The issuer company shall forward a certificate duly signed

company and countersigned by the company auditor or a secretary in practice to the effect that the terms and conditions as issued by SEBI in this regard

have been complied with.

6. No bonus issue shall be made which will dilute the value or right of the holders of debentures, convertible fully or partly.

7. Bonus issues are not permitted unless the partly paid shares, if any are made fully paid-up.

8. The company-(a) has not defaulted in payment of interest or principal in respect of fixed deposits and interest on existing debentures or principal on

redemption. thereof, and

(b) It has not defaulted in respect of the payment of statutory dues of the employees such as contribution to provident fund gratuity, bonus. etc.

9. A company. which announces its bonus issue after the approval of the Board of Directors. mut implement the proposals within a period of six months

from the date of such approval and shall not have the option of changing the decision.

10. The Articles of the company must contain a provision. for capitalisation of reserves or profits. If not, the company should get a resolution passed in

general meeting making such provision in the articles.

II. If, as a result of bonus issue. the subscribed and paid-up capital exceeds the authorised capital of the company, there is a need for a resolution in

general meeting for increasing the authorised capital of the company.