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Discussion > Students > IPCC >

Sec 301 of Companies Act 1956

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PCC student


[ Scorecard : 84]
Posted On 25 September 2008 at 16:12 Report Abuse

What exactly does 'Register to be maintained as per section 301 of Companies Act' mean??

I read it as one of the points to be mentioned as per CARO report 2003.

Please clarify



Total thanks : 1 times

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CA Nitin Wadhwani
Chartered Accountant


[ Scorecard : 4459]
Posted On 25 September 2008 at 16:17

Loans Given To Related Parties.



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sangeetha
PCC student


[ Scorecard : 84]
Posted On 25 September 2008 at 16:22

And what about Cost records maintained according to sec 209(1) Of Companies Act ?




Darshan
Service


[ Scorecard : 54]
Posted On 25 September 2008 at 16:42

Not Only loan Given to Related Parties.

All transactions with Related parties to be mentioned in Register.

Difinition of Related party is as per Companies act and not as per AS 23.

Section 209 (1) says maintaing cost records - It allplies to manufacturing unit and all this record are to be kept at plant where manufacturing activity is done.

This Record inclueds everything related to cost of manufacturing product i.e. Material,Labour and overhead and method of allocationg overhead etc.

It is also to be audited by Cost Accountants i.eI CWA

 




sangeetha
PCC student


[ Scorecard : 84]
Posted On 25 September 2008 at 16:46

Tahanks a Bunch.

Does Preferential Allotment of shares also come under Sec 301?



Total thanks : 1 times



Darshan
Service


[ Scorecard : 54]
Posted On 25 September 2008 at 17:47

No

 




S.RAVICHANDRAN
STUDENT


[ Scorecard : 25]
Posted On 27 September 2008 at 16:26

Originally posted by :sangeetha
"

What exactly does 'Register to be maintained as per section 301 of Companies Act' mean??
I read it as one of the points to be mentioned as per CARO report 2003.
Please clarify

hi sangeeta,

if u are not satisfied with the below explanations.. kindly let me know....

[(1) Every company shall keep one or more registers in which shall be entered separately particulars of all contracts or arrangements to which section 297 or section 299 applies, including the following particulars to the extent they are applicable in each case, namely.-

 

(a) the date of the contract or arrangement;

(b) the names of the parties thereto;

(c) the principal terms and conditions thereof,

(d) in the case of a contract to which section 297 applies or in the case of a contract or arrangement to which sub-section (2) of section 299 applies, the date on which it was placed before the Board;

(e) the names of the directors voting for and against the contract or arrangement and the names of those remaining neutral.

3) The register aforesaid shall also specify, in relation to each director of the company, the names of the firms and bodies corporate of which notice has been given by him under sub-section (3) of section 299.

(3A) Nothing in sub-sections (1), (2) and (3) shall apply-

 

(a) to any contract or arrangement for the sale, purchase or supply of any goods, materials or services if the value of such goods and materials or the cost of such services does not exceed one thousand rupees in the aggregate in any year; or

(b) to any contract or arrangement (to which section 297 or, as the case may be, section 299 applies) by a banking company for the collection of bills in the ordinary course of its business or to any transaction referred to in clause (c) or sub-section (2) of section 297.]

(4) If default is made in complying with the provisions of sub-section (1), (2) or (3), the company, and every officer of the company who is in default, shall, in respect of each default, be punishable with fine which may extend to 2[five thousand rupees].
 

 

warn regards,

ravichandran.s.

 

"


 




sangeetha
PCC student


[ Scorecard : 84]
Posted On 29 September 2008 at 10:16

Thank you Ravi. but kindly explain in simple terms point 3(b)

3(b) :to any contract or arrangement (to which section 297 or, as the case may be, section 299 applies) by a banking company for the collection of bills in the ordinary course of its business or to any transaction referred to in clause (c) or sub-section (2) of section 297.]
 Thanks in Advance




Shubhankar Limaye
B.Com.


[ Scorecard : 169]
Posted On 29 September 2008 at 15:39

 Section 297(2)(c) States that the board's sanction shall not be required in respect of a contract in which a director is interested where contract is entered into by a in banking or insurance company for any transaction in the ordinary course of business of such company with any director, relative, firm, partner or private company.

Simply it means that such contracts can be entered into by the company without prior approval of Board, and its particulars need to be mentioned in the register maintained under Section 301.

 

Further Section 209(1)(d) mandates the companiesin certain industries fulfilling certain criteria to maintain particulars relating to utilisation of material or labour or to other items of cost as may be prescribed. List of such industries is mentioned at http://mca.gov.in/MinistryWebsite/dca/mcaoffices/RecordRules44.htm

The audit of such cost accounts is not mandatory and is required to be conducted only if ordered by Central Government



S.RAVICHANDRAN
STUDENT


[ Scorecard : 25]
Posted On 03 October 2008 at 18:44

Originally posted by :sangeetha
"

Thank you Ravi. but kindly explain in simple terms point 3(b)
3(b) :to any contract or arrangement (to which section 297 or, as the case may be, section 299 applies) by a banking company for the collection of bills in the ordinary course of its business or to any transaction referred to in clause (c) or sub-section (2) of section 297.]
 Thanks in Advance

 

hI sangeeta,

Greetings from ravi....

sorry for late respond to your query.... let me use simple terms so that u understand the concept of Sec.301.

hmmm...hmmm. this secions talks about maintaince of register for contractors.

Sec 297 and 299 tells about the contents and qualifications in the register.

The query which u hav asked me is Exemption part sangeetha in this secion.

Banks are not expected to maintain  register. this is answer for your query.

take care

thanks.

ravi.

 

 

"


 



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