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DCA action against Vadodara co

NEW DELHI, Feb.23 The Department of Company Affairs (DCA) has ordered prosecution against a Vadodara-based cement company, Panchmahal Cement Company Ltd, and its directors for their failure to obtain prior approval of the Union Government for making investment in other body corporate in excess of the limit prescribed under the provisions of Section 372 of the Companies Act, 1956.

Prosecution for violation of Section 68 read with Section 62 and 63 of the Act has also been ordered for making false statement in the prospectus at the time of public issue and inviting public to invest in the company.

Further, the company has increased the amount of sitting fee of directors without approval of the shareholders as required under Section 309 (1) of the Act. Prosecution in this regard has also been ordered by the DCA.

Prosecution for violation of Section 295 of the Act has also been ordered against the company and its directors for not obtaining prior approval of the Union Government for giving loans to a body corporate in which a director of the company is a director .

The company has also not complied with the provisions of Section 224(8) and 205(2)(b) of the Act regarding payment of remuneration to its auditors and not providing adequate depreciation on assets utilised for extra and multiple shifts. The prosecutions follow inspection by the DCA under Section 209 A of the Act. -- Our Bureau