Deficiencies generally observed in respect of the applications for payment of higher

(i) Application fee is not paid in proper manner. Sometimes the Demand Draft is not for the full amount of application fee and sometimes the demand draft

is not payable in favour of Pay & Accounts Officer, Department of Company Affairs, New Delhi as prescribed in rule 2 of the Companies (Fees for

Application) Rules, 1961 as amended vide GSR No. 501 (E) dated 6.7.1999.

(ii) Application is not filled in properly and completely in respect of all columns. If a column is left blank, the letters N.A. should be filled up implying ‘Not

Applicable’ .

(iii) Applications are submitted after remuneration in excess of Schedule XIII has already been paid to the managerial person.

(iv) Certified copies of Newspaper clipping of notices, in original, published in the

Newspaper in English and in local Newspaper in local language as required

in terms of Section 640B of the Companies Act are not furnished.

(v) Certified copies of directors report and audited accounts of the company for each of the last 5 financial years of the company are not enclosed.

(vi) In case of foreign collaboration, certified copy of the PIPB approvalletter(s) is not furnished.

(vii) Remuneration drawn by the proposed appointee from the applicant company or from any other company during the past 3 years prior to the proposed date of appointment is not indicated in terms of monetary package.

(viii) Requirements of section 316 (2)/(4) of the Companies Act are not followed where the proposal is for appointment as managerial person in two or

more than two companies and resolution is not passed by all the companies concerned.

(ix) Estimated project cost and source of finance together with projected equity, position regarding growth in effective capital, projection of turnover and net

profit as computed under section 198 of the Companies Act, 1956 for the next five years is not given as required in col. 4 of the application (Forms 25A

and 26) in respect of new companies.

(x) Figure of turnover, net profit as computed under section 198 of the Companies Act, 1956, as projected/unaudited for the year in which the application is

made, is not given even if the application is made towards the end of Financial year / after the end of Financial Year, unaudited figures of working results

\ire not furnished.

(xi) In case of proposal for mid-term increase for remaining period, it is not indicated how the requirement of Section 269(2) of the Companies Act, 1956

read with part I and II of Schedule XIII was met at the time of appointment of MD/WTD/Manager and how the mid-term increase in remuneration is justified

in terms of working results of the company.