Privileges to Infra Companies for raising monies
under Companies Act, 2013
CS Phanindra DVK
M.Com.,MBA, LLM, FCS
PH: +91 9...
Generally, companies involved with Infrastructural Projects or
Infrastructural Facilities require huge capital requirement...
Instruments
Share Capital
Equity shares
Preference
shares
Other
Securities
Debt
(Debentures)
Ways in which money can be ra...
The following provisions of the Companies Act, 2013 and the rules
framed there under, contains the privileges for companie...
Privileges
Preference
Share Capital
(Sec. 55)
Redemption period:
Issue of shares with
redemption period up
to 30 years fro...
Now, we need to see what activities are carried on by the Company(ies), to
qualify / fall under the ambit of “Infrastructu...
Transportation
(including inter modal
transportation), includes the
following:—
• Roads, national highways, state highways...
Agriculture,
including the
following, namely:
• Infrastructure related to storage facilities;
• Construction relating to p...
Water Management,
including the
following, namely:—
• Water supply or distribution;
• Irrigation;
• water treatment.
Telec...
Industrial, Commercial
and social development
and maintenance,
including the following,
namely:—
• Real estate development...
Power,
including the
following:—
• Generation of power through thermal, hydro, nuclear, fossil fuel,
wind and other renewa...
Housing,
including the
following:—
• Urban and rural housing including public / mass
housing, slum rehabilitation, etc.,.;...
Other miscellaneous
facilities/services,
including the following:—
• mining and related activities;
• technology related i...
From the above, it is can be clearly seen that a lot of companies
dealing with Infrastructure Projects /Infrastructural ac...
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SBS And Company LLP
Chartered Accountants
6-3-900/6-9, Flat No. 103 & 104...
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Previlages to infra companies for raising capital under companies act, 2013

Companies Act, 2013 provisions highlighting special privileges extended to infra companies for raising monies
Published on: Mar 4, 2016
Published in: Law      
Source: www.slideshare.net


Transcripts - Previlages to infra companies for raising capital under companies act, 2013

  • 1. Privileges to Infra Companies for raising monies under Companies Act, 2013 CS Phanindra DVK M.Com.,MBA, LLM, FCS PH: +91 9989446236 phanindra@sbsandco.com By
  • 2. Generally, companies involved with Infrastructural Projects or Infrastructural Facilities require huge capital requirement for the business and have long gestation period for generating revenues / recovery of the investments. Apart from the above, with the Government looking at Public-Private Partnership [PPP] model for developing infrastructural projects/facilities, Companies dealing with development of Infrastructural Projects or Infrastructural Facilities are to be given some exceptions/privileges, in the process of raising monies for the business and in the general Business activities. Why Privileges or Exceptions ?? www.sbsandco.com2
  • 3. Instruments Share Capital Equity shares Preference shares Other Securities Debt (Debentures) Ways in which money can be raised www.sbsandco.com3
  • 4. The following provisions of the Companies Act, 2013 and the rules framed there under, contains the privileges for companies dealing with “Infrastructural Facilities” and “Infrastructural Projects”. Section 55 (Preference Shares, Tenure as to redemption) Section 71 (Debentures, Tenure as to redemption) Section 186 (Loans made, Guarantee or Security provided) Privileges www.sbsandco.com4
  • 5. Privileges Preference Share Capital (Sec. 55) Redemption period: Issue of shares with redemption period up to 30 years from the regular 20 years. Debentures (Sec. 71) Redemption period: Issue of Secured Debentures with redemption period of 30 years from the regular 10 years Loans/Security /Guarantee (Sec. 186) Except for Sub- Section (1), the Section 186 not to apply www.sbsandco.com5 Privileges to Infra Companies In addition to Infra Companies, companies permitted by Ministry or Department of the Central Government, RBI, National Housing Bank or any other Statutory Authority may issue Debentures for a period exceeding 10 years.
  • 6. Now, we need to see what activities are carried on by the Company(ies), to qualify / fall under the ambit of “Infrastructural Facilities” or “Infrastructural Projects”. To avoid any ambiguity as to interpretation of the scope of activities, a separate Schedule, detailing the activities which qualify to fall under “Infrastructural Facilities” or “Infrastructural Projects” are included in Schedule - VI to the Companies Act, 2013. So, Infra Companies are not only those companies which deal in construction, but which deal with the activities/projects given in Schedule VI to the Companies Act, 2013. Let us see them in detail…….. Privileges to Infra Companies www.sbsandco.com6
  • 7. Transportation (including inter modal transportation), includes the following:— • Roads, national highways, state highways, major district roads, other district roads and village roads, including toll roads, bridges, highways, road transport providers and other road- related services; • rail system, rail transport providers, metro rail roads and other railway related services; • ports (including minor ports and harbours), inland waterways, coastal shipping including shipping lines and other port related services; • aviation, including airports, heliports, airlines and other airport related services; • logistics services. www.sbsandco.com7 Infra Activities-1/7
  • 8. Agriculture, including the following, namely: • Infrastructure related to storage facilities; • Construction relating to projects involving agro processing and supply of inputs to agriculture • perishable goods such as fruits, vegetables and flowers including testing facilities for quality www.sbsandco.com8 Infra Activities-2/7
  • 9. Water Management, including the following, namely:— • Water supply or distribution; • Irrigation; • water treatment. Telecommunication, including the following, namely:— • Basic or cellular, including radio paging; • Domestic satellite service (i.e., satellite owned and operated by an Indian Company for providing telecommunication service); • Network of trunking, broadband network and internet services. www.sbsandco.com9 Infra Activities-3/7
  • 10. Industrial, Commercial and social development and maintenance, including the following, namely:— • Real estate development, including an industrial park or special economic Zone; • Tourism, including hotels, convention centres and entertainment centres; • public markets and buildings, trade fair, convention, exhibition, cultural centres, sports and recreation infrastructure, public gardens and parks; • construction of educational institutions and hospitals; • other urban development, including solid waste management systems, sanitation and sewerage systems. www.sbsandco.com10 Infra Activities-4/7
  • 11. Power, including the following:— • Generation of power through thermal, hydro, nuclear, fossil fuel, wind and other renewable sources; • Transmission, distribution or trading of power by laying a network of new transmission or distribution lines. Petroleum and Natural gas, including the following:— • Exploration and production; • Import terminals; • Liquefaction and re-gasification; • Storage terminals; • Transmission networks and distribution networks including city gas infrastructure. www.sbsandco.com11 Infra Activities-5/7
  • 12. Housing, including the following:— • Urban and rural housing including public / mass housing, slum rehabilitation, etc.,.; • Other allied activities such as drainage, lighting, laying of roads, sanitation and facilities. www.sbsandco.com12 Infra Activities-6/7
  • 13. Other miscellaneous facilities/services, including the following:— • mining and related activities; • technology related infrastructure; • manufacturing of components and materials or any other utilities or facilities required by the infrastructure sector like energy saving devices and metering devices; • environment related infrastructure; • disaster management services; • preservation of monuments and icons; • emergency services (including medical, police, fire and rescue). • Other Services as may be prescribed www.sbsandco.com13 Infra Activities-7/7
  • 14. From the above, it is can be clearly seen that a lot of companies dealing with Infrastructure Projects /Infrastructural activities will benefit from the said privileges/Exceptions under the Act. www.sbsandco.com14 Finally…….
  • 15. www.sbsandco.com/wiki Read our monthly e-Journal SBS And Company LLP Chartered Accountants 6-3-900/6-9, Flat No. 103 & 104, Veeru Castle Durga Nagar Colony, Panjagutta, Hyderabad - 500 082 Telangana, India. Our Presence in Telangana: Hyderabad (HO) Andhra Pradesh: Nellore, Kurnool, TADA (near Sri City), Vizag Karnataka: Bengaluru +91-40-40183366 / +91-40-64584494 / +91-9246883366 Thanks for your patient hearing!!! CS Phanindra DVK M.Com.,MBA, LLM, FCS PH: +91 9989446236 phanindra@sbsandco.com

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