TaxTMI 
TaxTMI 
2013 (7) TMI 279
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....ations 1999 (hereinafter referred to as 'Regulations'). A provisional registration under Regulation 71, read with Regulation 71(1) was granted subject to the conditions therein. One of the conditions was in terms of Regulation 9(c), which states that the applicant should have a 'net worth' of not less than Rs.5 crores. Hence, if that condition or any other condition was not fulfilled, the appellant would not be entitled for registration. The appellant was unable to comply with the same. Hence, a notice was issued as to why they should not be directed to wind-up the same and to repay the investors the amount received by them. 4. On hearing, an order was passed by the second respondent directing winding-up of the scheme. An appeal was preferred before the Appellate Tribunal. The Tribunal set-aside the order and remanded the matter to the second respondent for fresh disposal. Once again the appellant was heard. He could not satisfy the condition at clause 9(c) of the Regulation. Therefore, they were directed to wind up the existing scheme and repay the investors. Aggrieved by the same, the appellant preferred an appeal before the Tribunal which was pending on the date of filing the....
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....ot written off;" 11. The application for grant of a certificate is subject to the conditions as mentioned in Regulation 9. The conditions as mentioned in regulation 9 requires to be fulfilled. The grievances of the appellant is with reference to clause (c) of Regulation 9, which reads as follows: "9. Conditions for eligibility: The Board shall not consider an application for the grant of a certificate unless the applicant satisfies the following conditions, namely: (a) xxxxxxxx (b) xxxxxxxx (c) the applicant has a net worth of not less than rupees five crores; Provided that at the time of making the application, the applicant shall have a minimum net worth of rupees three crores which shall be increased to rupees five crores within three years from the date of grant of registration; (d) to (k) xxxxxxxxxxxxxxxxx" 12. Therefore, one of the conditions for eligibility is that the applicant should have a 'net worth' of not less than Rs.5 crores, provided that at the time of making the application, the applicant shall have a minimum 'net worth' of Rs. 3 crores, which shall be increased to Rs.5 crores, three years from the date of grant of ....
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....the Companies Act or in the Accounting guidelines issued by the Institute for Chartered Accountant of India, that the assets of the company should not be revalued. That it is a well settled principle of accounting, that the balance-sheet should truly and fairly reflect the value of the assets. That the petitioner owns a large extent of 1272 acres. The teak trees planted are in a portion of the land to an extent of 400 acres. The petitioner company valued the standing timber. The value was found significantly higher than the balance sheet figures and therefore after making a conservative assessment, the standing timber was revalued and brought to books. These revaluations have now resulted in the balance sheet of the company reflecting the true value of a portion of its assets. That such a revaluation far exceeds the requirements of regulation 9(c). That the 'net worth' of the company as on September 2005 was Rs.53.49 crores in terms of the valuation issued by the Chartered Accountant and the registered valuer. Further, Regulation 9(c) prescribes the condition for eligibility. That the eligibility excludes the funds created out of revaluation. Therefore, this condition is unreasonab....
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.... the investors even under the existing schemes, unless a Certificate of Registration is granted to it under the said Regulations. 18. The grant of the certificate is subject to the conditions in Regulation 9. Therefore, the Act and Regulations are intended to promote the orderly and healthy growth of the securities market, for investors protection etc. Therefore, various powers and duties are vested with the Board to effectively deal with the capital markets. Under these circumstances, the grant of certificate is necessarily, subject to the conditions as mentioned in Regulation 9. Therefore, if the conditions are not fulfilled, the applicant would not be entitled for such a certificate. 19. As a result of the conditions prescribed in the Regulations, the objects of the Act are sought to be achieved, namely to promote an orderly healthy growth of the market and for investors protection etc. It is in pursuance of the objects sought to be achieved, that the regulations prescribe, the conditions for eligibility for a certificate, wherein the applicant should have a 'net worth' of not less than Rs.5 crores. The exclusion of funds created out of revaluation in terms of the definiti....