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Urgent

Kanika Gupta (C.S Trainee) (100 Points)

26 July 2010

The Balance Sheet status of the company is: Assets are showing Loans & Advances & Cash

Liabilities are showing Share Capital & reserves & Surplus.

The company is not working for the past 2 years.

Can it still go for Easy Exit Scheme??

Pls reply, its urgent

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3 Replies

vishnu chavda (CS-Final Year Student) (28 Points)
Replied 26 July 2010

Hi,

Applicant company should be a defunct company.

“Defunct company” means a company registered under the Companies Act, 1956 which is not carrying over any business activity or operation on or after the 1st April, 2008.

Yes company can go for easy exit scheme.

Following shall not make application: -

(a) Listed companies;

(b) Companies registered under section 25 of the Companies Act, 1956;

(d) Companies where inspection or investigation is ordered and being carried out or yet to be taken up or where completed prosecutions arising out of such inspection or investigation are pending in the court;

(e) Companies where order under section 234 of the Companies Act, 1956 has been issued by the Registrar and reply thereto is pending or where prosecution if any, is

pending in the court;

(f) Companies against which prosecution for a non compoundable offence is pending in court;

(g) Companies accepted public deposits which are either outstanding or the company is in default in repayment of the same;

(h) Company having secured loan;

(i) Company having management dispute;

(j) Company in respect of which filing of documents have been stayed by court or Company Law Board(CLB) or Central Government or any other competent authority;

(k) Company having dues towards income tax or sales tax or central excise or banks and financial institutions or any other Central Government or State Government Departments or authorities or any local authorities.

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Kanika Gupta (C.S Trainee) (100 Points)
Replied 27 July 2010

Thanks Vishnu, but my question is whether I can go for Easy Exit Scheme, with the abovementioned Balance Sheet items???

If Yes,plz tell how to treat the reserves & surplus and loans and advances given.

Kiran Toshniwal (Practicing Company Secretary) (142 Points)
Replied 27 July 2010

Hi,

You can go Easy Exit Scheme. Share Capital, reservers an surplus can be distributed among shareholders. Otherwise, Once the Company is closed, assets will be under the control of govenment.

Company should be registered on or before 1st April, 2008.