November 06, 2001
‘7’
NON-FILING OF ANNUAL RETURNS BY COMPANIESThe number of companies that filed annual returns during 1999-2000 were 220,370. It were 187,770 companies that did not file their annual returns in 1998-99. Similarly, during 1997-98, 174,444 companies did not file their returns with the Registrars of Companies.
The Companies Act, 1956, provides for disqualifying directors of public companies which have not filed the annual accounts and annual returns for any continuous three financial years commencing on and after the first day of April, 1999, from being appointed directors of other public companies for a period of five years.
During 2000, the Department of Company Affairs (DCA) had launched a scheme, the Company Law Settlement Scheme, wherein companies which defaulted in filing documents in the past could come forward and avail of one time declaration and settlement. This amnesty scheme was in operation from June 1, 2000 to September 30, 2000. An amount of Rs.136.83 crores was collected from 1.77 lakh defaulting companies under the Scheme.