53rd ANNUAL REPORT

On the Working & Administration

of the Companies Act, 1956
Year Ended March 31, 2009

MINISTRY OF CORPORATE AFFAIRS

GOVERNMENT OF INDIA
NEW DELHI
The Report has been prepared in pursuance of Section 638 of the
Companies Act., 1956, which lays down that the Central Government
shall cause a general Annual Report on the Working and
Administration of the Act to be prepared and laid before both Houses of
Parliament within one year of the close of the year to which the Report
relates. It covers the period from April 1, 2008 to March 31, 2009.

New Delhi
 CONTENTS
CHAPTER PAGE No.

CHAPTER I 1 - 13
General Review

CHAPTER II 14 - 23
Review of Corporate Sector

CHAPTER III 24 - 37
Applications and Documents received under different
Sections of the Companies Act, 1956

CHAPTER IV 38 - 39
Corporate Management

CHAPTER V 40 - 52
Inspections, Investigations, Prosecutions, Oppression & Mismanagement,
Cost Audit, Investors Education and Protection Fund,
Investor Protection and Vanishing Companies

CHAPTER VI 53
Liquidation of Companies

CHAPTER VII 54 - 65
Mobilization of Funds by the Corporate Sector

CHAPTER VIII 66
Financial Aggregates of Corporate Sector

APPENDIX :
STATISTICAL STATEMENTS (I TO XXIV) 67 - 92
 CHAPTER - I
General Review
Ministry of Corporate Affairs
The Report relates to the 53 rd year of the
Working & Administration of the Companies Act,
1956, namely, the financial year ending 31st
March, 2009.
Introduction
1.1 The Ministry of Corporate Affairs
administers several statutes relating to the
corporate sector including “The Companies Act,
1956”. Beside, it also administers the following
Acts:
i) The Chartered Accountants Act, 1949
ii) The Cost and Works Accountants Act,
1959
iii) The Company Secretaries Act, 1980
iv) The Partnership Act, 1932
v) The Societies Registration Act, 1860
vi) The Companies (Donation to National
Fund) Act, 1951
vii) The Monopolies and Restrictive Trade
Practices (MRTP) Act, 1969
viii) The Competition Act, 2002 as amended
by Competition (Amendment) Act, 2007
ix) Limited Liability Partnership (LLP) Act,
2008.
Organisational set-up
1.2.1 T h e M i n i s t r y h a s a t h r e e t i e r
organisational set-up for administration of the
Companies Act, 1956 namely, the Secretariat
at New Delhi, the Regional Directors at Mumbai,
Kolkata, Chennai and Noida (U.P.) and the
1
Registrars of Companies in States and Union
Territories and 20 offices of Registrars of
Companies (ROCs) in States and Union
Territories. 19 offices of the Official Liquidators
who are attached to various High Courts
functioning in the country are also under the
overall administrative control of the Ministry. A
brief description of the above offices/
establishments is given in the following
paragraphs.
A. Headquarters
1.2.2 The set-up at the Headquarters includes
Secretary, one Special Secretary, two Joint
Secretaries, an Economic Adviser, one Cost
Adviser, two Directors of Inspection and
Investigation and other officials providing
expertise on legal, accounting, economic and
statistical matters.
B. Regional Directors
1.2.3 The four Regional Directors are in-charge
of the respective regions, each region comprising
a number of States and Union Territories. They
supervise the working of the offices of the
Registrars of Companies and the Official
Liquidators working in their regions. They also
maintain liaison between the respective State
Governments and the Central Government in
matters relating to the administration of the
Companies Act, 1956. Certain powers of the
Central Government under the Companies Act
have been delegated to the Regional Directors.
They have also been declared as Heads of
Department. There is an Inspection Unit attached
to the office of every Regional Director for
carrying out the inspection of the books of
accounts of companies under Section 209A of
the Companies Act, 1956.
C. Registrars of Companies
1.2.4 Registrars of Companies (ROCs)
appointed under Section 609 of the Companies
Act, 1956 covering various States and Union
Territories are vested with the primary duty of
registering companies floated in the respective
States and the Union Territories and ensuring
that such companies comply with statutory
requirements under the Act. These offices
function as registry of records, relating to the
companies registered with them, which are
available for inspection by members of the public
on payment of the prescribed fee. The Central
Government exercises administrative control
over these offices through the respective
Regional Directors.
D. Official Liquidators
1.2.5 The Official Liquidators are officers
appointed by the Central Government under
Section 448 of the Companies Act, 1956 and are
attached to various jurisdictional High Courts.
The Official Liquidators are under the
administrative charge of the respective Regional
Directors, who supervise their functioning on
behalf of the Central Government. In the conduct
of winding-up of affairs of the companies,
however, Official Liquidators act under the
directions and supervision of the High Courts.
At the same time, the Central Government have
the responsibility under Section 463 of the
Companies Act, 1956 of exercising overall
control over the Official Liquidators to ensure that
they faithfully perform their duties and duly
observe all the requirements imposed on them
under the Act or the Rules there-under.
2
1.2.6 The duties and powers of the Official
Liquidator as laid down in section 457 of the
Companies Act, 1956 are mainly of, filing of
claims against the debtors for realization of the
debts due to the company, sale of movable and
immovable assets of the company taken
possession by the Official Liquidator, instituting
criminal complaints and misfeasance
proceedings against the former Directors of the
company for their acts and omissions and breach
of trust, invitation of claims from the creditors,
adjudication of claims and settlement of list of
creditors, payment to creditors by way of dividend
and settlement of list of contributories wherever
necessary and payment of return of capital where
the company’s assets exceeded its liability and
finally dissolve the company under section 481
of the Companies Act,1956.
Company Law Board
1.3.1 The Company Law Board has been
functioning as an independent quasi-judicial body
w.e.f. 31.5.1991 set up by the Central
Government under Section 10E of the
Companies Act, 1956. The Company Law Board
has framed Company Law Board Regulations,
1991 prescribing the procedure for filing
applications/petitions before it. The Central
Government has also prescribed fees for making
applications/petitions before the Company Law
Board under the Company Law Board (Fees on
applications and Petitions) Rules 1991.
1.3.2 The Board has its Principal Bench at New
Delhi, but it may sit at any other place in India at
its discretion or at the joint request of all the
parties. It has Regional Benches at New Delhi,
Mumbai, Kolkata and Chennai. From 1st April,
2008 onward the matters falling under section
247, 250, 269, and 388B of the Companies Act,
1956 and under section 2A of the Monopolies
and Restrictive Trade Practies Act, 1969 (54 of
1969) are being dealt with by the Principal Bench
consisting of one or more Member. All other
sections of the Act i.e. 17, 18, 19, 58A, 58AA,
79/80A, 111/111A, 113/113(3), 117, 117C, 118,
141, 144, 163, 167, 186, 196, 219, 235, 237(b),
284, 304, 307, 397/398, 408, 409, 614, and 621A
of the Companies Act, 1956 and Section 45QA
of the Reserve Bank of India Act, 1934 are dealt
with by Regional Benches namely New Delhi
Bench, Chennai Bench, Kolkatta Bench and
Mumbai Bench consisting of one or more
Members. In case the company fails to comply
with the directions contained in the Orders so
passed by the Company Law Board, application
under section 634A of the Companies Act, 1956
for enforcing the orders are entertained.
1.3.3 During 01.04.2008 to 31.03.2009, 1447
applications were considered u/s 58A (9) of the
Companies Act, 1956 and 45QA of the RBI Act,
1934 of which 497 were disposed of. Under
other Sections of the Companies Act, 1956,
10481 petitions were considered out of which
8561 petitions were disposed of during this
period. This includes 1891 cases compounded
under section 621A of the Companies Act, 1956.
1.3.4 As against the sanctioned strength of
9 Members (including Chairman and Vice-
Chairman) the constitution of the Company Law
Board as on 31st March, 2009 was as follows:-
1. Shri S. Balasubramanian, Chairman
2. Shri K.K. Balu, Vice Chairman
3. Smt. Vimla Yadav, Member
4. Shri Kanthi Narahari, Member
5. Shri V.S.Rao, Member
3
1.3.5 Presently, every month a Hardship
Committee meeting is held in CLB, New Delhi
as per Company Law Board’s order for refund
of deposit on hardship grounds in respect of 19
companies. The cheques/drafts for refunds are
distributed by CLB on receiving the same from
the companies in respect of the cases received
by CLB. There are lots of improvements in terms
of redressal of grievances of the small and needy
depositors. Up to 31 st March, 2009 a sum of Rs.
7.30 crores (approx.) has been disbursed to
10940 depositors. Thus, redressals of
complaints received by CLB on hardship grounds
is ensured.
1.3.6 Payment to fixed deposit holders of M/s.
Pure Drinks (New Delhi) Ltd., is being made by
Company Law Board in compliance with the
order passed by Hon’ble High Court of Punjab &
Haryana. Till 31st March, 2009, 11,404 cheques
have been issued to the depositors of Pure
Drinks (New Delhi) Ltd. for an amount of Rs. 5.18
crore (approx). In all cases of payments for both
Principal and Interest, cheques are issued under
the signature of the Secretary, CLB, New Delhi.
1.3.7 The total filing fees received by the CLB
during 01.04.2008 to 31.03.2009 is Rs.
41,59,210/and compounding amount during the
same period is Rs. 1,43,89,890/-.
1.3.8 The details of petitions/applications
received and disposed of by all the Regional
Benches including the Principal Bench and
Additional Principal Bench during the period from
1.04.2008 to 31.03.2009 is given in Table 1.1.
 Table 1.1
Consolidated Statement of Petitions/ Applications received, disposed of and pending
during the period from 1.4.2008 to 31.3.2009

Composition of Bench & Opening Received Total Disposed Pending as

Section Balance as on during the (Col. 2 & 3) of during on
1.4.2008 year the year 31.3.2009
1 2 3 4 5 6
Single Member Bench
Sec. 17 58 1006 1064 973 91
Sec. 18/19 4 94 98 92 6
Sec. 45QA of RBI Act. 80 6 86 5 81
Sec. 58A(9) 364 997 1361 492 869
Sec. 58AA(1) 13 0 13 0 13
Sec. 79/80A 5 3 8 2 6
Sec. 113/113(3) 30 27 57 52 5
Sec. 117 0 0 0 0 0
Sec. 117 C 177 4 181 2 179
Sec. 118 0 0 0 0 0
Sec. 141 35 4584 4619 4537 82
Sec. 144 0 0 0 0 0
Misc. Applications 39 91 130 73 57
Sec. 163 3 2 5 2 3
Sec. 167 7 10 17 5 12
Sec. 186 6 4 10 5 5
Sec. 196 3 0 3 3 0
Sec. 219 0 0 0 0 0
Sec. 284 6 8 14 7 7
Sec. 304 0 0 0 0 0
Sec. 307 0 0 0 0 0
Sec. 614 4 0 4 3 1
Sec. 621A 498 1898 2396 1891 505
Sec. 634A 0 0 0 0 0
Total (a) 1332 8734 10066 8144 1922
Double Member Bench
Sec. 111 133 113 246 72 174
Sec. 269 (7) 0 0 0 00
Sec. 634 A 2 0 2 11
Total (b) 135 113 248 73 175
Total (a+b) 1467 8847 10314 8217 2097
Principal Bench and Additional Principal Bench
Cases u/s. 235, 237, 247,
250, 388(b), 397/398, 609 1005 1614 841 773
408, 409 and Interlocutory
Applications.
Grand Total 2076 9852 11928 9058 2870

4
Petitions/Applications considered and disposed of by the Company Law Board
during the period from 1.4.2008 to 31.3.2009

Single Member Bench

12000
No. of applications 10000
8000
6000
4000
2000
0

Single Member Bench

Considered 10066
Disposal 8144

Double Member Bench

250
No. of applications

200

150

100

50

Double Member Bench

Considered 248
Disposal 73

Principal Bench and Additional Principal Bench

2000
No. of applications

1500

1000

500

Principal Bench and Addl. Principal Bench

Considered 1614
Disposal 841

5
E-Gover nance in Company Law
Administration
1.4.1 With a view to enh ance efficiency in
delivery of services and move towards electronic
corporate governance, the Ministry of Corporate
Affairs has implemented the ‘MCA21
e-Governance Project’. It is a holistic initiative
offering 100 plus MCA services through a single
portal. All registry related services, such as Name
Availability, Incorporation of company, Filing of
all annual statutory returns, Registration,
modification and satisfaction of charges,
Statutory filings related to all events as stipulated
in the Companies Act (with the exception of
matters related to liquidation), Inspection of
documents, Issue of certified copies, Approvals
from Regional Director, Approvals from the
Central Government and Investor complaints are
introduced through electronic filing and offered
through a secure portal. The portal services can
be accessed/ availed from anywhere, at any time
that best suits the corporate entities,
professionals and the public at large.
Sl. No. Description
Filing Status as on March 31, 2009
1. Average portal hits per day
2. Total filings through the system till 31.03.2009
4. Number of Companies registered online
5. Total DIN issued till date
6. Company records viewed online
7. Number of Balance Sheets filed
8. Number of Annual Returns filed
9. E-filing through VFO
10. Online Payment transactions (by volume)
6
MCA21’ E-Governance Project
1.4.2 The Ministry of Corporate Affairs has
implemented MCA21 e-Governance Project. It is
one of the Mission Mode Projects of the
Government of India under the National
e-Governance Plan. The project envisages easy
and secure online access to all registry related
services provided by the MCA, including
registration and filling of documents throughout the
country for all the corporate and other stakeholders
at any time and in a manner that best suits them.
1.4.3 During the year 2008-09, a number of
initiatives were taken in this direction. 35 e-forms
were revised to improve the operational efficiency
and enhance compliance. Operation of the system
was switched over from the Data Centre in Delhi
to the Disaster Recovery Centre in Chennai to
establish that the disaster recovery center is fully
geared to handle full MCA21 processing in case
of a disaster. Internet banking interface was
extended to include Indian Bank, ICICI Bank and
HDFC in addition to PNB and SBI. Following
operational statistics bring out the stability in the
system, increased volume of filings and improved
compliance:
Number
44 Lakh
70.13 Lakh
1,87,452
10.05 Lakh
8.12 Lakh
11.74 Lakh
11.42 Lakh
93%
63%
Revision of Companies Act and other
related Legislations
Legal framework for Limited Liability
Partnership (LLP):
1.5.1 Keeping in view the vast potential for the
growth of the knowledge and services sector in
the country, the Ministry has prepared a new
legislative framework enabling the creation of
Limited Liability Partnership as a new form of
body corporate. The Limited Liability Partnership
Bill, 2008, that enables to make provisions for
the formation and regulation of LLP and for
matters connected therewith and incidental
thereto, was prepared and introduced in the
Rajya Sabha on 21-10-2008. The Bill was
passed by the Rajya Sabha on 24-10-2008 and
by the Lok Sabha on 12-12-2008. The Bill
received the Presidential assent on 7th January
2009 and the Limited Liability Partnership Act,
2008(Act No. 6 of 2009) was notified in the
Official Gazette on 9th January 2009.
1.5.2 The provisions of the LLP Act have been
notified for implementation with effect from 31-
03-2009. The Limited Liability Partnership Rules,
2009 (on all matters except winding up and
dissolution of LLP) have been notified on 01st
April 2009.
Comprehensive revision of the Com-
panies Act:
1.6.1 It has been decided to take up
comprehensive revision of Companies Act, 1956
in order to bring the law in tune with the changing
requirements. The exercise was started with the
preparation of the Concept Paper and its
dissemination on the website of the Ministry to
seek public comments, followed by constitution
of an Expert Group headed by Dr J. J. Irani and
7
consisting of representatives from corporate,
industry bodies and professionals. Pursuant to
the recommendations of Dr J J Irani Committee
and wide ranging consultations with different
groups of stakeholders, the Companies Bill, 2008
with the object to consolidate and amend the law
relating to companies was prepared and
introduced in the Lok Sabha on 23-10-2008. The
Companies Bill, 2008 has been referred to the
Department Related Parliamentary Standing
Committee on Finance for examination and
report. The report of the Standing Committee is
awaited.
1.6.2 The Companies (Amendment) Bill, 2003,
pending in the Rajya Sabha, was withdrawn on
21-10-2008.
Revision of Forms prescribed under
various rules of the Companies Act,
1956
1.7.1 The Ministry of Corporate Affairs has
successfully implemented its MCA-21
e-Governance Project. With the introduction of
MCA-21, this Ministry has switched over from
physical filing to electronic filing which has been
th September 2006. On
m a d e m a n d a t o r y w . e . f . 1 6
the basis of the suggestions received and in-
house examination of these Forms in the
Ministry, a review was undertaken to revise the
existing forms which would bring further
improvement and enhancement in service
delivery under ‘MCA-21 e-Governance Project’.
In the first phase, 17 forms namely Form 1, 1A,
1B, 2, 4, 4C, 5, 18, 20B, 21, 21A, 22, 23, 23AC,
23ACA, 32 and 1 INV were undertaken for
revision and one new Form - 67 (Addendum) has
been introduced.
1.7.2 In the second phase, 13 forms namely
1AA, 1AD, 8, 10, 17, 19, 20, 20A, 23C, 24, 44,
49 and 61 proposed for revision. Out of these,
four Forms namely Forms 1AA, 1AD, 23C, and
24 have been notified and remaining 9 forms will
be notified shortly.
1.7.3 The objective of the revision of aforesaid
forms are:
(a) to make the filing easier and more
clarificatory to the users;
(b) to make ease of back office processing of
e-Forms for prompt response to the users; and
(c) to bring further improvement in the e-forms
by changing/adding or deleting fields
therein to elicit information in accordance
with the provisions of the Companies Act,
1956.
Convergence of Accounting Standards
with International Financial Report-
ing Standards (IFRS)
1.8.1 A c c o u n t i n g S t a n d a r d s a r e p o l i c y
documents relating to various aspects of
measurement, treatment, presentation and
disclosure of accounting transactions and
events. The purpose of Accounting Standards is
to standardise diverse accounting policies with
a view to eliminate incomparability of financial
statements. The objective is to provide a set of
standard accounting policies and disclosure
requirements to discourage accounting policies
which are not in conformity with generally
accepted principles and policies in accounting
field.
1.8.2 The Ministry of Corporate Affairs has
notified the Companies (Accounting Standards)
Rules, 2006 in pursuance of section 211 of the
Companies Act, 1956. Every company
registered under the Companies Act, 1956 is
required to comply with the accounting standards
8
prescribed under Companies (Accounting
Standards) Rules, 2006. Such standards are
notified under the Companies Act, 1956 by the
Central Government after considering the
recommendations of National Advisory
Committee on Accounting Standards (NACAS)
which is a statutory committee under the
Companies Act, 1956.
1.8.3 International Financial Reporting
Standards (IFRS) are standards and
interpretations adopted by the International
Accounting Standards Board (IASB). IFRSs are
considered a “principles based” set of standards
in that they establish broad rules as well as
dictating specific treatments. There is also a
Framework for the Preparation and Presentation
of Financial Statements which describes some
of the principles underlying IFRS. The
framework states that the objective of financial
statements is to provide information about the
financial position, performance and changes in
the financial position of an entity that is useful to
a wide range of users in making economic
decisions, and to provide the current financial
status of the entity to its shareholders and public
in general.
1.8.4 India has adopted policy of convergence
with IFRS keeping in view the requirement of
change and transition necessary to be followed
by Indian companies and regulatory bodies. As
per existing policy, the convergence with the
IFRS is expected to be enabled by 2011 after
finalizing the modalities of convergence in
consultation with ICAI/NACAS.
NOTIFICATIONS AND PRESS NOTES
1.9 During the period from 1.4.2008 to
31.3.2009, the following Notifications and Press
Notes were issued:-
➢ NOTIFICATIONS :-

Sl Notification Date Subject

No. Number.
1. S.O.-901 (E) 22.4.2008 Constitution of National Advisory Committee on Accounting
Standards (NACAS)
2. GSR -329 (E) 1.5.2008 Declaration of 24 more Companies as Nidhi Companies under
section 620A of the Companies Act, 1956.
3. GSR-374 (E) 13.5.2008 Authorization of Officers of Serious Fraud Investigation Office
under section 621 of the Companies Act, 1956 for the
purposes of filing and conducting prosecution under the
Companies Act, 1956.
4. GSR-387 (E) 16.5.2008 Notification of the Competition Appellate Tribunal (Term of
the Selection Committee and the manner of Selection of panel
of names) Rules, 2008
5. S.O.-1720 (E) 30.5.2008 Constitution of National Advisory Committee on Accounting
Standards (NACAS) .
6. GSR-416 (E) 30.5.2008 Authorization of Officers of Serious Fraud Investigation Office
under section 209A of the Companies Act, 1956 for the
purposes of inspecting the Books of Accounts and other
Books and Papers of the Company.
7. GSR-552 (E) 23.7.2008 Amendment to the Company Secretaries (Election to the
Council) These Rules called Amendment Rules, 2008

8. GSR- 553 (E) 23.7.2008 Amendment to the Chartered Accountants (Election to the
Council) These Rules called Amendment Rules, 2008.
9. GSR-554 (E) 23.7.2008 Amendment to the Cost and Works Accountants (Election
to the Council) These Rules called Amendment Rules, 2008.
10. GSR-655 (E) 12.9.2008 The Companies (Central Government’s) Rules and Forms
(Amendment) Rules, 2008- Revision of four Forms namely
20B, 21A, 23AC and 23ACA.
11. GSR-2266 (E) 25.9.2008 Amendment in Constitution of National Advisory Committee
on Accounting Standards (NACAS)
12. S.O.-727 (E) 10.10.2008 The Competition Commission of India (Return on Measures
for the promotion of Competition Advocacy, awareness and
training on competition issues) Rules, 2008
13. GSR-787 (E) 14.11.2008 Investor Education and Protection Fund (Awareness and
Protection of Investors) (Amendment) Rules, 2008. These
Rules shall come into effect from 7th December, 2008

9
14. GSR-788 (E) 14.11.2008 The Companies (Central Government’s) Rules and Forms
(Second Amendment) Rules, 2008, Revision of six Forms
namely 1B, 4, 4C,18, 22 and 32.These Rules shall come
into effect from 7th December, 2008
15. GSR-808 (E) 21.11.2008 The Competition Commission of India (Form and Time of
preparation of Annual Report) Rules, 2008
16. GSR-824 (E) 28.11.2008 The Companies (Central Government’s) Rules and Forms
(Third Amendment) Rules, 2008, Revision of Forms namely
23B..These Rules shall come into effect from 11 th January,
2009
17. GSR-833 (E) 4.12.2008 Authorization of Officers of Serious Fraud Investigation Office
for the purposes of filing and conducting prosecution
under the Companies Act, 1956.
18. GSR-834 (E) 4.12.2008 Authorization of Officers of Serious Fraud Investigation Office
for the purposes of that Sub-Section (1) of Section 621 in
respect of Offences punishable under the Companies Act,
1956
19. GSR-835 (E) 4.12.2008 The Companies (Central Government’s) Rules and Forms
(Fourth Amendment) Rules, 2008,
20. GSR-868 (E) 22.12.2008 The Companies (Central Government’s) Rules and Forms
(Fifth Amendment) Rules, 2008. These Rules shall come into
effect from 11 th January, 2009
21. GSR-872 (E) 23.12.2008 The Companies (Central Government’s) Rules and Forms
(Sixth Amendment) Rules, 2008. These Rules shall come
into effect from 15th February, 2009
22. GSR-876 (E) 24.12.2008 The Companies (Central Government’s) Rules and Forms
(Seventh Amendment) Rules, 2008. These Rules shall come
into effect from 15th February, 2009
23. GSR-888 (E) 24.12.2008 The Companies (Amendment) Regulations, 2008. These
Rules shall come into effect from 15 th February, 2009
24. GSR-4 (E) 2.1.2009 Amendment in the Notification No. GSR-448 (E) dated
28.6.2007, Constituting the Quality Review Board under the
Chartered Accountants Act, 1949
25. GSR-11 (E) 5.1.2009 Amendment to the Companies, Appointment and
Qualification of Secretary, Rules,1988 effective from
15th March, 2009
26. GSR-110 (E) 9.1.2009 Amendment in the Notification No. S.O.-1329 (E) dated
1.5.1978 Notifying M/s Kerala State Industrial Development
Corporation Ltd. as Public Financial Institution
27. S.O.143(E) 14.1.2009 Declaration of companies as Public Financial Institution under
section 4A of the Companies Act,1956.

10
28. S.O.144(E) 14.1.2009 Amendment in Constitution of National Advisory Committee
on Accounting Standards (NACAS)
29. GSR-35(E) 19.1.2009 Amendment to the Companies (Issue of Indian Depository
Receipts)(Amendment) Rules, 2004
30. GSR 70(E) 3-2-2009 Amendment to the Companies Act, 1956
31. GSR-136(E) 27.2.2009 The Constitution of India (Salaries and allowances and other
terms and condition of service of Chairperson and other
members) Amendment Rules, 2009.
32. GSR-137(E) 27.2.2009 The Competition Appellate Tribunal (Salaries and
allowances and other terms and condition of service of
Chairperson and other Members) Rules, 2009.
33. GSR-152(E) 5.3.2009 The Chartered Accountants Procedures of Meetings of
Quality Review Board, and terms and condition of service
and allowances of the Chairperson and Members of the
Board (Amendment) Rules, 2009
34. GSR-156(E) 6.3.2009 The Competition Commission of India (Term of Selection
Committee and the manner of selection of Penal of Names)
Amendment Rules, 2009.
35. GSR-163(E) 12.3.2009 Chartered Accountants Act, 1949, Amendments in the
Notification No. GSR-448(E) dated 28.6.2007
36. GSR-183(E) 20.3.2009 The Companies (Central Government’s) General Rules and
Forms ( Amendment) Rules, 2009- revising Forms 1AA,
1AD,23C, and 24.
37. S.O.-789 (E) 20.3.2009 Constitution of Appellate Authority under the Chartered
Accountants Act, 1959 and Company Secretaries Act, 1980.
38. GSR-204 (E) 27.3.2009 The Competition Commission of India (Form of Annual
Statement of Accounts) Rules, 2009
39. S.O.-868 (E) 27.3.2009 The appointment of Shri Ratneshwar Prasad as Member of
the Competition Commission of India with effect from
1 st March, 2009.
40. S.O.-869 (E) 27.3.2009 The appointment of Shri Harish Chandra Gupta as Member
of the Competition Commission of India with effect from
28th February, 2009
41. S.O.-870 (E) 27.3.2009 The appointment of Shri Dhanendra Kumar as Chairperson
of the Competition Commission of India with effect from
28th February, 2009
42. GSR-225 (E) 31.3.2009 The Companies (Accounting Standards) (Amendment)
Rules, 2009 amending AS-11

11
 43. GSR-226 (E) 31.3.2009 Amendment to the Schedule –VI to the Companies Act, 1956.
44. S.O.-891 (E) 31.3.2009 The Implementation of the provisions of Limited Liability
Partnership Act, 2008, (6 of 2009) with effect from 31st March,
2009.
Ø PRESS NOTE
1. Press Note dated 13-05-2008 on
notification of Accounting Standards by the
Central Government under the Companies Act,
1956 and the intention of the Government to
achieve convergence of Indian Accounting
Standards with the International Financial
Reporting Standards (IFRSs) issued by the
International Accounting Standard Board (IASB).
Serious Fraud Investigation Office
(SFIO)
1.10.1 Serious Fraud Investigation Office (SFIO)
has been set up by the Government of India in
the Ministry of Corporate Affairs by way of a
resolution dated 02/07/2003. This office was set
up to investigate corporate frauds of serious and
complex nature.
1 . 1 0 . 2 The SFIO is a multi-disciplinary
Investigating Agency, wherein experts from
banking sector, capital market, company law,
general law, forensic audit, taxation, information
technology etc. work together to unravel a
corporate fraud. At present, SFIO is carrying
out investigation under provisions of the
Companies Act from Sections 235 & 247.
However, as approved by the cabinet, a separate
legislation would be enacted for SFIO in second
phase to provide adequate power and reach to
this organization. For this purpose, the MCA has
already set up Vepa Kamesam Committee to
look into the need for enacting a separate
legislation for SFIO and make suitable
recommendation.
12
1.10.3 SFIO is headed by a Director as Head of
Department. He is of the rank of Joint Secretary
to the Government of India. The Director is
assisted by Additional Directors, Joint Directors,
Sr. Assistant Directors and Assistant Directors,
who form teams for investigation of a case. The
Head Office of SFIO is at Delhi and there is one
Branch Office in Mumbai.
National Company Law Tribunal
(NCLT)/National Company Law
Appellate Tribunal (NCLAT)
1.11.1 T h e G o v e r n m e n t h a s n o t i f i e d t h e
commencement of sections 2 and 6 of the
Companies (Second Amendment) Act 2002 on
01.04.2003 to initiate steps to set up National
Company Law Tribunal (NCLT) and National
Company Law Appellate Tribunal (NCLAT).
1.11.2 The National Company Law Tribunal
(NCLT) is envisaged to replace the existing
Company Law Board (CLB), the Board for
Industrial and Financial Reconstruction (BIFR)
[after repeal of Sick Industrial Companies
(Special Provisions) Act, 1985] and shall also
have the jurisdiction of High Courts in so far as
the liquidation and winding up of companies
under the Companies Act, 1956 is concerned. It
provides for a modern, efficient and time bound
mechanism to provide for both rehabilitation and
winding up of sick companies/ closure of
business within a maximum period of two years.
1.11.3 Certain amendments in Companies
(Second) Amendment Act, 2002 relating to the
establishment of NCLT and NCLAT were
challenged in the Madras High Court in its ruling Revenue Receipts & Expenditure:
on a writ petition on 30.04.2004. An appeal was 2004-05 to 2008-09
filed before the Hon’ble Supreme Court against
1.12 The Revenue Receipts and Actual
this judgment, which is pending final decision.
Expenditure incurred under the Companies Act,
Further steps to constitute the NCLT and NCLAT
1956/MRTP Act, 1969 during the last five years
would, therefore, be taken only after the matter
are indicated below:
is finally ruled upon by the Hon’ble Supreme
Court.

Year Revenue Receipts Expenditure

(Rs. in crore) (Rs. in crore)
(1) (2) (3)
2004-05 474.31 46.29
2005-06 728.22 74.21
2006-07 1037.98 122.19
2007-08 1304.17 111.49
2008-09 1229.00 198.64

Revenue Receipts and Expenditure

during 2004-05 to 2008-09
1400
1304.17
1229
1200
1037.98
(Amount in Rs. Crore)

1000

800 728.22

600 474.31
198.64

400
122.19

111.49
74.21
46.29

200

0
2004-05 2005-06 2006-07 2007-08 2008-09
Revenue Receipts
Year Expenditure

13
 CHAPTER II

Review of Corporate Sector

2.1 Growth of the Corporate Sector in terms
of registration of new companies in different
categories, companies at work, liquidation of
companies and data on foreign companies
during the year 2008-09 are reviewed in this
chapter.
number of new companies registered during the
year was equivalent to 8.1 per cent of the
companies at work as on 31.3.2009. The
authorised capital of 64582 companies with
liability limited by shares registered during the
year aggregated to Rs. 30627.89 crore.

Company registration 2.2.2 Of the 64582 companies with liability

2.2.1 D u r i n g t h e y e a r 2 0 0 8 - 0 9 , 6 4 8 4 9
companies were registered under the
Companies Act, 1956. These include 84
Government companies with liability limited by
shares, 64498 non-Government companies
limited by shares, 30 non-Government
companies with unlimited liability, one (1)
government company with liability limited by
guarantee and associations not for profit and 236
Non-Government companies with liability limited
by guarantee and associations not for profit. The
limited by shares registered during the year,
2396 were public limited companies with an
authorised capital of Rs. 10985.64 crore and
62186 were private limited companies with an
aggregate authorised capital of Rs.19642.25
crore. Table 2.1 sets out the pattern of
registration of new companies during the year
2008-09. Region/State-wise distribution of
companies limited by shares registered during
the year 2008-09 is given in Statement-I
(Appendix).

Table 2.1
Companies registered during the year 2008-09
Type of Company Government Non-Government Total

Number Authorised Number Authorised Number Authorised

Capital Capital Capital
(Rs. in Crore) (Rs. in Crore) (Rs. in Crore)

1 2 3 4 5 6 7

I. Liability limited by Shares

(i) Public Limited 64 3813.35 2332 7172.29 2396 10985.64

(ii) Private Limited 20 35.88 62166 19606.37 62186 19642.25

Sub-Total 84 3849.23 64498 26778.66 64582 30627.89

II. Unlimited Liability 0 0.00 30 1.41 30 1.41

III. Liability limited by 1 0.00 236 17.91 237 17.91

Guarantee and Associations
not for profit
Total 85 3849.23 64764 26797.98 64849 30647.21

14
2.2.3 Industrial Activity–wise distribution of is indicated in Table 2.2 below :
companies registered during the year 2008-09

Table 2.2

Registration of New Companies Limited by Shares:

Distribution by Industrial Activity wise
during the year 2008-09
Sl. Industrial Classification Public Private Total

No. Number Authorised Number Authorised Number Authorised

Capital Capital Capital
(Rs. in Crore) (Rs. in Crore) (Rs. in Crore )

1 2 3 4 5 6 7 8

1 Agriculture and Allied Activities 102 674.72 1513 398.55 1615 1073.27
2 Mining and quarrying 50 496.15 993 493.23 1043 989.38
3 Manufacturing 501 1251.35 10353 5376.68 10854 6628.03
4 Electricity, Gas and water 220 4158.26 956 477.41 1176 4635.67
Companies
5 Construction 424 654.06 9245 2747.48 9669 3401.54
6 Trade, Hotels and Restaurants 235 339.85 12574 2088.67 12809 2428.52
7 Transport, Storage and 88 218.66 2351 1163.92 2439 1382.58
Communication
8 Finance, Insurance, 607 2728.76 19641 6084.99 20248 8813.75
Real Estate & Business Services
9 Community, Personal and Social 169 463.83 4560 811.32 4729 1275.15
Services
10 Unclassified 0 0 0 0. 0 0
Grand Total 2396 10985.64 62186 19642.25 64582 30627.89

Activity -wise Distribution of Newly Registered Companies (2008-09)

Electricity,Gas
etc., 1.8%
Construction
Manufacturing
15%
16.8%
Transport etc. Agriculture etc.
3.8% 2.5%

Trading etc.
19.8% Financing etc.
31.4%
personel &Social Mining &
services etc. Quarrying
7.3% 1.6%

15
2.2.4 The number of companies with liability companies with liability limited by shares
limited by shares registered during the last five registered during the year 2008-09 was lower
years from 2004-05 to 2008-09 is given in Table by 1.19 per cent over the new companies
2.3. This shows that the number of new registered during the previous year.

Table 2.3

Registration of New Companies Limited by Shares

during the years 2004-05 to 2008-09

Registration of New Companies Limited by Shares

during the years 2004-05 to 2008-09

during the years 2004-05 to 2008-09

80000

70000 65359
64582
60000 54020
No. of Companies

51708
50000
40059
40000

30000

20000

10000

0
2004-05 2005-06 2006-07 2007-08 2008-09
Year

16
Companies at work work as on 31s t March, 2009, as summarised in
2.3.1 There were in all 803330 companies at Table 2.4 below.

Table 2.4

Companies at work as on 31 st March, 2009

Sl. No. Type of Company Number of
Companies
I. Companies Limited by Shares
(a) Government Companies
Public Limited 1179
Private Limited 412
Sub-Total (a) 1591
(b) Non-Government Companies
Public Limited 80879
Private Limited 704304
Sub-Total (b) 785183
Total (a+b) 786774
II. Companies with Unlimited Liability 639
III. Companies limited by Guarantee 13014
and Associations not for profit
IV. Foreign Companies (as defined under 2903
Section 591 of the Companies Act)
Grand Total 803330

2.3.2 State-wise and Industrial Activity-wise Long Term Trends

distribution of companies limited by shares at
work as on 31 s t March, 2009 is given in
statements V to X (Appendix) respectively.
2.3.3 The Companies limited by shares at work
recorded a growth of 2.3 per cent during 2008-
09 (i.e. as on 31.3.2009 as compared to
31.3.2008). The growth in number of Companies
limited by shares at work between 31.3.2005 and
31.3.2009 was 15.8. per cent, private limited
companies grew by 17.2 per cent compared to
4.8 per cent in case of public limited
companies.
2.4.1 Statement XI (Appendix) gives the data
on growth of the corporate sector by various
categories of companies at work during
operation of the Companies Act, 1956 i.e. the
years 1956-57 to 2008-09. It will be observed
that the companies limited by shares have
recorded a phenomenal growth. The number of
such companies at work increased by 26.8 times
from 29357 at the end of 1956-57 to 786774 at
the end of 2008-09.

17
2.4.2 Unlike companies limited by shares, the
companies limited by Guarantee and
Associations not for profit at work in the country
have not shown much variation in their number
over the period. Their number at the end of 1956-
57 was 1364 which increased to 13014 at the
end of 2008-09.
on 1.1.1974, the number of such Branches
recorded gradual decline till the end of 1980-81
when there were 300 such branches. Their
number has increased thereafter and as on
31.3.2009, the figure is reported to be 2903.
GOVERNMENT COMPANIES

2.4.3 The first company with unlimited liability
was registered in 1973-74. The number of such
companies at the end of 2008-09 were 639.
2.4.4 Besides the companies registered under
the Companies Act,1956 there are Branches of
Foreign companies, as defined under Section
591 of the Companies Act, operating in the
country. The number of Branches of Foreign
companies operating in the country, which was
551 at the end of 1956-57 remained almost
constant till 1974-75. With the coming into force
of the Foreign Exchange Regulation Act, 1973,
Registration of New Companies:
2.5.1 During the year 2008-09, 84 Government
companies were registered with an authorised
capital of Rs. 3849.23 crore. State-wise
distribution of Government companies limited by
shares registered during the year 2008-09 is
given in Statement II (Appendix).
2.5.2 Table 2.5 shows trend in registration of
Government companies during the last five
years.

Table 2.5
Registration of New Government Companies during 2004-05 to 2008-09
Year Public Limited Private Limited Total

No. of Authorised No. of Authorised No. of Authorised

companies Capital companies Capital companies Capital
(Rs. crore) (Rs. crore) (Rs. crore)

1 2 3 4 5 6 7
2004-05 17 2402.30 2 6.00 19 2408.30
2005-06 18 3948.65 6 224.20 24 4172.85
2006-07 52 12723.15 64 88.75 116 12811.90
2007-08 41 1752.81 68 167.05 109 1919.86
2008-09 64 3813.35 20 35.88 84 3849.23

Government companies which ceased to
work:
2.6 Nine (9) Government companies were
reported to have ceased working during the year
2008-09.
Government companies at work:
2.7 There were 1628 Government companies
limited by shares at work in the country as on 31st
March, 2008. After taking into account the newly
registered companies, conversion between
Government and Non-Government companies,
mergers, amalgamation and liquidation, there were
1591 Government companies limited by shares at
work in the country as on 31st March, 2009. Of
these 1591 companies, 1179 were public limited
and 412 were private limited companies.

18
NON-GOVERNMENT COMPANIES
Registration of New Companies:
2.8 During the year 2008-09, 64498 Non-
Government companies limited by shares were
registered in the country with an authorised
capital of Rs. 26778.66 crore. Of these, 2332
were Public limited companies with aggregate
authorised capital of Rs. 7172.29 crore and
62166 were Private limited companies with
aggregate authorised capital of Rs. 19606.37
crore. State-wise distribution of Non-Government
companies limited by shares registered during
the year 2008-09 is given in Statement III
(Appendix). Table 2.6 below indicates the trend
in registration of new Non-Government
companies limited by shares during the last five
years.

Table 2.6

Registration of Non-Government Companies Limited by Shares

during 2004-05 to 2008-09
Year Public Limited Private Limited Total
No. of Authorised No. of Authorised No. of Authorised
companies Capital companies Capital companies Capital
(Rs. In crore) (Rs. In crore) (Rs. In crore)
1 2 3 4 5 6 7
2004-05 1376 2826.50 38664 6242.20 40040 9068.70
2005-06 1872 3739.46 52124 11669.90 53996 15409.36
2006-07 1898 34574.30 49694 25124.70 51592 59699.00
2007-08 2556 31015.92 62694 42272.59 65250 73288.51
2008-09 2332 7172.29 62166 19606.37 64498 26778.66

State-wise Distribution: Industrial Activity Pattern:

2.9 Out of 64498 Non-Government companies
registered during the year 2008-09, 44025
companies or 68.3 per cent of the total were
registered in the 5 States/ Union Territories, viz.
Delhi, Maharashtra, West Bengal, Tamil Nadu and
Andhra Pradesh. Delhi occupied the top position
with 12652 new registration (19.6 per cent) followed
by Maharashtra (19.2 per cent), West Bengal (14.8
per cent), Tamil Nadu (7.4 per cent) and Andhra
Pradesh (7.3 per cent). The other States and Union
Territories together accounted for 20473
registrations of new Non- Government companies.
2.10 Table 2.7 shows the distribution of Non-
Government companies by broad activity
classification registered during the year 2008-09.
The largest number of companies registered during
the year viz. 20239 companies or 31.4 per cent of
the total, belonged to the group “Finance,
Insurance, Real Estate & Business Services “
followed by 12783 or 19.8 per cent of the total
registered under the group of “Trade, Hotels and
Restaurants”.

19
 Table 2.7

Industrial Activity pattern of Non-Government Companies limited by share

registered during 2008-09

S.No. Industrial Classification Number of Companies Authorised Capital

Number Percent (Rs. in Crore) Percent
1 2 3 4 5 6
1 Agriculture and Allied Activities 1613 2.50 473.26 1.77
2 Mining and quarrying 1037 1.61 663.38 2.48
3 Manufacturing 10849 16.82 6616.94 24.71
4 Electricity, Gas and water Companies 1157 1.79 2119.81 7.92
5 Construction 9664 14.98 3281.49 12.25
6 Trade, Hotels and Restaurants 12783 19.82 2427.29 9.06
7 Transport, Storage and Communication 2435 3.78 1352.03 5.05
8 Finance, Insurance, Real Estate
& Business Services 20239 31.38 8774.37 32.77
9 Community, Personal and Social
Services 4721 7.32 1070.09 3.99
10 Unclassified 0 0 0 0

Total 64498 100.00 26778.66 100.00

Non-Government Companies which ceased The aggregate paid-up capital of these

to
work:
2.11 During the year 2008-09, 17470 Non-
Government companies limited by shares were
reported to have ceased to work either by going
into liquidation or their names having been struck
off under Section 560(5) of the Companies Act.
companies was Rs. 4880.34 crore. State/
Region-wise distribution of companies which
ceased to work during 2008-09 is shown in
Statement IV (Appendix). Table 2.8 shows the
details of liquidated and struck off companies
during the last five years.

Table 2.8

Non-Government Companies which ceased to work during 2004-05 to 2008-09

Year Voluntary Liquidations under Companies Total
Liquidations Court's Order struck off
Number Paid-up Number Paid-up Number Paid-up Number Paid-up
Capital Capital Capital Capital
(Rs (Rs (Rs Crore) (Rs Crore)
Crore) Crore)
1 2 3 4 5 6 7 8 9
2004-05 5 0.00 20 0.00 1752 73.31 1777 73.31
2005-06 8 1.99 59 0.07 1313 10.54 1380 12.60
2006-07 0 0.00 65 394.48 17753 20910.86 17818 21305.34
2007-08 0 0.00 27 15.58 54307 35643.06 54334 35658.64
2008-09 0 0.00 28 11.68 17442 4868.66 17470 4880.34

20
Non-Government Companies Limited
by shares at work:
2.12.1 There were 785183 Non-Government
companies limited by shares at work in the
c o u n t r y a s o n 3 1 st March, 2009. These
comprised 80,879 Public limited companies and
704304 Private limited companies.
2.12.2 The non-Government companies at work
as on 31.3.2009 registered 2.30 per cent
increase over the previous year in terms of
number of comp anies.

Non-Government Companies Limited by Shares at work during (1996-2009)

900000

800000

700000

600000

500000

400000

300000

200000

100000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

YEAR

Government Companies with Unlimited Government companies with unlimited liability

liability were registered. These companies were mainly
registered in the state of Delhi (10), Andhra
2.13 A s o n 3 1 . 0 3 . 2 0 0 9 , t h e r e w e r e 7
Government companies with unlimited liabilities Pradesh (7), Maharashtra (3), West Bengal (2),
at work. Bihar (2) and Haryana (2). There were 632 Non-
Government companies with Unlimited Liability
Non-Government Companies with
at work as on 31.03.2009.Table 2.9 gives state-
Unlimited liability
wise distribution of Non-Government companies
2.14 During the year 2008-09, thirty (30) Non- with unlimited liability d uring 2008-09

21
 Table 2.9

State-wise distribution of Non-Government Companies with Unlimited liability

During 2008- 09
State / Union Territory Number of Companies Number of Companies
registered during 2008- 09 at work as on 31.3.2009
Andhra Pradesh 7 46
Arunachal Pradesh 0 1
Bihar 2 4
Goa 0 29
Gujarat 0 164
Haryana 2 7
Himachal Pradesh 0 4
Jharkhand 0 1
Karnataka 0 48
Kerala 0 3
Madhya Pradesh 0 6
Maharashtra 3 123
Manipur 0 1
Orissa 1 5
Punjab 0 15
Rajasthan 1 5
Tamil Nadu 0 7
Uttar Pradesh 1 14
Uttaranchal 1 3
West Bengal 2 13
Delhi 10 129
Chandigarh 0 3
Puducherry 0 1
Total 30 632

Companies with Liability limited by Foreign Companies:

Guarantee and Associations not for profit:
2.15 During the year 2008-09, 237 Guarantee
companies and Associations not for profit were
registered under the Companies Act, 1956. The
total number of Guarantee companies and
Associations not for profit at work in the country
as on 31.3.2009 was 13014.
2.16 As per section 591 of the Companies Act,
1956, foreign companies mean companies
incorporated outside India, which establish a
place of business within India. The number of
foreign companies which are reported to have
place of business in the country as on 31.3.2009
was 2903. Table 2.10 gives the country-wise
distribution of such foreign companies as on
31.3.2008 and 31.3.2009.
2.17 Statistical information given above is as
generated under MCA21 system.

22
 Table 2.10

Distribution of Foreign Companies defined Under Section 591 of the Companies Act,1956
by their country of incorporation as on 31.3.2008 and 31.3.2009

Sl. Country of incorporation of Number of Companies Number of Companies

No. the Foreign Companies as on 31.03.2008 as on 31.03.2009
1 2 3 4
1 United Kingdom 379 409
2 United States of America 524 570
3 Japan 201 224
4 France 95 106
5 Germany 132 151
6 Italy 59 63
7 Canada 39 45
8 Hong Kong 112 123
9 Pakistan 5 5
10 Bangladesh 10 10
11 Netherland 73 78
12 Switzerland 42 50
13 Sweden 27 31
14 Australia 76 86
15 Panama 13 13
16 Belgium 26 29
17 Thailand 23 29
18 Nepal 4 5
19 UAE 20 26
20 Others 749 850
Total 2609 2903

Growth of Foreign Companies in India

(31.3.2002 - 31.3.2009)

3000

2500
No. of Companies

2000

1500

1000

500

0
31.3.2002 31.3.2003 31.3.2004 31.3.2005 31.3.2006 31.3.2007 31.3.2008 31.3.2009
Number 1285 1497 1654 1840 2040 2310 2609 2903

23
 CHAPTER- III

Applications and Documents Received Under Different Sections of

the Companies Act, 1956

3.1.1 The receipt and disposal of applications
and documents under various Sections of the
Companies Act, 1956 during the year 2008-09,
except those relating to managerial personnel,
are reviewed in this Chapter. Applications relating
to managerial personnel are dealt with in Chapter
IV.
3.1.2 The applications and documents are
received either by (i) Regional Directors /
Registrars of Companies and (ii) the Central
Government / the Company Law Board. These
have been reviewed separately under respective
sub-heads.
Applications received under Sections
20, 166(1), 210(4) & other various
Sections of Companies Act, 1956.
3.2.1 Applications received during the year
2008-09 in the Offices of the Registrars of
Companies under Sections 20, 166(1), 210(4) &
other various Sections of the Companies Act,
1956 aggregated to 160771. Of the total
applications received during the year, 98021
applications related to availability of names under
Section 20 of the Companies Act, 1956. The
break-up of applications received during the last
three years is given in Table 3.1.

Applications and Documents received

by the Regional Directors/Registrars of
Companies
Table 3.1

Applications received under Sections 20, 166(1), 210(4) & other various Sections of
the Companies Act, 1956 during the years 2006-07, 2007-08 and 2008-09

2006-07 2007-08 2008-09

Brought Received Total Brought Received Total Brought Received Total
forward during Col. forward during Col. forward during Col.
Subject/ from the 2&3 from the 5&6 from previ- the 8&9
Section previ - year previ- year ous year year
ous ous year
year
1 2 3 4 5 6 7 8 9 10

1. Availability of name 4921 128548 133469 3882 80724 81906 2152 98021 100173
(Section 20)

2. Extension of 0 992 992 28 1635 1663 99 1618 1717

Annual General Meeting
(Section 166(1))
3. Extension of Financial 1 104 105 11 217 228 24 293 317
year [Section 210(4)]
4. Other applications 4793 76995 81788 4331 286084 290415 8292 60839 69131
(Under various Sections)
Total 9715 206639 216354 8252 365960 374212 10567 160771 171338

24
3.2.2 Taking into account the 160771
applications received during the year under
review and 10567 applications brought forward
from the previous year, the number of applications
considered during the year came to 171338. Of
these, 151977 applications were allowed, 10840
were rejected and 8521 were under examination/
consideration at the end of the year. Table 3.2 gives
Section-wise details of disposal of the applications
during the year 2008-09.

Table 3.2

Disposal of applications received under Sections 20, 166(1), 210(4) & other
various Sections of the Companies Act, 1956 during the year 2008-09

Brought Received Total Allowed Rejected Pending

Subject/ forward during Col. 2 during during at the
Section from the the &3 the year the year end of
previous year the year
year
1 2 3 4 5 6 7
1. Availability of 2152 98021 100173 89412 8694 2067
Name (Section 20)
2. Extension of Annual 99 1618 1717 968 592 157
General Meeting
(Section 166(1))
3. Extension of 24 293 317 187 85 45
Financial year
(Section 210(4))
4. Other Application 8292 60839 69131 61410 1469 6252
(Under various Sections)
Total 10567 160771 171338 151977 10840 8521

Documents filed under Sections 159, 160,
220 & other various Sections of the
Companies Act, 1956.
3.3.1 The statutory documents filed by companies
may be broadly classified under 3 categories viz. (i)
Annual Returns (Sections 159 and 160), (ii) Balance
Sheets and Profit and Loss Accounts (Section 220)
and (iii) Other Documents. In all 2307575 documents
were filed by the companies with the Registrars of
Companies during the year 2008-09. Of these,
390083 were Annual Returns under Sections 159 and
160 of the Act., 534723 were Balance Sheets and
Profit and Loss Accounts filed under Section 220 of
the Act, and the remaining 1382769 documents were
filed under the miscellaneous provisions of the Act.
The number of documents filed with the Registrars
of Companies during the last three years are given in
Table 3.3.

25
 Table 3.3
Documents received under Sections 159, 160, 220 & other various Sections of
the Companies Act, 1956 during the years 2006-07, 2007-08 and 2008-09
Nature of Document 2006-07 2007-08 2008-09
and Section concerned
Brought Received Total Brought Received Total Brought Received Total
forward during Col. forward during Col. 5&6 forward during Col. 8&9
from the 2&3 from the from the
previ- year previ- year previ- year
ous ous year ous year
year
1 2 3 4 5 6 7 8 9 10

1. Annual Returns 32184 313689 345873 1458 361447 362905 1444 390083 391527
(Sections 159&160)

2. Balance Sheets 40641 317778 358419 1340 379323 380663 1360 534723 536083
and Profit & Loss
Accounts
(Section 220)

3. Other Documents 113315 994250 1107565 37253 1337827 1375080 42971 1382769 1425740
(Under various Sections)
Total 186140 1625717 1811857 40051 2078597 2118648 45775 2307575 2353350

3.3.2 Taking into account the 2307575
documents received during the year under
review and 45775 documents brought forward
from the previous year, the total number of
documents requiring scrutiny during the year was
2353350. Of these, 2251680 documents were
taken on record as being in order, 17787 were
returned for rectification of defects and 83883
remained pending at the end of the year. Section-
wise details of disposal of documents are shown
in Table 3.4.

Table 3.4
Disposal of Documents received under Sections 159, 160, 220 & other
various Sections of the Companies Act, 1956 during the year 2008-09
Nature of documents Brought Received Total Taken on Returned Pending
and Section concerned forward during Col. 2 & 3 record for recti - at the
from the the fication end of
previous year the year
year
1 2 3 4 5 6 7
1. Annual Returns 1444 390083 391527 368655 2612 20260
(Section 159 & 160)
2. Balance Sheets and 1360 534723 536083 520011 2201 13871
Profit & Loss A/c
(Section 220)
3. Other Documents
(Under various 42971 1382769 1425740 1363014 12974 49752
Sections)
Total 45775 2307575 2353350 2251680 17787 83883

26
Inspection of Documents Under
Section 610(1)(a)
3.4 During the y e a r 2 0 0 8 - 0 9 , 4 0 8 2 7 4
documents were inspected in the Offices of the
Registrars of Companies received from
shareholders and members of the public under
Section 610(1)(a) of the Companies Act,1956.
The fees realised by the Registrars of
Companies on this account amounted to
Rs.2,04,09,900. The number of documents
inspected in the previous year (2007-08) was
292002 and the amount of fee realised was
Rs.1,50,48,250. The largest number of
documents inspected during the year under
review was of the Registrar of Companies, Delhi
i.e. 95003 documents representing 23.27 per
cent of the total. The number of documents in
the office of the Registrar of Companies, Mumbai
(viz. 81272 representing 19.90 per cent) came
next, followed by documents inspected in the
Office of the Registrars of Companies, West
Bengal, Chennai, and Andhra Pradesh ( viz.
36330, 31444 and 30618 respectively) in that
order. The documents inspected in the offices
of these five Registrars of Companies together
accounted for 67.28 per cent of the total
documents inspected under this Section in the
offices of all the Registrars of Companies during
the year under review.
Issue of Certificates and certified
copies of documents under Section
610(1)(b).
3.5 The number of certificates of
incorporation and certified copies of documents
issued during the year 2008-09 by the Registrars
of Companies under Section 610(1)(b) of the
Companies Act totalled 30291 and fees realised
27
on this account amounted to Rs.1,77,08,275.
During the year 2007-08, 34953 certificates of
incorporation and certified copies of documents
were issued and fee of Rs. 1,61,54,650 was
realised.
Conversion of Companies under
Section 31 and 43A
3.6 There were 1611 conversions of
companies from private to public and vice-versa
during the year 2008-09. Of these, 722
conversions from private to public and 707 from
public to private were by alteration of articles of
association by special resolution under Section
31 of the Act. Remaining 182 conversions, were
from private to public (106) and public to private
(76) took place under Section 43A of the Act.
Complaints
(A) Complaint received and disposed
of by ROCs
3.7.1 D u r i n g t h e y e a r 2 0 0 8 - 0 9 , 6 3 8 5
complaints were received in the offices of the
Registrars of Companies from shareholders and
members of the public. The number of
complaints received in the previous year was
6627.
3.7.2 D u r i n g t h e y e a r 2 0 0 8 - 0 9 , 6 7 8 4
complaints were considered including 399
complaints brought forward from the previous
year. Of these, action was taken on 6165
complaints after necessary scrutiny and inquiry
and 619 complaints remained pending at the end
of the year. Table 3.5 gives the comparative
position regarding the complaints received and
disposed of by ROCs during the last three years.
 Table 3.5
Complaints received and disposed of by ROCs during the years
2006-07, 2007-08 and 2008-09
Year Brought Received Total Disposed Pending
forward during Col. 2 & of during at the
from the the 3 the year end of
previous year the year
year
1 2 3 4 5 6
2006-07 1933 5017 6950 5940 1010
2007-08 1010 6627 7637 7238 399
2008-09 399 6385 6784 6165 619

Nature of Complaints which a large number of complaints received

3.7.3 The grounds of comp laints varied in
nature. 1049 complaints (16.4%) out of the total
number of complaints received during the year
2008-09 related to non-payment of public
deposits by companies. The other grounds on
related to non-receipt of Balance-sheets (11.3%),
non-payment of dividend (9.3 % ), non-issue of
shares certificate (4.1%), and non-receipt of
Notice (2.7%). The break-up of complaints
according to their nature is shown in Table 3.6.

Table 3.6
Nature of complaints received & disposed by ROCs during 2008-09
Sl. Nature of Brought Received Percentage Total Disposed Percentage Pending
No. complaints forward during of the total Col. 3 & of during of the total at the
from the the receipts 4 the year disposal end of
previous year the year
year
1 2 3 4 5 6 7 8 9
1 Non-payment of public deposits 41 1049 16.4 1090 999 16.2 91
2 Mismanagement 5 132 2.1 137 129 2.1 8
3 Non-payment of dividend 27 593 9.3 620 548 8.9 72
4 Non-receipt of Balance Sheets 192 723 11.3 915 852 13.8 63
5 Non-receipt of Notices 4 175 2.7 179 175 2.8 4
6 Non-registration of Transfer of 8 105 1.6 113 107 1.7 6
Shares
7 Non-issue of Share certificates 10 263 4.1 273 271 4.4 2
8 Improper holding of meetings 6 38 0.6 44 43 0.7 1
9 Non-holding of Annual General 0 130 2.0 130 127 2.1 3
Meetings
10 Non-receipt of Dividend warrant 19 171 2.7 190 179 2.9 11
11 Misappropriation 2 18 0.3 20 20 0.3 0
12 Fraud/ Embezzlement 2 18 0.3 20 19 0.3 1
13 Misapplication of funds 0 13 0.2 13 13 0.2 0
14 Improper election of Directors 0 28 0.4 28 28 0.5 0
15 Failure to allow inspection of 3 2 0.0 5 4 0.1 1
Minute Books
16 Other complaints 80 2927 45.8 3007 2651 43.0 356
(Miscellaneous)
Total 399 6385 100.00 6784 6165 100.00 619

28
ROC-wise distribution of complaints
3.8 The Registrar of Companies, Mumbai
received the largest number of complaints during
the year 2008-09, viz. 1973 (30.9 per cent of
the total) followed by the Registrars of
Companies, West Bengal, Punjab/H.P./
Chandigarh, Delhi/Haryana and Andhra Pradesh
who received 751, 581, 531, and 443 complaints
respectively. These five Registrars of Companies
together accounted for 67.01 per cent of the total
number of complaints received during the year.
The ROC-wise break-up of complaints received
during the year 2008-09 is given in Table 3.7.

Table 3.7
ROC-wise break-up of complaints received during 2008-09
State/ Brought Received Percentage Total Disposed Percentage Pending
Sl. Union Territory forward during of Col. 3 & of during of at the
No. from the the Total 4 the year grand total end of
previous year receipts disposal the year
year
1 2 3 4 5 6 7 8 9
1 Andhra Pradesh 193 443 6.9 636 555 9.0 81
2 Assam 0 0 0.0 0 0 0.0 0
3 Bihar 0 24 0.4 24 24 0.4 0
4 Delhi/ Haryana 3 531 8.3 534 512 8.3 22
5 Goa 34 11 0.2 45 8 0.1 37
6 Gujarat 0 411 6.4 411 411 6.7 0
7 Jammu & Kashmir 0 2 0.0 2 2 0.0 0
8 Karnataka 0 130 2.0 130 130 2.1 0
9 Kerala 0 134 2.1 134 134 2.2 0
10 Madhya Pradesh 0 80 1.3 80 80 1.3 0
11 Maharashtra(Mumbai) 87 1973 30.9 2060 1869 30.3 191
12 Pune 0 104 1.6 104 104 1.7 0
13 Orissa 0 40 0.6 40 40 0.6 0
14 Puducherry 0 7 0.1 7 5 0.1 2
15 Punjab/H.P./Chandigarh 52 581 9.1 633 603 9.8 30
16 Rajasthan 7 409 6.4 416 403 6.5 13
17 Chennai 4 434 6.8 438 438 7.1 0
18 Coimbatore 6 71 1.1 77 70 1.1 7
19 Uttar Pradesh 13 249 3.9 262 228 3.7 34
20 West Bengal 0 751 11.8 751 549 8.9 202
Grand Total 399 6385 100.00 6784 6165 100.00 619

(B) Complaint received and disposed
of by Head Quarters New Delhi.
3.9 The IGMC Section at Head Quarters,
New Delhi received 732 complaints from the
investors/depositors during the period from
1.04.2008 to 31.3.2009 whereas 1192
complaints were brought forward from the
previous year. Out of a total of 1924 complaints,
411 complaints have been settled. Further, IGMC
received 254 complaints pertaining to other
Agencies and the same were forwarded to them
for necessary action. Out of above 254
complaints, 101 complaints were forwarded to

29
Securities and Exchange Board of India (SEBI), disposal of applications dealt with by the
41 complaints to Reserve Bank of India (RBI), Regional Directors/ Registrars of Companies
112 complaints to Hardship Committee under the delegated powers. It would be seen
(Company Law Board). that during the year under review 93,270
applications including 27,700 brought forward
Applications considered and disposed of from the previous year were considered. The
by the Regional Directors and Registrars largest number of applications, viz. 28,908
of Companies. ( 30.99 per cent of the total ) were considered
under Section 108(1D) of the Act regarding
3.10 The powers and functions of the Central extension of time for registration of transfer of
Government in respect of some Sections of the shares. Out of the total 93,270 applications,
Companies Act,1956 have been delegated to the 59,452 were disposed of during the year leaving
Regional Directors located at Kolkata, Mumbai, 33818 applications pending as on 31st March,
Chennai and Noida (U.P.) and to the Registrars 2009.
of Companies. Table 3.8 below shows the
Table 3.8
Applications considered and disposed of by the Regional Directors and Registrar
of Companies under various Sections of the Companies Act, 1956 during
the year 2008-09
Sl. Section of the Companies Act Applicatio Applicatio Total Applicati Applicatio
No. and the subject matter of the ns ns ( Col. ons ns
application pending received 3+4) disposed pending
as on during the of as on
31.3.2008 year during 31.03.2009
2008 -0 9 the
year
2008-0 9
1 2 3 4 5 6 7
1 21 - Change of name by company 792 7751 8543 8005 538
2 22 - Rectification of name of 42 97 139 69 70
company
3 25 - Grant of licence 96 323 419 306 113
4 25(8) - Alteration in Memorandum 37 97 134 94 40
& Articles of Association
5 31 - Alteration in Articles through 308 2204 2512 2314 198
Special Resolution
6 108(1D) - Extension of time for 47 28908 28955 28908 47
Registration of transfer of shares
7 224(3)&224(7) - Appo intment and 7 27 34 19 15
remuneration of Auditors
8 Section 394 -A amalgation of 138 1096 1234 1094 140
companies (pub/pvt. Companies) by
RD
9 555(7)(b) - Company liquidation 822 351 1173 394 779
Accounts
10 560 Striking of name of the 25411 24716 50127 18249 31878
companies in the Register
maintained by ROC
Total 27700 65570 93270 59452 33818

30
Applications received by the Central
Government and Company Law
Board
Invitation and acceptance of Deposits
under Section 58A
3.11.1 Section 58A of the Companies Act, 1956
which came into force on 1.2.1975, regulates the
invitation and acceptance of deposits by non-
banking non-financial companies. The
Companies (Acceptance of Deposits) Rules,
1975 framed in pursuance of sub-section (1) of
Section 58A of the aforementioned Act, prescribe
the limits up to which and the manner and
conditions subject to which and deposits may be
invited and accepted by these companies either
from the public or from their members. These
Rules prescribe every company to advertise at
the time of inviting deposits, a summarized
financial position of the company for the
preceding two financial years. The rules lay
down the following conditions governing the
acceptance of deposits:
Ceiling limits of deposits with reference
to the company’s net worth.
Maximum period of 36 months for
which the deposits can be accepted.
Maximum rate of brokerage, which canbe
paid by the company to brokers through
whom the deposits are collected.
Maintenance of liquid assets to the extent
of 15% of deposits maturing during the
year to be invested in specified securities
in order to safeguard the interests of
depositors.
Maximum rate of interest payable on
deposits.
31
3.11.2 Under the proviso to sub-section (7) of
Section 58A of the Companies Act 1956, the
Government is empowered to exempt a class of
companies from all or any of the provisions of
Section 58A. The Ministry has granted
exemption vide Notification GSR No. 1075E
dated 29.12.1989 from the provisions of sub-
section (1) to (6) of Section 58A in respect of
acceptance of deposits through issue of
Commercial paper by companies which satisfy
the eligibility criteria laid down by Reserve Bank
of India in the Non-Banking Companies
(Acceptance of Deposits through Commercial
Paper) Directions 1989. The said Notification
has come into force on and from 1.1.1990.
3.11.3 Sub-section (8) of Section 58A of the
Companies Act, 1956 empowers Central
Government, if it considers necessary for
avoiding any hardship or for any other just and
sufficient reason, to grant extension of time to a
company or class of companies to comply with
or exempt any company or class of companies
from all or any of the provisions of Section 58A
either generally or for a specified period subject
to such conditions as may be specified, either
prospectively or retrospectively from a date not
earlier than the commencement of the
Companies (Amendment) Act, 1974. In case
exemption is to be granted for a class of
companies, it is to be done after consultation with
Reserve Bank of India.
3.11.4 Sub-sections (9) & (10) of Section 58A
Act of the Companies Act, 1956 empower the
Company Law Board to take cognizance of any
case of non-repayment of deposits on maturity
and direct the company to make repayment of
such deposits within such time and subject to
such conditions, as may be specified in the order.
Non-compliance of the orders of the Company
Law Board would attract penalty by way of
imprisonment, which may extend to three years
and shall also be liable to a fine of not less than
Rs. 500/- for every day till such non-compliance
continues.
(A) Applications Disposed of by the
Central Government
(a) Applications for exemption/
extension of time under section 58A (8)
3.12 During the period with effect from
1.4.2008 to 31.3.2009, 13 applications for
granting exemption/extension of time under
Section 58A (8) of the Companies Act, 1956 were
received in addition to 09 applications brought
forward from the previous year. Out of the total
22 applications, 12 applications were disposed
of during the said period, and 10 applications
were under examination as on 31.3.2009.
(b) Reduction of Equity Share Capital
under Section 101
3.13.1 As of 01.04.2008, four applications were
made under Section 101 by (i) M/s. Nagland Pulp
and Paper Company Limited, (ii) M/s. Hindustan
copper Limited, (iii) Gluconate Health Limited
and (iv) Tehri Hydro Development Corporation
Limited were pending. During the year 2008-09
three more applications were received from (i)
M/s. Westingh House Saxby Farmer Ltd., (ii) M/
s. Durgapur Chemicals Ltd, (iii) M/s Central
Inland Water Transport Corporation.
3.13.2 O u t o f t h e s e s e v e n c a s e s , f i v e
applications/petitions of (i) M/s. Nagland Pulp
and Paper Company Limited, (ii) M/s Hindustan
copper Limited, (iii) M/s Tehri Hydro
32
Development Corporation Limited, (iv) M/s.
Westingh House Sax by Farmer Ltd. and (v) M/
s Central Inland Water Transport Corporation
were considered and disposed of. Two
applications/petitions were pending as on
31.03.2009.
(c) Restriction on Acquisition
Transfer of certain shares under
section 108A
3.14.1 Under section 108A, prior approval of the
Central Government is required to be obtained
for acquisition/transfer of shares by or to, an
individual, firm, group constituent of a group,
body corporate or bodies corporate under the
same management in relation to dominant
undertaking provided there is any increase in
dominance as a result of such an acquisition or
transfer of shares.
3.14.2 During the year 2008-09, no application
u/s 108A, and 1 application brought forward from
the previous year was disposed of during the
year and no application was pending as on
31.3.2009.
(d) Permission to Government
Companies under section 166
3.15 The Central Government has powers under
Section 166(1) & (2) of the Companies Act, 1956
to grant extension of time by three months to
Government Companies for holding Annual
General Meetings (AGM) and for change of
venue of AGM to a place other than where the
registered office of the company is situated. The
number of applications for extension of time and
change of venue received and disposed of during
the year 2008-09 are given in Table 3.9.
 Table 3.9
Applications under Section 166 received and disposed of during 2008-09

Section of Nature of Pending Received Total Disposal during Pending

Companies Applications at the the Year during Col. the year as on
Act,1956 beginning the year 3&4 31.3.2009
Request Request
accepted rejected
1 2 3 4 5 6 7 8

166(1) Annual General 0 176 176 173 3 0

Meeting
(Extension of time)

166(2) Annual General

Meeting
(Change of venue) 0 14 14 14 0 0
TOTAL 1 190 190 187 3 0

(e) Payment of Dividends paid only
out of profits under section 205(1)
3.16 During the year 2008-09, three (3)
applications were received under the Section
205(1), while three (3) applications were brought
forward from the previous year. Out of the total
six (6) applications, one (1) application was
disposed of and five (5) applications were
pending as on 31.3.2009.
3.17.2 During the year 2008-09, four (4)
applications were received under section 205A
(3), while 1 application was brought forward from
the previous year. Out of the total 5 applications,
4 applications were disposed of and one (1)
application was pending as on 31.3.2009.
(f) Permission for Reduction in rate
of Depreciation under section 205(2)
(c)

(f) Payment of Dividends out of 3.18.1 As of 31.03.2008, 3 applications were

Reserve under section 205A (3)
3.17.1 Section 205A (3) of the Companies Act,
1956 makes it obligatory for a company to seek
prior approval of the Central Government where
owing to inadequacy or absence of profits in any
year, it proposed to declare dividend out of the
accumulated profits earned in the previous years
and transferred to the reserves and where
declaration of dividend is not in accordance with
the Rules, namely, the Companies (Declaration
of Dividend out of Reserves) Rules, 1975 framed
under the said section.
33
made under section 205 (2) (c) by (i) M/s. Oil
Natural Gas Corporation Limited, (ii) North Delhi
Power Limited, (iii) Power Links Transmission
Limited were pending. During the period from
1.4.2008 to 31.03.2009, three more applications
were received from (i) ISMT Ltd., (ii) National
Aviation Company of India Ltd. and (iii) Air India
Charters Ltd.
3.18.2 Out of above 6 cases, 1 applications of
M/s. M/s. North Delhi Power Ltd was considered
and disposed of. Remaining five applications
were under consideration and were pending as
on 31.03.2009.
(g) Exemption from disclosing the
quantitative details under section
211(4)
3.19.1 Part II of Schedule VI to the Companies
Act,1956 dealing with the preparation of Profit
and Loss Accounts provides that the
manufacturing and other companies should give
by way of notes, additional data in regard to
turnover, installed capacity, licensed capacity,
actual production, raw material consumed,
opening and closing stock of good produced etc.
Some of the Companies which on account of
certain difficulties, are unable to comply with the
said provisions to furnish the additional data, can
approach the central Government for order under
section 211(4) of the Companies Act, 1956 for
exemption from furnishing this information.
3.19.2 As of 31.03.2008, 110 applications were
made under section 211(4) of the Companies
Act, 1956 were pending. During the period from
1.4.2008 to 31.03.2009, 244 more applications
were received for seeking exemption from
complying the requirements of para 3 and 4 Part-
II of Schedule VI to the Companies Act, 1956.
Out of these 354 cases, 278 applications were
considered and disposed of. Remaining 76
applications were under consideration and were
pending as on 31.03.2009.
(h) Exemption from annexing balance
sheet of the subsidiary companies
under section 212(8)
3.20.1 Section 212 of the Companies Act, 1956
provides that the Balance sheet of a holding
company should include certain documents of
34
its subsidiaries. However sub-section (8) thereof
empowers the Central Government to exempt a
holding company from the requirements of
including in balance sheet the said documents
of subsidiary companies.
3.20.2 As of 31.03.2008, 88 applications were
made under section 212(8) of the Companies
Act, 1956 were pending. During the period from
1.4.2008 to 31.03.2009, 669 more applications
were received for seeking exemption from
attaching the balance sheet etc. of their
subsidiaries with their balance sheets as required
under Section 212 (1) of the Act. Out of these
757 cases, 537 applications were considered
and disposed of. Remaining 220 applications
were under consideration and were pending as
on 31.03.2009.
(i) Appointment of Cost Auditors
under section 233B(2)
3.21.1 Consequent upon the launch of MCA-21
Project under the e-Governance, companies
under cost audit have started filing applications
for appointment of cost auditors, through
electronic mode from April, 2006.
3.21.2 D u r i n g t h e y e a r 2 0 0 8 - 0 9 , 2 0 0 4
applications were received through e-mode
under sections 233B(2) of the Companies Act,
1956 as against 1878 applications received
during the previous year 2007-08 for approval
of appointment of cost auditors.
(j) Appointment of Sole Selling/Buy-
ing Agents under section 294AA (1), (2)
& (3)
3.22.1 Sub-section 294AA (1) of the Companies
Act, 1956 req uires that where the Central
Government is of the opinion that the demand
for goods of any category is substantially in
excess of the production or supply of such goods
and that the services of the Sole Selling Agents
will not be necessary to create a market for such
goods, the Central Government may, by
notification in the Official Gazette, declare that
Sole Selling Agent shall not be appointed by a
company for the sale of such goods for such
period as may be specified in the declaration. At
present, the said prohibition on appointment of
Sole Selling Agents exists only in respect of ‘Bulk
drugs, Drugs and Formulations’ which has been
extended for a period of three years w.e.f.
5.4.2007 vide Notification No. GSR 272(E) dated
5.4.2007.
3.22.2 Sub- sections (2) and (3) of Section 294-
AA of the Companies Act, 1956 require the
companies to obtain approval of Central
Government for appointment of Sole Selling
Agents. Sub-section (2) applies to those
companies, in which the Sole Selling Agents
either by themselves or through their relatives
hold paid-up-capital of Rs. 5 lakhs or 5 per cent
of the paid-up-capital of the company, whichever
is less. Sub-section (3) applies to the companies
whose paid-up capital is Rs. 50 lakh or more.
3.22.3 During the year 2008-09, 13 applications
were received under sub-sections (2) & (3) of
Section 294AA of the Companies Act, 1956 while
6 applications were brought forward from the
previous year. Out of the total 19 applications,
11 applications were disposed of and 8
applications were pending at various stages of
consideration as on 31.3.2009.
(k) Loan to Directors, giving guaran-
tee or providing security in connection
with a loan- under section 295
35
3.23.1 Section 295 of the Companies Act, 1956
requires all public companies or their subsidiaries
to obtain the previous approval of the Central
Government before making any loan to, or giving
any guarantee or providing any security in
connection with a loan made by any other person
to, or to any other person by their directors,
relatives of such directors, firms or private
companies in which such directors are interested
and to other body corporate falling within the
ambit of clauses (d) & (e) of sub-Section (1) of
the said Section.
3.23.2 During the year 2008-09, the Central
Government received 40 applications while 13
applications were brought forward from the
previous year under Section 295. Out of these
53 applications, 36 applications were disposed
of and 17 applications were pending as on
31.3.2009.
(l) Contracts in which Directors are
interested under Section 297
3.24.1 Section 297(1) of the Companies Act,
1956, as amended by the Companies
(Amendment) Act, 1974 which came into force
with effect from 1st February, 1975 makes it
obligatory for companies having paid-up share
capital of not less than Rs. 1 crore to seek prior
approval of the Central Government in respect
of any contract to be entered into (a) for sale,
purchase or supply of goods, material or service
or (b) for underwriting the subscription of any
share or debentures of the company with a
Director of the company or his relatives, a firm
in which such a Director or relative is a partner,
any other partner in such a firm or a private
company of which a Director is a member or
Director. The powers of Central Government to
accord approval under Section 297(1) of the
Companies Act, 1956 have been delegated to
Regional Directors with effect from 19.8.1993.
This has been done with the twin purposes of
decentralisation and expeditious disposal.
3.24.2 During the period from 1.4.2008 to
31.3.2009, Regional Directors considered 1920
applications including 191 applications brought
forward from the previous year. Out of these,
1684 applications have been decided leaving a
balance of 236 applications under consideration
with Regional Directors as on 31.3.2009.
(m) Amalgamation/ Merger between
Government companies under Section
391-394
3.25.1 As of 31.03.2008, 2 application/petition
was made under section 391-394 by M/s.
Madhya Pradesh State Industrial Development
Limited and (ii) Bongaigaon Refinery and
Petrochemicals Corporation Limited with M/s
Indian Oil Corporation Ltd. were pending.
During the period from 1.4.2008 to 31.03.2009,
two more applications/petitions were received
from (i) Keltron Component Omplex Ltd. Scheme
of Amalgamation of (i) Keltron Magnetics Ltd.(ii)
Keltron Resistors Ltd. and (iii) Keltron Crystals
ltd. with Keltron Component Complex Ltd. (iv)
Amalgamation between Pabban Vally Power
Corp. Ltd. and Kinen Kailash Power Corp. Ltd.
with H.P. Power Corp. Ltd.
3.25.2 Out of above 4 applications/petitions,
One application/petition of M/s. Bongaigaon
Refinery and Petrochemicals Corporation
Limited with M/s Indian Oil Corporation Ltd. was
considered and disposed of. Remaining three
are under consideration and were pending as
on 31.03.2009.
36
(n) Amalgamation/ Merger of Govern-
ment companies on public interest
under Section 396
3.26.1 As of 31.03.2008, 3 applications/petitions
were pending under section 396 made by (i) M/
s. Tamilnadu Goods Transport Corporation
Limited (In Liquidation) with State Express
Transport Corporation Tamilnnadu Limited, (ii)
Karnataka Small Industries Marketing
Corporation Limited with Karnataka State Small
Industries Development Corporation Limited, (iii)
Tamilnadu Graphite Limited with Tamilnadu
Mineral Limited. were pending. During the
period from 1.4.2008 to 31.03.2009, one more
applications/petitions was received from (i)
BRLwith SAIL.
3.26.2 All the above four applications/petitions
are under consideration and were pending as
on 31.03.2009.
(o) Amalgamation of Public & Private
companies under section 394A
3.27 During the year 2008-09, 1096 notices
were received under this Section, while 138 were
brought forward from the previous year. Out of
total of 1234 notices, 1094 were disposed of and
140 cases were under examination as on
31.03.2009.
(p) Power to modify Act in its applica-
tion to NIDHI, etc. under section 620A
3.28.1 Under section 620A of the Companies
Act, 1956, the Central Government is
empowered to declare by notification in the
official gazette certain special type of Non-
Banking Financial Companies as “Nidhi
companies” or “Mutual Benefit Societies” as the
case may be and direct that certain provisions
of the Companies Act, 1956 shall not apply and/
or, as the case may be, shall apply with certain
exceptions, modifications and adaptations to the
said Nidhi companies. The Central Government
vide Notification GSR 329(E) dated 201.05.2008
declared 24 companies as Nidhi Companies.
With this, the total number of Companies notified
as Nidhi Companies is now 357 as on 31.3.2009.
3.28.2 During the year 2008-09, the Central
Government received 13 applications under
section 620A of the Companies Act, 1956 while
12 applications were brought forward from the
previous year. Out of these 25 applications, 19
applications were disposed of and 06
applications were under examination for approval
of the Central Government as on 31.3.2009.
(q) Applications under section 81
(1) and (3)
3.29 During the year 2008-09, no application
was received for further issue of share capital
while 1 application of M/s. Designtech System
Private Limited was pending as on 31.03.2008
and considered/disposed of. No application was
pending as on 31.3.2009.
37
B. Applications/Appeals disposed of
by Company Law Board
3.30.1 Section 111 of the Companies Act, 1956
provides for transferors or transferees of shares
in a company to appeal to the Central
Government against the refusal of the company
to register the transfer or transmission of shares,
or against the failure within the prescribed time
limit, to register the transfer or transmission of
shares, or to intimate its refusal to register the
transfer or transmission of shares. Powers under
this Section are delegated to the Company Law
Board Benches.
3.30.2 As on 31 st March, 2008, 133 appeals
under Section 111 were pending with the
Company Law Board. During the year 2008-09,
113 appeals were received. Thus 246 appeals
were considered during the year. Of these, 72
appeals were disposed of and 174 appeals were
pending disposal for non-compliance of various
formalities as on 31.03.2009 as per the
Companies (Appeals to the Central Government)
Rules, 1957.
 CHAPTER –IV

Corporate Management
Appointment of Managerial Personnel
4.1.1 The Ministry of Corporate Affairs deals
with statutory applications relating to the
appointment of and payment of remuneration to
Managing Directors, Whole-time Directors and
Managers of Public Limited Companies and of
Private Limited Companies which are
subsidiaries of Public limited companies under
Section 259, 268, 269, 198/309, 310 and 314(IB)
of the Companies Act, 1956 in accordance with
provisions of Schedule XIII to the said Act, as
amended from time to time.
4.1.2 To bring greater transparency in
processing of various statutory applications, the
submission of applications on-line through the
website of the Ministry was operationalised since
September, 2006. The companies can also track
the status of their application on the website of
the Ministry.
4.1.3 It has been observed that applications
received are generally deficient in several
respects. In order to have complete information
in the initial stage itself, Form Nos. 25A and
24B are under revision to make them more
effective and to ensure speedy disposal of
applications.
4.1.4 The details of receipt and disposal of
statutory applications for the periods from
01.04.2008 to 31.03.2009 are given in Table 4.1
below:

Table 4.1
Applications on Managerial Appointment received and disposed of by the
Central Government during 01.04.2008 - 31.03.2009
Under Nature Brought Received Total Disposed Pending as
Section of Applications forward during (Col. of during on
as on the year 3+4) the year 31.03.2009
01.04.2008
1 2 3 4 5 6 7
259 Increase in number of 4 36 40 22 18
Directors
268 Amendment of provisions 5 18 23 3 20
in the articles of
Association relating to
Managing Director or
Whole time Director.
269/Schedule Appointment/reappointment 163 1096 1259 616 643
XIII, 309(1B), of Managing Director or
309(4)(5B), Whole-time Directors/
310 managers, Remuneration of
Directors for rendering

38
 professional services
Remuneration to Director
other than Managing
Director under whole time
appointment/waiver of
sums refundable by
Directors
Increase in the
remuneration of any
Directors.
314(1B) Appointment/continuance 55 340 395 131 264
of relative of Director to
hold any office or place of
profit in the company which
carries total monthly
remuneration of not less
than Rs. 50000 per month

Total 227 1490 1717 772 945

Applications on Managerial Appointment considered and disposed

of by the Central Government during 2008-09
1400 1259
1200
No. of applications

1000

800
616
600
395
400

200 131
40 22 23 3
0
269/309(1B)/309
Section 259 268 314(1B)
(4)(5B)/310
Considered 40 23 1259 395
Disposed of 22 3 616 131

39
 CHAPTER –V

Inspections, Investigations, Prosecutions, Oppression and Mismanagement,

Cost Audit, Investors Education and Protection Fund, Investor
Protection and Vanishing Companies.

Inspections company to be wound up on just

5.1.1 Section 209A of the Companies Act, 1956
empowers the Registrar of Companies or the
officers duly authorised by the Central
Government, to undertake inspection of the
books of accounts and other records of
companies. Several officers of the Ministry have
been authorised under this Section to undertake
inspections.
5.1.2 Broadly, inspections are undertaken to
serve one or more of the following objects:
(i) to verify compliance by companies
of various provision of the
Companies Act,1956;
(ii) to verify whether the company
accounts represent a true and fair
picture of the company’s finances
and whether the same have been
disclosed in a manner consistent
with Companies Act;
(iii) whether the company’s funds have
been siphoned off, applied or
diverted in a manner violative of the
provision of the Act and whether the
company management has
misused its fiduciary position for
any personal advantage in violation
of the Act;
(iv) whether there are acts of mis-
management or oppression which
adversely affect the interest of
company stakeholders, or which
may adversely prejudice such
interests, which may merit the
and equitable grounds under the
Act;
(v) whether statutory auditors have
carried out their duties properly
while certifying true and fair view
of the state of affairs of the
company; and
(vi) to examine legal action under
Companies Act if the company has
made a default in filing its balance
sheet and profit and loss account
or annual return for any five
consecutive financial years with the
Registrar.
5.1.3 Inspections under Section 209A of the
Companies Act, 1956 of the books of accounts
of the company are generally ordered on the
basis of:
(i) complaints received in the Ministry
of Corporate Affairs or in its field
offices about mis-management in
respect of maintenance of books
of accounts as prescribed under
Section 209 of the Act, delay in
transfer of share/debentures,
delay in payment of dividend, non-
payment of deposits or interest
thereon etc.;
(ii) violations/irregularities noticed on
scrutiny of documents including
Auditors remarks filed in the office
of the Registrar of Companies;
and

40
 (iii) reference received from other
Govt. Departments/Agencies
pointing out violations of the
provisions of the Companies Act,
1956 or other irregularities.
5.1.4 Details of the number of inspections
conducted by the Ministry of Corporate Affairs
during last 4 financial years are as under:
Year Number
2005-06 253
2006-07 220
2007-08 189
2008-09 207
Follow up of the report of Joint Parlia-
mentary Committee (JPC) on Stock
Market Scam.
5.2 The Government had set up a Joint
Parliamentary Committee (JPC) to investigate
the Stock Market Scam. JPC submitted its report
in December 2002. The Ministry of Corporate
Affairs was asked to furnish Action Taken Report
on certain recommendations of the JPC
concerning this Ministry. Status reports in
respect of points concerning MCA are forwarded
regularly to JPC Cell in the Department of
Economic Affairs who is monitoring the follow
up action on the JPC Report from time to time.
Action taken under Section 397/398/
408/402/406/388/237(b) of the Compa-
nies Act, 1956.
5.3.1 Section 397/398 of the Companies Act,
1956 provides for filing of application before
Company Law Board for relief in cases of
oppression, mismanagement or apprehension of
mis-management of the affairs of the Company.
Section 408 of the Act empowers the Central
Government to appoint such number of persons
on the Board of the company as directed by
Company Law Board on the reference/
application made by the Government to
safeguard the interest of the company or its
shareholders or the general public. In addition,
the Central Government can also file petitions
under Section 402 read with Section 406 of the
Act for disgorgement of assets against the
Directors of the Company when they indulged in
misappropriation/misfeasance.
5.3.2 As on 31.3.2009, there were seven (7)
cases pending before Company Law Board/High
Court/Supreme Court. The details of the same
given in table 5.1.

Table 5.1
Details of cases pending before CLB/High Court/Supreme Court

Sl. Court Name of company Section

No.
1. Company Law UOI Vs. Satyam Computer Services Ltd. 397/398/388B/
Board 406&408
2. -do- UOI Vs. Mytas Infra Ltd. -do-
3. -do- UOI Vs. Mytas Property Ltd. -do-
4. -do- UOI Vs SHCIL Services Ltd. 250
5. High Court M/s Mukta Art Ltd. 237 (b)
6. -do- M/s Everady Industries Ltd. 397
7. -do- M/s Vikas WSP Ltd. 397

41
Investigations (iii) When the alleged fraud involves
widespread public concern estimated to
5.4.1 The Investigation cases of companies u/ affect at least more than 5000 persons; or
s 235/237 of the Act are entrusted to the Serious
Fraud Investigation Office (SFIO) on the (iv) Where investigation requires special-
following grounds/criteria. ized skills and multi-disciplinary ap-
(i) Where the size of the alleged fraud is proach.
estimated to be at least Rs. 50 crore or
more, or; 5.4.2 So far, 68 cases have been referred to
SFIO for investigation. Out of these, SFIO has
(ii) Such companies which are listed or where submitted investigation reports in 37 cases till
the paid up capital of the company is more 31.03.2009 and 756 cases of prosecution have
than Rs. five crores, and 20% or more already been filed in the different Courts against
capital is subscribed by the public; or the persons involved in fraudulent activities in
the following Companies.
Sl.No Name of the Company No. of cases
Company IPC
Law
1. M/s Daewoo Motors India Ltd. 21 2
2. M/s Manmandir Estate Developers Pvt. Ltd. 2 1
3. M/s Triumph Securities Ltd. 22 1
4. M/s Nakshatra Software Pvt. Ltd. 17 2
5. M/s Chitrakoot Computers Pvt. Ltd. 16 2
6. M/s Design Auto Systems Ltd. 11 2
7. M/s Bonanza Biotech Ltd. 16 1
8. M/s Panther Fincap and Management Services Ltd. 24 2
9. M/s Panther Investrade Ltd. 14 1
10. M/s Panther Industrial Products Ltd. 25 0
11. M/s Saimangal Investrade Ltd. 18 1
12. M/s Triumph International Finance India Ltd. 10 2
13. M/s Goldfish Computers Pvt. Ltd. 22 1
14. M/s Luminant Investments Pvt. Ltd. 11 0
15. M/s Vatsa Corporations Ltd. 106 8
16. M/s Kolar Biotech Ltd 24 3
17. M/s Soundcraft Inds. Ltd. 35 9
18. M/s Adam Comsof Ltd. 21 4
19. M/s Usha India Ltd. 27 7
20. M/s Malvika Steels Ltd. 27 6
21. M/s N.H. S ecurities Ltd. 24 1
22. M/s V.N.P. Securities Pvt. Ltd. 12 0
23. M/s K.N.P. Securities Pvt. Ltd. 15 0
24. M/s Mardia Chemicals Ltd. 22 1

42
 Sl.No Name of the Company No. of cases
Company IPC
Law
25. M/s Koshika Telecom Ltd. 41 3
26. M/s Morepen Laboratories Ltd. 12 5
27. M/s Classic Credit Ltd. 17 1
28. M/s Classic Shares and Stock Brokers Ltd. 36 0
29. DSQ Software Ltd. 23 2
30. Shonkh Technologies Limited 17 0
Total 688 68
5.4.3 The Ministry of Corporate Affairs has the Central and State Governments,
constituted an Expert Committee to advise the including investigating agencies;
Government on issues concerning the Serious (d) Powers of SFIO and its investigating
Fraud Investigation Office vide Order No. 2/1/ officers;
2004. CL-V dated 23rd February 2006. The
(e) Specification of offences and penalties to
Expert Committee constituted under the
enable effective conduct of investigation
Chairmanship of Shri Vepa Kamesam and six
agencies and the need for special Courts
other members is to make recommendations to
for trial of corporate fraud cases; and
the Government on:-
(f) Other matters consequential to or in
(a) Assessment of the need for and details pursuance of the above.
of a separate status to govern the 5.4.4 The report of expert Committee is awaited
constitution and functioning of SFIO; as on 31.03.2009.
(b) The nature and details of the legislative changes
as may be required in existing laws, to enable 5.4.5 The Ministry has ordered/ referred
effective functioning of SFIO including seventeen (17) cases to SFIO for investigation
prosecution of offences detected by it; under Section 235/237(b)/247 of the Companies
Act, 1956. The Ministry has received seven (7)
(c) The mechanism for referral of cases to
investigation report for the period 01.04.2008
SFIO and coordination of activities of
to 31.03.2009 as indicated in table 5.2.
SFIO with other agencies/organizations of

Table- 5.2
Details of investigation reports submitted during 1.4.2008 to 31.3.2009

Sl. Name of the Company Date of receipt of

No. investigation report

1. M/s Shonkh Technologies International Ltd. 02.05.2008

2. M/s Leafin India ltd. 12.03.2009
3. M/s JVG Hotels Ltd. 31.03.2009
4. M/s JVG Publication Ltd. 31.03.2009
5. M/s JVG Techno India Ltd. 31.03.2009
6. M/s JVG Holding Ltd. 31.03.2009
7. SHCIL Services Ltd. 31.03.2009

43
5.4.6 Details of progress of investigation as on the Central Government under separate orders
31.3.2009, against 32 companies under section are given in table 5.3.
235/237(b)/247 of the Companies Act, 1956 by

Table- 5.3

Sl Name of Company Date of Order Status

No.
1. JVG Industries Limited 09-07-2007 Investigation under progress.
2. JVG Steels Limited -do- -do-
3. JVG Farm Fresh Limited -do- -do-
4. JVG Housing Finance Ltd. -do- -do-
5. JVG Overseas Limited -do- -do-
6. JVG Finance Ltd 27-07.2007 -do-
7. JVG Leasing Limited -do- -do-
8. JVG Securities Ltd -do- -do-
9. JVG Departmental Stores Ltd. -do- -do-
10. Rajasthan Breweries Ltd. 29-11-2007 -do-
11. Indglonal Investment & Finance Ltd. -do- -do-
12. SKA Commercial Pvt. Ltd. -do- -do-
13. Texas Brewing Company Ltd. -do- -do-
14. Systems America (India) Ltd. 17-01-2008
15. Krishi Export Commercial Corporation Ltd 25-02-2008 -do-
16. AVI Telecom Ltd. 05/05/2009 -do-
17. AVI Petroleum Ltd. -do- -do-
18. AVI Packaging (India) Ltd. -do- -do-
19. AVI Shoes Ltd. -do- -do-
20. A&R Oil Mills Ltd. -do- -do-
21. Rishi Spinners Ltd. -do-
22. Rishi Financial Services Ltd. -do- -do-
23. Rishi Oil & Fats Ltd. -do- -do-
24. Zenet Software Ltd. 15-05-2008 -do-
25. Sugandh Estates & Investments Pvt. Ltd. 16-05-2008 -do-
26. Amadhi Investments Ltd. -do- -do-
27. Welvet Financial Advisors Pvt. Ltd. -do- -do-
28. PSG Developers & Engineers Ltd. -do- -do-
29. Nicco Uco Alliance Credit Ltd. 05.08.2008 -do-
30. Kuber Mutual Benefits Ltd. 09-09-2008 -do-
31. Elder Pharmaceuticals Ltd. 26-09-2008 -do-
32. Satyam Computer Services Ltd. 13-01-2009 -do-

44
Prosecution
5.5.1 A total of 54294 prosecutions, launched
under the Companies Act, were pending in various
courts as on 31.3.2008 and 13971 prosecutions
(Table 5.4) were instituted during the year 2008-
09 against 3616 companies and their officers.
Thus, in all 68265 prosecutions were pursued in
the courts during 2008-09. Out of these, 10506
prosecutions were disposed of and 57759 were
pending at the end of the year. State-wise details
are given in the Statement – XXIV.

Table - 5.4

Nature of Defaults and number of prosecutions Filed during 2008-09

Sl. Section of the Nature of defaults Number of
No. Companies Cases
Act, 1956 or filed during
a Rule the year
1 2 3 4
1 17 Special resolution and confirmation by CLB required for alteration
of memorandum 7
2 21 Non change of name by company 1
3 22 Rectification name of company 1
4 43A Private company to become public company in certain cases 1
5 49 Investments of company to be held in its own name 4
6 58A(1) Acceptance of Deposits 24
7 58A(9) Repayment of Deposits 5
8 63 Criminal liability for mis-statements in prospectus 12
9 68 Penalty for fraudulently inducing persons to invest money 7
10 70 Prohibition of allotment in certain cases unless Statement in lieu of
Prospectus delivered to Registrar 1
11 73 Allotment of shares and debentures to be dealt in on StockExchange 1
12 75 Return as to allotments 5
13 80A Redemption of irredeemable preference shares etc. 2
14 93 Non payment of dividend in proportion to amount paid up 1
15 94 Power of Limited company to alter its share capital 1
16 97 Notice of increase of share capital or of members 6
17 113 Limitation of time for issue of certificates 1
18 141 Rectification by Company Law Board of Register of charges 1
19 143 Company’s register of charges 1
20 146 Registered office of company 41
21 147 Publication of name by company 18

45
22 149 Restrictions on commencement of business 1
23 150 Register of members 4
24 154 Power to close register of members or debenture holders 3
25 159/162 Annual return to be made by company having a share capital 6297
26 163 Place of keeping and inspection of registers and returns 4
27 165/168 Statutory meeting and statutory report of company 35
28 166/168 Annual General Meeting 93
29 171/172 Length of notice for calling meeting 3
30 173 Non annex of explanatory statement to notice 1
31 192 Registration of Certain resolutions and agreements 4
32 193 Minutes of proceedings of general meetings and of Board and other
meetings 16
33 205A Unpaid dividends to be transferred to special dividend account 2
34 207 Penalty for failure to distribute dividends within forty two days 5
35 209A Inspection of books of accounts etc. of companies 21
36 209(3)(b) Non-keeping of books on accrual basis 14
37 210 Annual Accounts and balance sheets 11
38 211 Forms and contents of Balance sheets and profit and loss account 366
39 212 Balance Sheet of holding company to include certain particulars as to
its subsidiaries 7
40 217 Board’s report 79
41 220 Three copies of balance sheet etc. to be filed with Registrar 6486
42 233 Penalty of non-compliance of auditor with sections 227 and 229. 77
43 233B Audit of cost accounts in certain cases 3
44 234 Power of Registrar to call for information or explanation 44
45 269 Appointment of managing or whole time director or manager to
require Government approval only in certain cases 16
46 283 Vacation of office by directors 1
47 285 Non meet of Board at least once in every three calendar months 2
48 292 Certain powers to be exercised by Board only at meeting 12
49 293 Restriction on power of Board 1
50 295 Loans to directors etc. 7
51 297 Board’s sanction to be required for certain contracts in which
particular directors are interested 8
52 299 Disclosure of interests by director 4

46
 53 300 Interested director not to participate or vote in Boards proceedings 3
54 301 Register of Contracts, companies and firms in which Directors are interested11
55 302 Non disclosure to members of director’s interest in contract
appointing Manager, Mg. Director 3
56 307 Register of Director’s share holdings etc. 5
57 314 Director etc. not to hold office or place of profit 3
58 372 Purchase of shares by company of other companies 6
59 383A Certain companies to have secretaries 52
60 473 Order on contributory to be conclusive evidence 16
61 614A Power of Courts trying offences under the Act to direct the filling
of documents with the Registrar 3
62 628 Penalty for false statements 8
63 629 Penalty for false evidence 1
64 629A Penalty where no specific penalty is provided elsewhere in the Act 46
65 631 Penalty where no specific penalty is provided elsewhere in the Act. 29
66 Rule X Non filing of returns in form annex to rule 10 1
67 Rule(2b)(9) Wrongly disclosing the amount received from Directors 1
68 Others 15
Total 13971

5.5.2 Comparative data showing the progress 2004-05 to 2008-09 is given in Table 5.5.
of prosecutions during the last five years from

Table 5.5
Progress of Prosecutions: 2004-05 to 2008-09
Sl.No. Subject 2004-05 2005-06 2006-07 2007-08 2008-09
1 2 3 4 5 6 7
1 Number of companies prosecuted during the year 2560 1265 2668 2140 3616
2 Number of prosecutions started during the year 8129 5128 10601 17080 13971
3 Number of prosecutions pending at the beginning
of the year 45562 49061 45705 46837 54294
4 Number of prosecutions disposed during the year 4630 8484 8509 6993 10506
5 Convictions 3099 2686 2273 4272 3751
6 Number of prosecutions ending in acquittals 164 185 310 226 165
7 Number of prosecutions withdrawn or otherwise
disposed of (including condonations) 890 1763 4576 2495 2540
8 Number of prosecutions pending at the end of the year 49061 45705 47797 54422 57759
9 Total fine imposed ( in rupees) 5229401 7159012 5814261 11184020 11058647
10 Total amount awarded as cost to Registrar (in rupees) 1561426 2140825 2729661 3080607 3234539
11 Percentage of conviction to total cases decided 66 32 27 61 36
12 Average number of prosecutions per company prosecuted 2 7 3 3 3
13 Average fine imposed per case ending in conviction(in Rs.) 1687.4 2665.3 2557.97 2617.98 2948.18

47
Oppression and Mismanagement
5.6 One application under section 399(4) of
the Companies Act, 1956 was received during
2008-09 relating to request and seeking
authorisation for filing petitions for prevention of
oppression and mismanagement and the same
is pending for some information.
Cost Audit
5.7.1 In exercise of the powers conferred by
sub-section (1) of Section 642 read with clause
(d) of sub-section (1) of Section 209 of the
Companies Act, 1956, the Central Government
notifies the Cost Accounting Records Rules
(CARRs) from time to time with respect to various
industries and products. All companies engaged
in production, processing, manufacturing or
mining activities, in respect of industries or
products specified in the Cost Accounting Record
Rules, as applicable, are required to keep at its
registered office proper books of account relating
to utilisation of material or labour or to other items
of cost as prescribed under the said Rules. Every
company covered under these Rules shall
maintain cost accounting records from the
financial year on or after the publication of these
Rules. These rules do not apply to a company:
i) wherein, the aggregate value of
machinery and plant installed as on the
last date of the preceding financial
year, does not exceed the limit as
specified for a small scale industrial
undertaking under the provisions of
Industries (Development and
Regulation Act, 1951 (65 of 1951); and
ii) the aggregate value of the turnover
made by the company from sale or
supply of all its products or activities
during the preceding financial year
does not exceed ten crore of rupees.
5.7.2 The Cost Accounting Record Rules
48
(CARRs) prescribe the manner in which cost
records are to be maintained so as to have cost
data base to be primarily utilized by industries/
companies themselves to improve upon their
performance and face competitive environment
and also by various Government agencies like,
price-fixation authorities, regulatory bodies,
WTO implementation & monitoring agencies,
Competition Commission of India (CCI), revenue
authorities, and other institutions for meeting
their respective objectives. Cost Accounting
Records Rules have so far been notified in
respect of 44 industries as indicated in Table 5.6.
5.7.3 Ministry of Corporate Affairs vide its’ order
dated 21st January, 2008 constituted an Expert
Group under the Chairmanship of Adviser (Cost),
MCA to review the existing Cost Accounting
Records Rules, Cost Audit Report Rules and
Cost Accounting Standards, etc. and to suggest/
advise suitable measures to the Government.
The Expert Group has submitted its report on
26th December, 2008. The Expert Group has
recommended for a major change in the existing
mechanism of maintenance of cost accounting
records and audit & reporting thereof. The report
has been uploaded on the MCA website.
Comments of different stake holders have been
sought for further necessary action.
5.7.4 Under sub section (1) of section 233B of
the Companies Act, 1956, cost audit orders are
issued on eligible companies, from time to time,
to get their cost records audited by a practicing
Cost Accountant, in accordance to the Cost Audit
Report Rules, 2001. Such orders are also issued
on companies arising out of mergers, de-
mergers, amalgamations, sale/transfer, change
of name, etc. During the period from April, 2008
to March, 2009, cost audit orders were issued
on 21 companies.
5.7.5 Consequent upon the launch of MCA-21
Project under the e-Governance, companies
under cost audit have started filing applications
for appointment of cost auditors, through
electronic mode from April, 2006. Online
approval was made fully operational in July 2008 arising out of temporary closure of the company
which resulted in reduction of processing time and/or its manufacturing facilities, negligible
benefiting the Government as well as the production/ activity, etc. Similarly, withdrawal of
applicant companies significantly. The cost audit orders is considered in case of
companies find it very useful as they can check permanent closure or sale or merger/
the status of their applications and take the print amalgamation of production activities for the
outs of the approvals online without waiting for product under reference. During the period from
letter of approval from this office. Cost involving April 2008 to March, 2009, 18 such cases of
dispatch time, postage stamps and replies to exemption/withdrawal were received and
queries from the companies has been saved. processed. In addition, 146 more cases of
withdrawal were considered on a suo moto
5.7.6 Companies/cost auditors have also examination based on the company data/
started filing the cost audit reports through information available on the MCA website.
electronic mode from April, 2006. The numbers
of cost audit reports received during April 2008 5.7.8 During the year 2008-09, 50cost audit
to March, 2009 were 4173 as against 2338 reports filed by the companies were shared with
received during the previous year 2007-08. This various user departments such as, Anti-dumping
has dispensed with the requirement of wide Directorate of the Ministry of Commerce, Tariff
space in the form of record rooms for keeping Commission, National Pharmaceuticals Pricing
hard and soft copies of the reports as were Authority, and Competition Commission of India
received earlier. It has also ensured proper etc.
safety of confidential information of concerned
companies. 5.7.9 MCA website relating to the Cost Audit
5.7.7 The exemption from cost audit orders is Branch was duly updated during the period.
granted, on year-to-year basis, in situations
Table 5.6
Industries in which Cost Accounting Record Rules notified under
Section 209(1)(d) of the Companies Act, 1956.
S. No. Name of the Industries S. No. Name of the Industries
1. Aluminium 12. Electric fans
2. Batteries- other than Dry Cell Batteries 13. Electricity
3. Bearings 14. Electric Lamps
4. Bulk Drugs
15. Electric Motors
5. Cement
16. Electronic Products
6. Chemicals including caustic soda, soda
ash and sulphuric acid 17. Engineering Industries
7. Cosmetic & Toiletries 18. Fertilizers
8. Cycle 19. Footwear
9. Dry Cell batteries 20. Formulations
10. Dyes 21. Industrial Alcohol
11. Electric Cables and Conductors 22. Industrial Gases

49
 S. No. Name of the Industries S. No. Name of the Industries

23. Insecticides 34 Refrigerators

24. Jute goods 35. Room Air conditioners
25. Milk food 36. Shaving Systems
26. Mining and metallurgy 37. Soaps and Detergents
27. Motor vehicles 38. Steel Plants
28. Nylon 39. Steel tubes & pipes
29. Paper 40. Sugar
30. Petroleum Industry 41. Telecommunications
31. Plantation Products 42. Textiles
32. Polyester 43. Tyres and Tubes
33. Rayon 44. Vanaspati

Investor Education and Protection efforts had been made to educate

Fund (IEPF)
5.8.1 Investor Education and Protection Fund
(IEPF) has been established under Section
205C of the Companies Act, 1956 by way of
Companies (Amendment) Act, 1999 for
promotion of investors’ awareness and protection
of the interests of investors.
5.8.2 Under IEPF, various programmes on
investor education and awareness have been
funded and organized through Voluntary
Associations or Organisations registered under
IEPF. About 69 Associations/Organisations have
been registered under IEPF, till date.
5.8.3 During the period from 01.04.2008 to
31.03.2009, the Ministry has undertaken various
initiatives for increasing the investors’
awareness and education, which are as follows:
(i) Series of advertisement on investor
education were issued in national as well
as regional languages newspapers.
Through these advertisements, the
50
investors for investing in IPOs, market
instruments, Mutual Funds etc.;
(ii) The Media campaigns had been launched
in various news papers, wherein besides
the above said educative message,
NGOs/VAs involved in investor education
and protection activities, especially those
with a rural outreach, were invited to
apply for financial assistance under IEPF
schemes. Further, organizations, which
were keen to carry out the research on
the subjects of investor education/
protection and related issues, were also
invited to submit their proposals to the
IEPF;
(iii) Investor Education message was aired on
All India Radio and Doordarshan through
Prasar Bharati to create awareness on
the issues concerning investors and
about the IEPF;
(iv) An “Investor Helpline” namely
www.investorhelpline.in project which had
been launched under IEPF through Midas
 Touch Investors Association to provide a
mechanism for redressal of grievances
and to create investor awareness has
been rendering effective service to the
investors. A s o n 3 1 . 0 3 . 2 0 0 9 , t h e
grievance redressal rates were at
46.34%;
(v) Further, another website, namely
www.watchoutinvestors.com. which is a
national registry of economic defaulters
and covers information on convictions by
various regulatory bodies, has also been
rendering effective service to not only
investors and prospective investors but
also to professionals such as Advocates,
Chartered Accountants and Company
Secretaries. Presently the website
contains details of around 29,907 persons
and 65,135 entities indicted for economic
offences;
(vi) Another website, namely, www.iepf.gov.in
was launched by the Hon’ble Minister for
Corporate Affairs during 2007-08
continues to provide a knowledge sharing
platform in the area of financial literacy
as a measure of investor awareness and
education.
(vii) During the year, the month of September,
2008 to November, 2008 was observed
as “Investor Awareness Month” by the
Ministry Of Corporate Affairs. This event
was organised in association with the
Institute of Chartered Accountants of
India and the Institute of Company
Secretaries of India and various investor
awareness programmes were organised
at 100 locations across the country.
(viii) Under the Capacity building programme
the “Training of Trainers” programmes
51
through India Institute of Capital Market
(IICM), Mumbai had been conducted
especially for the new organizations
active at Taluka level.
Investor Grievance Management
Cell
5.9.1 Investor Grievance Management Cell
(IGMC), renamed from earlier Investor Protection
Cell (IPC), of the Ministry of Corporate Affairs
was set up in 1993 to deal with investors’
grievances. Its function is to take up the
grievances of investors’ through the jurisdictional
Registrars of Companies. It also coordinates with
the Reserve Bank of India, Department of
Economic Affairs and the Securities and
Exchange Board of India for redressal of
complaints received in this Ministry but pertaining
to those agencies. Broadly, the complaints relate
to the following issues.
1. non receipt of annual report
2. non receipt of dividend amount
3. non refund of application money
4. non payment of matured deposits and
interest thereon
5. non receipt of duplicate shares
6. non registration of transfer of shares
7. non issue of share certificates
8. non receipt of debenture certificates
9. non issue of rights bonus shares
10. non issue of interest on late payment
11. non redemption of debentures and interest
thereon
12. non receipt of share certificates on
conversion
5.9.2 The investor/depositors can lodge their
complaints with IGMC on-line through MCA-21
program using the website of the Ministry viz.
www.mca.gov.in. The system acknowledges the
receipt of complaint online by generating a
complaint number which can be used for future
follow up of the complaint.
5.9.3 In order to actively associate the field
offices in investor grievances redressal function,
a nodal team headed by a designated officer has
been set up in all offices of Regional Directors
and Registrars of Companies as well as at
Headquarters in the Ministry. The investors may
take up their grievances with the concerned
Nodal Officers at the Regional Level. If any
investor has any grievance which is yet to be
redressed even after a lapse of reasonable time,
the same may be brought to the notice of Nodal
Officer at the Ministry Level.
5.9.4 The IGMC received 732 complaints at
Ministry’s Headquarters from the investors
during the period from 01.04.2008 to 31.03.2009
whereas 1192 complaints were carried forward
from the previous year. Out of a total 1924
complaint, 411 complaints have been settled.
Further, IGMC received 254 complaints
pertaining to other agencies and the same were
forwarded to them for necessary action. Out of
above mentioned 254 complaints, 101
complaints were forwarded to SEBI, 41 to RBI
and 112 to Hardship Committee (CLB).
5.9.5 A website namely www.investorhelpline.in
has been sponsored and launched in September,
2006 under Investor Education and Protection
Fund and created by Midas Touch Investor
Association (NGO) to provide a mechanism for
redressal of grievances of investors free of cost.
It provides a facility to the investors to lodge their
grievance on the website. It acts as an
intermediary between investors and companies,
stock exchanges, and other authorities. It also
educates investors about their lawful right under
various acts and the procedure to get them
enforced.
52
5.9.6 Besides, a Website, namely
www.watchoutinvestors.com has been created
by Prime Investors Protection Association and
League, with the financial assistance from the
Investor Education and Protection Fund, to help
the investors protect themselves from
unscrupulous promoters, companies and
entities. The website is a national registry of
economic defaulters and covers information on
conviction by various regulatory bodies.
Vanishing Companies
5.10.1 A Central coordination and Monitoring
Committee (CMC), co-chaired by Secretary,
Ministry of Corporate Affairs and Chairman, SEBI
has been set up to look into issues relating to
companies that had come out with public issue
and vanished and to monitor the progress of
action taken against them. Specific criteria have
been adopted by CMC for identification of such
vanishing companies.
5.10.2 Out of the companies that came out with
the IPOs during 1992-2005, a total of 238
companies were identified as vanishing
companies. With the continuous efforts of the
Minister, 117 companies have been traced back,
resulting in the number of the vanishing
companies being reduced to 121. Hence, it may
be appreciated that the instrument of setting up
of the CMC and its functioning has been
successful in effectively controlling the
phenomenon of vanishing companies. The
Ministry is making all efforts to ensure that the
complaints filed against the vanishing companies
and its promoters/directors under the various
provisions of the Companies Act, 1956 and under
IPC, are taken to their logical conclusion at
different forums.
 CHAPTER –VI

Liquidation of Companies

Applications received & disposed of by
Official Liquidators
6.1 6133 companies were under liquidation
as on 31.03.2008 and 196 companies were taken
into liquidation from 01.04.2008 to 31.03.2009.
After taking into account 174 companies finally
wound up, the total numbers of companies under
liquidation as on 31.03.2009 were 6155. The
distribution of companies in liquidation by their
mode of winding up from 01.04.2008 to
31.03.2009 is given in table 6.1:-

Table 6.1

Cases regarding winding up/liquidation

Sl. Subject Pending Received Total Disposed of Pending as

No. as on during the (Col- during the on
31.3.2008 period 3+4) period 31.03.2009
1.4.2008 to 1.4.2008 to
31.03.2009 31.03.2009
1 2 3 4 5 6 7
1. Members Voluntary
winding up 1254 61 1315 33 1282

2. Creditors Voluntary
winding up 112 - 112 - 112

3. Winding up by
Court 4764 135 4899 141 4758

4 Winding up subject
to supervision of
Court. 03 - 03 - 03

Total 6133 196 6329 174 6155

53
 CHAPTER - VII

Mobilization of funds through various sources by the corporate sector

Resources Raised by Corporate Sector
7.1.1 During the period 2004-05 to 2007-08,
resources raised through equity issues
increased considerably i.e from Rs. 24388 Crore
in 2004-05 to Rs. 85426 crore in 2007-08 (an
increase of Rs. 61038 crore). However, as per
the provisional estimates, the resources
mobilized through equity issues declined to Rs.
14720 crore in 2008-09(i.e. a reduction of Rs.
70706 crore as compared to previous year).
Resources mobilized through Public and right
issue of debt issues declined to Rs. 1500 crore
in 2008-09 as per provisional estimates, as
against Rs. 1603 crore in 2007-08. Resources
mobilized through Private placement of debt
issues increased from Rs. 83405 in 2004-05 to
Rs.212568 crore in 2007-08 (i.e an increase of
Rs. 129163 crore) indicating an increasing
preference for private placement of debt issues.
However, as per provisional estimates, the same
resources decreased to Rs.207164 in the year
2008-09 from Rs. 212568 crore in the previous
year. In aggregate, there is a reduction in the
total resource mobilization by Corporate Sector
to the extent of Rs.76,213 crore as per
provisional estimates, as compared to previous
year comprising of a reduction of Rs.70706 crore
in equity issues and balance of Rs.5507 crore in
debt issues. Resources raised by corporate
sector during the last five years from 2004-05
to 2008-09 is given in Table 7.1.

Table 7.1
Resources Raised by Corporate Sector

Year Equity Debt Issues Total Resource

Issues* Mobilisation
Public and Private (Col. 2+3+4)
Right Issues Placements **
(1) (2) (3) (4) (5)
2004-05 24388 3867 83405 111660
2005-06 27372 10 96473 123855
2006-07 32901 605 145571 179078
2007-08 85426 1603 212568 299597
2008-09 (P) 14720 1500# 207164## 223384

P : Provisional
* Includes CCPS and Offer for Sale
** Includes negligible amount of equity
# NCD of Tata Capital Ltd.
## Only listed corporate issued
Source : RBI, SEBI.

54
 GRAPH 7.1

Resources raised By Corporate Sector

350000
300000
(Raas. In Crore)

Equity Issue*
250000
Public & Right Issue (Debt Issues)
200000
Private Placements**(Debt Issues)
150000 Total Resources Mobilization
100000
50000
0
2004-05 2005-06 2006-07 2007-08 2008-09 (P)
Year

7.1.2 Resource mobilized through new capital an increase by Rs.32310 crore) . Resource
issues by Non-Government Public Ltd mobilized through new capital issues during the
Companies has increased from Rs.4778 crore last four years from 2004-05 to 2008-09 is given
in 2004-05 to Rs. 37088 crore in 2007-08 ( i.e in Table 7.2.

Table 7.2

New Capital Issues by Non-Government Public Limited Companies

Year Total No. of Issues Amount No. of New Issues Amount

(1) (2) (3) (4) (5)

2004-05 54 13079 22 4778

2005-06 131 21154 77 10264

2006-07 117 30603 72 25662

2007-08 115 63638 80 37088

2008-09(P) 41 14031 N.A. N.A.

P : Provisional (March, 2008 to February, 2009)

Source : RBI

55
Appendix
Statistical Statements
( I TO XXIV )

67
 STATEMENT- I
Registration of New Companies : Region/State-wise Distribution 2008- 09
( Rs. in crore)
Region/State No. of Companies Authorised Capital
Public Private Total Public Private Total
1 2 3 4 5 6 7
NORTHERN REGION
HARYANA 29 1065 1094 2034.85 477.07 2511.92
HIMACHAL PRADESH 5 203 208 0.75 29.48 30.23
JAMMU & KASHMIR 4 105 109 10.15 18.75 28.90
PUNJAB 44 860 904 59.43 143.94 203.37
RAJASTHAN 56 2233 2289 32.90 366.16 399.06
UTTAR PRADESH 113 2027 2140 121.55 350.75 472.30
UTTRAKHAND 6 205 211 3.35 35.46 38.81
CHANDIGARH 21 365 386 26.85 48.62 75.47
DELHI 582 12079 12661 3086.29 4617.77 7704.06
Total 860 19142 20002 5376.12 6088.00 11464.12
EASTERN REGION
ARUNACHAL PRADESH 2 13 15 0.15 1.35 1.5
ASSAM 40 313 353 72.05 141.13 213.18
BIHAR 24 837 861 15.70 103.14 118.84
JHARKHAND 13 412 425 6.70 135.91 142.61
MANIPUR 0 3 3 0.00 2.15 2.15
MEGHALAYA 3 42 45 11.10 16.10 27.20
MIZORAM 2 12 14 1.55 0.70 2.25
NAGALAND 0 10 10 0.00 11.67 11.67
ORISSA 33 778 811 337.05 288.44 625.49
TRIPURA 4 11 15 0.35 5.66 6.01
WEST BENGAL 239 9319 9558 277.68 1455.63 1733.31
Total 360 11750 12110 722.33 2161.88 2884.21
WESTERN REGION
CHHATISGARH 44 461 505 831.70 131.03 962.73
GUJARAT 151 2843 2994 332.07 518.52 850.59
MADHYA PRADESH 84 1161 1245 73.85 207.20 281.05
MAHARASHTRA 490 11873 12363 2608.94 4626.26 7235.20
DADRA & N HAVELI 3 12 15 11.05 1.81 12.86
DAMAN & DIU 1 6 7 5.00 20.16 25.16
GOA 6 339 345 16.15 40.78 56.93
Total 779 16695 17474 3878.76 5545.76 9424.52
SOUTHERN REGION
A & N ISLAND 0 14 14 0.00 2.04 2.04
ANDHRA PRADESH 151 4578 4729 492.81 1793.49 2286.30
KARNATAKA 77 3500 3577 188.50 1383.00 1571.50
KERALA 38 1773 1811 64.70 318.25 382.95
TAMIL NADU 128 4610 4738 261.07 2340.97 2602.04
PUDUCHERRY 3 123 126 1.35 8.76 10.11
LAKSHDWEEP 0 1 1 0.00 0.10 0.10
Total 397 14599 14996 1008.43 5846.61 6855.04
Grand Total 2396 62186 64582 10985.64 19642.25 30627.89

69
 STATEMENT- II
Registration of New Government Companies : Region/State-wise Distribution 2008-09
( Rs. in crore)
Region/State No. of Companies Authorised Capital
Public Private Total Public Private Total
1 2 3 4 5 6 7
NORTHERN REGION
HARYANA 1 0 1 2000.00 0.00 2000.00
HIMACHAL PRADESH 0 1 1 0.00 5.00 5.00
JAMMU & KASHMIR 1 0 1 5.00 0.00 5.00
PUNJAB 2 0 2 0.15 0.00 0.15
RAJASTHAN 2 2 4 5.30 0.02 5.32
UTTAR PRADESH 22 0 22 1.10 0.00 1.10
UTTRAKHAND 0 0 0 0.00 0.00 0.00
CHANDIGARH 0 0 0 0.00 0.00 0.00
DELHI 8 1 9 585.60 0.01 585.61
Total 36 4 40 2597.15 5.03 2602.18
EASTERN REGION
ARUNACHAL PRADESH 0 0 0 0.00 0.00 0.00
ASSAM 1 0 1 25.00 0.00 25.00
BIHAR 7 0 7 0.35 0.00 0.35
JHARKHAND 1 0 1 0.05 0.00 0.05
MANIPUR 0 0 0 0.00 0.00 0.00
MEGHALAYA 0 0 0 0.00 0.00 0.00
MIZORAM 0 0 0 0.00 0.00 0.00
NAGALAND 0 0 0 0.00 0.00 0.00
ORISSA 2 2 4 225.00 1.00 226.00
TRIPURA 0 0 0 0.00 0.00 0.00
WEST BENGAL 4 1 5 19.00 0.01 19.01
Total 15 3 18 269.40 1.01 270.41
WESTERN REGION
CHHATISGARH 6 1 7 801.50 4.00 805.50
GUJARAT 2 0 2 105.00 0.00 105.00
MADHYA PRADESH 1 1 2 0.25 10.00 10.25
MAHARASHTRA 3 5 8 30.05 0.23 30.28
DADRA & N HAVELI 0 0 0 0.00 0.00 0.00
DAMAN & DIU 0 0 0 0.00 0.00 0.00
GOA 0 0 0 0.00 0.00 0.00
Total 12 7 19 936.8 14.23 951.03
SOUTHERN REGION
A & N ISLAND 0 0 0 0.00 0.00 0.00
ANDHRA PRADESH 0 2 2 0.00 0.51 0.51
KARNATAKA 1 3 4 10.00 10.10 20.10
KERALA 0 1 1 0.00 5.00 5.00
TAMIL NADU 0 0 0 0.00 0.00 0.00
PUDUCHERRY 0 0 0 0.00 0.00 0.00
LAKSHDWEEP 0 0 0 0.00 0.00 0.00
Total 1 6 7 10.00 15.61 25.61
Grand Total 64 20 84 3813.35 35.88 3849.23
70
 STATEMENT- III
Registration of New Non-Government Companies :
Region/ State-wise Distribution 2008-09 ( Rs. in crore)
Region/State No. of Companies Authorised Capital
Public Private Total Public Private Total
1 2 3 4 5 6 7
NORTHERN REGION
HARYANA 28 1065 1093 34.85 477.07 511.92
HIMACHAL PRADESH 5 202 207 0.75 24.48 25.23
JAMMU & KASHMIR 3 105 108 5.15 18.75 23.9
PUNJAB 42 860 902 59.28 143.94 203.22
RAJASTHAN 54 2231 2285 27.60 366.14 393.74
UTTAR PRADESH 91 2027 2118 120.45 350.75 471.2
UTTRAKHAND 6 205 211 3.35 35.45 38.8
CHANDIGARH 21 365 386 26.85 48.62 75.47
DELHI 574 12078 12652 2500.69 4617.77 7118.46
Total 824 19138 19962 2778.97 6082.97 8861.94
EASTERN REGION
ARUNACHAL PRADESH 2 13 15 0.15 1.35 1.50
ASSAM 39 313 352 47.05 141.13 188.18
BIHAR 17 837 854 15.35 103.14 118.49
JHARKHAND 12 412 424 6.65 135.91 142.56
MANIPUR 0 3 3 0.00 2.15 2.15
MEGHALAYA 3 42 45 11.10 16.10 27.20
MIZORAM 2 12 14 1.55 0.70 2.25
NAGALAND 0 10 10 0.00 11.67 11.67
ORISSA 31 776 807 112.05 287.44 399.49
TRIPURA 4 11 15 0.35 5.66 6.01
WEST BENGAL 235 9318 9553 258.68 1455.62 1714.3
Total 345 11747 12092 452.93 2160.87 2613.80
WESTERN REGION
CHHATISGARH 38 460 498 30.20 127.03 157.23
GUJARAT 149 2843 2992 227.07 518.52 745.59
MADHYA PRADESH 83 1160 1243 73.60 197.20 270.8
MAHARASHTRA 487 11868 12355 2578.89 4626.03 7204.92
DADRA & N HAVELI 3 12 15 11.05 1.81 12.86
DAMAN & DIU 1 6 7 5.00 20.16 25.16
GOA 6 339 345 16.15 40.78 56.93
Total 767 16688 17455 2941.96 5531.53 8473.49
SOUTHERN REGION
A & N ISLAND 0 14 14 0.00 2.04 2.04
ANDHRA PRADESH 151 4576 4727 492.81 1792.98 2285.79
KARNATAKA 76 3497 3573 178.50 1372.91 1551.41
KERALA 38 1772 1810 64.70 313.25 377.95
TAMIL NADU 128 4610 4738 261.07 2340.97 2602.04
PUDUCHERRY 3 123 126 1.35 8.75 10.10
LAKSHDWEEP 0 1 1 0.00 0.10 0.10
Total 396 14593 14989 998.43 5831.00 6829.43
Grand Total 2332 62166 64498 7172.29 19606.4 26778.66

71
 STATEMENT - IV
Non-Government Companies which ceased working (both liquidated and struck-off) :
Region/State-wise Distribution - 2008-09
( Rs. in crore)

Region/State No. of Companies Paid up Capital

Public Private Total Public Private Total
1 2 3 4 5 6 7
NORTHERN REGION
HARYANA 0 0 0 0.00 0.00 0.00
HIMACHAL PRADESH 0 2 2 0.00 0.03 0.03
JAMMU & KASHMIR 0 0 0 0.00 0.00 0.00
PUNJAB 20 90 110 1.23 1.62 2.85
RAJASTHAN 26 66 92 0.69 1.69 2.38
UTTAR PRADESH 0 0 0 0.00 0.00 0.00
UTTRAKHAND 0 0 0 0.00 0.00 0.00
CHANDIGARH 7 27 34 1.60 0.82 2.42
DELHI 1 6 7 0.00 1.33 1.33
Total 54 191 245 3.52 5.49 9.01
EASTERN REGION
ARUNACHAL PRADESH 0 8 8 0.00 0.21 0.21
ASSAM 7 26 33 0.12 0.63 0.75
BIHAR 7 19 26 0.08 188.15 188.23
JHARKHAND 0 1 1 0.00 0.05 0.05
MANIPUR 0 2 2 0.00 0.01 0.01
MEGHALAYA 0 1 1 0.00 0.34 0.34
MIZORAM 0 0 0 0.00 0.00 0.00
NAGALAND 1 2 3 0.00 0.18 0.18
ORISSA 19 41 60 0.32 0.75 1.07
TRIPURA 0 0 0 0.00 0.00 0.00
WEST BENGAL 1602 6403 8005 191.42 4416.87 4608.29
Total 1636 6503 8139 191.94 4607.19 4799.13
WESTERN REGION
CHHATISGARH 0 0 0 0.00 0.00 0.00
GUJARAT 0 4 4 0.00 0.02 0.02
MADHYA PRADESH 1 1 2 0.15 0.00 0.15
MAHARASHTRA 5 3291 3296 0.00 30.63 30.63
DADRA & N HAVELI 0 0 0 0.00 0.00 0.00
DAMAN & DIU 0 0 0 0.00 0.00 0.00
Goa 0 0 0 0.00 0.00 0.00
Total 6 3296 3302 0.15 30.65 30.80
SOUTHERN REGION
A & N ISLAND 0 0 0 0.00 0.00 0.00
ANDHRA PRADESH 0 0 0 0.00 0.00 0.00
KARNATAKA 12 524 536 0.19 13.66 13.85
KERALA 11 494 505 0.42 6.41 6.83
TAMIL NADU 158 4585 4743 6.75 13.97 20.72
PUDUCHERRY 0 0 0 0.00 0.00 0.00
LAKSHDWEEP 0 0 0 0.00 0.00 0.00
Total 181 5603 5784 7.36 34.04 41.40
Grand Total 1877 15593 17470 202.97 4677.37 4880.34

72
 STATEMENT - V

Companies Limited by Shares at work as on 31st March, 2009

(State-wise Dsitribution)

Sl. No. STATE / UT Public Private Total

No. No. No.
1 2 3 4 5
1 ANDHRA PRADESH 6378 51946 58324
2 ARUNACHAL PRADESH 22 257 279
3 ASSAM 680 4795 5475
4 BIHAR 1132 7092 8224
5 CHHATISGARH 318 2962 3280
6 GOA 252 4718 4970
7 GUJARAT 5803 38971 44774
8 HARYANA 975 7670 8645
9 HIMACHAL PRADESH 333 2147 2480
10 JAMMU & KASHMIR 235 2029 2264
11 JHARKHAND 337 3531 3868
12 KARNATAKA 3052 36480 39532
13 KERALA 1563 15519 17082
14 MADHYA PRADESH 1292 10257 11549
15 MAHARASHTRA 15141 161676 176817
16 MANIPUR 39 141 180
17 MEGHALAYA 114 526 640
18 MIZORAM 7 46 53
19 NAGALAND 32 227 259
20 ORISSA 798 6849 7647
21 PUNJAB 2244 13411 15655
22 RAJASTHAN 1826 22469 24295
23 TAMIL NADU 7188 55618 62806
24 TRIPURA 21 109 130
25 UTTAR PRADESH 4732 22210 26942
26 UTTRAKHAND 281 1706 1987
27 WEST BENGAL 9916 82698 92614
28 DELHI 15880 141314 157194
29 A & N ISLAND 4 106 110
30 CHANDIGARH 1240 5704 6944
31 DAMAN & DIU 51 133 184
32 D & N HAVELI 58 203 261
33 LAKSHDWEEP 0 9 9
34 PUDUCHERRY 114 1187 1301
Total 82,058 704,716 786,774

73
 STATEMENT- VI
Government Companies Limited by Shares at work as on 31st March, 2009
(State-wise Distribution)

Sl. No. STATE / UT Public Private Total

No. No. No.
1 2 3 4 5
1 ANDHRA PRADESH 62 30 92
2 ARUNACHAL PRADESH 3 5 8
3 ASSAM 25 24 49
4 BIHAR 58 5 63
5 CHHATISGARH 19 2 21
6 GOA 7 3 10
7 GUJARAT 61 5 66
8 HARYANA 12 1 13
9 HIMACHAL PRADESH 12 8 20
10 JAMMU & KASHMIR 19 3 22
11 JHARKHAND 11 13 24
12 KARNATAKA 59 17 76
13 KERALA 83 31 114
14 MADHYA PRADESH 50 3 53
15 MAHARASHTRA 138 112 250
16 MANIPUR 2 10 12
17 MEGHALAYA 3 8 11
18 MIZORAM 1 4 5
19 NAGALAND 4 2 6
20 ORISSA 82 3 85
21 PUNJAB 10 4 14
22 RAJASTHAN 45 5 50
23 TAMIL NADU 83 13 96
24 TRIPURA 5 2 7
25 TTAR PRADESH 113 13 126
26 UTTRAKHAND 17 2 19
27 WEST BENGAL 61 20 81
28 DELHI 110 39 149
29 A & N ISLAND 1 1 2
30 CHANDIGARH 20 8 28
31 DAMAN & DIU 1 0 1
32 D & N HAVELI 2 0 2
33 LAKSHDWEEP 0 1 1
34 PUDUCHERRY 0 15 15
Total 1,179 412 1,591

74
 STATEMENT- VII

Non-Government Companies Limited by Shares at work as on 31st March, 2009

(State-wise Distribution)

Sl. No. STATE / UT Public Private Total

No. No. No.
1 2 3 4 5
1 ANDHRA PRADESH 6316 51916 58232
2 ARUNACHAL PRADESH 19 252 271
3 ASSAM 655 4771 5426
4 BIHAR 1074 7087 8161
5 CHHATISGARH 299 2960 3259
6 GOA 245 4715 4960
7 GUJARAT 5742 38966 44708
8 HARYANA 963 7669 8632
9 HIMACHAL PRADESH 321 2139 2460
10 JAMMU & KASHMIR 216 2026 2242
11 JHARKHAND 326 3518 3844
12 KARNATAKA 2993 36463 39456
13 KERALA 1480 15488 16968
14 MADHYA PRADESH 1242 10254 11496
15 MAHARASHTRA 15003 161564 176567
16 MANIPUR 37 131 168
17 MEGHALAYA 111 518 629
18 MIZORAM 6 42 48
19 NAGALAND 28 225 253
20 ORISSA 716 6846 7562
21 PUNJAB 2234 13407 15641
22 RAJASTHAN 1781 22464 24245
23 TAMIL NADU 7105 55605 62710
24 TRIPURA 16 107 123
25 UTTAR PRADESH 4619 22197 26816
26 UTTRAKHAND 264 1704 1968
27 WEST BENGAL 9855 82678 92533
28 DELHI 15770 141275 157045
29 A & N ISLAND 3 105 108
30 CHANDIGARH 1220 5696 6916
31 DAMAN & DIU 50 133 183
32 D & N HAVELI 56 203 259
33 LAKSHDWEEP 0 8 8
34 PUDUCHERRY 114 1172 1286
Total 80,879 704,304 785,183

75
 STATEMENT- VIII

Companies limited by shares at work as on 31st March, 2009

( Distribution by Industrial Activity )
Sl.No. Industrial Classification Public Private Total
No. No. No.
1 2 3 4 5
1 Agriculture & Allied Activites 4113 17699 21812
2 Mining & Quarrying 916 8301 9217
3 Manufacturing 25141 180060 205201
4 Electricity, Gas & Water Companies 1351 4578 5929
5 Construction. 4066 64218 68284
6 Trade, Hotels and Restaurants 7357 107862 115219
7 Transport,Storage & Communication 1725 24338 26063
8 Finance,Insurance,Real Estate & Business Services 24449 192548 216997
9 Community, Personal & Social Services 3515 35784 39299
10 Unclassified 9425 69328 78753
Total 82058 704716 786774

76
 STATEMENT- IX
Government Companies limited by shares at work as on 31st March, 2009
( Distribution by Industrial Activity )

Sl.No. Industrial Classification Public Private Total

No. No. No.
1 2 3 4 5
1 Agriculture & Allied Activites 66 30 96
2 Mining & Quarrying 49 15 64
3 Manufacturing 360 115 475
4 Electricity, Gas & Water Companies 136 15 151
5 Construction. 82 42 124
6 Trade, Hotels and Restaurants 69 40 109
7 Transport,Storage & Communication 67 11 78
8 Finance,Insurance,Real Estate & Business Services 164 80 244
9 Community, Personal & Social Services 99 33 132
10 Unclassified 87 31 118
Total 1179 412 1591

77
 STATEMENT- X

Non-Government Companies limited by shares at work as on 31st March, 2009

( Distribution by Industrial Activity )

Sl.No. Industrial Classification Public Private Total

No. No. No.
1 2 3 4 5
1 Agriculture & Allied Activites 4047 17669 21716
2 Mining & Quarrying 867 8286 9153
3 Manufacturing 24781 179945 204726
4 Electricity, Gas & Water Companies 1215 4563 5778
5 Construction. 3984 64176 68160
6 Trade, Hotels and Restaurants 7288 107822 115110
7 Transport,Storage & Communication 1658 24327 25985
8 Finance,Insurance,Real Estate & Business Services 24285 192468 216753
9 Community, Personal & Social Services 3416 35751 39167
10 Unclassified 9338 69297 78635
Total 80879 704304 785183

78
 STATEMENT- XI
Companies at work 1956-57 to 2008-09
Companies Limited by Shares Companies Companies Foreign
with limited by Companies
As on
Governement Non-Governement Total unlimited Guarantee as defined
31st March Companies Companies Companies liability and Asso under Sec.
(No.) ciation not 591 of the
Estimated Estimated Estimated for profit Companies
Number Number Number
Paid-up Paid-up Paid-up (No.) Act, 1956
Capital Capital Capital (No)
( Rs. Crore) ( Rs. Crore) ( Rs. Crore)

1 2 3 4 5 6 7 8 9 10
1957 74 72.6 29283 1005.0 29357 1077.6 1364 551
1958 91 256.8 28189 1049.5 28280 1306.3 1356 561
1959 104 428.9 27299 1086.7 27403 1515.6 1323 572
1960 125 477.2 26772 1141.5 26897 1618.7 1180 565
1961 142 547.0 26007 1271.5 26149 1818.5 1169 569
1962 154 629.7 24821 1389.4 24975 2019.1 1143 564
1963 160 786.2 25462 1470.3 25622 2256.5 1153 582
1964 176 960.8 25756 1640.0 25932 2600.8 1162 580
1965 183 1114.9 26038 1727.9 26221 2842.8 1162 582
1966 214 1247.7 26551 1878.4 26765 3126.1 1161 579
1967 232 1391.5 26795 2009.8 27027 3401.3 1152 578
1968 241 1559.3 27103 2114.5 27344 3673.8 1160 581
1969 259 1714.9 27765 2259.4 28024 3974.3 1188 564
1970 282 1790.6 28727 2299.9 29009 4090.5 1206 561
1971 314 2064.4 30008 2439.2 30322 4503.6 1220 543
1972 352 2369.1 31915 2571.7 32267 4940.8 1242 541
1973 390 2998.4 33966 2750.1 34356 5748.5 1262 538
1974 450 4645.1 37035 2985.9 37485 7631.0 1 1294 540
1975 573 4966.0 40007 3234.8 40580 8200.8 4 1326 510
1976 651 6122.3 42755 3497.2 43406 9619.5 15 1337 481
1977 701 7174.5 45165 3705.2 45866 10879.7 43 1356 482
1978 745 8527.6 47549 4070.4 48294 12598.0 47 1381 473
1979 782 8315.2 50736 4260.0 51518 12575.2 62 1414 358
1980 825 10070.3 55668 4536.3 56493 14606.6 78 1447 315
1981 851 11442.6 61863 4914.1 62714 16356.7 176 1478 300
1982 894 13309.3 71508 5626.2 72402 18935.5 219 1496 311
1983 943 16734.9 81960 6321.4 82903 23056.3 252 1536 320
1984 973 19510.6 93291 6989.8 94264 26500.4 282 1598 326
1985 980 22447.0 108329 8149.7 109309 30596.7 295 1677 324
1986 1020 27087.8 123359 9506.8 124379 36594.6 298 1739 335
1987 1053 32872.7 139617 11095.1 140670 43967.8 299 1817 371
1988 1104 37169.3 157220 12954.8 158324 50124.1 309 1881 401
1989 1134 42572.4 179194 15131.1 180328 57703.5 319 1954 420
1990 1160 47450.7 200968 17192.7 202128 64643.4 303 2041 469
1991 1167 54484.6 223285 20313.3 224452 74797.9 317 2117 489
1992 1180 57911.0 249181 26731.3 250361 84642.3 330 2192 507
1993 1190 61163.4 275664 32891.7 276854 94055.1 337 2262 529
1994 1203 67380.5 304422 46441.4 305625 113821.9 349 2350 565
1995 1199 73299.5 352093 62719.2 353292 136018.7 375 2416 619
1996 1216 76962.8 407926 87125.6 409142 164088.4 392 2506 679
1997 1220 84317.8 449730 106200.8 450950 190518.6 419 2578 772
1998 1223 88958.9 483277 128689.7 484500 217648.6 420 2652 871
1999 1229 95918.4 510761 167440.9 511990 263359.3 427 2727 956
2000 1245 102849.9 541189 215960.4 542434 318810.3 449 2824 1045
2001 1266 109745.6 567834 247501.2 569100 357246.8 461 2918 1141
2002 1261 120505.2 587985 285248.0 589246 405753.2 479 3007 1285
2003 1283 130482.3 610872 326576.4 612155 457058.7 490 3108 1497
2004 1309 146358.3 640203 352432.5 641512 498790.8 496 3244 1654
2005 1328 155814.1 678321 498207.5 679649 654021.6 496 3432 1840
2006 1352 167614*(1136) 730817 451538*(478870) 732169 619152*(480006) 498 3605 2040
2007 1669 199269*(1232) 742009 507291*(534782) 743678 706560*(536014) 520 3846 2310
2008 (R) 1628 253124*(1321) 767517 670904*(579411) 769145 924028*(580732) 559 4039 2609
2009 (P) 1591 246183*(1313) 785183 757704*(588371) 786774 1003887*(589684) 639 13014 2903

* Paid-up Capital data for companies (no’s given in parenthesis) as compiled from MCA21.
79
 STATEMENT - XII
Paid-up Capital of Companies Limited by Shares as on 31st March, 2008:
( State-wise Distribution )
(Revised)
(Capital in Rs. crore)

Sl.No. STATES / UT PUBLIC PRIVATE TOTAL

No. of Paid up No. of Paid up No. of Paid up

Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 ANDHRA PRADESH 4433 30,864.01 28274 24,377.17 32707 55,241.18
2 ASSAM 567 3,160.77 4266 1,491.45 4833 4,652.21
3 BIHAR 831 540.71 4524 719.30 5355 1,260.01
4 CHHATISGARH 271 2,359.92 2279 714.84 2550 3,074.76
5 GUJARAT 4118 80,423.85 28362 10,824.13 32480 91,247.98
6 HARYANA 704 21,006.09 4332 5,370.48 5036 26,376.57
7 HIMACHAL PRADESH 306 12,102.95 1706 517.94 2012 12,620.89
8 J&K 224 364.27 1814 382.35 2038 746.62
9 JHARKHAND 226 3,096.58 2461 2,744.40 2687 5,840.98
10 KARNATAKA 2258 38,859.55 27033 22,478.61 29291 61,338.16
11 KERALA 1323 5,515.57 11867 3,816.55 13190 9,332.13
12 MADHYA PRADESH 1104 10,112.93 8265 2,373.19 9369 12,486.13
13 MAHARASHTRA 10334 133,956.74 99362 80,046.00 109696 214,002.74
14 MANIPUR 38 58.02 130 27.48 168 85.50
15 MEGHALAYA 94 3,493.89 456 280.31 550 3,774.20
16 MIZORAM 5 15.89 25 17.39 30 33.28
17 NAGALAND 21 188.76 202 19.35 223 208.12
18 ORISSA 706 6,246.58 5394 1,321.83 6100 7,568.42
19 PUNJAB 2006 7,064.14 11629 2,739.31 13635 9,803.46
20 RAJASTHAN 1551 11,156.70 17818 3,391.43 19369 14,548.13
21 TAMIL NADU 6572 37,276.93 44890 24,448.87 51462 61,725.80
22 TRIPURA 17 71.42 88 45.45 105 116.87
23 UTTAR PRADESH 3868 35,847.24 18151 3,767.29 22019 39,614.53
24 UTTRAKHAND 235 4,575.73 1299 361.36 1534 4,937.08
25 WEST BENGAL 7598 41,280.30 65215 35,468.00 72813 76,748.30
26 A & N ISLAND 2 4.58 34 14.07 36 18.65
27 ARUNACHAL PRADESH 13 39.23 224 37.58 237 76.81
28 CHANDIGARH 1084 2,415.78 4872 886.71 5956 3,302.49
29 D & N HAVELI 40 766.84 100 48.15 140 814.98
30 DELHI 13124 123,586.17 117431 74,563.31 130555 198,149.49
31 GOA 197 1,476.02 3331 1,155.11 3528 2,631.13
32 DAMAN & DIU 48 436.76 108 136.63 156 573.39
33 LAKSHDWEEP 0 0.00 3 6.52 3 6.52
34 PUDUCHERRY 82 229.10 787 841.36 869 1,070.46
TOTAL 64000 618,594.04 516732 305,433.93 580732 924,027.97

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

80
 STATEMENT - XIII
Paid-up Capital of Government Companies Limited by Shares as on 31st March, 2008:
( State-wise Distribution )
(Revised)
(Capital in Rs. crore)

Sl. STATES / UT PUBLIC PRIVATE TOTAL

No.
No. of Paid up No. of Paid up No. of Paid up
Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 ANDHRA PRADESH 33 5,884.20 13 7,856.85 46 13,741.05
2 ASSAM 26 1,398.25 23 447.92 49 1,846.17
3 BIHAR 57 128.65 5 104.43 62 233.08
4 CHHATISGARH 13 401.21 1 6.54 14 407.76
5 GUJARAT 54 39,797.88 1 0.01 55 39,797.89
6 HARYANA 12 12,229.14 1 0.01 13 12,229.15
7 HIMACHAL PRADESH 12 8,421.79 6 49.75 18 8,471.54
8 J&K 17 205.44 3 33.58 20 239.02
9 JHARKHAND 13 2,560.58 8 2,225.81 21 4,786.39
10 KARNATAKA 50 17,602.45 12 215.42 62 17,817.87
11 KERALA 80 1,807.16 29 583.06 109 2,390.22
12 MADHYA PRADESH 41 6,713.84 7 217.04 48 6,930.88
13 MAHARASHTRA 115 16,346.78 74 2,022.96 189 18,369.75
14 MANIPUR 2 0.23 10 9.87 12 10.10
15 MEGHALAYA 3 3,201.24 8 44.03 11 3,245.26
16 MIZORAM 1 15.78 3 15.08 4 30.86
17 NAGALAND 3 122.25 2 0.10 5 122.35
18 ORISSA 76 3,070.87 1 0.01 77 3,070.88
19 PUNJAB 6 200.56 3 0.04 9 200.60
20 RAJASTHAN 38 6,092.98 1 24.05 39 6,117.02
21 TAMIL NADU 69 6,204.67 12 59.97 81 6,264.64
22 TRIPURA 5 53.66 2 32.50 7 86.16
23 UTTAR PRADESH 85 25,217.37 9 58.41 94 25,275.79
24 UTTRAKHAND 14 4,082.12 2 7.01 16 4,089.13
25 WEST BENGAL 57 14,302.09 17 7,135.91 74 21,438.00
26 A & N ISLAND 1 0.99 1 10.97 2 11.96
27 ARUNACHAL PRADESH 1 0.00 5 8.16 6 8.16
28 CHANDIGARH 19 429.02 7 26.35 26 455.37
29 D & N HAVELI 1 4.83 0 0.00 1 4.83
30 DELHI 96 53,036.67 23 1,683.40 119 54,720.07
31 GOA 13 166.61 2 0.62 15 167.23
32 DAMAN & DIU 1 6.21 0 0.00 1 6.21
33 LAKSHDWEEP 0 0.00 1 6.50 1 6.50
34 PUDUCHERRY 0 0.00 15 531.95 15 531.95
TOTAL 1014 229,705.53 307 23,418.31 1321 253,123.84

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

81
 STATEMENT - XIV
Paid-up Capital of Non-Government Companies Limited by Shares as on 31st March, 2008:
( State-wise Distribution )

(Revised)
(Capital in Rs. crore)

Sl. STATES / UT PUBLIC PRIVATE TOTAL

No.
No. of Paid up No. of Paid up No. of Paid up
Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 ANDHRA PRADESH 4400 24,979.81 28261 16,520.32 32661 41,500.13
2 ASSAM 541 1,762.52 4243 1,043.53 4784 2,806.05
3 BIHAR 774 412.06 4519 614.87 5293 1,026.93
4 CHHATISGARH 258 1,958.71 2278 708.29 2536 2,667.00
5 GUJARAT 4064 40,625.96 28361 10,824.12 32425 51,450.09
6 HARYANA 692 8,776.95 4331 5,370.47 5023 14,147.42
7 HIMACHAL PRADESH 294 3,681.16 1700 468.19 1994 4,149.35
8 J&K 207 158.83 1811 348.77 2018 507.60
9 JHARKHAND 213 536.00 2453 518.59 2666 1,054.59
10 KARNATAKA 2208 21,257.10 27021 22,263.20 29229 43,520.29
11 KERALA 1243 3,708.41 11838 3,233.49 13081 6,941.90
12 MADHYA PRADESH 1063 3,399.10 8258 2,156.15 9321 5,555.25
13 MAHARASHTRA 10219 117,609.96 99288 78,023.03 109507 195,633.00
14 MANIPUR 36 57.80 120 17.61 156 75.41
15 MEGHALAYA 91 292.66 448 236.28 539 528.94
16 MIZORAM 4 0.11 22 2.31 26 2.42
17 NAGALAND 18 66.51 200 19.25 218 85.76
18 ORISSA 630 3,175.71 5393 1,321.82 6023 4,497.53
19 PUNJAB 2000 6,863.58 11626 2,739.27 13626 9,602.85
20 RAJASTHAN 1513 5,063.72 17817 3,367.39 19330 8,431.11
21 TAMIL NADU 6503 31,072.26 44878 24,388.91 51381 55,461.17
22 TRIPURA 12 17.76 86 12.96 98 30.71
23 UTTAR PRADESH 3783 10,629.87 18142 3,708.88 21925 14,338.74
24 UTTRAKHAND 221 493.61 1297 354.35 1518 847.95
25 WEST BENGAL 7541 26,978.20 65198 28,332.10 72739 55,310.30
26 A & N ISLAND 1 3.59 33 3.10 34 6.69
27 ARUNACHAL PRADESH 12 39.23 219 29.42 231 68.65
28 CHANDIGARH 1065 1,986.76 4865 860.35 5930 2,847.12
29 D & N HAVELI 39 762.00 100 48.15 139 810.15
30 DELHI 13028 70,549.50 117408 72,879.92 130436 143,429.42
31 GOA 184 1,309.41 3329 1,154.49 3513 2,463.90
32 DAMAN & DIU 47 430.56 108 136.63 155 567.18
33 LAKSHDWEEP 0 0.00 2 0.02 2 0.02
34 PUDUCHERRY 82 229.10 772 309.41 854 538.51
TOTAL 62986 388,888.51 516425 282,015.62 579411 670,904.13

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

82
 STATEMENT - XV
Paid up Capital of Companies Limited by Shares as on 31st March, 2008 :
( Distribution by Industrial Activity )
(Revised)
(Capital in Rs. crore)

Sl. Industrial Classification PUBLIC PRIVATE TOTAL

No.
No. of Paid up No. of Paid up No. of Paid up
Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 Agriculture, Foresty and Fishing 3054 4,825.62 12498 3,167.17 15552 7,992.80
2 Mining & Quarrying 699 20,658.15 6036 4,672.01 6735 25,330.17
3 Manufacturing 20477 182,516.84 142644 96,816.08 163121 279,332.92
4 Electricity, Gas & Water Companies 1013 94,785.99 2790 10,980.47 3803 105,766.46
5 Construction. 3148 66,492.35 44816 24,683.98 47964 91,176.33
6 Trade, Hotels and Restaurants 5908 20,394.46 79764 31,684.09 85672 52,078.56
7 Transport,Storage and Communications 1317 20,066.23 18240 10,530.34 19557 30,596.57
8 Finance,Insurance,Real Estate & 19402 92,478.01 139869 76,155.01 159271 168,633.03
Business Services
9 Community, Personal & Social Services 2752 35,677.01 23275 13,422.53 26027 49,099.54
10 Unclassified 6230 80,699.37 46800 33,322.23 53030 114,021.60
TOTAL 64000 618,594.04 516732 305,433.93 580732 924,027.97

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

83
 STATEMENT - XVI
Paid up Capital of Government Companies Limited by Shares as on 31st March, 2008 :
( Distribution by Industrial Activity )
(Revised)
(Capital in Rs. crore)

Sl. Industrial Classification PUBLIC PRIVATE TOTAL

No.
No. of Paid up No. of Paid up No. of Paid up
Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 Agriculture, Foresty and Fishing 69 393.27 30 177.65 99 570.92
2 Mining & Quarrying 47 8,283.72 11 2,654.73 58 10,938.45
3 Manufacturing 321 47,010.19 96 16,000.61 417 63,010.81
4 Electricity, Gas & Water Companies 113 75,611.64 11 606.82 124 76,218.46
5 Construction. 68 39,629.48 28 333.84 96 39,963.32
6 Trade, Hotels and Restaurants 47 603.76 27 56.98 74 660.74
7 Transport,Storage and Communications 53 2,359.16 10 349.00 63 2,708.16
8 Finance,Insurance,Real Estate & 138 10,825.15 51 1,320.90 189 12,146.05
Business Services
9 Community, Personal & Social Services 85 17,250.28 25 294.66 110 7,544.94
10 Unclassified 73 27,738.88 18 1,623.12 91 29,362.00
TOTAL 1014 229,705.53 307 23,418.31 1321 253,123.84

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

84
 STATEMENT - XVII
Paid up Capital of Non-Government Companies Limited by Shares as on 31st March, 2008 :
( Distribution by Industrial Activity )
(Revised)
(Capital in Rs. crore

PUBLIC PRIVATE TOTAL

Sl.No. Industrial Classification No. of Paid up No. of Paid up No. of Paid up

Companies Capital* Companies Capital* Companies Capital*

1 2 3 4 5 6 7 8

1 Agriculture, Foresty and Fishing 2985 4,432.36 12468 2,989.52 15453 7,421.88
2 Mining & Quarrying 652 12,374.44 6025 2,017.29 6677 14,391.72
3 Manufacturing 20156 135,506.64 142548 80,815.47 162704 216,322.11
4 Electricity, Gas & Water Companies 900 19,174.35 2779 10,373.65 3679 29,548.01
5 Construction. 3080 26,862.87 44788 24,350.14 47868 51,213.01
6 Trade, Hotels and Restaurants 5861 19,790.70 79737 31,627.11 85598 51,417.81
7 Transport,Storage and Communications 1264 17,707.07 18230 10,181.34 19494 27,888.41
8 Finance,Insurance,Real Estate & 19264 81,652.86 139818 74,834.11 159082 156,486.98
Business Services
9 Community, Personal & Social Services 2667 18,426.73 23250 13,127.87 25917 31,554.60
10 Unclassified 6157 52,960.48 46782 31,699.12 52939 84,659.60

TOTAL 62986 388,888.51 516425 282,015.62 579411 670,904.13

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

85
 STATEMENT - XVIII
Paid-up Capital of Companies Limited by Shares as on 31st March, 2009:
( State-wise Distribution )
(Provisional)
(Capital in Rs. crore)

Sl. STATES / UT PUBLIC PRIVATE TOTAL

No.
No. of Paid up No. of Paid up No. of Paid up
Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 ANDHRA PRADESH 4426 34,053.94 28577 26,621.01 33003 60,674.96
2 ASSAM 571 3,185.59 4301 1,642.09 4872 4,827.68
3 BIHAR 832 556.97 4579 801.74 5411 1,358.72
4 CHHATISGARH 283 2,454.44 2350 894.01 2633 3,348.45
5 GUJARAT 4132 71,356.73 28877 14,768.54 33009 86,125.27
6 HARYANA 705 22,664.08 4464 6,361.25 5169 29,025.34
7 HIMACHAL PRADESH 306 8,506.48 1720 859.62 2026 9,366.11
8 J&K 224 389.76 1814 366.83 2038 756.59
9 JHARKHAND 226 4,223.05 2502 2,851.14 2728 7,074.19
10 KARNATAKA 2252 42,157.41 27227 26,600.81 29479 68,758.22
11 KERALA 1311 5,439.33 12019 4,734.98 13330 10,174.31
12 MADHYA PRADESH 1109 11,275.04 8460 2,939.54 9569 14,214.59
13 MAHARASHTRA 10362 144,625.00 100712 91,263.05 111074 235,888.05
14 MANIPUR 38 76.81 130 27.38 168 104.20
15 MEGHALAYA 95 3,591.21 472 294.87 567 3,886.08
16 MIZORAM 5 15.89 25 27.17 30 43.06
17 NAGALAND 21 81.58 202 19.43 223 101.02
18 ORISSA 706 7,352.40 5446 1,517.79 6152 8,870.20
19 PUNJAB 1998 8,784.04 11695 3,069.43 13693 11,853.46
20 RAJASTHAN 1549 14,699.91 18161 3,638.41 19710 18,338.32
21 TAMIL NADU 6547 40,903.85 45104 30,706.01 51651 71,609.86
22 TRIPURA 17 341.52 89 55.00 106 396.51
23 UTTAR PRADESH 3858 36,669.31 18390 4,928.11 22248 41,597.42
24 UTTRAKHAND 233 4,453.34 1319 390.42 1552 4,843.76
25 WEST BENGAL 7606 42,383.00 68531 32,779.09 76137 75,162.09
26 A & N ISLAND 2 4.58 34 14.27 36 18.85
27 ARUNACHAL PRADESH 13 40.63 224 40.64 237 81.27
28 CHANDIGARH 1082 2,458.17 4889 953.80 5971 3,411.97
29 D & N HAVELI 40 821.97 100 63.32 140 885.28
30 DELHI 13233 138,237.20 118909 88,137.12 132142 226,374.32
31 GOA 199 1,625.96 3354 1,366.68 3553 2,992.64
32 DAMAN & DIU 44 399.02 108 152.69 152 551.70
33 LAKSHDWEEP 0 0.00 3 6.52 3 6.52
34 PUDUCHERRY 80 249.23 792 917.30 872 1,166.53
TOTAL 64105 654,077.45 525579 349,810.08 589684 1,003,887.54

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

86
 STATEMENT - XIX
Paid-up Capital of Government Companies Limited by Shares as on 31st March, 2009
( State-wise Distribution )

(Provisional)
(Capital in Rs. crore)

Sl. STATES / UT PUBLIC PRIVATE TOTAL

No.
No. of Paid up No. of Paid up No. of Paid up
Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 ANDHRA PRADESH 34 6,183.03 13 7,857.96 47 14,040.99
2 ASSAM 25 1,304.37 23 447.92 48 1,752.30
3 BIHAR 57 136.40 5 104.43 62 240.83
4 CHHATISGARH 13 402.16 2 8.04 15 410.21
5 GUJARAT 52 28,356.85 1 0.01 53 28,356.86
6 HARYANA 12 12,230.74 1 0.01 13 12,230.75
7 HIMACHAL PRADESH 11 4,371.01 6 336.95 17 4,707.97
8 J&K 17 205.44 3 33.58 20 239.02
9 JHARKHAND 13 2,765.08 8 2,225.81 21 4,990.89
10 KARNATAKA 50 18,295.42 12 227.09 62 18,522.51
11 KERALA 78 1,781.46 28 576.37 106 2,357.83
12 MADHYA PRADESH 41 7,703.42 7 217.04 48 7,920.46
13 MAHARASHTRA 116 16,497.70 74 1,925.60 190 18,423.30
14 MANIPUR 2 0.23 10 9.87 12 10.10
15 MEGHALAYA 3 3,230.06 8 44.03 11 3,274.08
16 MIZORAM 1 15.78 3 24.86 4 40.64
17 NAGALAND 3 14.07 2 0.10 5 14.17
18 ORISSA 77 3,770.49 1 0.01 78 3,770.51
19 PUNJAB 6 200.56 3 0.04 9 200.60
20 RAJASTHAN 37 7,366.12 1 24.05 38 7,390.17
21 TAMIL NADU 68 7,289.70 12 59.97 80 7,349.67
22 TRIPURA 5 53.66 2 40.32 7 93.98
23 UTTAR PRADESH 84 25,162.43 9 58.41 93 25,220.84
24 UTTRAKHAND 14 3,881.37 2 7.01 16 3,888.38
25 WEST BENGAL 57 14,670.40 17 819.83 74 15,490.24
26 A & N ISLAND 1 0.99 1 10.97 2 11.96
27 ARUNACHAL PRADESH 1 0.00 5 8.16 6 8.16
28 CHANDIGARH 19 429.17 7 26.35 26 455.53
29 D & N HAVELI 1 4.83 0 0.00 1 4.83
30 DELHI 95 62,008.30 22 2,012.64 117 64,020.94
31 GOA 13 191.61 2 0.62 15 192.23
32 DAMAN & DIU 1 6.21 0 0.00 1 6.21
33 LAKSHDWEEP 0 0.00 1 6.50 1 6.50
34 PUDUCHERRY 0 0.00 15 539.62 15 539.62
TOTAL 1,007 228,529.10 306 17,654.18 1,313 246,183.28

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

87
 STATEMENT - XX
Paid-up Capital of Non-Government Companies Limited by Shares as on 31st March, 2009:
( State-wise Distribution )
(Provisional)
(Capital in Rs. crore)

Sl. STATES / UT PUBLIC PRIVATE TOTAL

No.
No. of Paid up No. of Paid up No. of Paid up
Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 ANDHRA PRADESH 4392 27870.91 28564 18763.05 32956 46633.96
2 ASSAM 546 1881.22 4278 1194.17 4824 3075.38
3 BIHAR 775 420.57 4574 697.32 5349 1117.89
4 CHHATISGARH 270 2052.28 2348 885.97 2618 2938.25
5 GUJARAT 4080 42999.88 28876 14768.53 32956 57768.41
6 HARYANA 693 10433.34 4463 6361.24 5156 16794.58
7 HIMACHAL PRADESH 295 4135.47 1714 522.67 2009 4658.14
8 J&K 207 184.32 1811 333.25 2018 517.57
9 JHARKHAND 213 1457.97 2494 625.33 2707 2083.30
10 KARNATAKA 2202 23861.99 27215 26373.72 29417 50235.71
11 KERALA 1233 3657.87 11991 4158.62 13224 7816.49
12 MADHYA PRADESH 1068 3571.63 8453 2722.50 9521 6294.13
13 MAHARASHTRA 10246 128127.30 100638 89337.45 110884 217464.75
14 MANIPUR 36 76.59 120 17.52 156 94.10
15 MEGHALAYA 92 361.15 464 250.84 556 612.00
16 MIZORAM 4 0.11 22 2.31 26 2.42
17 NAGALAND 18 67.51 200 19.33 218 86.84
18 ORISSA 629 3581.91 5445 1517.78 6074 5099.69
19 PUNJAB 1992 8583.47 11692 3069.39 13684 11652.86
20 RAJASTHAN 1512 7333.78 18160 3614.37 19672 10948.15
21 TAMIL NADU 6479 33614.15 45092 30646.05 51571 64260.19
22 TRIPURA 12 287.85 87 14.68 99 302.53
23 UTTAR PRADESH 3774 11506.88 18381 4869.70 22155 16376.58
24 UTTRAKHAND 219 571.97 1317 383.41 1536 955.38
25 WEST BENGAL 7549 27712.60 68514 31959.25 76063 59671.85
26 A & N ISLAND 1 3.59 33 3.30 34 6.89
27 ARUNACHAL PRADESH 12 40.63 219 32.48 231 73.10
28 CHANDIGARH 1063 2029.00 4882 927.45 5945 2956.45
29 D & N HAVELI 39 817.13 100 63.32 139 880.45
30 DELHI 13138 76228.90 118,887 86124.47 132,025 162353.38
31 GOA 186 1434.35 3352 1366.06 3538 2800.41
32 DAMAN & DIU 43 392.81 108 152.69 151 545.50
33 LAKSHDWEEP 0 0.00 2 0.02 2 0.02
34 PUDUCHERRY 80 249.23 777 377.68 857 626.91
TOTAL 63098 425,548.36 525,273 332,155.90 588,371 757,704.26

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

88
 STATEMENT - XXI
Paid up Capital of Companies Limited by Shares as on 31st March, 2009 :
( Distribution by Industrial Activity )
(Provisional)
(Capital in Rs. crore)

PUBLIC PRIVATE TOTAL

Sl. Industrial Classification No. of Paid up No. of Paid up No. of Paid up

No. Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 Agriculture, Foresty and Fishing 3054 5,199.11 12677 3,690.52 15731 8,889.63
2 Mining & Quarrying 706 21,461.63 6218 4,888.40 6924 26,350.03
3 Manufacturing 20402 199,511.77 143644 105,684.70 164046 305,196.47
4 Electricity, Gas & Water Companies 1095 102,335.84 2946 12,798.52 4041 115,134.36
5 Construction. 3242 57,217.06 46395 32,965.28 49637 90,182.34
6 Trade, Hotels and Restaurants 5918 22,081.13 82788 36,665.52 88706 58,746.64
7 Transport,Storage and Communications 1337 24,774.52 18482 12,854.81 19819 37,629.33
8 Finance,Insurance,Real Estate & 19423 98,240.84 142133 87,018.69 161556 185,259.53
Business Services
9 Community, Personal & Social Services 2756 38,766.74 23740 16,194.92 26496 54,961.66
10 Unclassified 6172 84,488.81 46556 37,048.73 52728 121,537.54

TOTAL 64105 654077.45 525579 349,810.09 589684 1,003,887.54

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

89
 STATEMENT - XXII
Paid up Capital of Government Companies Limited by Shares as on 31st March, 2009 :
( Distribution by Industrial Activity )

(Provisional)
(Capital in Rs. crore)

PUBLIC PRIVATE TOTAL

Sl.No. Industrial Classification No. of Paid up No. of Paid up No. of Paid up

Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 Agriculture, Foresty and Fishing 69 554.02 29 170.33 98 724.35
2 Mining & Quarrying 47 8,796.39 12 2,656.73 59 1,453.12
3 Manufacturing 317 55,027.32 96 9,418.18 413 4,445.50
4 Electricity, Gas & Water Companies 115 76,982.30 11 606.82 126 7,589.12
5 Construction. 68 26,053.70 27 1,158.74 95 7,212.44
6 Trade, Hotels and Restaurants 47 666.32 27 57.01 74 723.33
7 Transport,Storage and Communications 53 3,029.98 10 349.75 63 3,379.73
8 Finance,Insurance,Real Estate & 136 9,227.36 51 1,295.90 187 0,523.26
Business Services
9 Community, Personal & Social Services 84 17,826.40 25 298.48 109 8,124.88
10 Unclassified 71 30,365.30 18 1,642.25 89 2,007.55
TOTAL 1007 228,529.10 306 17,654.18 1313 246,183.28

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

90
 STATEMENT - XXIII
Paid up Capital of Non-Government Companies Limited by Shares as on 31st March, 2009 :
( Distribution by Industrial Activity )

(Provisional)
(Capital in Rs. crore)

Sl. Industrial Classification No. of Paid up No. of Paid up No. of Paid up

No. Companies Capital* Companies Capital* Companies Capital*
1 2 3 4 5 6 7 8
1 Agriculture, Foresty and Fishing 2985 4,645.09 12648 3,520.19 15633 8,165.28
2 Mining & Quarrying 659 12,665.24 6206 2,231.67 6865 14,896.92
3 Manufacturing 20085 144,484.45 143548 96,266.52 163633 240,750.97
4 Electricity, Gas & Water Companies 980 25,353.54 2935 12,191.69 3915 37,545.24
5 Construction. 3174 31,163.36 46368 31,806.54 49542 62,969.89
6 Trade, Hotels and Restaurants 5871 21,414.80 82761 36,608.51 88632 58,023.31
7 Transport,Storage and Communications 1284 21,744.54 18472 12,505.06 19756 34,249.61
8 Finance,Insurance,Real Estate & 19287 89,013.48 142082 85,722.79 161369 174,736.27
Business Services
9 Community, Personal & Social Services 2672 20,940.34 23715 15,896.45 26387 36,836.79
10 Unclassified 6101 54,123.51 46538 35,406.48 52639 89,529.99
TOTAL 63098 425,548.35 525273 332,155.91 588371 757,704.26

*Paid-up Capital is worked out on the basis of the companies data available on the MCA Portal.

91
 STATEMENT-XXIV
Statement showing the statistics of prosecutions for the year 2008- 09

Sl. Name of ROC Cases out Number Cases No of No. of cases disposed of Cost Fine Number of
No. standing of launched Cos. awarded imposed cases
as on companies during the Involved Convi- Acqu- Withd Disposed Total pending
1.4.2008 involved period ction ittal rawl of as on
1.4.2008 otherwise 31.3.2009
31.3.2009

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1 Andhra Pradesh 589 52 252 25 72 15 0 172 259 207,750 41,550 582

2 Assam 2987 222 628 165 221 18 40 106 385 95,924 594,815 3230
3 Bihar 12981 344 2820 245 109 0 0 2399 2508 117,400 234,800 13293
4 Delhi & Haryana 3687 1409 313 130 421 39 13 227 700 0 1,445,400 3300
5 Goa 993 662 103 53 60 0 110 134 304 46,750 93,500 792

92
6 Gujarat 2733 561 625 156 370 0 0 340 710 20,625 954,449 2648
7 Jammu & Kashmir 390 202 36 7 0 0 0 0 0 0 0 426
8 Karnataka 1108 312 1055 164 480 33 27 126 666 1,048,000 2,096,000 1497
9 Kerala 2532 1010 1025 322 990 24 67 30 1111 1,138,750 3,583,950 2446
10 Maharashtra (Mumbai) 4667 867 1031 266 1 0 20 97 118 2,000 15,000 5580
11 Maharasthra (Pune) 905 410 89 33 42 0 6 0 48 42,000 84,000 946
12 Madhya Pradesh 692 267 553 284 0 0 0 0 0 0 0 1245
13 Orissa 3240 655 635 258 332 0 351 0 683 62,030 414,370 3192
14 Puducherry 32 11 24 6 8 0 0 0 8 0 21,748 48
15 Punjab, H.P.& Chandigarh 2962 560 1792 187 427 0 1866 136 2429 86,560 554,295 2325
16 Rajasthan *197 103 191 53 34 0 0 0 34 1,400 72,900 354
17 Tamil Nadu( Chennai ) 3032 756 691 335 102 2 4 222 330 299,750 599,500 3393
18 Tamil Nadu(Coimbatore) 190 95 206 105 24 3 2 10 39 21,775 87,100 357
19 Uttar Pradesh 4597 788 110 24 0 0 0 14 14 1,000 81,120 4693
20 West Bengal 5780 2262 1792 798 58 31 34 37 160 42,825 84,150 7412
Total 54294 11548 13971 3616 3751 165 2540 4050 10506 3,234,539 11,058,647 57759