by Audit Analyst | Oct 13, 2025 | Nidhi Company
1. Purpose and Need for Nidhi Software Nidhi Company software helps in automating financial, administrative, and regulatory tasks. It is designed to manage member records, deposits, loans, accounting, and compliance. Ensures accuracy in interest calculation, ledger...
by Audit Analyst | Oct 13, 2025 | Nidhi Company
1. Regulatory Limit as per Nidhi Rules As per Rule 18 of the Nidhi Rules, 2014, the maximum dividend a Nidhi Company can declare is 25% of its paid-up equity share capital. This limit is fixed to ensure that the majority of profits are retained for the mutual benefit...
by Audit Analyst | Oct 13, 2025 | Nidhi Company
1. Permission to Declare Dividends Yes, a Nidhi Company is allowed to declare dividends to its shareholders. The dividend is paid only out of surplus or profits of the current or previous financial years. It must comply with the conditions prescribed under the Nidhi...
by Audit Analyst | Oct 13, 2025 | Nidhi Company
1. Governing Law and Regulatory Authority A Nidhi Company is registered under the Companies Act, 2013, and governed by the Nidhi Rules, 2014. It is regulated by the Ministry of Corporate Affairs (MCA). A Co-operative Society is formed under the Co-operative Societies...
by Audit Analyst | Oct 13, 2025 | Nidhi Company
1. Legal Requirement for Maintaining Books As per Section 128 of the Companies Act, 2013, every Nidhi Company must maintain proper books of accounts. The books must give a true and fair view of the state of affairs of the company. They must be maintained on an accrual...
