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Cc limit enhanced

FATEMA (CHARTERED ACCOUNTANT) (719 Points)

29 November 2013

Dear All,

My company (a private limited company with share capital ) got the cash credit limit enhanced in this month by Rs.67 Lacs against hypothecation of stock and debtors.

The share capital is Rs 1crore, both authorised & paid up capital.

Please advice me in proceeding for secretarial compliances...What all is needed to be done according to the companies act?

Regards,

Fatema.

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5 Replies

CS BHAVIN SHETH (MANAGER-Company Secretary) (131 Points)
Replied 30 November 2013

Dear Fatima,

As per my limited knowledge and if am right, you are talking about cash credit limit from bank is enhanced than take guide from bank, i think they will only ask for Resolution for increasing cash credit limit from Company and same needs to provided to bank citing norms as required by bank.

regards

BHAVIN

FATEMA (CHARTERED ACCOUNTANT) (719 Points)
Replied 02 December 2013

Nothing related to form 8??

CS BHAVIN SHETH (MANAGER-Company Secretary) (131 Points)
Replied 02 December 2013

Dear Fatima,

MODIFICATION OF CHARGE (Section 135)

Any change in terms / conditions / extent of operation of any charge already registered tantamount to modification under Companies Act, 1956, such as : -

Change in rate of interest (other than bank rate), repayment period or any other material term of loan.
Further charge for the same loan by way of additional security.
Increase in limit.
Change in nature of security in respect of charge already created.

Again Form No. 8 & 13, in 3 sets, are required to be filed with ROC within 30 days ( within 60 days with additional fee ). The said forms will include the instrument modifying the original charge.

ROC will register the same under seal and signature and will deliver 2 sets of modifications, one for lender and second for borrower.

if your case in above mentioned, you need to fill form 8 and vice versa

regards

BHAVIN SHETH