Nidhi Company

Reporting requirement

Report whether the Nidhi Company has complied with the net owned funds to deposits ratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining 10% unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability. Whether there has been any default in payment of interest on deposits or repayment thereof for any period and if so, the details thereof.

What to verify before signing

• Nidhi Rules 2014 — net owned funds ≥ ₹10 lakh
• Deposit acceptance limit (not exceeding 20x of NOF)
• 10% unencumbered term deposits maintained
• Default register; interest payment regularity

Sample observation — applicable

Sample observation — not applicable

In our opinion, the Company is not a Nidhi Company. Accordingly, the provisions of clause 3(xii) of the Order are not applicable.

Exemptions / applicability

Only Nidhi Companies under Section 406 read with Nidhi Rules 2014.