Balance-Sheet - Proforma for technical scrutiny of balance sheet by companies while filing the same with Registrar of Companies - Companies Law - Letter : No. 13/15/89-CL-V,

Circular Letter : No. 13/15/89-CL-V, dated 6-4-1989. SCHEDULE VI Subject:- Balance-Sheet - Proforma for technical scrutiny of balance sheet by companies while filing the same with Registrar of Companies Addressing letter to all Chambers of Commerce Industry, the Director in the Department of Company Affairs, Ministry of Industry, has invited views on the proposed amendment to Schedule VI to provide for annexing proforma for technical scrutiny of balance sheet by companies while filing the same with the Registrar of Companies under section 220. This is for ensuring compliance of the various provisions of the Act. Proforma for technical scrutiny forwarded with the letter is reproduced below: PROFORMA FOR TECHNICAL SCRUTINY OF BALANCE-SHEET Name of the Company ....................................................................................... Registration number ........................................................................................... State where registered ........................................................................................ 1. Notice Whether the register of members and debentureholders remained closed? Yes/No ( i ) If yes, from...........to.......... ( ii ) Whether the provisions of section 154(1) of the Act complied with? Yes/No ( iii ) If yes, whether newspaper cuttings of the advertisement published by the company in some newspapers circulating in the State furnished? Yes/No 2. Whether full particulars of employees in the Directors Report in terms of the provisions of section 217(2A) of the Act and rules framed thereunder furnished? Yes/No 3. Auditors report ( i ) Whether the company is having any branch apart from its registered office? Yes/No ( ii ) If yes, whether they are being audited by the statutory auditors? Yes/No ( iii ) If no, whether they are audited by branch auditors? Yes/No ( iv ) ( a ) If no, whether they are exempted from appointments of branch auditors? Yes/No ( b ) If yes, under what authority? Yes/No ( v ) Whether the auditors have given their report on balance-sheet of the company subject to their separate report/notes/observations/reservations? Yes/No ( vi ) If yes, whether directors have given any comments on the aforesaid separate report/notes/observations/reservations as required under section 217(3) of the Act? Yes/No 4. Borrowings ( i ) Whether the requirements of section 293(1)( d )/292 of the Act have been complied with in respect of the borrowings made by the company? Yes/No ( ii ) If yes, whether the date of passing of resolution and its filing with the ROC furnished? Yes/No ( iii ) ( a ) Whether the company is having any secured loans? Yes/No ( b ) If yes, whether section 125 of the Act has been complied with and the register maintained under section 143 of the Act? Yes/No ( iv ) ( a ) Whether guarantee commission has been paid for the secured loans? Yes/No ( b ) If yes, whether the copies of the relevant resolutions enclosed? Yes/No ( v ) ( a ) Whether the company has taken any public deposits under section 58A of the Act? Yes/No ( b ) If yes, whether necessary return of deposit under rule 10 of the Companies (Acceptance of Deposits) Rules has been filed? Yes/No ( c ) ( 1 ) Whether the company has complied with the provisions of rule 4 of the aforesaid Rules? Yes/No ( 2 ) If yes, date of filing of text of advertisement? Yes/No 5. ( i )( a ) Whether there is any transaction falling under section 297/299/301 of the Act? Yes/No ( b ) If yes, whether details furnished? Yes/No ( c ) Whether the provisions of aforesaid sections were complied with in respect of each of the aforesaid transactions? Yes/No ( ii ) ( a ) Whether the company is having any bad and doubtful debts/loans and advances? Yes/No ( b ) If yes, whether any directors/their relatives are interested or are related to any of the parties? Yes/No ( c ) Whether any of the steps have been taken for recovery of the abovesaid doubtful debts/loans and advances? Yes/No 6. ( i ) Whether all the assets of the company stand registered in the name of the company? Yes/No ( ii ) If no, whether details of assets not registered in the company s name and the parties, in whose name they are registered, furnished? Yes/No ( iii ) Whether reasons for non-registration in company s name have been furnished? Yes/No ( iv ) ( a ) Whether any assets of the company have been sold? Yes/No ( b ) If yes, whether the details regarding the purchaser, his relation to any director of the company, their book value, written down value of the assets, sale price and mode of sale have been furnished? Yes/No 7. Investment ( i ) Whether the company is having any investment in any other company/firm? Yes/No If yes, whether the following details are furnished? Yes/No ( a ) Name of the company/firm ( b ) Names of all the partners of the company/firm ( c ) Total capital and share of each partner ( ii ) ( a ) Whether the investments are within the limits laid down under section 372 of the Act? Yes/No ( b ) If yes, whether the compliance of the requirements of the provision of section 372 of the Act has been made? Yes/No ( c ) If yes, whether the details of the compliance intimated? Yes/No 8. Whether the provisions of the sections 417 and 418 of the Act in respect of the security deposits and provident fund deductions have been complied with? If yes, the manner, in which compliance has been made, intimated? Yes/No 9. Loans given ( i ) Whether the company has given any loan to the companies under the same management/form in which directors are partners? Yes/No ( ii ) If yes, whether the said loans are within the limits prescribed under section 370 of the Act? Yes/No ( iii ) Whether the details regarding the PUC, etc., of the investee company as well as the investing company have been furnished as on date of the loan? Yes/No ( iv ) ( a ) If loans exceed amount prescribed under section 370 of the Act, whether the special resolution has been passed? Yes/No ( b ) If yes, whether the Central Government s approval has been taken? Yes/No ( v ) ( a ) Whether any loan has been given to the directors/other officers of the company? Yes/No ( b ) If yes, whether the provisions of section 295 of the Act are complied with? Yes/No 10. Dividends ( i ) ( a ) Whether the company has declared any dividends? Yes/No ( b ) If yes, whether from the current year profits? Yes/No ( c ) If yes, whether the amount prescribed under the provisions of the Companies (Transfer of Profits to Reserves) Rules, 1975 has been transferred to reserves? Yes/No ( ii ) In case the dividends declared from previous year s profits whether the provisions of the Companies (Declaration of Dividends out of Reserves) Rules, 1975 complied with? Yes/No 11. Unpaid/unclaimed dividends ( i ) Whether the company has any unpaid/unclaimed dividends? Yes/No ( ii ) If yes, whether the list of names of shareholders to whom payable and date since when payable enclosed? Yes/No ( iii ) Whether the provisions of section 205A of the Act complied with? Yes/No 12. Selling arrangements ( i ) ( a ) Whether the company is having any selling agents for its products? Yes/No ( b ) If yes, whether the company has complied with the provisions of sections 294 and 294AA of the Act? Yes/No ( c ) If no [answer to ( a )], what is the arrangements for the sales of its products? Yes/No 13. Managerial appointments and remuneration ( i ) Whether the Central Government s approval has been obtained under sections 269 and 198(4)/309(3) of the Act for appointment of managerial personnel and payment of remuneration to them? Yes/No ( ii ) If yes, whether the copy of the approval enclosed? Yes/No 14. ( i ) ( a ) Whether the provisions of section 314 of the Act has been complied with in regard to the appointment of directors in any office of profit with the company? Yes/No ( b ) If yes, details be furnished Yes/No ( ii ) ( a ) Whether any relative of the director appointed in the company? If yes, whether the copy of the resolution furnished? Yes/No ( b ) Whether the provisions of section 314(1B) of the Act have been complied with in regard to the appointment of relatives of directors? Yes/No ( c ) If yes, whether the details are furnished? Yes/No 15. Whether the details and break-up of the following furnished : Yes/No ( a ) Charity and donations/subscriptions ( b ) Legal and professional expenses ( c ) Travelling expenses paid to directors, if any ( d ) Commission paid to directors, if any ( e ) Staff welfare expenses ( f ) Business/sales promotion expenses ( g ) Miscellaneous expenses of over Rs. 500 ( h ) Advertisement expenses 16. Secretary ( i ) Whether the provisions of section 383A(1) of the Act applicable in respect of appointment of company secretary? Yes/No ( ii ) If yes, whether details furnished? 17. Board meetings ( i ) Whether dates of the Board meetings held and the place where they were held during the calendar year intimated? Yes/No ( ii ) Whether the company has complied with the provisions of section 285 of the Act? Yes/No ( iii ) If yes, details be furnished Yes/No 18. Whether the company has furnished the following details as per provisions of Part II of Schedule VI of the Act: Yes/No ( a ) Turnover, quantity and value class-wise ( b ) Item-wise value of raw materials consumed and quantities thereof ( c ) Purchases made and opening and closing stock with class-wise break-up of quantities and values ( d ) Break-up of expenditure on employees getting remuneration inclusive of perquisites of Rs. 36,000 or more ( e ) Licenced and installed capacities of production ( f ) Imports of raw materials, consumption and expenditure thereof, earnings in foreign exchange, etc. ( g ) Details of amount paid to auditors 19. ( i ) Whether the company has commenced its business within a year of its incorporation? Yes/No ( ii ) ( a ) Whether the company has suspended its business for the whole year? Yes/No ( b ) If yes, why action under section 433( c )/439 of the Act should not be taken? Yes/No ( iii ) ( a ) Whether the company is having excess deficit (excess of liabilities over assets)? Yes/No ( b ) If yes, why action under section 433( c )/439 of the Act should not be taken? Yes/No 20. Allotment of shares ( i ) Whether the company has allotted any shares during the year? Yes/No ( ii ) ( a ) If yes, whether the provisions of section 75 of the Act complied with? Yes/No ( b ) If no, why action under section 75(4) of the Act should not be taken? Yes/No 21. Whether three copies of the published accounts for the period furnished? Yes/No .................................................. Dated ............................. Signature of the Authority ................................... Company Seal