A public limited company incorporated in 2005 (with paid up capital below 1 crore) had passed a board resolution for entering into contract with a related party (its associate private company with paid up of less than 1 crore) as per definition of 297 of companies act for 6 years.
Now when this period is over they wish to take approval of RD for entering into fresh contract FOR purchase and sale with the same private compnay since the paid up capital of the public compny has increased to 30 crore during thie 6 years span.
NOW THE QUESTION IS THAT IF IT FILES FORM 24A TO RD, WILL THEY ASK FOR EARLIER CONTRACTS VALIDITY AND SEEK COMPOUNDING OR THE COMPANY IS NOT REQUIRED TO GO FOR COMPOUNDING?????????
NEED URGENT ANSWER....
CAclubindia
