Demonetisation: Rs 14 lakh crore in old notes are back, only Rs 75,000 crore out

[RISING SUN]

Over one-third of India’s 1.7 million registered companies shut down till October
More than one-third of the total 1.7 million registered companies in the country were closed down as on end of October, latest official data showed.

While authorities step up their clampdown on companies suspected of being used as a conduit for illegal activities, the number of active companies stood at little over 1.13 million as on 31 October. The corporate affairs ministry, which regulates corporate affairs through the Companies Act, has so far struck off the names of around 224,000 entities that have not been carrying out business activities for long. “The total number of companies registered in the country as on 31 October 2017, stood at 1,704,319...there were 1,130,784 active companies as on 31 October 2017,” the ministry said in a report for October 2017.

According to the report, out of the total, 535,000 companies were closed down, 1,123 were assigned dormant status, 5,957 were under liquidation and 31,666 were in the process of being struck-off, among others. “Out of the 534,674 closed companies, about 10,443 companies were liquidated/ dissolved; 492,735 companies were defunct (and hence struck-off); 19,984 companies were amalgamated/ merged with other companies; 6,719 companies were converted to LLP (limited liability partnership) and 4,793 companies were converted to LLP and dissolved,” it noted.

Among the active companies, the maximum were into business services with the number of such entities touching 334,000, followed by manufacturing (230,000), trading (150,000) and construction (103,000).

In the report, the corporate ministry said a total of 7,556 companies were registered this October compared to 6,542 firms in the year-ago period. “An analysis of registration of new companies during October 2015 to October 2017 indicates that monthly registration of companies has increased after hitting its lowest of 3,994 in April 2016,” the report added.

The companies registered in October 2017 had a collective authorised capital of Rs1,394.61 crore. “Of them 7,524 companies were registered as companies limited by shares with authorised capital of Rs1,394.09 crore; 32 companies were registered as limited by guarantees with authorised capital of Rs52 lakh,” the report said.
http://www.livemint.com/Companies/l...Indias-17-million-registered-companies-s.html

 

[Han Patriot]

Jayant Bhandari on demonetization.

 

[RISING SUN]

Sebi orders forensic audit of Svam Software amid crackdown on shell cos
Markets regulator Sebi has ordered a forensic audit of Svam Software, which figures among 331 suspected shell companies, after finding prima facie evidence of misrepresentation of financials by the firm.

While calling for the forensic audit, the Securities and Exchange Board of India (Sebi) has lifted the trading restrictions imposed on the firm.



"In view of the prima facie evidence on the misrepresentation of financials by the company as well as suspicion of misuse of funds/ books of accounts of the company, the persons who are in control of the company and the directors/promoters of the company are prima facie liable for action by Sebi...," the regulator said in an interim order dated November 27.

The regulator has directed BSE to appoint an independent forensic auditor to verify any misrepresentation of financials and business by Svam Software Ltd (SSL) as well as any misuse of the books of accounts or funds.

"The trading in securities of SSL shall be reverted to the status as it stood prior to issuance of a letter dated August 7, 2017 by Sebi," the regulator said.

SSL is among the firms against whom Sebi initiated action on August 7 by ordering trading restrictions, following receipt of a list of 331 'suspected shell companies' from the government.

The ordered trade restrictions - allowing trade only once a month and that too for only buy transactions with a 200 per cent security deposit - were revoked in some cases a few days later following appeals filed by them with the Securities Appellate Tribunal, but Sebi was asked to continue with its probe and pass its orders expeditiously.

The firm has been given 30 days time to file its reply to the interim order.
http://www.business-standard.com/ar...id-crackdown-on-shell-cos-117112800820_1.html