Can a private limited company take loan from another private company as per the Companies Act, 2013? Under which section will it fall?

4th September 2015

ABC Limited is a closely held public limited company with a paid-up capital of Rs.13.50 crores. There are no operations for the past a decade and no income is generated. The company is incurring only normal expenses. The comapny has suffered losses and the capital of the company is fully eroded. The Company has been promptly filing the required forms every year with ROC. The Company has filed its annual accounts and annual return with ROC upto 31st March 2014.

The Companies Act, 2013, which came into force from 01.04.2014 requires the company to mandatorily appoint Independent Directors, Managing Director, Company Secretary, Chief Financial Officer….etc. Various other rules / conditions has to be followed by the company in compliance with Cos. Act 2013.

In view of the difficulties in following the new Cos. Act and due to non-availability of funds, the board of directors thought it fit to close the company. Accordingly the company filed an application under Section 560 of the Companies Act, 1956, with Registrar of Companies, for striking the name of the Company from the REGISTER OF COMPANIES. The said application was submitted on 20th August 2015 and the same has been accepted and a notice has been issued by ROC for striking off the name.

Due to submission and acceptance of above said application the Company will not be preparing its annual audited accounts for year ended 31st March 2015. Both the audited accounts and annual return for year ended 31st March 2015 will not be filed with ROC.

My query in this connection is

The application under Section 560 was filed with ROC only on 20th August 2015, almost five months after closure of financial year. In view of the above, is by any chance will ROC question the timing of this application. Further will ROC ask why the company has not prepared and filed the annual accounts and annual return for year ended 31st March 2015.

Looking forward for the reply of the forum members

With regards

Muralidharan

Dear Friends / Experts,

Please guide me on the following, IF POSSIBLE:

I am in the process of preparing documents for company incorporation.

Query

Whether we need to mandatorily attach AFFIDAVIT for non-acceptance of deposits in Form INC-7 for a Private Limited Company, for which the proposed Paid-up Capital shall be Rs.1 Lac only or can we ignore it due to recent exemption by MCA.

Your reply, please..............

Thanks in advance for possible replies from all concerned.

Is it necessary to make the disclosure of switching from WDV or Slm method to Schedule II.???

An Asset is purchased on 01.04.2010 and it is showing remaing life of 11 years as on 31.03.2015, which is correct as useful life is 15 years, but if i put purchase date as 30. 03. 2010 it shows the useful as 10 years, while according to me life should be 10.5 years not 10 years.It should not come down to 10 years just by changing the date from 1.4.2010 to 30.03.2010. Kindly clarify as I am having trouble in understanding it.
Thanking You in Anticipation.

24th September 2015

ABC Private Limited has invested in XYZ Limited and is holding 66.64% of it shares. In view of the above XYZ is a subsidiary of ABC. In accordance with Section 129 of the Companies Act, 2013, ABC Private Limited is required to prepare a consolidated financial statement (apart from its own financial statements).

However the subsidiary company (XYZ) has filed an application with the Office of the Registrar of Companies, Tamilnadu, Chennai, under Section 560 of the Companies Act, 1956, for striking off its name from the Register of Companies. The application submitted by the subsidiary has already been accepted by ROC and the process of striking off the name has been initiated. Due to this the subsidiary company has not prepared / drawn its financial statement for year ended 31st March 2015.

Due to non-availability of the accounts of the subsidiary it is not possible for ABC to prepare consolidated financial statement for year ended 31st March 2015.

I want to put a note in the Board Report as well as in the Notes on Accounts of the holding company mentioning the fact of the issue. I have prepared a note for this purpose. Kindly advise whether this note holds good or needs any change. I reproduce below the notes for your guidance.

The Company as on 31st March 2015 is holding 89,95,975 equity shares of Rs.10/- each representing 66.64% in the share capital of subsidiary company XYZ Limited. In compliance with Section 129(3) of the Companies Act, 2013, read with Rules made thereunder, the Company in addition to is own financial statements is required to prepare a consolidated financial statement of the Company and all of its subsidiaries in the manner specified under the Act and the said financial statements shall also be laid before the Annual General Meeting of the Company. The subsidiary company M/s.XYZ Limited has filed an application with the Office of the Registrar of Companies, Tamilnadu, Chennai, under Section 560 of the Companies Act, 1956, for striking off its name from the Register of Companies. The application submitted by the subsidiary has already been accepted by ROC and the process of striking off the name has been initiated. Accordingly the subsidiary company has not prepared / drawn its financial statements for the year ended 31st March 2015. In absence of financial statements of the subsidiary the Company is not in a position to prepare a consolidated financial statement.

with regards

Muralidharan

Dear Friends / Experts,

Please guide me on the following, IF POSSIBLE:

I am in the process of preparing documents for company incorporation.

Query

Whether we can use SINGLE DOCUMENT ‘Driving Licence’ as Proof of Identity and Proof of Residence for the purpose of Form INC-7, as the Subscriber does not have any other document. However, the Subscriber is having valid DIN.

(For the subscribers having DIN, KYC norms would not be applicable as given in Form INC-29)

Your reply, please..............

Thanks in advance for possible replies from all concerned.

Hi all,
Please suggest.
what are the important points to consider while deciding the types of company(pvt,llp,public Ltd) incorporation.

Dear experts , pl. tell me procedure for appoitment of CEO & CFO for a PRIVATE Company.

Which forms are required to be filed ?

Dear Sir/Ma'am,

Kindly send me the Procedure and and fees details for formation of NGO as per companies act,2013


Thanks in advance,

Lalitha.K

In MGT - 7, we are required to attach a list of shareholders/debenture holders as mandatory attachment for company having share capital. Should we prepare a list of shareholders with their name, address and personal details as attachment or are we required to prepare another MGT-7 in word/excel format and then attach it with the EFORM. Please advice.