Requirements as per Notification GSR No. 494(E), dated 30-10-1973 amending Schedule VI‑ Whether to be enforced strictly only in respect of financial years ending on or after 31-12-1973 - Companies Law - No. 32/73

Circular: No. 32/73, dated 22 ‑ 12 ‑ 1973. Subject:- Requirements as per Notification GSR No. 494(E), dated 30-10-1973 amending Schedule VI ‑ Whether to be enforced strictly only in respect of financial years ending on or after 31-12-1973 Numerous enquiries have been received in the Department asking for a clarification as regards the accounts to which the Notification will be applicable. It has also been represented that if the Notification is made applicable to all companies in respect of the balance sheet and profit and loss account to be placed at their annual general meetings to be held on or after 9‑11‑1973, it would be difficult to comply with the same. These points have been examined and it is felt that the Notification under reference is mostly in the nature of clarification to the requirements in relation to Schedule VI as notified in 1971, vide Notification No. GSR 1665, dated 9‑10-1971 effective from 6‑11‑1971. Even the additional requirements contained in the present Notification do not, as a rule, require maintenance of any new books of account but only involve collection of information from the books, which are already required to be maintained by companies. The general plea taken in this respect is therefore not acceptable. However, in order to give companies a little more time to familiarise themselves with the latest requirements, it has been decided that the compliance of the new requirements as per the latest Notification under reference may be enforced strictly only in respect of the financial years ending on or after 31‑12‑1973. Individual cases of hardship which may be occasioned by the immediate applicability of the Notification can be brought to the notice of the Government by the companies concerned and exemption may be sought to which they may be eligible in terms of section 211(4). But it is hoped that the need for such exemption will not normally arise in the case of companies whose financial years end on or after 31‑12‑1973.