 bill no 8 of 1982 • the industrial finance corporation (amendment) bill, 1982 a billfurther to amend the industrial finance corporation act, 1948 bz it enacted by parliament in the thirty-third year of the republic of india as follows: -' 1 (1) this act may be called the industrial finance corporation short  (amendment) act, 1982 ut]e bdd com mence ment ' 5 (2) it shall come into force on such date as the central government may, by notification in the official gazette, appoint ii of 1mb z in section 2 of the industrial finance corporation act, 1948 (here· amend inafter referred to as the principal act),-ment of section 2 (4) for clause (ba), the following clause shall be substituted, 10 namely:-i c (ba) "court" means the high court (or where there is no high court and the powers of the high court are exercised by the court of judicial commissioner, such court) within the local limits of whose jurisdiction,-(i) the defendant or respondent, or where there is more than one defendant or respondent, anyone of them-(1) has his registered office; or (2) carries on the whole or part of his business, at the time of the commencement of any legal proceedings against him uude:r uris actj or (ii) the cause of action 'for such legal proceedings, wholly or in part, arisesj'; (b) for clause (e), the following clause'shall be substituted, namely:-'(e) "industrial concern" means any limited company or c0-operative society incorporateci by a central act or an act of the legislature of a state or under any law for the time being 10 in force and registered in india which is engaged or is to be engaged in-(i) the manufacture, preservation or processing of goods; (ii) shipping; (iii) mining; (iv) the hotel industry; (v) the generation or distribution of electricity or any other form of powerj (vi) the transport of p!:lssengers or goods by road or by' water ,~j" by air or by, ropeway or by lift; 20 (vii) the maintenadce repair, testing or servicing of machinery of any description or vehicles or vessels or motorboats or trailers or tractors; (viii) assembling, repairing or packing any article with the aid of machinery or power; is (ix) the development of any contiguous 8l"~ qf i  as an industrial estate; (x) fishing or providing shore facilities for flt~ or maintenance thereof; (xi) providing special or technical knowledge or other so servi'ces for the promotion of industrial growth; or (xii) the research and development of any process or product in relatio'n to any of the matters aforesaid, explanation-the expression '·processmg of goods" mew any art or process for producing, preparing or making an article 35 by subjecting any material to a manual, mechanical, dhemical, electrical or cmy other like operationj'; (c) clause (g) shall be omitted  3 in section 4 of the principal act,-amen40 " ment of ection 4 (a) after sub-section (la), tlw,! following sub-s~~ilf·1i1aall be 40 inserted, namely:-"(1b) on oj: after the codup~n~, ~,  in_trial finance corporation (amendmeat) act, 1182, the autlaorih4l 1 - p~ge' 4, line 18,l ~ "right" n'-ld "right s" r'1ge 4, line 32,-fq!: "0 c curirl e" ~ "0 ccurring" 3 p'1ge 5, lines 12 and 13, -!or "subcribing" uad "subscribing" 4 plge " lice 25,-~r "sh all" inse;rt "be" 5 page 9,-~ line 7, ~-"the shares of the cornoration shall be guar3,nt'eed by the central (kivern-l" jij 3~j dbl~ i· , february 18, 10 82 m tt,gh ~ 29, 190 3 (sak a) j:i'lt fill - corpondloa may be_reased to luell judoum not tl:l'efledjdg ode hundred eror of rupeei8 _ tbe central ov  meat may, from time to time, by notification in the official gazette, fix 5 (1c) the authorised capital increased under sub-section q~) shall be divided into such number of shares of five thousand "rupees each as may be nece~sary and the shares representing the capital so increased may be issued, with the sanction of the central government, as and when the corporation may deem 10 flt'~; 110f18n (oj :in aub-section (b), (i) for the words "i'll this section", the ~, ftgure and letter "in this section and in section 4a" shall be substituted; (ii) after the words and figures "under section 3 of the life insurance corporation act, 1956", the following shall be inserted, namely:-lot 1118 ", the general insurance corporation of india fotmed and r~­gistered under the companies act, 1956, its subsidiaries and such other -institution or institutions dealing with general insull'&ace business as may be notified by the central government in· the ojiicial gazette in this behalf" amend ment of section 4a 4 in sub-5ec1:ion (2) of sec:tion 4a of the principal act, in the provsio for the words "provided that", the following shall be substituted tia-m'ely:-'tpravtdqd that such holders shall have the right to renounce 25 the shares so offered to them in favour of atiy scheduled bank, any i,j?turance company, any investment trust or any other lik~finan­cial institution or any co-operative bank, whether or not any such institution is a shareholder: , provided further that if any such holder does not accept the , , iiiuifttr isb t«ered or cwies not e1tercise the right at renunciation in ~t, of mty such shares in favour of any institution referred to 'tar chi prec:ledirig f'oviso within the time fixed therefor, the board ~' anot sach shares to any ~uch institution with the concurrence of the development bank: < 5 provided also that" 5 in section 11 of the principal act, in the proviso to sub-section (3), aludc:k ,  ,,:\votas "'t~ -months", the words "six niont'qs" shall 'be substituted :;~~~fll g for section 16 of the principal act, the following section shall besubstitution of substituted, namely:-new section for section' 16 staff of corpora tion "18 the corporation may appoint such number df officers an~ otirei' entploifts as it considers necessary or desirable for the efficient performance of its functions and determine the terms and conditions of their appointment and service"  t'jri section 18 of the principal act, the words "with the previous 45· ~~ ~~ the development bank," shall be omitted amend - ment of section 18 8 in section 19 of the principal act, the words liin consultation with -the reserve bank," shall be omitted amendment of section 19 9 in section 21 of the principal act,-(4) in sub-section 0), the proviso shall be omitted; amendment of section 21 ('b) in sub-section (3), in tbe proviso, for the words "three 5 crores", the words "fifteen crores" shall be substituted; (c) in sub-section (4) ,-(i) after the words "the development bank", the words "or with the general or special approval of the central government, from any other authority or institution in india" shall be in-10 serted; (ii) the proviso shall be omitted 10 after 6ection 21b of the principal act, the following section shall be inserted, namely:-insertion of new section 21c 1 of 1956 power to acquire rights "21c the corporation shall have the right to acquire, by trans-15 fer or assignment, the rights and interests of any public financial' institution as defined in section 4a of the companies act, 1956 (including any other right incidental thereto) in relation to a~y loan or advance granted, or any amount recoverable, by such institution, either in whole or in part, by the execution or issue of any 20 instrument, or by the transfer of any instrument by endorsement -or in any other manner" 11 for section 22 of the principal act, the following section shall be substituted, namely:-substitution of new ection for section 22 deposits with the corpora_ tion "22 the corporation may accept deposits repayable after the·!z5 expiry cif a period which shall not be less than twelve months from the date of the making of the deposit on such terms and conditions as may, generally or specially, be approved by the development batik  12 in section 23 of the principal act,-(a) in sub-section (1),-amendment of aect10d 21 (i) the brackets and figul'1! "(1) occurring in the beginning shall be omitted; (ii) in c1aufje (a),-(1) the words "on such terms and conditions as may 35 be agreed _ upon ", shall be omitted; (~) in sub-clause (i), the words "are repayable within a ~enod not exceeding twenty-five years, and" shall be omitted;  (3) in rub-clause (iti), for the words "or state co-operatlve banks", the words ", state co-operative banks or such 40 other financial institutions as may be notified by the cen  tral government in this behalf" shall be substituted' i (iii) for clause (b), the fcllowing clause shall be subbtitu~d, namely:-ii (b) guaranteeing deferred payments due from any industrial concern;"; 5 (iv) in clause (e), the words ", on such terms and conditions as may be agreed upon," shall be omitted; (v) for clause (1), the following clause shall be substituted, namely:-jo "(i) subscribing to, or purchasing, the stock, shares or bonds of any industrial concern;"; (vi) in clause (i) ,-(1) for the portion beginning with tbe wotds "or subcribing to debentures" and ending with the words "as thecase may be:" the words "or suoocribing to, or purchasing debentures of, industrial concerns:" shall be substituted; (2), in the proviso, after the words "subscribing to", the words ", or purchasing," shall be inserted; ~o (3) in the explanation 'for the words "loan or advance" at both the places where they occur, the words "loan, advance or debenture" shall be substituted; (vii) after clause (i), the following clauses shall be inserted, namely:-"(j) undertaking research and surveys for evaluating or dealing with marketing or investments and undertaking and carrying on techno-economic studies in connection with the development of industry; (k) providing technical and administrative assistance to any industrial concern 'for the promotion, management or expansion of any industry; (1) undertaking merchant banking operations; (m) performing functions entrusted to, or required of, the corporation by this act or by any other law for the time being in force;"; (viii) clauses (ii) and (iii) shall be re-iettered as clauses 35 (n) and (0) respectively;  (i;r) clause (j) shall be re-iettered as clause (p), and 10 clause (p) as so re-iettered after the words "under this act" the words "or under any qther law for the time being in force': shall be inserted; (b) sub-section (2) shall be omitted, do   ii c~lon 24 ,of ,the prin~ act hall be omitwomission of section 24 amendment of section 26 1 • in section 26 of the principal act, in sub-eecuon (3), after clause (ii), the following clause shall be inserted, namely:-"(iii) shall not apply to any industrial concern in respect of which the corporation is satisfied that it is necessary, in the pubuc 5 interest, to enter into business with that concern: ~ovided that such business shall be ente&-ed into in accordance with and subject to such conditions and limitations b8iwly be pre  cribed by regulations made in this behalf" 15 in section 33 of the principal act, in sub-section (1), for the 10 wordli "three months", the words "four months" shall be substituted amendment of aection 33 16 after section 34 of the principal act, the 'following section shall be iaserted, namely:-ineertiorl of hew section ma appointment of local auditors "34a the board may, in consultation with the buaitors appointed under section 34, appoint local auditors to audit the affairs of j 5 any office or agency of the corporation and the report of such auditors shall be taken into consideration by the auditors appointed under section 34 for the purpose of audithlg the affairs 'of the corporation" 17 in section 35 of the principal act,-amendment of section 85 (a) in sub~ectjon (1), for the words "all shareholders", the 20 words '~the development bank" sh'-tll be substituted; (6) in sub-section (3), for the words "four months", the wordl!l "five uwnths" shall be substituted 1~ in section 39 of the principal act, after the wo,4' ~tor," the words "local auditor," shall inserted 25 amendment of section 39 19 in section 43 df the principal act,~ amendment of section 43 {g) 'in sub-section (2) ,for claupoe (h), the foltowit1g clause shan be substituted, namely:-"(h) the conditions and limitations subject to which the ~ may enter 'into b~irress updel" the proviso to 30  (tit) cjf sub-section (3) of section 28;"; (b) after sub-section (2), the following sub-section shall be inserted, namely:-"(3) every regulation made under this section shall be laid, as soon as may be a'fter it is made, bef-ore each house of parlia- 35 ment, while it is in session, for'a total periodcif thirty days which may be comprised in one session or in two or more successive sessions, and, if, before the expiry of the se3sion immediately followmg the session or the suceestive sessions aforesaid both houses agree in making any modification in the regulatioll4o or both houses agree that the regulation should not be made, the reg;ulation shat! thereafter have effect only in such modified form of be of n~ effect, as the esse may be; 10, ~w'ever, that any such modification or annulment shall be wtthout prejudice to the validity of anything previously done udder that regula- 45 tion" fte  experience gained in the fun~tioning of t}:le indusf1ial naance ~ration of' india since' the industrial finance corporation a:ct" 1948 establtshit:tg that corporation was last amended has brought to light the need' to make certain amendments in the act these amendmenf4; are iimed mai~ly at increasing the resources of the corporation to meet its r8pktfy increasing requirements and expanding operations, removing unnect!ssary and irrelevant restrictions in the procedures and operational matters of the corporation, expanding the list of businesses which the corporation can undertake and the kinds of activit,ies which it can _ist so ~, inter alia, to allow the corporation to participate effectively hrultlsortium lending with other financial institutions 2 the main proposals for amendments ar~ as follows:-ftt)lt is proposed to widen the definition of "in4,usp-tal c:on~ as contained in the act so as to enable the corporation to finance all kinds of industrial concerns being financed by the industrial brelapment baak of india and the icici (b) in view of the constantly expanding business of the corporation, it is proposed to raise, its au,tborised capital from rs 20 crares to such amount, not exceeding rs 100 crores, as may be fix8c:l b:f ~ -ceotral: goy8n:unebt i (ci) the act at present enables the corporation to appoint only on~ general manager ancl no other officer senwr to the general manager can, be appointed with its expandln, activities, it 1s aeeetlsary for the corporation to have more officers at senior levehl liii& executive director, general manager, etc it is proposed to aillend t~e" rel~,,~nt section de~liag with the appointment of staft" of the c9tpor~t~on, to provide for an enabling provision for the appointnl~~i 'cit suc:h senipr oflicers (<<i) at pt8llent tile borrowfni,s of the corpo~atidn frqaa au sources cannot exceed ten times the aggregate of the paid up capital and reserves this limitation puts a serious const~aint on the corporation's ability to raise resources, particularly through loans and issue of bonds in the market which are the principal sources for raising funds this limit is expected to be reached by the corporation soon and its assistance programme would be seriously hampered thereafter it is, therefore, proposed to remove this ijmtt on the borrowing powers of the corporation to increase its capac~ty to raise more resources, the corporation will be empowereej to ratse funds from indian institutions other than thelnstitutions referred to in the act (e) the act is proposed to· be amended to enable the corporation to borrow from the reserve bank of india up to a sum of ri 15 crores instead ol rs 3 crores at present (f) the corporation will be authorised to acquire by way of transfer the rights and interests of other financial institutions in relation to loans and advances granted by them (g) it is proposed to expand the list of businesses which the corporation could undertake so as to enable it to effectively participate, in general, the financing of projects with the industrial development bank of india and other financial institutions these would include guaranteeing loans raised by industrial concerns from other financial institutions, the purchase of stock, shares, bonds and debentures from existing holders, doing merchant banking operations, undertaking research to carry out techno-economic studies in connection with indu~trial development, etc (h) the corporation will also be enabled to grant assistance to industrial concerns in which its directors have substantial interest it the corporation is 9:ltiosfled that it is necessary in the public interest to do so i 3 the bill seeks to achieve the above objects and to make certain other minor and consequential amendments in the act new delhi; pranab mukherjee the 10th february, 1982  president's recommendation under article 117 of the constitution of india[copy of letter no f 2 (49) /if-1/81, dated the 15th february, 1982 from shri pranab kumar mukherjee, minister of finance to the secretary, lok sabha] the president, having been informed of the subject matter of the proposed bill, recommends under clauses (1) and (3) of article 117 of the constitution, the introduction of the industrial finance corporation (amendment) bill, 1982, in lok sabha and also recommends to lok sabha the consideration of the bill clause 3 of the bill seeks to amend section 4 of the industrial finance co~ration act, 1948, so as to empower the central government to increase the authorised capital of the corporation to such amount not exceeding one hundred crort's of rupees as the central government may fix from time to time by notification since under section 5 of the act, dividend at such minimum rate as may be fixed by the central government as to the repayment of the principal and the payment of an addual dividend at suc~l minimum rate as may be fixed by the central governmen~ at the time of issuing the shares, if the corporation were to issue further share capital out of the increased authorised capital, the central government may have to give similar guarantee for the capital issued further, in the event of the central government at any ~ deciding, in terms of the power conferred by sub-section (1) of section 36 of the act, to acquire the shares of the corporation held by shareholders other than the industrial development bank of india, the central government will berequired to pay to the shareholders an amount equal to the paid up value of the shares together with a premium calculated at the rate of one per cent of the paid up value for every year from the date of issue to the date of acquisition by the central government, subject to a maximum of ten ~r cent in such an eventuality, to the extent of the additional shares issued out of the increased share capital, the liability of the central government will increase it is, however, not possible at this stage to anticipate the expenditure that is likely to be incurred on this account as this will depend on the amount of shares issued at the time f1f acquisition if and when such shares are required to be acquired, the same will have to be covered by appropriate budget sanction at the relevant time 2 clause 9 (b) of the bill seeks to amend section 21 of the act to en  hance the borrowing powers of the corporation as a consequence, it fa likely that the corporation may be able to raise more bonds and debentures under sub-section (2) of that section, the liabilities under the bonds and debentures of the corporation are to be guaranteed by ~e central government it is, therefore, likely that its contingent liabilitia in respect of the guarantees will also be increased 3 the bill will not involve any other expenditure either reeurrini or non-recurrina clause 3 of th8 bill seeks to insert a new sub-section (1b) in secijon - ofthe industdal finance corporation act, 1948, which would enable u central government to increase the authorised capital of the corpo-~tioa up to one hundred erores of rupees by notifkation in the o1ficial gazette i 2 c1ause 14 of til! bm seeks to amend section 26 of the act 110 as to ft¥pfriver~e ebrjktrati~n t~ enter into busfness wi'ftl an, inc:lutfti!al ~ tll whleh 8fty of itb directors is a direetor, meager, agefrt,etc, it·~ is eo1$ldeted by the corpotation to be neeessary to doao in tile ~ intel'e8t thfs wm be- subject to such conditions em\! limitatlods ill ifll1 beptelcribed by reguhltions to be made by the ctjrpm'afiojli   & the- po~ that is propo_ to be codferred on the cai:dftl govej'qment to ielue a notibtion· as mentioned aboye is sa}jjeet to the limi~ of ·0b8huadred cl'oi'ei af rupees the matters in reapeet of 1rtddl 0, corporation may make regulations as mentioned above relate to ~  of detail 01' ·ptocadun as such, the deleeatlcm fit l~ powent "is b01'm81 incharaew - - - - - interpret-tion  2 in this act, unless there is anything repugnant in the subject oj' context,-- - - - - (ba) "court" means the high court (or where there is no high court and the powers of the high court are ex~ed by the court cit :judicial commissioner, such court) within the locel limite of ·wheie jurisdiction the defendant or respondent carries on the whole or a substantial part of his business, and where the central government has by notification in the official gllzette and subject to such restrictiodl, limitations and conditions as it thinks fit, empowend any court of civil jurisdiction subordinate to the high court to u8dcwe all or any of the powers conferred by this act, such court; - - - - (c) ·'industrial concern" means any limited company or co-operatiye society incorporated by a central act or an act of the legwa ture of a state or under any law for the time baing in force and: ft>-gistered in india which is engaged or is to be engaged in the mam6eture, preservation or processing of goods or in shipping or in mlrung or in hotel industry or in the generation or distribution of electricity or any other form of power share capital and· abare holder  explanation-the expression "processing of good8" includes any art or process for producing, preparing or making an article })y ubjomting any material to n manual, mechanical, chemical electrical ~ aa,y other like operation; -  - - - (g) "underwriting" means contraeting, with or without codd!-tions, to subtscribe for stocks, shares, bonds or debentures of an incwstrial eoncem with a view to the resale of the whole or any part there~i - - -  4 (1) - - - - - (s) in this section the expression "insurance companies" gr "insui'adqe company" includes the life insurance corporation of india established under action 3 of the life insl1l'anee corporation act, tt56 4a (1)  - -  - 31 of 1956 transfer otshares and il'jueue of capital (2) if and when the remaining shar~ 1n the capital of the corpot'ation, or any part thereof, are issued, such further shares shall be offered to the holder  of the shares of the corporation in proportion, as nearly as circumstances admit, to the apital paid-l1p on thole shares at the date uf such further ilsue: provided that if any such shares remain unallotted, they shall be subscribed! for by the development bank - - - - - 11 (1) - •• - - (3) a casual vacancy !in the office of an elected director shall be ftlled by election and a director so elected shall hold office for the unexpired' portion of the term of his predecessor: provided that no casual vacancy occurring within three months of the date of expiry of the normal term df office of an elected director need be ftlled under this sub-section - - - - - 1' the corporation may appoint a general manager and such otlier omeers, employees and advisers as it considers necessary for the eftldent performance of its functions under this act - - - - - appolntmen' ed o1ilcen, advi8en ate omce and apaclel 18 the corporation shall establish its head office in delhi and ofbeet in bombay, calcutta, kanpur and madras, and may, with the previous sanction of the development bank, establish offices or agencies in other places in india 18 the corporation may open deposit a~ounts witli tlie reserve bank or with any ageney of the reserve bank other than a govemment treasury or in consultation with the reserve bank, with a scheduled bank or a state cq-operative bank - - - - - %1 '(1) the corporation may issue and sell bonds and debenture carrying interest for the purpose of rafsing its working capital: provided that the total amount ot bonds and debentures issued and outstanding and of the contingent liabihties of the corporation in the form of guarantees given by it or underwriting agreements entered into by it shall not at any time exceed ten times of such amount as is the aggregate cii the paid-up share capital the reserve fund established under subsection (1) of section 32, the special reserve fund established under section 32a, the benevolent reserve fund established under section 32b and any other reserves of the corporation (not being reserves for bad and doubtful debts or for depreciation of assets or a reserve created or mafn- tained to meet any specific contingency) - - - $ - '(3) the corporation may, for the purpose of carrying out its functions under thjs act, borrow money from the reserve bank,-·(a) repayable on demand or on the expiry ot fixed periods not ex~eeding ninety days from the date on which the money is so borrowed against securities of the central govemment or of any state government; or  (b) repayable on the expiry of fixed periods not exceecung eighteen months from the date on which the money is so borrowed, against securities of the central government of any maturity or against bonds and debentures issued by the corporation under subsection (1) and guaranteed by the central government and maturfn, within a period not exceeding eighteen months from the date on which the money is 80 borrowed: provided that the amount borrowed, by the corporation under clause (b) shall not at any time exceed three crores of rupees in the aggregate (4) the corporation may also, for the purpose of carrying out its functions under this act, borrow money 'trom the central government or the development bank on such terms and conditions as may be agreed upon: provided that the total amount borrowed by the corporation from the central government and the development bank under this l11b-hetion and from the reserve bank under clause (b) of sub-section (3) together with the amount of bonds and debentures issued under sub-section (1) and outstanding shall not at any time exceed, in the aggregate, the limit specified in the proviso to sub-section (1) ' - - - - 22 the corporation may accept from any state government or local authority, or any person deposits repayable after the expiry of a period which shall not be 1es8 than five years from the date of the making of the deposit, and on such other terms as it thinks fit: depoeiti with the corporation provided that the total amount of ruch deposits shall not at any time exceed ten crores cif rupees 23 (1) the corporation shall, subject to the provisions of this act, be authorised to carryon and transact the following kinds of business, namely:-«(i) guaranteeing, on such terms and conditions as may be agreed upon,-| bualn     ||-----------|| which     || the       || corpora-  || tka       || me,      || tranlct |(i) loans raised by industrial concerns which are repayable within a period not exceeding twenty-five years, and are floated in the public market; (ii) loans raised by industrial concerns from scheduled banks or state co-operative banks;  (b) guaranteeing, on such terms and conditions as may be agreed upon, deferred payments due from any industrial concem-(i) in connection with ita import of capital goods from outside india; or (ii) in connection with its purchase of capital goods within indiaj (c) guaranteeing, on such terms and conditions as may be agreed upon, loan, raised from, or credit arrangements made with, any bank or finecla1 institution in any country outside india by industrial concemsfn foreign currency: provided that no such guarantee shall be given wiihout the prior approval of the central government; - - - (1) subscribing to the stack or shares of any industrial concern; - - - - - (i) granting loans or advances to, or subscribing to debentures ot, m&trial concerns, repayable within a period not exceeding twenty· five years from the date on which they are granted or subscribed to,  the cae may be: provided that nothing contained in this clause shall be deemed to preclude the corporation from granting loans or advances to, or subscribing to debentures or, an it)riustrial concern, the amounts outstanding thereon may be convertible at the option of the corporation iato stock or !ii hares of that concern within the period the loan, adnnce or debenture is repayable; e,'t"planation-in this clause, the expression "the amounts outstanding thereon", used in relation to any loan or advance, shall mean the principal, interest and other charges payable on such loan or advance as at the time when the amounts are sought to be converted into stocks or shares: (ii) acquiring with the approval of the development bank the undertaking including the business, assets and liabilities of 8jjy instftutton the principal object of which is the promotion or development of industry in india, or the grant of financial assistance for such promotion or development; (iii) doing any kind of business which the central government may, on the recommendation of the development bank, authorise; and (j) generally, the doing of all such matters and things as may be incidental to or consequential upon the exercise of its powers or the dis('harge of its duties under this act (2) in granting accommodation under clause (a), clause (b), clause (c) orelbuse (i) of subge~tion (1) the corporation may have it secured by:pledge, mortgage, hypothecation or assignment of government or other securities, stocks, shares or secured debentures, bullion, movable or immovable property or other tangible ~ssets in the manner prescribed by regulations or may have it guaranteed as to the repayment of principal and the payment of interest by the central government, state government, a scheduled bank or a state co-operative bank limit of accommodation 24 the corporation shall not enter into any arrangement under claus€15 (a) and (i) of sub-section (1) of section 23 with any single industrial concern for an amount which, together witb the amount outstanding in  respect of any arrangeme'nt already entered into by the corporation with that concern, exceeds two crores of rupees in the aggregate: prohibit-ed busi· n  provided that the aforesaid limit of two crores of rupees may be ~d with the prior approval of t he development bank - - - - - - , (1) - <ii '" - - (3) the provisions of sub-section (2) -- - - - - general meetm •• 33 (1) a general meeting (hereinafter referred to as the annual general meeting) shall be held annually at a place in india where there is an office of the corporation within three months from the date on which the annual accounts of the corporation are closed; and a general meeting may be convened by the board at any other time  - - -  - 35 (1) the corporation shall furnish a statement in the prescribed form of its assets and liabilities as at the close of business on the last friday of each month, or if that day is a public holiday under the nego-2fl of 1881 tiable instruments act, 1881, as at the close of business on the preceding retums working day, to all shareholders within ten days from the date to which the statement relates    - -  (3) the corporation shall furnish to the central government, the reserve bank and the development bank within four months of the clese of the financial year a statement in the prescribed form of its assets and liabilities as at the close of that year together with a profit and 1088 account for the year and a report of the working of the corporation during the year, and copies of the said statement, account and report shall be published in the official gazette and shall be laid before parliament     - declaration of fidelity and secrecy 39 every director, member of any advisory or other committee, auditor, officer or other employee of the corporation shall, before entering upon his duties, make· a  declaration of fidelity and secrecy in the form set out in the schedule, -   - - 43 ,(1)                     -                                     -                                                    -                                                                    -                                                                                    - power of board to make reeuja-tion     (2) in particular and without prejudice to the generality of the fore-i0ing power, such regulations may provide for-              -                               -                                              -                                                              -                                                                              -      (h) the manner of determining the sufficiency of the security taken under sub-section (2) ot section 23;         -                                                                             -  a billfurther to amend the industrial finance corporation act, ilks 