Power to modify Act in its application to Nidhis etc. - Notified Nidhis- Amendments in Notification No. GSR 309(E), dated 30-4-2002 - G.S.R. 203(E). - Companies Law

MINISTRY OF COMPANY AFFAIRS NOTIFICATION New Delhi, the 31 st March, 2006 Subject:- Power to modify Act in its application to Nidhis etc. - Notified Nidhis- Amendments in Notification No. GSR 309(E), dated 30-4-2002 G.S.R. 203(E).- In exercise of the powers conferred by sub-section (1) of section 637A of the Companies Act, 1956 (1 of 1956), the Central Government hereby makes the following amendments in the Notification of the Government of India, the erstwhile Ministry of Law, Justice and Company Affairs (Department of Company Affairs) No. GSR 3O9(E), dated 30th April, 2002, published in the Gazette of India, Extraordinary, Part II, section 3, sub-section ( i ), dated the 30th April, 2002, namely: In the said notification, in clause (1); in sub-clause ( ii ) ( i ) for the proviso to Explanation (5), the following shall be substituted, namely: Provided that the Nidhi companies or Mutual Benefit Societies incorporated on or before 26-7-2001 shall make provisions in respect of loans disbursed and outstanding as on 31-3-2002 for income reversal and Non Performing Assets as per table given below : TABLE For the Year Ended Extent of Provision 31-3-2006 50% of pre-tax profit as per published accounts 31-3-2007 50% of pre-tax profit as per published accounts 31-3-2008 Un-provided balance on an equal basis over the balance 4 years 31-3-2009 31-3-2010 31-3-2011 Provided further that a Nidhi company or a Mutual Benefit Society may make the provisions exceeding the above limits: Provided also that the accounts for the year ending on 31-03-2006 and the accounts for succeeding years should clearly indicate the total amount of provision to be made on account of income reversal and non-performing assets remaining unrealised by notes on accounts and the amount provided in that year and the balance amount to be provided, till the entire amount of income recognized without providing for Non Performing Assets and the amount remain unprovided for Non Performing Assets as on 31-3-2002 : Provided also that it shall be the duty of the Statutory Auditor to certify that the note exhibit true and fair view of the same ;