Schedule 6 PART II
REQUIREMENTS
AS TO PROFIT AND LOSS ACCOUNT
1.
The provisions of this Part shall apply to the income and
expenditure account referred to in sub-section (2) of section 210 of
the Act, in like manner as they apply to a profit and loss account,
but subject to the modification of references as specified in that
sub-section.
2. The profit and loss
account—
(a)
shall be so made out as clearly to disclose the result of the
working of the company during the period covered by the account;
and
(b) shall disclose every material feature, including credits or receipts and debits or expenses in respect of non-recurring transactions or transactions of an exceptional nature.
3.The profit and loss account shall set out the various items
relating to the income and expenditure of the company arranged under
the most convenient heads; and in particular, shall disclose the
following information in respect of the period covered by the
account:
(i)(a) The turnover,
that is, the aggregate amount for which sales are effected by the
company, giving the amount of sales in respect of each class of
goods dealt with by the company, and indicating the quantities of
such sales for each class separately
[(b) Commission paid to
sole selling agents within the meaning of section 294 of the Act.
(c)
Commission paid to other selling agents.
(d)
Brokerage and discount on sales, other than the usual trade
discount]
[(ii) (a) In the case
of manufacturing companies
(1)The value of the raw
materials consumed, giving item-wise break-up and indicating the
quantities thereof. In this break-up, as far as possible, all
important basic raw materials shall be shown as separate items. The
intermediates or components procured from other manufacturers may,
if their list is too large to be included in the break-up, be
grouped under suitable headings without mentioning the quantities,
provided all those items which in value individually account for 10%
or more of the total value of the raw material consumed shall be
shown as separate and distinct items with quantities thereof in the
break-up.
(2) The opening and
closing stocks of goods produced, giving break-up in respect of each
class of goods and indicating the quantities thereof.
(b) In the case of
trading companies, the purchases made and the opening and closing
stocks, giving break-up in respect of each class of goods traded in
by the company and indicating the quantities thereof.
(c) In the case of
companies rendering or supplying services, the gross income derived
from services rendered or supplied.
(d) In the case of a
company, which falls under more than one of the categories mentioned
in (a), (b) and (c) above, it shall be sufficient compliance with
the requirements herein if the total amounts are shown in respect of
the opening and closing stocks, purchases, sales and consumption of
raw material with value and quantitative break-up and the gross
income from services rendered is shown.
(e)
In the case of other companies, the gross income derived
under different heads.
(iii) In the case of all concerns having works-in-progress,
the amounts for which [such works have been completed] at the
commencement and at the end of the accounting period.
(iv) The amount provided for depreciation, renewals or
diminution in value of fixed assets. If such provision is not made
by means of a depreciation charge, the method adopted for making
such provision. If no provision is made for depreciation, the fact
that no provision has been made shall be stated [and the quantum of
arrears of depreciation computed in accordance with
section 205(2) of the Act shall be disclosed by way of a
note].
(v) The amount of interest on the company's debentures and
other fixed loans, that is to say, loans for fixed periods, stating
separately the amount of interest, if any, [paid or payable] to the
managing director *[, the managing agent, the secretaries and
treasurers] and the manager, if any.
(vi) The amount of charge for Indian income-tax and other
Indian taxation on profits, including, where practicable, with
Indian income-tax any taxation imposed elsewhere to the extent of
the relief, if any, from Indian income-tax and distinguishing, where
practicable, between income-tax and other taxation.
(vii) The [amounts reserved for]
(a)
repayment of share capital; and
(b) repayment of
loans.
(viii) (a) The aggregate, if material, of any amounts set
aside or proposed to be set aside, to reserves, but not including
provisions made to meet any specific liability, contingency or
commitment known to exist at the date as at which the balance sheet
is made up.
(b)
The aggregate, if material, of any amounts withdrawn from
such reserves.
(ix) (a) The aggregate, if material, of the amounts set aside
to provisions made for meeting specific liabilities, contingencies
or commitments.
(c)
The aggregate, if material, of the amounts withdrawn from
such provisions, as no longer required.
(x) Expenditure incurred on
each of the following items, separately for each item:
(a)
Consumption of stores and spare parts.
(b) Power and
fuel
(c)
Rent.
(d) Repairs to
buildings.
(e) Repairs to
machinery
(1) Salaries,
wages and bonus.
(2)
Contribution to provident and other funds.
(3) Workmen and staff
welfare expenses [to the extent not adjusted from any previous
provision or reserve.
(g)Insurance.
(i)
Miscellaneous expenses:
[Provided that any item under which the expenses
exceed 1 per cent of the total revenue of the company or Rs. 5,000,
whichever is higher, shall be shown as a separate and distinct item
against an appropriate account head in the Profit and Loss Account
and shall not be combined with any other item to be shown under
'Miscellaneous expenses'.]
(xi) (a) The amount of income from investments,
distinguishing between trade investments and other investments.
(b)
Other income by way of interest, specifying the nature of the
income.
(c)
The amount of income-tax deducted if the gross income is
stated under sub-paragraphs (a) and (b) above.
(xii) (a) Profits or losses on investments [showing
distinctly the extent of the profits or losses earned or incurred on
account of membership of a partnership firm] [to the extent not
adjusted from any previous provision or reserve.
(d)
Profits or losses in respect of transactions of a kind, not
usually undertaken by the company or undertaken in circumstances of
an exceptional or non-recurring nature, if material in amount.
(e)
Miscellaneous income
(xiii) (a) Dividends from subsidiary companies.
(f)
Provisions for losses of subsidiary companies.
(xiv) The aggregate amount of the dividends paid, and
proposed, and stating whether such amounts are subject to deduction
of income-tax or not.
(xv) Amount, if material, by
which any items shown in the profit and loss account are affected by
any change in the basis of accounting.
[The profit and loss account shall also contain
or give by way of a note detailed information, showing separately
the following payments provided or made during the financial year to
the directors (including managing directors) *[the managing agents,
secretaries and treasurers] or manager, if any, by the company, the
subsidiaries of the company and any other person:
(i)[managerial
remuneration under section 198 of the Act paid or payable] during the
financial year to the directors (including managing directors),
*[the managing agent, secretaries and treasurers] or manager, if
any;
*[(ii) expenses
reimbursed to the managing agent under section
354;
(iii)commission or
other remuneration payable separately to a managing agent or his
associate under sections 356, 357 and 358;
(iv) commission received or receivable under
section 359 of the Act by the managing agent or his
associate as selling or buying agent of other concerns in respect of
contracts entered into by such concerns with the company;]
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(v) the money value of the
contracts for the sale or purchase of goods and materials or supply
of services, entered into by the company with the managing agent or
his associate under section 360 during the financial year;]
[(vi) other allowances and commission including
guarantee commission (details to be given);]
(vii) any other perquisites or
benefits in cash or in kind (stating approximate money value where
practicable);
(viii) pensions, etc.,—
(a)
pensions,
(b)
gratuities,
(c)
payments from provident funds, in excess of own subscriptions
and interest thereon,
(d)
compensation for loss of office,
(e)
consideration in connection with retirement from
office.]
4A. The profit and loss account shall contain or give by way
of a note a statement showing the computation of net profits in
accordance with section 349 of the Act with relevant details of the
calculation of the commissions payable by way of percentage of such
profits to the directors (including managing directors), *[the
managing agents, secretaries and treasurers] or manager (if
any).
4B. The profit and loss account shall further contain or give
by way of a note detailed information in regard to amounts paid to
the auditor, [whether as fees, expenses or otherwise for services
rendered]
(a)
as auditor; [* * *]
[( b) as adviser, or in
any other capacity, in respect of
(i)taxation
matters;
(ii)company law
matters;
(iii) management services; and
(c) in any other manner].
4C.In the case of
manufacturing companies, the profit and loss account shall also
contain, by way of a note in respect of each class of goods
manufactured, detailed quantitative information in regard to the
following, namely :
(a)
the licensed capacity (where licence is in force);
(b) the installed capacity; and
(c) the actual production.
4D. The profit and loss account shall also contain by way of
a note the following information, namely:—
(a)
value of imports calculated on C.I.F. basis by
the company during the financial year in respect of:—
(i)
raw materials;
(ii)
components and spare parts;
(iii)
capital goods;
(b)
expenditure in foreign currency during the financial year on
account of royalty, know-how, professional and consultation fees,
interest, and other matters;
(c) value of all imported raw materials, spare parts and
components consumed during the financial year and the value of all
indigenous raw materials, spare parts and components similarly
consumed and the percentage of each to the total consumption;
(d)the amount remitted during the year in foreign currencies
on account of dividends, with a specific mention of the number of
non-resident shareholders, the number of shares held by them on
which the dividends were due and the year to which the dividends
related;
(e) earnings in foreign
exchange classified under the following heads, namely:—
(i)
export of goods calculated on F.O.B. basis;
(ii) royalty, know-how,
professional and consultation fees;
iii) interest and
dividend;
(iv) other income, indicating
the nature thereof.]
5. The Central Government may
direct that a company shall not be obliged to show the amount set
aside to provisions other than those relating to depreciation,
renewal or diminution in value of assets, if the Central Government
is satisfied that the information should not be disclosed in the
public interest and would prejudice the company, but subject to the
condition that in any heading stating an amount arrived at after
taking into account the amount set aside as such, the provision
shall be so framed or marked as to indicate that
fact.
6. (1) Except in the case of
the first profit and loss account laid before the company after the
commencement of the Act, the corresponding amounts for the
immediately preceding financial year for all items shown in the
profit and loss account shall also be given in the profit and loss
account.
(2) The requirement in
sub-clause (1) shall, in the case of companies preparing quarterly
or half-yearly accounts, relate to the profit and loss account for
the period which entered on the corresponding date of the previous
year.
Schedule 6 PART III
INTERPRETATION
7.
(1) For the purposes of Parts I and
II of this Schedule, unless the context otherwise
requires,—
(a) the expression "provision"
shall, subject to sub-clause (2) of this clause, mean any amount
written off or retained by way of providing for depreciation
renewals or diminution in value of assets, or retained by way of
providing for any known liability of which the amount cannot be
determined with substantial accuracy;
(b) the expression "reserve" shall
not, subject as aforesaid, include any amount written off or
retained by way of providing for depreciation, renewals or
diminution in value of assets or retained by way of providing for
any known liability;
(c) the expression
"capital reserve" shall not include any amount regarded as free for
distribution through the profit and loss account; and the expression
"revenue reserve" shall mean any reserve other than a capital
reserve;
(2) Where—
(a) any amount written off or
retained by way of providing for depreciation, renewals or
diminution in value of assets, not being an amount written off in
relation to fixed assets before the commencement of this Act;
or
(b) any amount retained by way of
providing for any known liability;
is in excess of the amount which in
the opinion of the directors is reasonably necessary for the
purpose, the excess shall be treated for the purposes of this
Schedule as a reserve and not as a provision.
8. For the purposes aforesaid, the
expression "quoted investment" means an investment as respects which
there has been granted a quotation or permission to deal on a
recognised stock exchange, and the expression "unquoted investment"
shall be construed accordingly.
Schedule 6 Part IV
BALANCE SHEET ABSTRACT AND COMPANY'S GENERAL
BUSINESS PROFILE
ANNEXURE
LI
CODE LIST: STATE CODES
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State
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Andhra Pradesh |
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Assam | |||||||||||||||||||
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Bihar |
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Gujarat | |||||||||||||||||||
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Haryana |
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Himachal Pradesh | |||||||||||||||||||
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Jammu & Kashmir |
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Karnataka | |||||||||||||||||||
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Kerala |
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Madhya Pradesh | |||||||||||||||||||
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Maharashtra |
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Manipur | |||||||||||||||||||
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Meghalaya |
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Nagaland | |||||||||||||||||||
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Orissa |
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Punjab | |||||||||||||||||||
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Rajasthan |
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Tamil Nadu | |||||||||||||||||||
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Uttar Pradesh |
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West Bengal | |||||||||||||||||||
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Sikkim |
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Arunachal Pradesh | |||||||||||||||||||
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Goa |
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Andaman Islands | |||||||||||||||||||
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Chandigarh |
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Dadra Islands | |||||||||||||||||||
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Delhi |
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Daman & Diu | |||||||||||||||||||
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Lakshadweep |
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Mizoram | |||||||||||||||||||
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Pondicherry |
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Sch. IX
FORM OF PROXY
[See Article
62 of the Table A and also section 176(6)]
GENERAL FORM
"................ Name of Company
I/We .............. of ................ in the district of,
.......... a member/members of the above-named Company hereby
appoint ............. of ................... in the district of
.............. or failing him .................. of ...............
in the district of ............... as ----- my/our proxy to vote for
---- me/us on my/our annual general meeting/general meeting (not
being an annual general meeting) of the company to be held on the
............. day of ............... and at any adjournment thereof.
Signed this ........... day of ......... 19....."
II FORM FOR AFFORDING MEMBERS AN OPPORTUNITY Of VOTING FOR OR
AGAINST A RESOLUTION *
"................. Name of Company
I/We ...................... of ......................... in
the district of ..................., being, a member/members of the
above-named Company, hereby appoint .......... of ..................
in the district of .................... or failing him ...........
of .................... in the district of ..............., as
my/our proxy to vote for me/us on my/our behalf at the annual
general meeting/general meeting (not being an annual general
meeting) of the company, to be held on the ....... day of .........
19..... and at any adjournment thereof.
Signed this ............ day of ........... 19............"
*This form is to be used +in favour of/+against the
resolution. Unless otherwise instructed the proxy will Act as he
thinks fit.
+ Strike out whichever is not desired.
Schedule X
[See sections 574 and
611]
TABLE OF FEES TO BE PAID TO THE
REGISTRAR
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I. In respect of a
company having a share capital: |
Amount of fees to be paid (Rs.) |
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1. For registration of a
company whose nominal share capital does not exceed Rs.
20,000. |
400 |
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2. For registration of a
company whose nominal share capital exceeds Rs. 20,000, the
above fee of Rs. 400 with the following additional fees
regulated according to the amount of nominal capital:— (a) for every Rs. 10,000 of
nominal share capital or part of Rs. 10,000 after the first
Rs. 20,000 up to Rs. 50,000 (b) for every Rs. 10,000 of
nominal share capital or part of Rs. 10,000 after the first
Rs. 50,000 up to Rs. 5,00,000 (c) for every Rs. 10,000 of
nominal share capital or part of Rs. 10,000 after the first
Rs. 5,00,000 up to Rs. 10,00,000 (d) for every Rs. 10,000 of
nominal share capital or part of Rs. 10,000 after the first
Rs. 10,00,000 up to Rs. 25,00,000 or more (e) for every Rs. 10,000 of
nominal share capital or part of Rs. 10,000 after the first
Rs. 25,00,000: Provided that where the
additional fees, regulated according to the amount of the
nominal capital of a company, exceeds a sum of rupees eighty
lakhs, the total amount of additional fees payable for the
registration of such company shall not, in any case, exceed
rupees eighty lakhs. |
200
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3. For filing a notice of
any increase in the nominal share capital of a company, the
difference between the fees payable on the date of filing the
notice for the registration of a company with a nominal share
capital equal to [the increased share capital and the fees
paid on such date], for the registration of a company with a
share capital equal to the nominal share
capital of the company filing the notice immediately before
the increase. |
60 |
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4. For registration of any existing company, except such companies as are by this Act exempted from payment of fees in respect of registration under this Act, the same fee is charged for registering a new company. |
100 |
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5. For filing, registering
or recording any document by this Act required or authorised
to be filed, registered or recorded— (a) in respect
of a company having a nominal share capital of less than Rs.
1,00,000 (b) in respect of a
company having a nominal share capital of Rs. 1,00,000, or
more but less than Rs. 5,00,000 (c) in respect of a
company having a nominal share capital of Rs. 5.00,000. or
more but less than Rs. 25,00,000 (d) in respect of a company having a nominal share capital of Rs. 25,00,000 or more. |
120
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6. For making a record of
or registering any fact by this Act required or authorised to
be recorded or registered by the Registrar
(a) in respect of a
company having a nominal share capital of less than Rs.
1,00,000 (b) in respect of a
company having a nominal share capital of Rs. 1,00,000, or
more but less than Rs. 5,00,000 (c) in respect of a
company having a nominal share capital of Rs. 5,00.000, or
more but less than Rs. 25,00,000 (d) in respect of a
company having a nominal share capital of Rs. 25,00.000 or
more. |
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II. In respect of a company
not having a share capital: |
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7. For registration of a
company whose number of members as stated in the articles of
association, does not exceed 20. |
20 |
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8. For registration of a
company whose number of members as stated in the articles of
association, exceeds 20 but does not exceed 100. |
20 |
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9. For registration of a
company whose number of members as stated in the articles of
association, exceeds 100 but is not stated to be unlimited,
the above fee of Rs. 400 with an additional Rs. 10 for every
50 members, or less number than 50 members, after the first
100. |
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10. For registration
of a company in which the number of members is stated in the
articles of association to be unlimited. |
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11. For registration of any
increase in the number of members made after the registration
of the company, the same fee as would have been payable in
respect of such increase, if such increase had been stated in
the articles of association at the time of
registration: |
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12. For registration of any existing company except such companies as are by this Act exempted from payment of fees in respect of registration under this Act, the same fee as is charged for registering a new company. |
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13. For filing or
registering any document by this Act required or authorised to
be filed or registered with the Registrar. |
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14. For making a record of
or registering any fact by this Act required or authorised to
be recorded or registered by the Registrar. |
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Sch. XI
FORM IN WHICH
SECTIONS 539 TO 544 OF ACT ARE TO APPLY TO CASES WHERE AN
APPLICATION IS MADE UNDER SECTION 397 OR 398
[See section 406]
539. Penalty for falsification of
books. - If with
intent to defraud or deceive any person, any officer or member of a
company in respect of which an application has been made under
section 397 or 398 -
(a) destroys,
mutilates, alters, falsifies or secretes any books, papers or
securities, or is privy to the destruction, mutilation, alteration,
falsification, or secreting of any books, papers or securities; or
(b) makes, or
is privy to the making of, any false or fraudulent entry in any
register, books of account or document belonging to the company, he
shall be punishable with imprisonment for a term which may extend to
seven years, and shall also be liable to fine.
540. Penalty for frauds by
officers. - If
any person, being at the time of the commission of the alleged
offence, an officer of a company in respect of which the Company Law
Board subsequently makes an order under section 397 or 398, -
(a) has, by
false pretences or by means of any other fraud, induced any person
to give credit to the company;
(b) with
intent to defraud creditors of the company, has made or caused to be
made any gift or transfer of or charge on, or has caused or connived
at the levying of any execution against the property of the company;
or
(c) with
intent to defraud creditors of the company, has concealed or removed
any part of the property of the company since the date of any
unsatisfied judgment or order for payment of money obtained against
the company, or within two months before that date; he shall be
punishable with imprisonment for a term which may extend to two
years and shall also be liable to fine.
541. Liability where proper accounts not
kept. -
(1) Where an
application has been made to the Company Law Board under section 397
or 398 in respect of a company, if it is shown that proper books of
account were not kept by the company through out the period of two
years immediately preceding the making of the application, or the
period between the incorporation of the company and the making of
the application, whichever is shorter, every officer of the company
who is in default shall, unless he shows that he acted honestly and
that in the circumstances in which the business of the company was
carried on, the default was excusable, be punishable with
imprisonment for a term which may extend to one year.
(2) For the
purposes of this section, proper books of accounts shall be deemed
not to have been kept in the case of any company, if there have not
been kept -
(a) such books of accounts as
are necessary to exhibit and explain the transactions and financial
position of the business of the company, including books containing
entries made from day to day in sufficient detail of all cash
received and all cash paid; and
(b) where the business of the
company has involved dealings in goods, statement of the annual
stocktakings and (except in the case of goods sold by way of
ordinary retail trade) of all goods sold and purchased showing the
goods and the buyers and sellers thereof in sufficient detail to
enable those goods and those buyers and sellers to be
identified.
542. Liability for fraudulent conduct of
business. -
(1) If in the
course of the proceedings on an application made to the Company Law
Board under section 397 or 398 in respect of a company, it appears
that any business of the company has been carried on with intent to
defraud creditors of the company, or any other persons, or for any
fraudulent purpose, the Company Law Board may, if it thinks it
proper so to do, declare that any persons who were knowingly parties
to the carrying on of the business in the manner aforesaid shall be
personally responsible, without any limitation of liability, for all
or any of the debts or other liabilities of the company as the
Company Law Board may direct.
(2)
(a) Where the Company Law
Board makes any such declaration, it may give such further
directions as it thinks proper for the purpose of giving effect to
that declaration.
(b) In particular, the Company
Law Board may make provision for making the liability of any such
person under the declaration a charge on any debt or obligation due
from the company to him, or on any mortgage or charge or any
interest in any mortgage or charge on any assets of the company held
by or vested in him, or any person on his behalf, or any person
claiming as assignee from or through the person liable or any person
acting on his behalf.
(c) The Company Law Board may,
from time to time, make such further order as may be necessary for
the purpose of enforcing any charge imposed under this sub-section.
(d) For the purpose of this
sub-section, the expression "assignee" includes any person to whom
or in whose favour, by the directions of the person liable, the
debt, obligation, mortgage or charge was created, issued or
transferred or the interest was created, but does not include an
assignee for valuable consideration (not including consideration by
way of marriage) given in good faith and without notice of any of
the matters on the ground of which the declaration is made.
(3) Where any
business of a company is carried on with such intent or for such
purpose as is mentioned in sub-section (1), every person who was
knowingly a party to the carrying on of the business in the manner
aforesaid, shall be punishable with imprisonment for a term which
may extend to two years, or with fine which may extend to five
thousand rupees, or with both.
(4) This
section shall apply, notwithstanding that the person concerned may
be criminally liable in respect of the matters on the ground of
which the declaration is to be made.
543. Power of Company Law Board to assess damages against
delinquent directors, etc. -
(1) If, in
the course of the proceedings on an application made to the Company
Law Board under section 397 or 398, it appears that any person who
has taken part in the promotion or formation of the company, or any
past or present director, managing agent, secretaries and
treasurers, manager or officer of the company -
(a) has misapplied or retained
or become liable or accountable for any money or property of the
company; or
(b) has been guilty of any
misfeasance or breach of trust in relation to the company; the
Company Law Board may, on the application of any creditor or member,
examine into the conduct of such person, director, managing agent,
secretaries and treasurers, manager or officer aforesaid, and compel
him to repay or restore the money or property or any part thereof
respectively, with interest at such rate as the Company Law Board
thinks just or to contribute such sum to the assets of the company
by way of compensation in respect of the misapplication, retainer,
misfeasance or breach of trust as the Company Law Board thinks just.
(2) This
section shall apply notwithstanding that the matter is one for which
the person concerned may be criminally liable.
544. Liability under sections 542 and 543 to extent to
partners or directors in firm or company. - Where a declaration under section
542 or an order under section 543 is or may be made in respect of a
firm or body corporate, the Company Law Board shall also have power
to make a declaration under section 542 or pass an order under
section 543, as the case may be, in respect of any person who is a
partner in that firm or a director of that body corporate.
Sch. XII
ENACTMENTS REPEALED
[See section 644]
ENACTMENTS REPEALED
|
Year |
No. |
Subject or short title |
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1913 |
VII |
The Indian Companies Act,
1913. |
|
1942 |
LIV |
The Registration of
Transferred Companies Ordinance. |
|
1951 |
LII |
The Indian Companies
(Amendment) Act, 1951. |
|
1952 |
LI |
The Indian Companies
(Amendment) Act, 1952. |
Sch. XIII Part I
[See sections 198, 269, 310 and 311]
CONDITIONS TO BE FULFILLED FOR THE
APPOINTMENT OF A MANAGING OR WHOLE-TIME DIRECTOR OR A MANAGER
WITHOUT THE APPROVAL OF THE CENTRAL
GOVERNMENT
APPOINTMENTS
No person
shall be eligible for appointment as a managing or whole-time
director or a manager (hereinafter referred to asmanagerial person)
of a company unless he satisfies the following conditions, namely :-
(a) he had
not beeen sentenced to imprisonment for any period, or to a fine
exceeding one thousand rupees, for the conviction of an offence
under any of the following Acts, namely :-
(i) the Indian Stamp Act, 1899
(2 of 1899).
(ii) the Central Excise and
Salt Act, 1944 (1 of 1944).
(iii) the Industries
(Development and Regulation) Act, 1951 (65 of 1951).
(iv) the Prevention of Food
Adulteration Act, 1954 (37 of 1954).
(v) the Essential Commodities
Act, 1955 (10 of 1955).
(vi) the Companies Act, 1956
(1 of 1956).
(vii) the Securities Contracts
(Regulation) Act, 1956 (42 of 1956).
(viii) the Wealth-tax Act 1957
(27 of 1957).
(ix) the Income-tax Act 1961
(43 of 1961).
(x) the Customs Act, 1962 (52
of 1962).
(xi) the Monopolies and
Restrictive Trade Practices Act, 1969 (54 of 1969).
(xii) the Foreign Exchange
Regulation Act, 1973 (46 of 1973).
(xiii) the Sick Industrial
Companies (Special Provisions) Act, 1985 (1 of 1986).
(xiv) the Securities and
Exchange Board of India Act, 1992, (15 of 1992).
(xv) the Foreign Trade
(Development and Regulation) Act, 1922 (22 of 1922);
(b) he had
not been detained for any period under the Conservation of Foreign
Exchange and Prevention of Smuggling Activities Act, 1974 (52 of
1974) : Provided that where the Central Government has given its
approval to the appointment of a person convicted or detained under
sub-paragraph (a) or sub-paragraph (b), as the case may be, no
further approval of the Central Government shall be necessary for
the subsequent appointment of that person if he had not been so
convicted or detained subsequent to such approval :
(c) he has
completed the age of 25 years and has not attained the age of 70
years : Provided that where -
(i) he has not completed the
age of 25 years, but has attained the age of majority; or
(ii) he has attained the age
of 70 years; and where his appointment is approved by a special
resolution passed by the company in general meeting, no further
approval of the Central Government shall be necessary for such
appointment;
(d) where he
is a managerial person in more than one company he draws
remuneration from one or more companies subject to the ceiling
provided in Section III of Part II;
(e) he is
resident in India.
Explanation :
For the purpose of this Schedule, resident in India includes a
person who has been staying in India for a continuous period of not
less than twelve months immediately preceding the date of his
appointment as a managerial person and who has come to stay in
India, -
(i) for taking up employment
in India, or
(ii) for carrying on a
business or vacation in India.
Sch. XIII Part II
[See sections 198, 269, 310 and 311]
CONDITIONS TO
BE FULFILLED FOR THE APPOINTMENT OF A MANAGING OR WHOLE-TIME
DIRECTOR OR A MANAGER WITHOUT THE APPROVAL OF THE CENTRAL GOVERNMENT
REMUNERATION
Section I. - Remuneration payable by companies having profits
Subject to the provisions of section 198 and 309, a company having
profits in a financial year may pay any remuneration, by way of
salary, dearness allowance, perquisites, commission and other
allowances, which shall not exceed five per cent of its net profits
for one such managerial person, and if there is more than one such
managerial person, ten per cent for all of them together.
Section II. - Remuneration payable by companies having no profits
or inadequate profits
1.
Notwithstanding anything contained in this Part, where in any
financial year during the currency of tenure of the managerial
person, a company has no profits or its profits are inadequate, it
may pay remuneration to a managerial person, by way of salary,
dearness allowance, perquisites and any other allowance, not
exceeding ceiling limit of Rs. 10,50,000 per annum or Rs. 87,500 per
month calculated on the following scale :-
| Where the
effective capital of company is |
Monthly remuneration payable shall not exceed
|
| (i) less
than rupees 1 crore |
rupees
40,000 |
| (ii) rupees
1 core or more but less than rupees 5 crores |
rupees
57,000 |
| (iii)
rupees 5 crores or more but less than rupees 15 crores |
rupees
72,000 |
| (iv) rupees
15 crores or more |
rupees
87,500 |
2. A
managerial person shall also be eligible to the following
perquisites which shall not be included in the computation of the
ceiling on remuneration specified in paragraph 1 of this section
:
(a) contribution to provident
fund, superannuation fund or annuity fund to the extent these either
singly or put together are not taxable under the Income-tax Act,
1961.
(b) gratuity payable at a rate
not exceeding half a month's salary for each completed year of
service, and
(c) encashment of leave at the
end of the tenure.
3. In
addition to the perquisites specified in paragraph 2 of this
Section, an expatriate managerial person (including a non-resident
India) shall be eligible to the following perquisites which shall
not be included in the computation of the ceiling on remuneration
specified in paragraph 1 of this section :
(a) Children's education
allowance : In case of children studying in or outside India, an
allowance limited to a maximum of Rs. 5,000 per month per child or
actual expenses incurred, whichever is less. Such allowance is
admissible upto a maximum of two children.
(b) Holiday passage for
children studying outside India/family staying abroad : Return
holiday passage once in a year by economy class or once in two years
by first class to children and to the members of the family from the
place of their study or stay abroad to India if they are not
residing in India with the managerial person.
(c) Leave travel concession :
Return passage for self and family in accordance with the rules
specified by the company where it is proposed that the leave be
spent in home country instead of anywhere in India.
Explanation I
:
For the
purposes of section II of this Part, "effective capital" means the
aggregate of the paid-up share capital (excluding share application
money or advances against shares); amount, if any, for the time
being standing to the credit of share premium account; reserves and
surplus (excluding revaluation reserves); long-term loans and
deposits repayable after one year (excluding working capital loans,
overdrafts, interest due on loans unless funded, bank guarantee,
etc., and other short-term arrangements) as reduced by the aggregate
of any investments (except in the case investment by an investment
company whose principal business is acquisition of shares, stock
debentures or other securities), accumulated losses and preliminary
expenses not written off.
Explanation
II :
(a) Where the
appointment of the managerial person is made in the year in which
company has been incorporated, the effective capital shall be
calculated as on the date of such appointment;
(b) In any
other case, the effective capital shall be calculated as on the last
date of the financial year preceding the financial year in which the
appointment of the managerial person is made.
Explanation
III :
For the
purposes of Section II of this part, family means the spouse,
dependent children and dependent parents of the managerial person.
Section III - Remuneration payable to a managerial person in two
companies Subject to the provisions of Section I and II, a
managerial person shall draw remuneration from one or both
companies, provided that the total remuneration drawn from the
companies does not exceed the higher maximum limit admissible from
any one of the companies of which he is a managerial person.
Schedule
XIV
[See sections
205 and 350]
RATES OF DEPRECIATION
Nature of assets
Single Shift
WDV SLM Double
Shift
WDV
SLM Triple Shift
WDV SLM
1 2 3 4 5 6 7
I.(a)
BUILDINGS (other than factory buildings) [NESD]
5% 1.63% ..... ..... .... .....
(b) FACTORY BUILDINGS 10% 3.34% ....
... ..... ....
(c) PURELY TEMPORARY ERECTIONS
such as wooden structures 100% 100% .... .... .... ....
II.
PLANT AND MACHINERY
General rate applicable to,-
(a) Plant and machinery (not
being a ship) other than continuous process plant for which no
special rate has been prescribed under (ii) below: 13.91% 4.75%
20.87% 7.42% 27.82% 10.34%
(b) continuous process plant, [***]
for which no-special rate has been prescribed under (ii) below
[NESD}( 15.33% 5.28% ..... ...... ...... .......]
(ii) Special
rates
A.1.
Cinematograph films - Machinery used in the production and
exhibition of cinematograph films [NESD]
(a)
(b)
Recording equipment, reproducing equipment, developing
machines, printing machines, editing machines, synchronisers and
studio lights except bulbs
Projecting equipment of film exhibiting concerns
20%
7.07%
.....
.....
......
.......
2,. Cycles
[NSED]
[3.
Electrical machinery, X-ray and electrotherapeutic apparatus and
accessories thereto, medical, diagnostic equipments, namely,
cat-scan, ultrasound machines, ECG monitors, etc. [NESD] 20% 7.07%
.... .... .... ....
4. Juice
boiling pans (karhais) [NSED] 20% 7.07% .... ..... .... ....
5 Motor-cars,
motor-cycles, scooters and other mopeds [NESD] 25.89% 9.5% .... ....
.... ....
6.
Electrically operated vehicles including battery powered or fuel
cell powered vehicles [NESD] 20% 7.07% .... .... .... ....
7. Sugarcane
crushers (indigenous kolhus and belans)[NESD] 20% 7.07% .... .....
..... ....
8.
Glass manufacturing concerns except direct fire glass melting
furnaces - Recuperative and regenerative glass melting furnaces 20%
7.07% 30% 11.31%
40%
16.21%
9. Machinery
used in the manufacture of electronic goods and components 15.62%
5.38% 23.42% 8.46% 31.23% 11.87%]
B. 1.
[Aeroplanes, aero engines, simulators, visual system and quick
engine change equipment [NESD] 16.2% 5.6%]
2. Concrete
pipes manufacture-Moulds [NESD]
3. Drum
container manufacture-dies [NESD]
4
Earth-moving machinery employed in heavy construction works, such as
dams, tunnels, canals, etc. [NESD]
5. Glass
manufacturing concerns except direct fire glass melting
furnaces-moulds [NESD]
6. Moulds in
iron foundries [NESD}
7. Mineral
oil concerns-Field operations (above ground)-Portable boilers,
drilling tools, well-head tanks, rigs, etc. [NESD] 30% 11.31% ......
...... .....
8. Mines and
quaries-Portable underground machinery and earth-moving machinery
used in open case mining [NESD]
9. Motor
buses and motor lorries other than those used in a business of
running them in hire [NESD]
9A. Motor
tractors, harvesting combines [NESD]
10. Patterns,
dies and templates [NESD]
11. Ropeway
structures-Ropeways, ropes and trestlesheaves and connected parts
[NESD]
12. Shoe and
other leather goods factories-Wooden lasts used in the manufacture
of shoes 30% 11.31% 45% 18.96% 60% 29.05%
C. 1.
[***]
2. Motor buses, motor lorries and
motor taxis used in a business of running them on hire [NESD]
3. Rubber and plastic goods factories-Moulds [NESD] 40%
16.21% ...... ..... .... ....
4. Data processing machines
including computers [NESD]
5 Gascylinders including valves and regulators
[NESD]
D. 1 Artificial silk
manufacturing machinery wooden parts
2. Cinematograph films-Bulbs of studio lights 100% 100%
... .... .... ....
3. Flour mills-Rollers
4. Glass manufacturing
concerns-Direct fire glass melting furnaces
[4A. Float Glass Melting Furnaces
(NESD) 27% 10%]
5. Iron and Steel industries-Rolling mill rolls
6. Match factories-Wooden match frames
7. Mineral oil concerns-(a) Plant used in field
operations (below grouds)-Distribution - returnable packages; (b)
Plant used in field operations (below grounds but not including
assets used in field operations (distribution) - Kerbside pumps
including underground tanks and fittings. 100% 100% .... ..... ....
....
8. Mines and quarries-
(a) Tubs,
winding, ropes, haulage ropes and sand stowing pipes
(b) Safety lamps
9. Salt works-Salt pans, reservoirs
and condensers, etc., made of earthy, sandy or clay material or any
other similar material
10. Sugarworks - Rollers
III.
FURNITURE AND FITTINGS
[ 1. General Rate [NESD] 18.1% 6.33% ..... ..... .....
.....
2. Rate for furniture and fittings used in hotels,
restaurants and boarding houses, schools, colleges and other
educational institutions, libraries; welfare centres; meeting halls,
cinema houses; theatres and circuses; and for furniture and fittings
let out on hire for use on the occasion of marriages and similar
functions [NESD] 25.88% 9.5% .... .... .... ...]
IV.
SHIPS
1. Ocean-going ships-
(i) Fishing vessels with wooden hull [NESD] 27.05% 10%
.... .... .... ....
(ii) Dredgers, tugs, barges, survey launches and other
similar ships used mainly for dredging purposes [NESD] 19.8% 7% ....
.... .... ....
(iii) Other ships [NESD] 14.6% 5%
.... .... .... ....
2. Vessels ordinarily operating on
inland waters-
(i) Speed boats [NESD] 20% 7.07% .... .... .... ....
(ii) Other vessels [NESD] 10% 3.34% .... .... .... ....
WDV means
written down value.
SLM
means straight line method.
NOTES
1. "Buildings" include roads, bridges, culverts, wells
and tube-wells.
2. "Factory buildings" does not include offices, godowns,
officers' and employees' quarters, roads, bridges, culverts, wells
and tube-wells.
3. "Speed boat" means a motor boat driven by a high speed
internal combustion engine capable of propelling the boat at a speed
exceeding 24 kilometres per hour in still water and so designed that
when running at a speed it will plane, i.e., its bow will rise from
the water.
4. Where, during any financial year, any addition has
been made to any asset, or where any asset has been sold, discarded,
demolished or destroyed, the depreciation on such assets shall be
calculated on a pro rata basis from the date of such addition or, as
the case may be, up to the date on which such asset has been sold,
discarded, demolished or destroyed.
5. The following information should also be disclosed in
the accounts:
(i) depreciation methods used; and
(ii) depreciation rates or the useful lives of the
assets, if they are different from the principal rates specified in
the Schedule.
6. The calculations of the extra depreciation for double
shift working and for triple shift working shall be made separately
in the proportion which the number of days for which the concern
worked double shift or triple shift, as the case may be, bears to
the normal number of working days during the year. For this purpose,
the normal number of working days during the year shall be deemed to
be—
(a) in the case of a seasonal factory or concern, the
number of days on which the factory or concern actually worked
during the year or 180 days, whichever is greater;
(b) in any other case, the number of days on which the
factory or concern actually worked during the year or 240 days,
whichever is greater.
The extra shift depreciation shall not be charged in
respect of any item of machinery or plant which has been
specifically, excepted by inscription of the letters "NESD" (meaning
"no extra shift depreciation") against it in sub-items above and
also in respect of the following items of machinery and plant to
which the general rate of depreciation of [13.91] per cent
applies
(1) Accounting machines.
(2) Air-conditioning machinery including room
air-conditioners.
(3) Building contractor's machinery.
(4) Calculating machines.
(5) Electrical machinery—switchgear and instruments, transformers and other stationary plant and wiring and fitting of electric light and fan installations.
(6) Hydraulic works, pipelines and sluices.
(7) Locomotives, rolling stocks, tramways and railways
used by concerns, excluding railway concerns.
(8) Mineral oil concerns—field operations:
(a) [***]
(b) Prime movers
(c) [***]
(d) Storage tanks (above ground)
(e) Pipelines (above ground)
(f) Jetties and dry docks
(9) Mineral oil concerns—field
operations (distribution)—kerbside pumps,including underground tanks
and fittings.
(10) Mineral oil concerns—refineries:
(a) [ ***]
(b) Prime movers
(c) [***]
[(d) LPG Plant]
(11) Mines and quarries:
(a) Surface and underground machinery (other than
electrical machinery and portable underground machinery)
(b) Head-gears
(c) Rails
(d) [***]
(e) Shafts and inclines
(f) Tramways on the surface
(12) Neo-post franking machines.
(13) Office machinery.
(14) Overhead cables and wires.
(15) Railway sidings.
(16) Refrigeration plant containers, etc. (other than
racks).
(17) Ropeway structures:
(a) Trestle and station steel work.
(b) Driving and tension gearing.
(18) Salt works—Reservoirs, condensers, salt pans,
delivery channels and piers if constructed of masonry, concrete,
cement, asphalt or similar materials; barges and floating plant;
piers, quays and jetties; and pipelines for conveying brine if
constructed of masonry, concrete, cement, asphalt or similar
materials.
(19) Surgical instruments.
(20) Tramways electric and tramways run by internal
combustion engines—permanent way: cars—car trucks, car bodies,
electrical equipment and motors; tram cars including engines and
gears.
(21) Typewriters.
(22) Weighing machines.
(23) Wireless apparatus and gear, wireless appliances and
accessories.]
(24) [***]
[7. 'Continuous process plant' means a plant which is
required and designed to operate 24 hours a day.
8. Notwithstanding anything mentioned in this Schedule,
depreciation on assets, whose actual cost does not exceed five
thousand rupees, shall be provided depreciation at the rate of
hundred per cent:]
[Provided that where the aggregate actual cost of
individual items of plant and machinery costing Rs. 5,000 or less
constitutes more than 10 per cent of the total actual cost of plant
and machinery, rates of depreciation applicable to such items shall
be the rates as specified in Item II of the Schedule.]
Sch. XV
[See section 108B(2)(b)]
1. Arms and
ammunition and allied items of defence equipment, defence aircrafts
and warships.
2. Atomic energy.
3. Coal and lignite.
4.
Mineral oils.
5. Mining of iron one, manganese ore, chrome ore,
gypsum, sulphur, gold and diamond.
6. Mining of copeer, lead,
zinc, tin, molybdenum and wolfram.
7. Minerals specified in the
Schedule to the Atomic Energy (Control of Production and Use) Order,
1953.
8. Railway transport.