9911796707
TMI BlogChapter XXVI - Nidhi Rules, 2014.X X X X Extracts X X X X X X X X Extracts X X X X ..... incorporated as a Nidhi pursuant to the provisions of section 406 of the Act. 3. Definitions.- (1) In these rules, unless the context otherwise requires,- (a) "Act" means the Companies Act, 2013 (18 of 2013); (b) "Doubtful Asset" means a borrowal account which has remained a nonperforming asset for more than two years but less than three years; (c) "Loss Asset" means a borrowal account which has remained a nonperforming asset for more than three years or where in the opinion of the Board, a shortfall in the recovery of the loan account is expected because the documents executed may become invalid if subjected to legal process or for any other reason; (d) "Net Owned Funds" means the aggregate of paid up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet: Provided that the amount representing the proceeds of issue of preference shares shall not be included for calculating Net Owned Funds. (e) "Non-Performing Asset" means a borrowal account in respect of which interest income or instalment of loan towards repayment of principal amount has remained unrealised for twelve months; (f) "S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial year, Nidhi shall file a return of statutory compliances in Form NDH-1 along with such fee as provided in Companies (Registration Offices and Fees) Rules, 2014 with the Registrar duly certified by a company secretary in practice or a chartered accountant in practice or a cost accountant in practice. (3) If a Nidhi is not complying with clauses (a) or (d) of sub-rule (1) above, it shall within thirty days from the close of the first financial year, apply to the Regional Director in Form NDH-2 along with fee specified in Companies (Registration Offices and Fees) Rules, 2014 for extension of time and the Regional Director may consider the application and pass orders within thirty days of receipt of the application. Explanation.- For the purpose of this rule "Regional Director" means the person appointed by the Central Government in the Ministry of Corporate Affairs as a Regional Director; (4) If the failure to comply with sub-rule (1) of this rule extends beyond the second financial year, Nidhi shall not accept any further deposits from the commencement of the second financial year till it complies with the provisions contained in sub-rule (1), besides being liable for penal co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees: Provided that a savings account holder and a recurring deposit account holder shall hold at least one equity share of rupees ten. 8. Membership.- (1) A Nidhi shall not admit a body corporate or trust as a member. (2) Except as otherwise permitted under these rules, every Nidhi shall ensure that its membership is not reduced to less than two hundred members at any time. (3) A minor shall not be admitted as a member of Nidhi: Provided that deposits may be accepted in the name of a minor, if they are made by the natural or legal guardian who is a member of Nidhi. 9. Net owned funds.- Every Nidhi shall maintain Net Owned Funds (excluding the proceeds of any preference share capital) of not less than ten lakh rupees or such higher amount as the Central Government may specify from time to time. 10. Branches.- (1) A Nidhi may open branches, only if it has earned net profits after tax continuously during the preceding three financial years. (2) Subject to the provisions contained in sub-rule (1), a Nidhi may open up to three branches within the district. (3) If a Nidhi proposes to open ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e following particulars, namely:- (a) Name of Nidhi; (b) Date of incorporation of Nidhi; (c) The business carried on by Nidhi with details of branches, if any; (d) Brief particulars of the management of Nidhi (name, addresses and occupation of the directors, including DIN); (e) Net profits of Nidhi before and after making provision for tax for the preceding three financial years; (f) Dividend declared by Nidhi during the preceding three financial years; (g) Mode of repayment of the deposit; (h) Maturity period of the deposit; (i) Interest payable on the deposit; (j) The rate of interest payable to the depositor in case the depositor withdraws the deposit prematurely; (k) The terms and conditions subject to which the deposit may be accepted or renewed; (l) A summary of the financials of the company as per the latest two audited financial statements as given below: (i) Net Owned Funds (ii) Deposits accepted (iii) Deposits repaid (iv) Deposits claimed but remaining unpaid (v) Loans disbursed against- (a) immovable property; (b) deposits; and (c) gold and jewellery (vi) Profit before tax (vii) Provision for tax (viii) Profit after tax (ix ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ration card (vi) Telephone bill (vii) Bank account statement (viii) Electricity bill (documents referred to serial numbers (vi), (vii) and (viii) above shall not be more than two months old) 13. Deposits.- (1) The fixed deposits shall be accepted for a minimum period of six months and a maximum period of sixty months. (2) Recurring deposits shall be accepted for a minimum period of twelve months and a maximum period of sixty months. (3) In case of recurring deposits relating to mortgage loans, the maximum period of recurring deposits shall correspond to the repayment period of such loans granted by Nidhi. (4) The maximum balance in a savings deposit account at any given time qualifying for interest shall not exceed one lakh rupees at any point of time and the rate of interest shall not exceed two per cent. above the rate of interest payable on savings bank account by nationalised banks. (5) A Nidhi may offer interest on fixed and recurring deposits at a rate not exceeding the maximum rate of interest prescribed by the Reserve Bank of India which the Non-Banking Financial Companies can pay on their public deposits. (6) A fixed deposit account or a recurring deposit a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the total amount of deposits of such Nidhi from its members is more than twenty crore rupees but less than fifty crore rupees; and (d) fifteen lakh rupees, where the total amount of deposits of such Nidhi from its members is more than fifty crore rupees: Provided that where a Nidhi has not made profits continuously in the three preceding financial years, it shall not make any fresh loans exceeding fifty per cent. of the maximum amounts of loans specified in clauses (a), (b), (c) or (d). Provided further that a member shall not be eligible for any further loan if he has borrowed any earlier loan from the Nidhi and has defaulted in repayment of such loan. (3) For the purposes of sub-rule (2), the amount of deposits shall be calculated on the basis of the last audited annual financial statements. (4) A Nidhi shall give loans to its members only against the following securities, namely:- (a) gold, silver and jewellery: Provided that the repayment period of such loan shall not exceed one year. (b) immovable property: Provided that the total loans against immovable property [excluding mortgage loans granted on the security of property by registered mortgage, being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and interest; and (c) it has complied with all the rules as applicable to Nidhis. 19. Auditor:- (1) No Nidhi shall appoint or re-appoint an individual as auditor for more than one term of five consecutive years. (2) No Nidhi shall appoint or re-appoint an audit firm as auditor for more than two terms of five consecutive years; Provided that an auditor (whether an individual or an audit firm) shall be eligible for subsequent appointment after the expiration of two years from the completion of his or its term. Explanation: For the purposes of this proviso: (i) in case of an auditor (whether an individual or audit firm), the period for which he or it has been holding office as auditor prior to the commencement of these rules shall be taken into account in calculating the period of five consecutive years or ten consecutive years, as the case may be; (ii) appointment includes re-appointment. 20. Prudential norms.- (1) Every Nidhi shall adhere to the prudential norms for revenue recognition and classification of assets in respect of mortgage loans or jewel loans as contained hereunder. (2) Income including interest or any other charges on non-performing assets shall be reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tstanding amount of loan including interest as applicable; (c) no income shall be recognised on such loans outstanding after the expiry of the three months period specified in (a) above or sale of gold or jewellery, whichever is earlier; and (d) the loan to value ratio shall not exceed 80 percent. Explanation.- For the purposes of this rule, the term 'loan to value ratio' means the ratio between the amount of loan given and the value of gold or jewellery against which such loan is given. 21. Filing of half yearly return.- Every company covered under rule 2 shall file half yearly return with the Registrar in Form NDH-3 along with such fee as provided in Companies (Registration Offices and Fees) Rules, 2014 within thirty days from the conclusion of each half year duly certified by a company secretary in practice or chartered accountant in practice or cost accountant in practice. 22. Auditor's certificate.-The Auditor of the company shall furnish a certificate every year to the effect that the company has complied with all the provisions contained in the rules and such certificate shall be annexed to the audit report and in case of non-compliance, he shall specifically state t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
