16 August 2009
One of our clients ( Pvt. Ltd. Co.) had some debentures of Rs. 20,000 which were reedemable on 30.6.2008. It re-issued those debentures as on 1.7.2008 for another 17.5 months without any new document or proof ? What should have the above co. done to re-issue the same debentures again or how do i check the same? And what are the provisions of COs Act that it has violated ?
17 August 2009
check the provisions of Companies Acceptance of deposit rules 1975 (Rule 2(b)(x)). for audit point of view, pls check the movement of funds i.e. payment and receipt of money in books and bank statement. Pls also ask for application obtained from debenture holder for issue of debenture and copy of private invitation to prospective debenture holders.
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