TaxTMI 
TaxTMI 
Chapter XXVI - Nidhi Rules, 2014.
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....he Companies Act, 1956; and (c) every company incorporated as a Nidhi pursuant to the provisions of section 406 of the Act. 3. Definitions.- (1) In these rules, unless the context otherwise requires,- (a) "Act" means the Companies Act, 2013 (18 of 2013); (b) "Doubtful Asset" means a borrowal account which has remained a nonperforming asset for more than two years but less than three years; (c) "Loss Asset" means a borrowal account which has remained a nonperforming asset for more than three years or where in the opinion of the Board, a shortfall in the recovery of the loan account is expected because the documents executed may become invalid if subjected to legal process or for any other reason; (d) "Net Owned Funds" means the aggregate of paid up equity share capital and free reserves as reduced by accumulated losses and intangible assets appearing in the last audited balance sheet: Provided that the amount representing the proceeds of issue of preference shares shall not be included for calculating Net Owned Funds. (e) "Non-Performing Asset" means a borrowal account in respect of which interest income or instalment....
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....unds to deposits of not more than 1:20. (2) Within ninety days from the close of the first financial year after its incorporation and where applicable, the second financial year, Nidhi shall file a return of statutory compliances in Form NDH-1 along with such fee as provided in Companies (Registration Offices and Fees) Rules, 2014 with the Registrar duly certified by a company secretary in practice or a chartered accountant in practice or a cost accountant in practice. (3) If a Nidhi is not complying with clauses (a) or (d) of sub-rule (1) above, it shall within thirty days from the close of the first financial year, apply to the Regional Director in Form NDH-2 along with fee specified in Companies (Registration Offices and Fees) Rules, 2014 for extension of time and the Regional Director may consider the application and pass orders within thirty days of receipt of the application. Explanation.- For the purpose of this rule "Regional Director" means the person appointed by the Central Government in the Ministry of Corporate Affairs as a Regional Director; (4) If the failure to comply with sub-rule (1) of this rule extends beyond the second financial year, Nidhi sh....
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....ll issue equity shares of the nominal value of not less than ten rupees each: Provided that this requirement shall not apply to a company referred to in sub-rules (a) and (b) of rule 2. (2) No service charge shall be levied for issue of shares. (3) Every Nidhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees: Provided that a savings account holder and a recurring deposit account holder shall hold at least one equity share of rupees ten. 8. Membership.- (1) A Nidhi shall not admit a body corporate or trust as a member. (2) Except as otherwise permitted under these rules, every Nidhi shall ensure that its membership is not reduced to less than two hundred members at any time. (3) A minor shall not be admitted as a member of Nidhi: Provided that deposits may be accepted in the name of a minor, if they are made by the natural or legal guardian who is a member of Nidhi. 9. Net owned funds.- Every Nidhi shall maintain Net Owned Funds (excluding the proceeds of any preference share capital) of not less than ten lakh rupees or such higher amount as the Central Government may specify from time....
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....the Table in sub-rule (2) above shall not accept fresh deposits or renew existing deposits if such acceptance or renewal leads to violation of the prescribed ratio. (4) The ratio specified in sub-rule (2) above shall also apply to incremental deposits. 12. Application form for deposit.- (1) Every application form for placing a deposit with a Nidhi shall contain the following particulars, namely:- (a) Name of Nidhi; (b) Date of incorporation of Nidhi; (c) The business carried on by Nidhi with details of branches, if any; (d) Brief particulars of the management of Nidhi (name, addresses and occupation of the directors, including DIN); (e) Net profits of Nidhi before and after making provision for tax for the preceding three financial years; (f) Dividend declared by Nidhi during the preceding three financial years; (g) Mode of repayment of the deposit; (h) Maturity period of the deposit; (i) Interest payable on the deposit; (j) The rate of interest payable to the depositor in case the depositor withdraws the deposit prematurely; (k) The terms and conditions subject to which the ....
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....h it has relied upon for the purpose of such introduction. (4) For the purposes of introduction of depositors, a Nidhi shall obtain documentary evidence of the depositor in the form of proof of identity and address as under: a. Proof of Identity (any one of the following) (i) Passport (ii) Unique Identification Number (iii) Income-tax PAN card (iv) Elector Photo Identity Card (v) Driving licence (vi) Ration card (b) Proof of address (any one of the following) (i) Passport (ii) Unique Identification Number (iii) Elector Photo Identity Card (iv) Driving licence (v) Ration card (vi) Telephone bill (vii) Bank account statement (viii) Electricity bill (documents referred to serial numbers (vi), (vii) and (viii) above shall not be more than two months old) 13. Deposits.- (1) The fixed deposits shall be accepted for a minimum period of six months and a maximum period of sixty months. (2) Recurring deposits shall be accepted for a minimum period of twelve months and a maximum period of sixty months. (3) In case o....
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....ommitments, temporary withdrawal may be permitted with the prior approval of the Regional Director for the purpose of repayment to depositors, subject to such conditions and time limit which may be specified by the Regional Director to ensure restoration of the prescribed limit of ten per cent. 15. Loans.- (1) A Nidhi shall provide loans only to its members. (2) The loans given by a Nidhi to a member shall be subject to the following limits, namely:- (a) two lakh rupees, where the total amount of deposits of such Nidhi from its members is less than two crore rupees; (b) seven lakh fifty thousand rupees, where the total amount of deposits of such Nidhi from its members is more than two crore rupees but less than twenty crore rupees; (c) twelve lakh rupees, where the total amount of deposits of such Nidhi from its members is more than twenty crore rupees but less than fifty crore rupees; and (d) fifteen lakh rupees, where the total amount of deposits of such Nidhi from its members is more than fifty crore rupees: Provided that where a Nidhi has not made profits continuously in the three preceding financial years, it shall not make....
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....Nidhi. (3) The Director shall be eligible for re-appointment only after the expiration of two years of ceasing to be a Director. (4) Where the tenure of any Director in any case had already been extended by the Central Government, it shall terminate on expiry of such extended tenure. (5) The person to be appointed as a Director shall comply with the requirements of sub-section (4) of section 152 of the Act and shall not have been disqualified from appointment as provided in section 164 of the Act. 18. Dividend.- A Nidhi shall not declare dividend exceeding twenty five per cent. or such higher amount as may be specifically approved by the Regional Director for reasons to be recorded in writing and further subject to the following conditions, namely:- (a) an equal amount is transferred to General Reserve; (b) there has been no default in repayment of matured deposits and interest; and (c) it has complied with all the rules as applicable to Nidhis. 19. Auditor:- (1) No Nidhi shall appoint or re-appoint an individual as auditor for more than one term of five consecutive years. (2) No Nidhi shall appoint or re-appoint an audit firm as audi....
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....s specified in the preceding column. 31-03- 2016 31-03- 2017 (5) (a) The Notes on the financial statements of a year shall disclose- (i) the total amount of provisions, if any, to be made on account of income reversal and non-performing assets remaining unrealised; (ii) the cumulative amount provided till the previous year; (iii) the amount provided in the current year; and (iv) the balance amount to be provided. (b) Such disclosure shall continue to be made until the entire amount to be provided has been provided for. (6) In respect of loans against gold or jewellery- (a) the aggregate amount of loan outstanding against the security of gold or jewellery shall either be recovered or renewed within three months from the due date of repayment; (b) if the loan is not recovered or renewed and the security is not sold within the aforesaid period of three months, the company shall make provision in the current year's financial statements to the extent of unrealised amount or the aggregate outstanding amount of loan including interest as applicable; (c) no income shall be recognised....
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....ther fine which may extend to five hundred rupees for every day after the first during which the contravention continues. Form NDH [F. No. 1/24/2013-CL-V] (Renuka Kumar) Joint Secretary to the Govt of India ============= Document 1 Form NDH-1 Return of Statutory Compliances [Pursuant to sub rule (2) of rule 5 of Nidhi Rules, 2014) 1. Corporate Identification Number (CIN) of Nidhi : 2. (a) Name of the Nidhi: (b) Address of the registered office: (c) E-mail id, if any: (d) Phone Number: 3. (a) Number of subscribers to the Memorandum (b) Number of members admitted since date of incorporation upto the end of the first financial year (c) Number of persons who have ceased to be members upto the end of the first financial year (d) Number of members as at the end of the first financial year 4. 5. Whether the number of members as at the end of the first financial year is 200 or more Yes No If answer to Sl. No. 4 is No, whether application for extension of time has Annexure 19 been made to Registrar If yes, SRN of the application Paid up equity share capital Free reserves Less:....
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....d also CP No. Note: This eform has been taken on file maintained by the Registrar of companies through electronic mode and on the basis of statement of correctness given by the filing company. Attention is also drawn to provisions of section 448 of the Act which provide for punishment for false statement and certification. 22 22 Form NDH-2 Application for extension of Time (Pursuant to sub-rule (3) of rule 5 of Nidhi Rules, 2014) The Regional Director Ministry of Corporate Affairs, (respective jurisdiction) 1. Corporate Identification Number (CIN) of Nidhi : 2. (a) Name of the Nidhi: (b) Address of the registered office: (c) E-mail id, if any: (d) Phone Number: 3. Date of Incorporation : 4. Application filed for extension of time for complying with rule 5(1)(a) 5(1)(d) 5. Position as at the end of the previous financial year (based on audited financial statement) (a) Number of members (b) Ratio of Net Owned Funds to Deposits 23 6. Period for which extension is sought for complying with the requirement of (a) Rule 5(1)(a) or (b) Rule 5(1)(d) or (c) Both (a) & (b) above 7. Reasons fo....
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....nning of Received during the half year Fixed Deposit Recurring Deposit Savings Deposit Cumulative Deposit Others, if any (specify) TOTAL the half year 7. Loans (Amount in Rs) Repaid during the half year Nature Loans of Balance of Loan Disbursed at the beginning of during the half year Realized during the half year Loans against immovable property Loans against the half year Jewels Loans against Deposits Other loans, if any (specify security) Loans to employees TOTAL 8. Details relating to litigation, if any. Balance of deposits at the end of the year half Balance of Loans at the end of the year half 27 Suit filed accounts At the Filed during beginning of the half year the half year Disposed off during the half year No: of Amount (Rs) of cases cases (Rs) of cases (Rs) Outstanding at the end of the half year No: Amount No: Amount No: of cases Amount (Rs) 9. Financial summary: (i) Ratio of Net Owned Funds to Deposits (ii) Tot....