The
Inspection u/s 209A of the Companies Act, 1956 of the books of accounts &
other records of DDCA revealed violations of Sec. 36, 150, 166/210, 209(1),
209(3)(b), 211 read with Sch. VI, 211(3A)/(3C) read with Accounting Standard -
5, 15, 18, 19, 22, 29, Sec. 217(3), 285, 299, 303, 309, and Section 314 of the
Companies Act, 1956. Further, non-compliance of the provisions of Sec. 227 by
the auditors has also been pointed out.
Ministry has given directions to Registrar of Companies, Delhi (ROC) to provide
opportunity to file compounding applications u/s 621A of the Act failing which
to proceed under that section. Further, ROC has also been directed to refer the
matter relating to the Auditor to the Institute of Chartered Accountant of
India.
For violation of Sec. 36, 166/210, 209(1), 211 read with Sch. VI, 211 (3A)/(3C)
read with Accounting Standard – 15 & 18, 285, 217(3), 303(1) & 314 the
company and three members of its executive committee have submitted applications
u/s 621A of the Act for compounding of the offence.
In respect of the violations for which compounding applications have not been
submitted till date, the Ministry has directed the Registrar of Companies,
Delhi to provide 15 days time, failing which to launch prosecution.
In terms of the provisions of Companies Act, it is not open to the Government
to forbid use of proxies where Articles of Association of a company so provide.
However, the issue of large number of proxies in this Company was brought to
the notice of Ministry of Youth Affairs and Sports after the inspection report
was received.
This Ministry has referred the findings of the Inspection to Income Tax
Department and the nominee directors of DDCA for appropriate action.
This information was given by Smt. Nirmala Sitharaman, MoS in the Ministry of
Corporate Affairs in written reply to a question in the Lok Sabha today.
