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DCA orders action against Kirtami Exim

Our Bureau

NEW DELHI, Sept. 26

THE Department of Company Affairs (DCA) has ordered prosecution of Kirtami Exim Ltd, a Meerut-based company and its directors in default for violation of the provisions of Section 383 A of the Companies Act, 1956 for not appointing a full-time qualified company secretary even though the paid-up capital of the company was more than Rs 50 lakh.

In yet another violation of the Act, the company has changed its object clause in memorandum of association without obtaining due approval of the Government.

The company has also not complied with the provisions of Section 209 of the Companies Act and incurred expenses on foreign tour and travel without any supporting vouchers, for which also prosecution has been ordered.

According to an official release, the company has also violated provisions of Section 211 of the Act by revaluation of land and crediting the enhanced value to capital reserve account, out of which, money was utilised for issue of bonus shares.

It has also shown accumulated losses on the liability side under the head `Reserves & Surplus,' thereby, violating the provisions of the Section 211 read with Schedule VI of the Act, yet another ground for prosecution that has been ordered.

The prosecutions follow inspection of the books of account and other records of the company under Section 209A of the Act.