Non filing of form 5 INV

ashisha (Practising CA) (261 Points)

08 July 2014  

Dear All

Ours is a private limited company. The Company has received Rs 700000 on various dates during the FYs 2011-12 and 2012-13 as Share Application Money. The company has made allotment on 31 May 2014 and filed all the requisite forms. But we have received a notice from RoC:

Whereas the above cited Rules provide that every company (including Non-Banking Financial Companies and
Residuary Non-Banking Companies) shall, within a period of 90 days after the holding of Annual General
Meeting or the date on which it should have been held as per the provisions of section 166 of the Companies
Act, 1956 and every year thereafter till completion of the seven years period, identify the unclaimed amounts
as referred to in sub-section (2) of section 205C of the Companies Act, 1956, separately furnish and upload on
its own website as also on the Ministry of Corporate website a statement or information through eForm 5 INV,
separately for each year.
And whereas in the Balance Sheet of M/s. XYZ PRIVATE LIMITED shows an amount
of Rs. 700000 on account of unclaimed and unpaid dividends/Matured deposits/Matured debentures/pending
share application money.
And whereas, the company has not filed eForm 5 INV with the Ministry of Corporate Affairs as required in
the said rules.
You are, therefore, requested to show cause within 10 days from the date of this notice as to why prosecution
under section 629A of the Companies Act, 1956 may not be launched against you for contravention of section
205C of the Companies Act. 1956 read with Rule IEPF (Uploading of information regarding unpaid and
unclaimed amounts lying with Companies) Rules, 2012.

What should be our course of action?