 2976 426 839 26729 4929 29207 85873 120 315 19 618 3387 6749 8114 37067 72 12390 287 54066 0 51 2154 682 88383 2338 449 1075 1803 451538

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal. 82

STATEMENT - XV Paid-up Capital of Companies Limited by Shares as on 31st March, 2006 Distribution by IndustrialActivity
(Revised) (Capital in Rs. crore) PUBLIC Industrial Classification NO. 1 2 PAID-UP CAPITAL 3 NO. 4 P AID-UP CAPITAL 5 NO. 6 PAID-UP CAPITAL 7 PRIVATE TOTAL

Agriculture & Allied Activites Community, Personal & Social Services Construction. Electricity, Gas & Water Companies Finance, Insurance,Real Estate & Other Renting Bussiness Services Manufacturing Mining & Quarrying Transport,Storage & Communication Wholesale & Retail Trade, Restaurants and Hotels Unclassified TOTAL

2220 1590 1921 622 15108 16416 503 999 4479 8332 52190

3771 24621 23617 53073 53300 124368 8703 14269 11611 78984 396317

9686 22624 27223 1930 105718 118389 4380 14943 65513 57410 427816

6338 13293 12035 9897 44794 67441 6015 6006 20302 36714 222835

11906 24214 29144 2552 120826 134805 4883 15942 69992 65742 480006

10109 37914 35652 62970 98094 191809 14718 20275 31913 115698 619152

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

83

STATEMENT - XVI Paid up Capital of Government Companies Limited by Shares as on 31st March, 2006 : Distribution by Industrial Activity
(Revised) (Capital in Rs. crore)
PUBLIC Industrial Classification NO. 1 2 PAID-UP CAPITAL 3 NO. 4 PAID-UP CAPITAL 5 NO. 6 PAID-UP CAPITAL 7 PRIVATE TOTAL

Agriculture & Allied Activites Community, Personal & Social Services Construction. Electricity, Gas & Water Companies Finance, Insurance, Real Estate & Other Renting Bussiness Services Manufacturing Mining & Quarrying Transport,Storage & Communication Wholesale & Retail Trade, Restaurants and Hotels Unclassified TOTAL

47 73 45 70 130

175 14750 14094 42698 4706

20 29 22 15 46

231 348 3457 4949 1004

67 102 67 85 176

406 15098 17551 47647 5710

271 24 38 40 82 820

32814 1346 1840 323 26718 139464

91 15 10 27 41 316

8652 4740 233 46 4490 28150

362 39 48 67 124 1136

41466 6086 2073 369 31208 167614

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

84

STATEMENT - XVII Paid up Capital of Non-Government Companies Limited by Shares as on 31st March, 2006 : Distribution by Industrial Activity
(Revised) (Capital in Rs. crore) PUBLIC Industrial Classification NO. 1 2 PAID-UP CAPITAL 3 NO. 4 PAID-UP CAPITAL 5 NO. 6 PAID-UP CAPITAL 7 PRIVATE TOTAL

Agriculture & Allied Activites Community, Personal & Social Services Construction. Electricity, Gas & Water Companies Finance, Insurance,Real Estate & Other Renting Bussiness Services Manufacturing Mining & Quarrying Transport,Storage & Communication Wholesale & Retail Trade, Restaurants and Hotels Unclassified TOTAL

2173 1517 1876 552 14978 16145 479 961 4439 8250 51370

3596 9871 9523 10375 48594 91554 7357 12429 11288 52266 256853

9666 22595 27201 1915 105672 118298 4365 14933 65486 57369 427500

6107 12945 8578 4948 43790 58789 1275 5773 20256 32224 194685

11839 24112 29077 2467 120650 134443 4844 15894 69925 65619 478870

9703 22816 18101 15323 92384 150343 8632 18202 31544 84490 451538

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

85

STATEMENT - XVIII Paid-up Capital of Companies Limited by Shares as on 31st March, 2007 State-wise Distribution
(Provisional) ( Rs.in crore) PUBLIC Sl. No. 1 STATES / UT NO. 2 3 PAID-UP* CAPITAL 4 NO. 5 PAID-UP* CAPITAL 6 NO. 7 PAID-UP* CAPITAL 8 PRIVATE TOTAL

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

ANDHRA PRADESH ASSAM BIHAR CHHATISGARH GUJARAT HARYANA HIMACHAL PRADESH J&K JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DAMAN & DIU DELHI GOA LAKSHDWEEP PUDUCHERR Y TOTAL

2927 320 524 237 3839 552 286 232 140 565 1304 1165 7987 5 41 0 12 670 1926 1222 5801 5 3402 179 10584 1 7 1023 37 35 9083 175 1 111 54398

22,191 2,803 519 1,754 47,791 27,506 3,070 388 789 27,088 5,417 8,738 80,941 25 2,653 0 141 5,404 6,134 9,583 28,539 12 18,414 982 37,552 1 35 1,771 637 347 80,827 1,380 7 190 423629

19,534 4,237 2,586 1,968 23,230 3,142 1,513 1,884 1,177 20,968 10,811 7,777 85,788 163 470 29 211 4,840 10,963 14,603 33,167 89 14,247 829 73,717 4 226 4,537 41 108 85,012 2,972 1 817 431661

23,303 2,544 542 581 9,345 3,525 500 278 4,572 17,399 2,428 1,795 55,602 27 316 49 61 1,089 2,167 2,798 14,969 80 2,903 118 29,641 0 39 725 64 115 46,593 966 0 727 225861

22,461 4,557 3,110 2,205 27,069 3,694 1,799 2,116 1,317 21,533 12,115 8,942 93,775 168 511 29 223 5,510 12,889 15,825 38,968 94 17,649 1,008 84,301 5 233 5,560 78 143 94,095 3,147 2 928 486059

45,494 5,347 1,061 2,335 57,136 31,031 3,570 666 5,361 44,487 7,845 10,533 136,543 52 2,969 49 202 6,493 8,301 12,381 43,508 92 21,317 1,100 67,193 1 74 2,496 701 462 127,420 2,346 7 917 649490

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

86

STATEMENT - XIX Paid-up Capital of Government Companies Limited by Shares as on 31st March, 2007 State-wise Distribution
(Provisional) ( Rs.in crore)
PUBLIC Sl. No. 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 STATES / UT NO. 2 ANDHRA PRADESH ASSAM BIHAR CHHATISGARH GUJARAT HAR YANA HIMACHAL PRADESH J&K JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DAMAN & DIU DELHI GOA LAKSHDWEEP PUDUCHERR Y TOTAL 3 22 11 40 8 53 11 6 19 7 30 82 40 95 0 4 0 2 70 3 32 71 2 72 13 53 1 0 19 1 1 72 7 1 0 848 PAID-UP* CAPITAL 4 5,255 1,267 222 364 17,096 22,645 61 232 260 15,579 1,839 5,308 14,908 0 2,482 0 120 2,988 0 3,685 5,086 11 10,354 85 4,792 1 0 201 5 0 37,015 98 7 0 151966 NO. 5 17 30 4 0 4 4 10 2 7 18 19 1 67 12 7 5 4 2 1 15 18 1 4 3 23 0 6 2 0 1 41 3 0 15 346 PAID-UP* CAPITAL 6 8,277 579 99 0 2 0 112 2 4,244 121 319 0 2,045 10 90 42 2 1 0 54 4 8 1 2 3,224 0 5 15 0 6 1,602 2 0 490 21358 NO. 7 39 41 44 8 57 15 16 21 14 48 101 41 162 12 11 5 6 72 4 47 89 3 76 16 76 1 6 21 1 2 113 10 1 15 1194 PAID-UP* CAPITAL 8 13,532 1,846 321 364 17,098 22,645 173 234 4,504 15,700 2,158 5,308 16,953 10 2,572 42 122 2,989 0 3,739 5,090 19 10,355 87 8,016 1 5 216 5 6 38,617 100 7 490 173324 PRIVATE TOTAL

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal. 87

STATEMENT - XX Paid-up Capital of Non-Government Companies Limited by Shares as on 31st March, 2007 State-wise Distribution
(Provisional) ( Rs.in crore)
PUBLIC Sl. No. STATES / UT NO. PAID-UP* CAPITAL NO. PAID-UP* CAPITAL NO. PAID-UP* CAPITAL PRIVATE TOTAL

1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

2 ANDHRA PRADESH ASSAM BIHAR CHHATISGARH GUJARAT HARYANA HIMACHAL PRADESH J&K JHARKHAND KARNATAKA KERALA MADHYA PRADESH MAHARASHTRA MANIPUR MEGHALAYA MIZORAM NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU TRIPURA UTTAR PRADESH UTTARNCHAL WEST BENGAL A & N ISLAND ARUNACHAL PRADESH CHANDIGARH D & N HAVELI DAMAN & DIU DELHI GOA LAKSHDWEEP PUDUCHERRY TOTAL

3 2905 309 484 229 3786 541 280 213 133 535 1222 1125 7892 5 37 0 10 600 1923 1190 5730 3 3330 166 10531 0 7 1004 36 34 9011 168 0 111 53550

4 16,936 1,536 297 1,390 30,695 4,861 3,009 156 529 11,509 3,578 3,430 66,033 25 171 0 21 2,416 6,134 5,898 23,453 1 8,060 897 32,760 0 35 1,570 632 347 43,812 1,282 0 190 271663

5 19,517 4,207 2,582 1,968 23,226 3,138 1,503 1,882 1,170 20,950 10,792 7,776 85,721 151 463 24 207 4,838 10,962 14,588 33,149 88 14,243 826 73,694 4 220 4,535 41 107 84,971 2,969 1 802 431315

6 15,026 1,965 443 581 9,343 3,525 388 276 328 17,278 2,109 1,795 53,557 17 226 7 59 1,088 2,167 2,744 14,965 72 2,902 116 26,417 0 34 710 64 109 44,991 964 0 237 204503

7 22,422 4,516 3,066 2,197 27,012 3,679 1,783 2,095 1,303 21,485 12,014 8,901 93,613 156 500 24 217 5,438 12,885 15,778 38,879 91 17,573 992 84,225 4 227 5,539 77 141 93,982 3,137 1 913 484865

8 31,962 3,501 740 1,971 40,038 8,386 3,397 432 857 28,787 5,687 5,225 119,590 42 397 7 80 3,504 8,301 8,642 38,418 73 10,962 1,013 59,177 0 69 2,280 696 456 88,803 2,246 0 427 476166

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal. 88

STATEMENT - XXI Paid-up Capital of Companies Limited by Shares as on 31st March, 2007 Distribution by Industrial Activity
(Provisional) (Capital in Rs. crore)
PUBLIC Sl. No. 1 PRIVATE PAID-UP* CAPITAL 6 TOTAL PAID-UP* CAPITAL 8

Industrial Classification
NO. 2 3 PAID-UP* CAPITAL 4 NO. 5 NO. 7

1 2 3 4 5 6 7 8 9

Agriculture & Allied Activites Community, Personal & Social Services Construction. Electricity, Gas & Water Companies Finance,Insurance, Real Estate & Other Renting Bussiness Services Manufacturing Mining & Quarrying Transport,Storage & Communication Wholesale & Retail Trade, Restaurants and Hotels

2404 1683 2093 663 15942 16989 533 1054 4711 8326 54398

4211 26565 28950 51542 59036 137654 13249 15236 13409 73777 423629

9730 22486 29045 1958 108053 118752 4476 14987 67073 55101 431661

6188 13279 11896 6221 47095 71642 5615 6547 22848 34530 225861

12134 24169 31138 2621 123995 135741 5009 16041 71784 63427 486059

10399 39844 40846 57763 106131 209296 18864 21783 36257 108307 649490

10 Unclassified TOTAL

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

89

STATEMENT - XXII Paid up Capital of Government Companies Limited by Shares as on 31st March, 2007 Distribution by Industrial Activity
(Provisional) (Capital in Rs. crore)
PUBLIC SL No. Industrial Classification NO. PAID-UP* CAPITAL NO. PAID-UP* CAPITAL NO. PAID-UP* CAPITAL PRIVATE TOTAL

1 2 3 4 5 6 7 8 9 10

Agriculture & Allied Activites Community, Personal & Social Services Construction. Electricity, Gas & Water Companies Finance,Insurance,Real Estate & Other Renting Bussiness Services Manufacturing Mining & Quarrying Transport,Storage & Communication Wholesale & Retail Trade, Restaurants and Hotels Unclassified T OTAL

50 69 51 73 136 280 32 40 41 76 848

196 15356 14506 41222 5896 40906 3995 2069 808 27012 151966

19 40 22 12 60 100 16 8 26 43 346

113 389 387 272 1406 9745 4270 225 42 4509 21358

69 109 73 85 196 380 48 48 67 119 1194

309 15745 14893 41494 7302 50651 8265 2294 850 31521 173324

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

90

STATEMENT - XXIII Paid up Capital of Non-Government Companies Limited by Shares as on 31st March, 2007 Distribution by Industrial Activity
(Provisional) (Capital in Rs. crore) PUBLIC Sl. No. 1 Industrial Classification NO. 2 3 PAID-UP* CAPITAL 4 NO. 5 PAID-UP* CAPITAL 6 NO. 7 PAID-UP* CAPITAL 8 PRIVATE TOTAL

1 1 3 4 5 6 7 8 9

Agriculture & Allied Activites Community, Personal & Social Services Construction. Electricity, Gas & Water Companies Finance,Insurance,Real Estate & Other Renting Bussiness Services Manufacturing Mining & Quarrying Transport,Storage & Communication Wholesale & Retail Trade, Restaurants and Hotels

2354 1614 2042 590 15806 16709 501 1014 4670 8250 53550

4015 11209 14444 10320 53140 96748 9254 13167 12601 46765 271663

9711 22446 29023 1946 107993 118652 4460 14979 67047 55058 431315

6075 12890 11509 5949 45689 61897 1345 6322 22806 30021 204503

12065 24060 31065 2536 123799 135361 4961 15993 71717 63308 484865

10090 24099 25953 16269 98829 158645 10599 19489 35407 76786 476166

10 Unclassified TOTAL

*Paid Up Capital is worked out on the basis of the companies data available on the MCA Portal.

91

STATEMENT- XXIV Details of Investigation of cases pending as on 31.3.2007

Sl. No. 1 1 2 3 Name of the Company 2 Sudarshan Trading Co. Ltd. Modi Industries Ltd. South Karanpura Coal Co. Ltd. Date of order 3 31.12.73 12.05.77 10.08.77 Under Section 4 237(b) 237(b) 237(b) Remarks 5 Stay by Court - do Investigation could not be conducted due to non-production of record. - do Stay by Court - do - do - do - do - do - do - do - do - do - do - do do do do do -

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Karanpura Collieries Ltd. Anniversary Investment Agency Ltd. Heilgers Ltd. Investment & Finance Co. Ltd. Continuity Co. Ltd. Cielloc Investment Ltd. National Rolling & Steel Ropes Ltd. Northern India Gas Co. Ltd. Turner Morrison Co. Ltd. Swadeshi Polytex Ltd. Hariganga Cement Ltd. Nariman Point Building & Services Trading (P) Ltd. Indian Express Newspapers Bombay Pvt. Ltd. Indian Express (Madurai) Pvt. Ltd. Traders Pvt. Ltd. Andhra Prabha Pvt. Ltd. Bhagwan Dass Goenka Educational Institution ACE Investment Ltd. Express Newspaper Ltd. Samrat Bicycle Ltd. Jay Maharshtra Gur Khandsari Udyog Ltd.

10.08.77 10.08.77 10.08.77 10.08.77 10.08.77 07.02.78 07.02.78 24.06.82 11.10.85 25.04.86 21.07.86 13.11.87 23.11.87 13.11.87 13.11.87 13.11.87 13.11.87 13.11.87 13.11.87 13.01.89 23.3.2000

237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b) 237(b)

25

Mukta Art Ltd.

08.11.2005

237(b)

26

Shonkh Technologies International Ltd.

16.05.2006

237(b)

- do - do - do This investigation was ordered in view of CLB Order. The Petitioners have not paid the amount towards expenses of the investigation. Hence pending. Investigation Suspended as a result of stay granted against the order of investigation by Honble High Court of Mumbai. Investigation under progress.

STATEMENT- XXV Statement showing the statistics of prosecutions for the year 2006-07
Cases out standing as on 1.4.2006 ( in Rs. ) 6 8 52 88 1261 0 43 10 283 237 16 2 10 129 6 86 0 0 225 0 0 2 0 0 148 0 0 1 0 0 4 90 0 0 563 66 43 230 0 2 0 0 0 182 0 72 415 0 96 48 46 2 0 592 4 1846 47 0 17 0 223 126 44 283 91 0 0 142 233 676 64 669 0 328 720 47 150 4 909 4 1846 255 1 761 71 1088 114 23 0 116 253 7 8 9 10 11 12 22,650 1,59,299 1,12,800 0 53,777 9,15,150 0 3,80,750 6,89,500 1,500 1,73,000 0 47,110 0 60,450 ( in Rs. ) 13 165,650 460,479 56,400 513,300 107,554 186,125 0 767,500 2,151,000 13,500 346,000 0 296,423 0 431,180 companies launched involved during the period 1.4.2006 31.3.2007 4 78 292 1183 1573 842 812 152 349 1068 745 396 207 633 1 1114 454 12 676 37 12 33 789 607 20 210 0 2404 2107 268 162 5 Cos. Conviction involved Acquittal Withdrawl Disposed of otherwise Total awarded imposed Number of Cases No. of No. of cases disposed of Cost Fine Number of cases pending as on 31.3.2007 14 541 3027 3661 4052 1135 3134 390 940 2697 4784 914 529 3041 12 5863

Sl. Name of States

No.

1 632 3847 1787 2324 1199 3593 370 661 2628 4798 1052 496 3274 4 7255

Andhra Pradesh

Assam

Bihar

Delhi & Haryana

Goa

Gujarat

Jammu & Kashmir

Karnataka

Kerala

10

Maharashtra (Mumbai)

11

Maharasthra (Pune)

12

Madhya Pradesh

13

Orissa

14

Puducherry

15

Punjab, H.P.&

Chandigarh 257 2281 815 3679 4753 45705 13052 2011 535 451 1372 10601 306 52 688 831 44 15 133 205 2668 67 104 40 14 7 4 0 170 2273 0 41 0 0 50 310 0 158 2 7 150 1350 0 0 531 0 384 4576 14 206 537 7 754 8509 3,000 19,775 0 0 90,900 27,29,661 5,600 39,550 7,600 0 266,600 5,814,461 347 2906 330 4123 5371 47797

16

Rajasthan

17

Tamil Nadu (Coimbatore)

18

Tamil Nadu (Chennai )

19

Utt ar Pradesh

20

West Bengal

Total

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