More than 3.38 lakh companies canceled in the last two financial years: Government

NEW DELHI: More than 3.38 lakh companies were removed from official records in the last two financial years for not filing annual returns, according to the government. The ministry of corporate affairs has eliminated the names of these companies for not submitting annual returns for two or more financial years continuously.

The state minister for corporate affairs, Anurag Singh Thakur, told Lok Sabha on Monday that the ministry through its RoCs (Company Registry) files prosecutions against companies that have not submitted financial statements from time to time.

During fiscal year 2017-18 and 2018-19, the RoCs eliminated/eliminated 3.38,963 companies ... for not presenting financial statements or annual statements for a continuous period of two or more financial years, he said in a written response .

RoCs may remove the names of such companies from official records in case they have not requested latent status under the Company Law of 2013.

In a separate written response, Thakur said that, as far as the ministry is concerned, section 182 of the Companies Law sets out how a company can contribute money to any political party or person for political purposes.

The section also sets out how each company should disclose in its profit and loss account any amount that it contributed during a financial year, and the criminal provision in the event that the company and its officers incur in default, he said.

The answer was a question about whether the government believes that there is too much influence on the politics of large companies in terms of party financing, as well as obtaining public contracts.