As per the earlier rule, at least 50 per cent of the total revenue of such firms was required to have been from activities associated with the any company’s new name for a period of one year preceding the change.
It said the companies can now opt for a change in name provided “the amount invested in the new activity/project (fixed assets + advances + works in progress) is at least 50 per cent of the assets of the company.” However, the ‘advances’ shall include only those extended to contractors and suppliers towards execution of project, specific to new activity as reflected in the new name, it added.
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