KPS India Producer Company Limited having an average annual turnover exceeding ₹6 crore in each of the three consecutive financial year. The company has to appoint a Company Secretary. Advise the company by referring to

In accordance with the provisions of the Companies Act, 1956, as contained in section 581X, every Producer Company having an average annual turnover exceeding five crore rupees in each of three consecutive financial years shall appoint a member of the Institute of Company Secretaries of India as a whole-time Secretary of the company. If a producer company fails to appoint Company Secretary, the company and every officer of the company who is in default, shall be punishable with fine which may extend to ₹500 for every day during which the default continues. However, in any proceedings against a person in respect of any offence for failure to appoint Company Secretary, it shall be a defence to prove that all reasonable efforts were made to comply with the provisions or that the financial position of the company was such that it was beyond its capacity to appoint a whole-time Company Secretary. Therefore, according to the above provisions, KPS India Producer Company Limited has to appoint a whole-time Company Secretary.