Exemption ‑ Small‑scale industrial units specified to which provisions of the section are not to apply - GSR 48(E), - Companies Law

Notification : No. GSR 48(E), dated 21 1 1986. Subject:- Exemption Small scale industrial units specified to which provisions of the section are not to apply GSR 48(E).- In exercise of the powers conferred by sub clause (ii) of clause (a) of sub section (7) of section 58A of the Companies Act, 1956 (1 of 1956) and in supersession of the notification of the Government of India in the Department of Company Affairs No. G.S.R. 655(E), dated 12th September, 1984, except as respects things done or omitted to be done before such supersession, the Central Government, after consultation with the Reserve Bank of India, hereby specifies the following companies, as the companies to which the provisions of section 58A of the Companies Act, 1956, shall not apply, namely : Companies which are small scale industrial units and fulfil the following conditions, namely : (a) the paid-up capital of the company does not exceed Rs. 12 lakhs; (b) the company accepts deposits from not more than 50 persons; (c) there is no invitation to public for deposits; and (d) the amount of deposits accepted by the company does not exceed Rs. 8 lakhs or the amount of its paid up capital, whichever is less : Provided that where a company is a small scale industrial unit to which the provisions of the Notification No. GSR 655(E), dated 12th September, 1984 applies, such company shall not, from the date of commencement of this notification, accept or renew any deposits unless it fulfils conditions (a), (b), (c) and (d) of this notification. Explanation : For the purpose of this notification (i) a small scale industrial unit means an industrial undertaking registered with the Directorate of Industries or Small scale Industries, as the case may be, of the State Government and in respect of which the investment in plant and machinery is not in excess of 35 lakhs of rupees in value; (ii) deposit has the same meaning as in clause (b) of rule 2 of the Companies (Acceptance of Deposits) Rules, 1975.