Hit by slowdown, 2.68 lakh companies shut down
Updated: Mar 18, 2014 01:01:10pm
New Delhi, Mar 18 (KNN) As many as 2.68 lakh companies have been shut down and 27,617 firms are in the process of being closed owing to difficulties in the sector, as per the data compiled by the Ministry of Corporate Affairs.
“...and as many as 1.43 lakh companies have not filed their annual returns/balance sheets (annual statutory filings) for more than three consecutive years, and are classified as dormant,” it added.
Closure of such a large number of companies is to be seen in the context of difficulties being faced by the industrial sector since 2007-08 after the global financial crisis had erupted.
The problem is more pronounced in the MSME sector, which is burdened with heavy debt and demand slowdown. The spin is being felt even in the banking sector which has done heavy lending to the industrial sector and piled up large scale non-performing assets.
Meanwhile, as many as 264 new companies being set up every day on an average during January with most of them getting registered in Maharashtra.
The total number of new companies registered with the government touched 8,206 during the month. The overall authorised capital of these entities stood at Rs 943.21 crore, according to the Corporate Affairs Ministry.
Of the new ones set up in January, 8,174 entities were registered as companies limited by shares with an authorised capital of Rs 943.15 crore.
About 31 entities were set up as companies limited by guarantees and their total authorised capital was Rs 6 lakhs.
“Under the category of companies registered as limited by shares, Maharashtra had the maximum number of registrations (1,563), followed by Delhi (1,356) and Uttar Pradesh (741),” the Ministry said in its latest newsletter.
Two state-level and two central-level public sector undertakings were registered during the month.
The country had 13.77 lakh registered companies at the end of January while there were 9.37 lakh active companies.
In a reflection of substantial corporate activity, 1.4 lakh companies among the active ones “were incorporated within the preceding 18 months” according to the newsletter. (KNN/SD)
“...and as many as 1.43 lakh companies have not filed their annual returns/balance sheets (annual statutory filings) for more than three consecutive years, and are classified as dormant,” it added.
Closure of such a large number of companies is to be seen in the context of difficulties being faced by the industrial sector since 2007-08 after the global financial crisis had erupted.
The problem is more pronounced in the MSME sector, which is burdened with heavy debt and demand slowdown. The spin is being felt even in the banking sector which has done heavy lending to the industrial sector and piled up large scale non-performing assets.
Meanwhile, as many as 264 new companies being set up every day on an average during January with most of them getting registered in Maharashtra.
The total number of new companies registered with the government touched 8,206 during the month. The overall authorised capital of these entities stood at Rs 943.21 crore, according to the Corporate Affairs Ministry.
Of the new ones set up in January, 8,174 entities were registered as companies limited by shares with an authorised capital of Rs 943.15 crore.
About 31 entities were set up as companies limited by guarantees and their total authorised capital was Rs 6 lakhs.
“Under the category of companies registered as limited by shares, Maharashtra had the maximum number of registrations (1,563), followed by Delhi (1,356) and Uttar Pradesh (741),” the Ministry said in its latest newsletter.
Two state-level and two central-level public sector undertakings were registered during the month.
The country had 13.77 lakh registered companies at the end of January while there were 9.37 lakh active companies.
In a reflection of substantial corporate activity, 1.4 lakh companies among the active ones “were incorporated within the preceding 18 months” according to the newsletter. (KNN/SD)
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