Affidavit in terms of Nidhi Rule and under Section 406 of the Companies Act, 2013



Affidavit in terms of Nidhi Rule and under Section 406 of the Companies Act, 2013


In connection with the Incorporation of ----------------------------[Proposed Company Name], I ---------------------------------[Name of Director/Subscriber] being one of the Promoters/Directors of the company, hereby declare that-
  1. That the proposed company once incorporated shall not carry business of Non-Banking Financial Company subsequently and whenever company changes its objects, to the effect that company directors shall not accept deposits unless compliance with the applicable provisions of Companies Act 2013, RBI Act, 1934 and SEBI Act, 1992 and rules/directions/regulations made there under are duly complied and filed with the concerned authorities.
  1. Section 406 of the Companies Act, 2013 is complied with & will be completely complied with in future.
  1. The company will Submit MCA Approval Required, if any, to do business for a Nidhi Company at the time of obtaining Commencement of Business and any business will be carried on by the company only thereafter.
 
Further hereby undertake that the company/directors shall, within a period of one year from the commencement of these rule/ Incorporation of company, insure that it has:
  1. Not less than two hundred members;
  2. Net owned funds of ten lakh rupees or more;
  3. Unencumbered term deposits of not less than 10% of the outstanding deposits as specified in rule 14 and;
  4. Ratio of net owned funds to deposits of not more than 1:20;
  5. The company shall not issue preference shares, debentures, or any debt instruments by any name or in any form whatsoever;
  6. Company shall not open current account with its members.
 
 
Date:
Place:                                                                                                                       (Name of Director/Subscriber)                                                                                          

                                                                                                                                 PAN/DIN:____________