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Orchid Chem under MCA scanner

Orchid Chem under MCA scanner
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First Published: Sat, Jun 20 2009. 01 06 AM IST
Updated: Sat, Jun 20 2009. 01 06 AM IST
New Delhi: Hyderabad-based Orchid Chemicals and Pharamaceuticals Ltd is under the scanner of the ministry of corporate affairs, people aware of the matter said.
The issue has its roots in the Ketan Parekh scam in the stock markets. The ministry’s Serious Frauds Investigation Office (SFIO) had in a report expressed its apprehensions regarding the stock movement of some companies in that period, Orchid Chemicals being one of them. The ministry ordered an inspection under section 209 (a) of the Companies Act. The Registrar of Companies (RoC) subsequently looked into the books of accounts of Orchid Chemicals and submitted its report to the ministry.
The people said on condition of anonymity that the report alleges discrepancies with regard to sections 211, 297 and 217 (2a) of the Act. Section 211 deals with the filing of annual balance sheets with the RoC, section 297 specifies guidelines for subscription of shares and debentures by the directors and section 217 mandates stating the change in the nature of the business to the RoC.
The registrar has now sought the ministry’s permission to further probe the trading in shares.
Orchid Chemicals confirmed the inspection by the ministry and said it had provided its books of accounts to the RoC last year.
cnbctv18@livemint.com
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First Published: Sat, Jun 20 2009. 01 06 AM IST