Charminar Ltd. raised money through prospectus with the object of starting a new automobile spare parts manufacturing unit. After investing in this manufacturing unit, few crore of rupees are left unutilised and the comp

Rule 32 of Companies (Incorporation) Rules, 2014 in respect of the provisions for change of objects for which the money is raised through prospectus is also to be followed by Charminar Ltd.; which reads as under: Where the company has raised money from public through prospectus and has any unutilized amount out of the money so raised, it shall not change the objects for which the money so raised is to be applied unless a special resolution is passed through postal ballot and the notice in respect of the resolution for altering the objects shall contain the following particulars, namely:- The total money received; The total money utilized for the objects stated in the prospectus; The unutilized amount out of the money so raised through prospectus; The particulars of the proposed alteration or change in the objects; The justification for the alteration or change in the objects; The amount proposed to be utilized for the new objects; The estimated financial impact of the proposed alteration on the earnings and cash flow of the company; The other relevant information which is necessary for the members to take an informed decision on the proposed resolution; The place from where any interested person may obtain a copy of the notice of resolution to be passed. The advertisement giving details of each resolution to be passed for change in objects which shall be published simultaneously with dispatch of postal ballot notices to shareholders. The notice shall also be placed on the website of the company, if any. In addition to the above specific procedure, the company should alter the objects clause of the Memorandum of Association of the company by following the procedure for the alteration of Memorandum of the Association of the Company as provided u/s. 13 of the Companies Act, 2013. On the successful completion of the procedure as mentioned herein above, and passing of the special resolution by postal ballot Charminar Ltd., may invest the unutilized funds/money for some other purpose which is different from an object of starting a new automobile spare parts manufacturing unit for which the money is raised through the issue of prospectus.