Introduction to automobile company
Indian Automobile Companies
India Is The 11th Largest Passenger Cars Producing Countries In The World And 4th Largest In Heavy Trucks.
The automotive industry designs, develops, manufactures, markets, and sells the world's motor vehicles. In 2008, more than 70 million motor vehicles, including cars and commercial vehicles were produced worldwide
An embryonic automotive industry started in India in the 1940s. However, for the next 50 years, the growth of the industry was hobbled by the Socialist policies and the bureaucratic hurdles of the license raj. Following economic liberalisation in India from 1991, and the gradual easing of restrictions on industry, India has seen a dynamic 17% annual growth in automobile production and 30% annual growth in exports of automotive components and automobiles. India produces around 2 Million automobiles currently. The Largest companies in India are TATA and Mahindra & Mahindra. Total turnover of the Indian automobile industry is expected to grow from USD 34 Billion in 2006 to USD 122 Billion in 2016. Tata Motors has just launched Tata Nano, the cheapest car in the world at USD 2200. Recently India has overtaken China in global auto exports of compact car this year . Suzuki Motor Corp, Hyundai Motor Co, and Nissan Motor Co are making India a manufacturing hub of minicars.
In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage. Roughly half of the US's fifty-one light vehicle plants are projected to permanently close in the coming years, with the loss of another 200,000 jobs in the sector, on top of the 560,000 jobs lost this decade. Combined with robust growth in China, in 2009, this resulted in China becoming the largest automobile market in the world.
Chand Automobiles Limited
Here firstly I have approved the name of my company by give an application in registrar office. In the application I have specified my new company's name situation where it is situated.
As we know that the ministry of corporate affairs has launched a programme for managing the work relating to filling of document etc. with roc etc and will get approvals from ministry of corporate affairs.
MCA-21 project is designed to fully fully automate all processes related to enforcement and legal requirements under companies act 1956.
The following 9 matters I will cover under MCA-21 project since 15-9-2006.
But MCA-21 scheme does not cover matters relating to liquidation of the companies.
- Registrartion & Incorporation of new Company.
- Filling for forms of change name/address/directors details
- Inspection of documents
- Application for permission required
Investor grievance redressal.
Filling of annual returns & balance sheets
Registration modification & verification of charges.
Issue of certified copies
Approval from central Government, Regional Director & ROC
Form Of Registration:
If any person and association want to make new company related to automobile company then there are some form should be fulfill then after they success in his mission, means opening a new automobile company , so that the information about the form is following;
Cofidental—Please Complete All Section And Boxes.
Firstly the proprietor fill his full name……Chhavi Kohli……
Secondly he or she describe his contact name and his telephone number
Chhavi Kohli 9999996665 …………….
Doctor telephone number…0129381234……………..
Date of birth………14-jul-1968…………………….
Describe any disability, if yes…no……..
Have you ever suffered a serious injury or discomfort while riding or been advise not to ride? yes………..no……no…….
Emergency Contact And Doctor Detail
Contact name and relationship…… Nalneesh……(family advocate)…
Doctor name ……Ribusangrai………………
Please specify the type of company _new company
Name of the company_ Chand automobiles limited
State whether the company is public or private _ Public Company
Whether the company is having _ Share Capital
Authorized stare capital of the company _25,00,000 Rs
Breakup Of Authorized Capital :
[a] number of equity shares 10000.
[b] face value of per equity share Rs. 20.
[c]total amount Rs 3,00,000
[d] number of preference share 10,000
[e] face value per preference share Rs 30
[f]total amount of preference share Rs 4;00;0000
The maximum number of members in case of company limited by members Whether present residential address is same as the permanent address : yes
Memorandum of association & articles of association are submitted here with.
Chhavi Kohli d\o sh. Ashish Kohli do solemnly as under
[i] that I am _ a person named as a director of the company.
[ii] and I further declare that the particulars are given above are true to the best of the my knowledge & belief.
[iii] I further confirm that I am duly authorized to submit this application as an subscribed by the subscribers of the company.
[iv]that all the requirements of the companies act , 1956 and rules there under in respect of all the matters precedent in the registration of the company and incidental there to have been complied with and I make them solemn declaration conscientiously believing the same to be true.
The company act 1948 to 1981
The company limited by shares
Memorandum Of Association Of Chand Automobiles Limited
- The name of company is Chand automobiles limited the company is to be a public company
The object of the company:-
The registered office of the company is situated in Mumbai india
- The object of the company is to open an electronic media company to improve serve people and to earn profit.
- The object of the company is to become best electronic media company in india.
The object of the company is to enhance industrialization.
The object is to of the company is to enhance media capability of the country.
5. The object of the company is to start many business unit in all major state of the country.
If we talk about share capital, our company's share capital is Rs. 200 and it is divided into shares of fixed amount.
There are 10 shareholders in my company whose names are as given below:
- Rohit - 20 shares
- Gagan - 8 shares
- Amit - 5 shares
- Nancy - 13 shares
- Gourav - 9 shares
Shama - 10 shares
Naman - 12 shares
Harpreet - 7 shares
Manoj - 5 shares
Amita - 11 shares
There are 7 directors in Chand automobiles limited. These are as given below:
- Sunny - 8 shares
- Lavan - 3 shares
- Shama - 8 shares
Sneha - 4 shares
Kiran - 9 shares
Amit - 7 shares
Divya - 11 shares
There are 500 agents in our company which will be dealing with the customers and will participate in the growth of Chand Automobiles Ltd.
Articles Of Association
The Articles of Association set out the rules for the running of the company's internal affairs. Every limited company must register Articles of Association.
Under the companies act 1985 your limited company must state its name (as it appears in its memorandum of association) in certain places and on its business stationery. Your company must also give certain information on all its business letters and order forms.
The company must state its name, in legible lettering, on the following:
- all company business letters
- all bills of exchange, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the company
all its notices and other official publications
all its bills of parcels, invoices, receipts and letters of credit
The limited company must also show:
- Registration is done in Delhi and its registration number is 2389942
the address of its registered office -1850/4 Rohini- New Delhi
A company does not have to state the directors' names on its business letters but if it chooses to do so it must state the names of all its directors. In other words, a company cannot be selective about which directors' names it shows - it must show all of them or none of them.
According to section 2(36) of to companies act, 1956, prospectus means any document described or issues as prospectus and includes any notice, circular, advertisement or other document inviting deposits from public or inviting offers from public for subscription or purchase of any shares or debentures of any body corporate.
A document shall be called prospectus if it satisfies 2 things it invites subscription to shares or debentures or invites deposits. The aforesaid invitation is made to public.
If we talk about share capital, our company's share capital is Rs. 200 and it is divided into shares of fixed amount. Following shares were issued and some capital was privately owned.
Services Provided By Automobile Service Company
Our Technicians are trained and equipped to perform diagnostics and service on all of the following: Engine Service, Suspension Systems, Brakes, Cooling/Heating Systems, Electrical Systems, Wheel Alignment.
Heating & Cooling Repairs
Belts & Hoses
3) Formation :-
When a company has been registered and has received its certificate of incorporation, it is ready for formation that is to say, it can go ahead with raising capital sufficient to commence business and to carry it on satisfactory.
In our case of public company , the promoters may not invite public to subscribe to its share capital and may arrange the capital privately, but we have issued share capital.
However, by far the largest number of public companies raises their capital, in the very first instance by inviting public to subscribe to its share capital.
Section 70 it makes it obligatory for every public company to take either of the following 2 steps :-
- Issue a prospectus in case public is to be invited to subscribe to its capital,but we have issued the prospectus.
Submit a statement in lieu of prospectus in case capital has been arranged privately. It must be done at least 3 days before allotment.
Commencement Of Business:-
In our of Public company having share capital, it is necessary to obtain Certificate of Commencement of business'. This certificate can be obtained only after floatation of company. The procedure for obtaining the certificate varies with the fact whether the company has issued the prospectus or not.
AS our the company has issued the prospectus , it shall not commence business or execise borrowings unless:-
- Shares up to amount of minimum subscription has been allotted by the company.
Every director has paid to the company, on each of the shares taken or contracted to be taken by him and for which he is liable to pay in cash, amount in proportion to the application and allotment money payable on shares offered to public.
No money is or liable to be repaid to the applicants for failure to apply for, or to obtain permission for the shares to be distributed in any recognized stock exchange
Detail of Shareholders is given above.
After The Registration, Now Company Is In Existence And Has Made Following Contracts In One Year:-
According to the Indian contract act , 1872 , a contract is an aggrement made between two or more parties which the law will enforce , section 2. Define contract as an agreement enforceable by law. And for the validity of contract there are few essencial element must be exist and these are following :
- offer and acceptance.
- Lawfull consideration.
- Free and genuine consent.
- Agreement not declare void.
Intention to create leagal relationship.
Capacity of party.
Certainty and possibility of performance. And ,
1) CONTRACT Related To Breach
As we know before starting the actual work in the organization. We will have to purchase the raw material or machines etc. whatever is needed. On 8th Dec I undergone into a contract with my suppliers named as Mr.Raman sharma. I had purchased body shop machines and paint guns. And it was agreed between us that the payment will be given after 2 months. And it was also final that if there will any defective item than he will retain back that and provide you new product or item. So it was decided that it will be simply replaced. and we had placed order on 9th of December. And the delivery made on 12th of Dec. but it was observed that there was 1 machine defective. It was not working properly. That is why I had call Mr. Raman for its replacement as it was declared that this type of problems will be entertained as replacement. But Mr. Raman has denied to replace that. So in this situation I have filed a suit against him in court as there is breach of contract is there.
2. Offer And Acceptance Case
My company has offered a contract to the advertisement company to supply the information, then the Advertisement company has accepted my offer so this is legal contract because here offer and acceptance is here.
3) Contract Related To Rescind
The board of manager of Chand Company resolved to appoint karan as a new director. One of the managers, in his individual capacity, informed Karan of the same, but there was no formal communication of the resolution by the board. The board later rescinded the resolution. It was held that in the absence of an authorized communication, there was no completed contract.
4.) Contract Related To Bailment
As in the month of January we had purchased spare parts and car glasses at that time storage capacity was not enough to store that. So we have kept these things to my friend home for 10 days. And after that we had taken back from my friend, jay. During that time friend has given 100Rs. To watchman for taking care of my products in night. And after that I had given him that 100Rs. He has taken care a lot but his son had broken the glasses. And it leads to a loss of Rs.50, 000. And after that I asked him for money but he denied giving me. As we know it was a case of bailment. And friend should have taken care of my product. But he was careless. And so I demanded expenses whatever I had done but he had not given. Than I had filed a suit against him. And got compensation from court. It was case of bailment.
5) Contract Was Rescind
On 15 Augustst Chand , our company ,make a contract which was done with a dealer that he will deliver my cars in Delhi with in 2 months and the total deal was of Rs.2,00,0,000. and they started working from the next day. But due to some problems they were not able to complete the deal with in 1 month. And excuses that they will complete that task in next 15 days. And we allowed them but even than they were not able to complete their contract. And they started asking for money we denied because contract was not completed. He has not followed the terms of the contract. And he filed a suit against me but nothing will be happened. Later this work was completed by another dealer whose name was amar and that contract with amar was successful And the case with first dealer is going on in the court.
6) Contract Related Tonon Performance Of Contract
My company has done a contract with Sterling limited company to execute some important work for a fixed price, Sterling limited supplying the screws and nuts. Sterling limited refuses to supply any information and material regarding the work to be done and the work cannot be executed. My company need not execute the work and Sterling limited is bound to make compensation to my company for any loss caused to me by the non performance of the contract.
6) Breach Of Contract
Gaga Furnitures agrees to supply my company 3900 office chair and other office equipment. After 1783 chair had been delivered the my company told c that no more will be required. There is breach of contract by my company.
7) Contract Related To Minor
In the month of April a boy 20 years old had purchased our car. As per the requirement he has given his ration card as his age proof as well as house address as a residence proof. And he had purchased a car . And he had given a sum of rupees 85,000 and he does not agree to pay the balance payment. And when we talk to him he told us that he was a minor aged 17 years old. And then we were not able to file a suit against him in court. He had given us duplicate ration card. It was case of fraud. But as we know Indian legislation is always with the minors. They cannot be forced to pay. Yes if they want than they can but they cannot be forced by law.
8) Contract Related To Alien Enemy
In the month 15th Dec 2010 our company had decided to export our cars to China. There was a man called as Aasma Ahmad. He had given us offer and it was accepted. And hence as a result we had decides to export 10,000 cars to Mr.Aasma Ahmad On 1st Feb 2011. And was agreed that payment will be made after 1 month. But as it was our bad luck. On 28th Jan there was war declared between India and China. And so we were become alien enemy. And contracts with alien enemies never a valid contract. So we were not able to ask for payment by law. And so he is denying paying. And still war is going on. We can't do anything. It was a case of alien enemy.
9) Contract With Marketing Agencies-Breach Of Contract
Here Chand Ltd. Has made a contract with Star plus to show its product advertisement in the evening between 9.00pm - 10.30pm , but star plus showed this at 4.00 pm , Star has breach the contract and for this our company has the right to sue him and claim for damages. This is the case of Rescission; here Chand Ltd can also refuse for further performance.
10) Contract Related To Breach Of Condition
Our company had decided to expand the business than we decided that we will go for interior and exterior car accessoies . And we had sold lacs of products. With a warranty of 1 year. Here it was the condition if any interior or exterior product will be damaged due to misuse or miss handling it or by accident. In that case, company will not be responsible. And there was a person living in Sonipat named as Rahul, had purchased our interior products. having 1 year warranty. After 1 month some of the products were damaged due to miss handling it, and he claimed to company that it must be repaired. By saying that these products are in warranty as we had given him 1 yr warranty. And we have explained him that he has not followed the condition. There is a breach of condition.
11) Employment Contract
THIS EMPLOYMENT Contract (this "contract") is made and entered into as of DEC, 2009, by and between Chand Ltd., and Amit Sharma ("Employee"). WHEREAS, the Company wishes to retain Employee's services by providing Employee the compensation and benefits set forth in this Contract; NOW, THEREFORE, in consideration of the mutual Contracts contained herein, the parties agree as follows:
1. Term of Employment. The Company hereby agrees to employ Employee, and Employee hereby accepts employment, for a period of approximately 3 years, Commencing Jan 19, 2010 and ending April 30, 2013, subject to the terms and Conditions of this Contract. The initial 3 year term of Employee's employment under this Contract shall be automatically extended, without further action by either the Company or Employee, for 1 additional year commencing on the first anniversary of the date of Employee's employment hereunder and continuing on each subsequent anniversary date of Employee's employment hereunder. Either party may terminate such automatic extension of this Contract by giving the other party written notice of intent not to extend at least 60 days prior to an anniversary date of Employee's employment hereunder. In the event such notice of intent not to extend is properly delivered, this Contract shall expire at the end of the 3 year term then in progress.
2. Position of Employment. During the term of this Contract, Employee shall be employed in the position of Insurance Manager-Health Interior Group and shall perform such services for the Company and its affiliates as may be assigned to him from time to time by the Chairman or the Board of Directors of the Company. Employee shall devote his full time and attention to the affairs of the Company and his duties in such position.
(a) Base Salary. The Company shall pay to Employee base salary at an annual rate of not less than 3,50,000 rupees during the term of his employment hereunder. Such amount shall be reviewed annually by the Board of Directors of the Company or an appropriate committee thereof
(b) Bonus Plans. During the term of Employee's employment hereunder, Employee shall be eligible to participate in the Company's annual Executive Incentive Compensation Plan (the "EIC Plan") in accordance with the applicable provisions of the EIC Plan.
6. Termination of Employment. Employee's employment under this Contract may be terminated:
(a) by the Company upon Employee's death (which shall be referred to as a "Death Termination") or Employee's physical or mental disability for any consecutive six-month period (measured from the first date on which Employee is absent from work due to such disability to the same date in the sixth succeeding calendar month,
(b) by the Company for Cause, which means (i) fraud or misappropriation with respect to the business of the Company or intentional material damage to the property or business of the Company,
(ii) willful failure by Employee to perform his duties and responsibilities and to carry out his authority, (iii) willful malfeasance or misfeasance or breach of fiduciary duty or representation to the Company or its stockholders, (iv) willful failure to act in accordance with any specific lawful instructions of a majority of the Board of Directors of the Company, or (v) conviction of Employee of a felony .