1) Order under section 68(2)(d) of the Companies Act 2013:
Section 68(2)(d) of the Companies Act 2013 provides that the ratio of the aggregate of secured and unsecured debts owed by the company after buy-back should not be more than twice the paid-up capital and its free reserves.
Further, the proviso to Section 68(2)(d) of the Companies Act 2013 provides that the Central Government, by order, notify a higher ratio of the debt to capital and free reserve for a class or classes of companies.
In exercise of the powers conferred under the proviso to clause (d) of sub-section (2) of section 68 of the Companies Act, 2013, the Central Government has notified that –
The debt to capital and free reserves ratio shall be 6:1 for government companies as defined under section 2(45), which carry on Non Banking Finance Institution activities and Housing Finance activities.
The Order is available on the website of the MCA at the link -
http://www.mca.gov.in/
2) Companies (Share Capital and Debentures) Amendment Rules, 2016 :
In exercise of the powers conferred by subsections (1) and (2) of section 469 of the Companies Act, 2013, the Central Government has issued Companies (Share Capital and Debentures) Amendment Rules, 2016 to amend clause n(3) of Rule 17(1) of the Companies (Share Capital and Debentures) Rules, 2014.
The Clause n (3) of Rule 17(1) of the Companies (Share Capital and Debentures) Rules, 2014 provides for a report addressed to the Board of directors by the company’s auditors stating that the audited accounts on the basis of which calculation with reference to buy back is done is not more than six months old from the date of offer document.
Now, following proviso has been inserted in the Clause n (3) of the Rule 17(1) of Companies (Share Capital and Debentures) Rules, 2014.
“provided that where the audited accounts are more than six months old, the calculations with reference to buy back shall be on the basis of un-audited accounts not older than six months from the date of offer document which are subjected to limited review by the auditors of the company.”
The Notification is available on the website of the MCA at the link -
http://www.mca.gov.in/
Company Secretary GAURAV SHARMA+919990694230 Connect on Watts App with Gaurav Email us [email protected] Official Blog Fema India Experts Connect with our Facebook Page:- Click and Like our Page Subscribe our Email updates like other 15,000 Members, Free/Easy/Comfortableway
