Internal Audit Checklist 1. Initial Audit Planning:- All internal audit projects should begin with the team clearly understanding why the project was put on the audit plan. The following questions should be answered and approved before audit begins: Why was the audit project approved to be on the internal audit plan? How does the process support the organization in achieving its goals and obje......

TDS Rate are applicable from 01.04.2021 Section Nature of Payment Threshold Limit for deduction tax Rate of TDS applicable for the period or Basic Cut off (Individual / Company and others New Rate %) Summary Indiv-idual Com-pany Other If No Pan or Inv-alid PAN  (Rate) 192 Salary As per Slab [Please note that no Chang......

1. E-Way Bill E-Way Bill is an Electronic Way bill for movement of goods to be generated on the eWay Bill Portal. A GST registered person cannot transport goods in a vehicle whose value exceeds Rs. 50,000 (Single Invoice/bill/delivery challan) without an e-way bill that is generated on ewaybillgst.gov.in. Under GST, transporters should carry an eWay Bill when moving goods from one place to ......

Government of India has introduced a pension scheme for unorganised workers namely Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) to ensure old age protection for Unorganised Workers. The unorganised workers mostly engaged as home based workers, street vendors, mid-day meal workers, head loaders, brick kiln workers, cobblers, rag pickers, domestic workers, washer men, rickshaw pullers, la......

Microfinance companies are the financial institutions that provide finances to low-income groups, where the finance requirement is lesser as compared to other sectors of the society. These sectors generally do not have access to traditional financial institutions such as banks and other financial institutions. Need for Microfinance Companies :- There are many institutions like banks that grant l......

Pranic Healing is a highly developed and tested system of energy treatment that uses prana to balance, harmonize and transform the body's energy processes. Prana is the Sanskrit word that means life-force. This invisible bio-energy or vital energy keeps the body alive and maintains good health. Pranic healing is an ancient science and art of healing that utilises the prana or life energ......

Robotic Process Automation (RPA) has become one of the most rapidly-growing concepts in a world where the global economy and market climate change in the blink of an eye. By deploying a machine bot to manage labour-intensive and repetitive activities, companies can optimize business processes. RPA is a new approach to automation in which business users, such as accounting managers, are empowered......

A Gift Deed is an important legal document that signifies a transfer of gift as per the provisions of the law from one person to another. Gift Deed is a lawfully binding written document by which the donor can transfer an existing movable/immovable property to the donee voluntarily, as defined in Section 122 of the Transfer of Property Act, 1822. A Gift Deed is lawful only ‘without any cons......

As Artificial Intelligence works for every industry, it certainly has a significant impact on the accounting and finance industries as well. Ranging from saving time and money and providing insights, AI are professionals for accounting and finance and will attract the next generation of employees and clients. What is Artificial Intelligence in accounting? In the accounting profession, where peop......

As per Section 40 of Indian Partnership Act 1932 a Partnership firm can be dissolved by way of Dissolution by agreement. A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners. The remaining partners can carry on the business on the basis of agreement made between the partners. In such circumstances the assets and liabilities of the Partn......

Sample Format of Affidavit for Writ of Mandamus in High Court under Article 226 of Constitution is as under:- IN THE HIGH COURT OF DELHI AT NEW DELHI EXTRA ORDINARY CIVIL JURISDICTION WRIT PETITION (CIVIL) NO. OF 20__ IN THE MATTER OF :- -----------------------------------------------------------                &nbs......

Rates Products Description HSN Codes Export and  Import HSN Codes 5% Ultra High Temperature (UHT) milk [0401] 04011000, 04012000, 04014000, 04015000 Nil Fresh milk and pasteurised milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High Temperature (......

GST Rates Reduced on Covid Treatment Injections (Drugs) -: 45th GST Council Meeting 45th Gst Council Meeting was held in Lucknow under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. GST Council has inter-alia made the following recommendations relating to change in Rates of GST on Covid Treatment Drugs. Tax concessions&nbs......

What is Crypto currency? Crypto currency is a virtual or digital representation of money’s worth. Crypto currency is a digital currency that can be exchanged online for goods and services, but uses an online ledger with strong cryptography to secure online transactions. Crypto currency work using a technology called Block chain. A crypto currency is defined as “A digital currency in ......

Short-term or long-term capital asset:- Land is a short term capital asset, when held for 36 months or less (i.e. up to 3 years). If held for more than 36 months, it is considered a long-term capital asset. So tax implications too vary based on the duration for which you own an asset. How to calculate your capital gains:- To arrive at the Short Term Capital Gains – From the total Sale Price......

The Initial Public Offering (IPO) is a very important point at which an unlisted company decides to go public for the first time by publicly listing its shares and selling its stocks to the investors. It is an offer of shares typically made to raise capital for the company. The main aim of an IPO is to raise funds from public investors. It also enhances the credibility and brand value of the com......

This is a program that attracts entrepreneurs that operate micro, medium, and small-sized businesses. The Uttar Pradesh government will give financial support to 36,000 business people via the implementation of this program in order to foster economic growth in the country’s micro, medium, and small businesses. The loan amount would be Rs. 2000 crore. It functions as a sort of reed bone in t......

Goods and Services Tax (GST) implementation has primarily impacted the way start-ups operated in India. It has significantly increased the number of new start-ups in the past three years of successful implementation. The advent of a new tax regime was crucial to abolish various indirect taxes. GST rules for startups were introduced with the slogan “One Nation One Tax” to ease the compl......

Purpose of LLP Amendment Bill 2021:- a) The government looks to improve ease of doing business and encourage start-ups. b) To encourage business class to incorporate LLP’s. c) To make it popular for Start ups d) Conversion of Partnership firms into LLP’s e) To remove the fear of criminal prosecutions for non- substantive minor and procedural omissions and commissions in the n......

The Government, vide Notification No 19/2021 Central Tax Dated 01.06.2021, had provided relief to the taxpayers by reducing / waiving late fee for non-furnishing FORM GSTR-3B for the tax periods from July, 2017 to April, 2021, if the returns for these tax periods are furnished between 01.06.2021 to 31.08.2021.  The last date to avail benefit of the late fee amnesty scheme, has......

INTRODUCTION Subject to the articles of association of the Company, the Board may appoint any person as a Director nominated by any institution in pursuance of the provisions of any law for the time being in force or of any agreement or by the Central Government or the State Government by virtue of its shareholding in a Government company. [Section 161(3)] A Nominee Director is a director i......

Scheme for providing financial assistance to set up new enterprises under PMEGP 1.1. Prime Minister’s Employment Generation Programme (PMEGP) Related Scheme Prime Minister Employment Generation Programme (PMEGP) Description The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At th......

GeM, or Government E-Marketplace, is a Procurement portal, which can be used to purchase or sell any item or goods by anyone. Nevertheless, like anything else, an individual will need to comply with the registration form to begin their endeavour on the platform. The Documents Required for GeM Registration :- Like any other authorized documentation, you will need to present some specific paperwor......

Quality Control for Firms that Perform Audit and Reviews of Historical Financial Information and other Assurance and Related Services EngagementsIntroduction:- The purpose of SQC 1 Standard on Quality Control is to offer guidance with respect to the responsibilities of a firm for the system of quality control for its audits and reviews and various other assurance and related services engagements. ......

Start-up Recognition:- Under the Start-up India Action Plan, start-ups that meet the definition as prescribed under G.S.R. notification 127 (E) are eligible to apply for recognition under the program. The Start-ups have to provide support documents, at the time of application. Eligibility Criteria for Start-up Recognition:- The Start-up should be incorporated as a private limited ......

1. Start-up Entity Forms Recognised under the Start-up India Scheme The definition of start-up recognises three entity forms for start-ups for the purpose of benefits under Income-tax Act,1961 as well as other benefits:- a partnership firm registered under section 59 of the Partnership Act, 1932 a limited liability partnership under the Limited Liability Partnership Act, 2008 a pri......

Factoring business:- Factoring business is a business where an entity acquires the receivables of another entity for an amount. Note that credit facilities provided by a bank against the security of receivables are not considered as factoring business. Factor can be a bank, a registered non-banking financial company or any company registered under the Companies Act 2013. Rec......

Meaning of De-Merger:- De-Merger means split or division of business or any undertaking of Company and makes them separate unit or undertaking. In short, De-Merger means separation of Large Company into one or more small company. Section 232 of the Chapter XV of Companies Act 2013 deals with mergers and amalgamation including demergers. Demerger is a form of corporate restructuring which in unde......

What is a 10K report? A 10K report also known as Form 10K which is a document that US public companies must submit to the Securities Exchange Commission annually. It is a summary of an organization's financial performance that keeps the company's investors or prospective investors informed about the company's financial stature and business activities. What kind of compan......

A Forensic Auditor is appointed to analyze, interpret, summarize and present complex financial and business-related issues in a manner that is both understandable and properly supported. Forensic Auditors can be engaged in Practice or employed by Insurance companies, banks, police forces, government agencies and other organizations. The Role of Company Secretary as a Forensic Auditor may be un......

Remuneration to Key Managerial Personnel 1. Maximum ceiling for payment of Managerial Remuneration:- Section 197 of the Companies Act 2013 prescribed the maximum ceiling for payment of managerial remuneration by a public company to its managing director whole-time director and manager which shall not exceed 11% of the net profit of the company in that financial year computed in accordan......

CARO 2020 is a new concept for issue of audit reports in case of statutory audits of companies under Companies Act, 2013. CARO 2020 has included additional reporting requirements after consultations with the National Financial Reporting Authority (NFRA). NFRA is an independent regulatory body for regulating the audit and accounting profession in India. The aim of CARO 2020 is to enhance the over......

1. What is the Governing Law? Section 29 read with Rule 9A of the Companies (Prospectus and Allotment of Securities) Rules, 2014. 2. From when is Rule 9A effective? 02nd October, 2018. 3. What does Rule 9A state? Every unlisted public company shall – issue the securities only in dematerialized form; and facilitate dematerialization of all its existing securities in accordance ......

In this period of globalization and Digitization, Overseas Direct Investment (ODI) has becoming a most powerful Tool in business World. Many of the resident individuals and Indian Companies are investing / acquiring stake in the foreign entities. Before moving to the eligibility and procedure, it is important to know meaning of following terms: Authorised Dealer Banks: ODI can be made only ......

The Ubharte Sitaare Programme (USP) Identifies Indian Domestic Companies that are Future Champions with Good Export Potential Track Record. An identified company should have potential advantages by way of technology, product or process. It can be supported even if it is currently underperforming or may be unable to tap its latent potential to grow. The Programme Accesses such challenges and provi......

Among other options, you may consider borrowings against mutual fund units as an easy and simple alternative. The advantage here is you don’t have to redeem your units prematurely. This also ensures that you’re SIP or Mutual Fund Investment continues without hitch. The process is similar to the overdraft facility that bank accounts offer. You can avail loan against equity or balanced ......

As per Income Tax Act 1961 a slump sale would be one where an undertaking is sold without considering the individual values of the assets or liabilities contained within the undertaking. It may be important to note here that finding out individual values may be of relevance only for the purpose of determining stamp duty or any other similar taxes. Tax Effect in a Slump Sale:- The gain or loss res......

Switzerland is the most sought-after country for starting a business is due to its political and economic stability, and central European location and liberal legal framework. There are so many business opportunities in Switzerland, The Swiss constitution allows anyone, including the foreigners, to run a small business in Switzerland or to form a company or have a financial interest in one. En......

What is Deposit and Exempted Deposit? As per section 2 (31) of the Companies Act 2013 Deposit” includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India; The above definition is a inclusi......

What is Plastic? Plastic is a polymer that is known to be an indestructible substance which is hazardous for the surrounding. Plastic can't be decomposed by natural means unlike the biodegradable substances. The term ‘’plastic’’ is came from the Greek word ''plastikos'', and its meaning is fit for moulding. This refers to the property of material, like malleability or pla......

With Aim of 'Make in India’, Digital India, 'Zero Defect and Zero Effect' in manufacturing Sector, government of India provides credit linked capital investment subsidy. This scheme would facilitate Opportunities of investment, productivity, quality, employment, exports and import substitution in textile industry. It will also indirectly promote investment in textile machinery manufacturing......

About Uttar Pradesh Pollution Control Board U.P Pollution Control Board is a statutory organization entrusted to implement Environmental Laws and rules within the jurisdiction of the state of Uttar Pradesh, India. U.P. Water Pollution Prevention and Control Board, constituted on February 3, 1975, initially under the Water (Prevention and Control of Pollution) Act., 1974, was consequently rechrist......

A SCHEME OF MINISTRY OF HOUSING AND URBAN AFFAIRS- GOVERNMENT OF INDIA Street vendors represent a very important constituent of the urban informal economy and play a significant role in ensuring availability of the goods and services at affordable rates at the door-step of the city dwellers. They are known as vendors, hawkers, thelewalas, rehriwalas, theliphadwalas etc. in different areas/ cont......

How to Convert an OPC into Private Limited Relevant Section: Section 18 of the Companies Act 2013 Relevant Rule: Rule 7(4) Companies Incorporation Rules 2014 Two ways of Conversion:- (a) Voluntary Conversion (b) Mandatory/Compulsory Conversion a. Voluntary Conversion:- Voluntary conversion into a private limited company is not permitted unless-: Two years is expired from the ......

The Nidhi Company Rules and Regulations with respect to Nidhi Company Incorporation are- Nidhi Company must get Registered as a Public Company as per the Nidhi Rules, 2014. The minimum paid-up equity share capital must be at least Five Lakhs INR. The name of the Nidhi Company must end with the words ‘Nidhi Limited.‘ Preference shares can’t get issued......

COVID-19 is likely to materially impact the financial position and statutory Compliances of many Corporates in India. It is therefore important for directors, whether executive, non-executive or independent directors and the management of each company to consider whether there are additional circumstances to assess before they signing on financial statements and report by the Board of Directors (&......

Sharjah is considered as one of the most populated emirate after Dubai and Abu Dhabi. This emirate forms a part of the Dubai-Sharjah-Ajman metropolitan area. Sharjah is present between Dubai, Ajman, Umm Al Quwain and Ras Al Khaimah. Hence it makes it a prime location for investors to go for company registration in Sharjah. This emirate has access to the Persian Gulf. As Sharjah is a part of the U......

Bangladesh is one of the emerging hubs for finance, technology and capital. Apart from being characterised as one of the largest exporters in the textile industry, this country is emerging as one of the largest hubs for different forms of investment. Hence it would be credible to consider different forms of investment opportunities in the country. Company Registration in Bangladesh requires some ......

What is a Virtual CFO? A business that does not have an in-house finance department can utilize alternatives such as outsourcing the finance function to another firm. Apart from this, the business can also utilize virtual CFO services. Virtual CFO services can be offered either remotely or through an external consultant.  Due to digitization, businesses have to adapt according to the chang......

We cannot deny the fact that the current COVID-19 pandemic has forced companies to change ways of doing their business. The companies are more concerned about their employee's safety while upholding their social responsibility to the community and partners. The virtual audit is becoming popular amongst organizations due to fast advances in information technology. Businesses already include high-t......

Form MGT-8 is a Certification given on a Company’s Annual Return by a Practicing Company Secretary, as per the Companies Act 2013, under Section 92(2). Applicability:- According to Section 92(2) of the Companies Act, 2013 read with rule 11(2) of Companies (Management and Administration) Rules 2014, the annual return of a listed company or a company having paid-up share capital of Rs 10 cro......

a. Annual Compliances of Listed Companies S. No. Regulations Timeline Brief Particulars 1. 34 Within 21 working days of it being approved and adopted. Submission of Annual Report 2. 44 Within 48 hours of conclusion of general meeting Submission of voting results 3. 24A Within 60 days of end of financial year......

Preference shares as the term implies are the shares that having priority over the equity shares. These shares contain a preferential right to receive the dividend as are declared by the company on first priority basis. They are not only having a Preference in receive a dividend on the priority basis but they also have a Preference in receive the proceeds that are realized from the sale of t......

It deals with responsibilities of the auditor while carrying out Secretarial Audit of a Company. The Standard is in addition to other Auditing Standards, as may be applicable with regard to Secretarial Audit. Contents:- Scope Effective Date Objective Definitions Auditor Audit Procedure Board process Systems and process Trigger test Requirements 1. Identifica......

Small businesses often overlook aspects like corporate culture or company culture that help keep the company stable. The focus of small businesses is to escalate the success ladder faster. But for the sustainance of this corporate culture, one needs to keep in mind building a conducive corporate culture. So how can SMEs build a good corporate culture:- 1. Clearly defined ideas about your company:......

Grid computing and cloud computing are conceptually similar that can be easily confused. The concepts are quite similar and both share the same vision of providing services to the users through sharing resources among a large pool of users. Both are based on network technology and are capable of multitasking meaning users can access a single or multiple application instances to perform different ......

Digital transformation has become the hottest buzzword of this decade. New technologies and tools are supporting the transformation journey of companies big and small as they compete to get a bigger slice of business in a fast-paced competitive environment. Yet, is it enough to smooth a company's transformative process? Can a standalone technology implementation remove a bottleneck in the produc......

What is Business Intelligence? BI (Business Intelligence) is a set of processes, architectures, and technologies that convert raw data into meaningful information that drives profitable business actions. It is a suite of software and services to transform data into actionable intelligence and knowledge. BI has a direct impact on organization's strategic, tactical and operational business decisio......

The applicability of Cash flow statement has been defined under the Companies Act, 2013. As per the definition in the act, a financial statement includes the following: 1-Balance sheet 2-Profit and loss account / Income and expenditure account 3-Cash flow statement 4-Statement of changes in equity Explanatory Notes:- Thus, Cash flow statements are to be prepared by all companies but the act a......

There are particularly some banks which are regulated by the Reserve Bank of India (RBI). These banks are started with the main motive to serve particular sectors of the society. Though large based banks would also carry out activities, however small banks such as the above would only cater needs to small sections of the society. These institutions cater to the needs of different forms of custome......

Following are all the documents for complete application Procedure of IEC Registration. There are 12 steps associated with the IEC code application procedure. Steps for IEC Registration Process:- Step 1: Go to the DGFT Website:- First step go to www.dgft.gov.in You will show welcomed home page by a bright and informational page. There you will see the latest notification and updates ......

Passing the Resolution by Circulation is an alternative method for urgent matters instead of convening the Physical Board Meeting. Resolution shall be considered as passed when approved by the majority of Directors. As per the provisions of Section 175 of Companies Act 2013, For passing the Resolution by Circulation, the resolution has to be circulated in draft with necessary papers, to all ......

Takeover-An Overview Takeover has become a common practice in today’s economic environment. Takeover is said to have taken place when one company takes control over the company, usually by purchasing the majority stake in the company that is being taken over. The purchaser of the company is known as the bidder or acquirer and the company being purchased is referred to as the Target Company......

SME Exchange provides a great opportunity to small and medium enterprises to raise equity capital for the growth and expansion of their business. SME exchange is a stock exchange for trading the shares of small and medium enterprises who otherwise would find it difficult and costly to get listed in the main board of a recognised stock exchange. “SME exchan......

Insolvency and Bankruptcy Code 2016 was enacted with an aim to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms, and individuals in a time-bound manner for maximization of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alterati......

REGULATORY PROVISIONS:- Section 13(3) of LLP Act, 2008 and Rule 17 of LLP Rules, 2009 I. CHANGE OF REGISTERED OFFICE WITHIN THE SAME STATE/ WITHIN THE SAME OUTSIDE THE JURISDICTION OF SAME REGISTRAR The partners need to check the LLP agreement, in case it provides for procedure for shifting the registered office of the LLP. In case no procedure is prescribed, obtain consent of all partners ......

China is the most competitive and dynamic country on an international scale from an investment point of view and a major force of the worldwide economy. Being a stable business partner in many fields of interest, China is recognized as a fast-growing economy and a global influence, with connections to powerful financial centres.  China attracts investors from abroad to p......

In accordance with the Overseas Direct Investment data issued by the Reserve Bank of India, Singapore is the top destination preferred by Indians for Investment. All the Companies in Singapore are registered with Accounting & Corporate Regulatory Authority i.e. ACRA (similar to Ministry of Corporate Authority here in India) and has to diligently abide by the provisions of the Companies Act. ......

As per the provisions of the section 406(1) of the Companies Act, 2013 ‘Nidhi Company’ means a ‘company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit’.  After being incorporated as a Nidhi Company, ......

Section 110 of Companies Act 2013 with Rule 22 of the Companies Management and Administration Rules 2014 This section has the overriding effect over anything contained under the Act, 1. As per the section, notwithstanding anything contained in this Act- A. In respect of such items of business as prescribed by Central Govt. Rule 22(16) of the Companies (Management and Administration) Rules......

Director:- As per the Companies Act 2013  Any Person Who Occupies the position of a director by whatever name called, Director appointed to the Board of a company.  In literal sense, it is natural person who has certain qualifications and/or experience which adds up to the growth of company. The collective group of these individual directors are referred as Board of Directors of c......

Who is scrutinizer? Scrutinizer means a person who is examiner, inspector and/or investigator who observes carefully the whole process of voting on the behalf of company in an independent manner. A Scrutinizer is a person who monitors the entire process of E-voting, polling and Postal ballot done in Annual General Meeting or Extra-Ordinary General meeting. A scrutinizer is a person who observes......

A Chief Executive officer (CEO) is the most senior corporate, executive, or administrative officer in charge of managing an organization especially an independent legal entity such as a company or non-profit institution. The CEO of a Corporation Or Company typically reports to the board of directors and is charged with maximizing th......

1. What is Extra-ordinary General meeting (EGM)? An extraordinary general meeting (EGM) is a shareholder meeting called other than a company’s scheduled Annual General Meeting (AGM). The extraordinary general meeting is utilized to deal with urgent matters that come up between annual shareholders’ meetings. 2. What provision covers Extra-ordinary General meeting relat......

For how long a Director can be appointed in a company? As discussed above the different types of director have different appointment terms. Like Managing Director and whole-time directors have term of five (5) years, Additional Director has term upto next ensuing General Meeting, Nominee director has term upto the term as written into the agreement or other arrangement, etc. Can a company remove......

A Cost Audit represents the Verification of cost accounts and checking on the adherence to Cost Accounting Plan. Cost audit ascertains the accuracy of cost accounting records to ensure that they are in conformity with cost accounting principles, plans, procedures and objectives.  A Cost Audit Comprises the Following:- -Verification of the cost a......

Who is an Auditor? An auditor is a Person Authorized to Review and Verify the Accuracy of Financial Records and Ensure that Companies Comply with Tax Laws. They protect businesses from fraud, point out discrepancies in accounting methods and, on occasion, work on a consultancy basis, helping organizations to spot ways to boost operational efficiency. Auditors work in various capacities within dif......

A Company is a Big Holistic and Multi Dimensional Business organization and multiple functions take place on daily basis. There is a cycle where company receives and pay the amount for receiving and selling the services or their respective product. But there are times, when a company requires funds whose reason may vary from decision to take their production level to increased level, induction of ......

Report on Annual General Meetings as per Companies Act 2013As per Section 121 (1) of the Companies Act, 2013 every listed public company has to file MGT 15 (Report on Annual General Meeting) in less than 30 days from the completion of the Annual General Meeting. Applicability:- As provided under Section 121(1) of the Companies Act, 2013 read with Rule 31(2) of the Companies (Management and Admin......

Statutory Registers are the Registers that contained the specific record of the Company’s Directors, Shareholders/ Members, Loans & Guarantees, Deposits, shares etc, and are placed at the registered office of the Company, It is advised to maintain these register for good corporate governance and to avoid penalties. 1. Register of Members:- Section 88(1) (a) and Rule 3 of the Compan......

Rule 37 of the Limited Liability Rules, 2009 deals with the striking off name of Defunct LLP. Defunct means those LLPs which are not functioning or not operating. Hence, it is pre-requisite that LLP must be defunct for at least 1 year before applying for closure. It provides that -“where a limited liability partnership is not carrying on any business or operation for a period of ......

Companies are divided into listed companies and unlisted companies. Listed companies have their shares registered in a particular stock exchange. The Securities Exchange board of India (SEBI) is the main authority that governs the listing of securities and stocks in stock exchanges in India. Therefore listed companies have to be in conformity with the rules related to the SEBI. The Government of ......

Section 185(1) of the Companies Act, 2013 No company shall, directly or indirectly, advance any loan, including any loan represented by a book debt to, or give any guarantee or provide any security in connection with any loan taken by,— (a) Any director of company, or of a company which is its holding company or any partner or relative of any such director; or (b) Any firm ......

Introduction:- FSSAI stands for Food Safety and Standards Authority of India, It is the organisation that monitors and governs the food business in India. FSSAI ensures that the food products undergo quality checks, curtailing food adulteration and sales of sub-standard products. FSSAI register and license the Food Business Operators in India and lays rules and regulation for running the food b......

Employee Stock Option Plans are the plans in which employees get the right to purchase a number of shares (decided by the employer) in lieu of Salary in the company at a discounted price (less than the market price). The option provided under this scheme confers a right but not an obligation on the employee. Employees have to wait for a certain time period known as vesting period before the......

Checklist of Due Diligence for a Company:- Due Diligence of a Company is performed usually before any business sale, private equity investment. It is process of research and analysis that is initiated before an investment, acquisition, business partnership, joint venture or bank loan, in order to determine the value of the subject of the due diligence and to see whether there are any major issue......

A Sole Proprietorship is a business entity is wholly owned and controlled by an individual, it is a good form of business for individuals who want to start small but as business grows it necessitate converting it into some greater form for greater advantages. Many opt for  choice of Private Limited Company as it give it a status of separate Legal entity also a private limited comp......

Process for the Closure of a Company-: The company must extinguish all its liabilities as a first step for strike off. After which it has to- Hold a board meeting for approving voluntary closure of a company and notice for convening an extra ordinary general meeting (EGM). Convene the EGM and pass a special resolution for voluntary closure of company. File e-Form MGT-14 for reportin......

Compliances that companies needs to follow immediately after their Incorporation 1. Holding of a Board Meeting A meeting of board of directors of the company should be held within 30 days of its incorporation. For this, a 7 days prior notice shall be given to the board of directors specifying the date, time, venue and agenda matters of the meeting. The agenda of the meeting shall be as specified......

Transmission of shares is a process by operation of law where under the Shares are registered in a Company in the name of deceased person or an insolvent person are registered in the name of his legal heirs by the Company on proof of death or insolvency as the case may be. Transmission of shares takes place when registered member dies or is adjudicated insolvent or lunatic by competent court. Ar......

Dear Members, XYZ PRIVATE LIMITED Your Directors have pleasure in presenting the (No. of AGM) Annual Report together with the Audited Statement of Accounts of your Company for the Year ended March 31, 2021. 1. FINANCIAL SUMMARY The Company’s financial performance, for the year ended March 31, 2021:                      &nbs......

Can a company give loan to a director? Companies (Private & Public whether Small, OPC, Start-ups etc.) shall Not directly or indirectly, advance any loan (including loan represented by a Book debt (meaning of book debt is amount receivable on account of sales)  OR Give any guarantee  OR Provide any security in connection with any loan taken by: a) Any d......

As per section 71 (Debentures) read with rule 18 of the Share Capital and Debenture Rules 2014 provides the condition for issue of debentures. A debenture is a legal document that represents a secure means by which a creditor can lend money to the debtor. As per section 2(30) of the Companies Act 2013 defines the term Debentures as debenture includes debenture stock, bonds or ......

Companies considering the interest of all its well-wishers, who want to report genuine concerns within the organization, implements the Vigil Mechanism/Whistle Blower Policy. The Company has adopted a Code of Conduct for Directors and Senior Management Executives (the Code), which lays down the principles and standards that should govern the actions of the Company and its employees. Any actual o......

When a property is received on inheritance or as a gift, it is not taxable in the hands of receiver. When the inheritor or the receiver of this gift of property sells it, capital gains on the sale are taxable for the inheritor. The procedure to calculate the capital gains of inherited property is given below:- Step 1: You must know the cost of acquisition and indexation in order to calculate the......

As Per Section 59 of Motor Vehicle Act 1988, the Central government hereby notifies the following guidelines for setting up, authorization and operation of AVSF (Authorized Vehicle Scrapping Facility) in the country. These will be applicable in respect of following:- Vehicles which are no longer Validly Registered Under Section 41 of the Motor Vehicle Act 1988, or where the owners are desirous of......

The main objective of foreign trade policies is to make the import-export process simple and attractive for importers, exporters, and traders. There are various export promotion schemes, and Status Holder Certificate is one of them. The Objective of the Star Export House Certificate or Status Holder Certificate is to boost export performance. As per the updates to the Foreign Trade Policy of 20......

An audit refer to a systematic and independent examination of books, accounts, statutory records, documents and vouchers of an organization to ascertain that how far the financial and non-financial statements and disclosures present a true and fair view of the company. Broadly, the audit can be classified in to two type of audit i.e. the Financial Audit and the Compliance Audit -: The Financial......

Who can be a Registered Valuer? A person, who aspire to be a registered valuer, is required to possess certain qualifications and experience, obtain membership of a recognized organization of valuers and get itself registered as a valuer with IBBI. The RV Rules sets out in detail the eligibility criteria, educational qualifications (degree), experience, and procedure for registration of a value......

Every State has its own Shop and Establishment Act (“Act”), However, the general provisions of the Act are the Same in all States. The Shop and Establishment Act is regulated by the Labour Department of the respective states. The Act regulates all the shops and commercial establishments operating within the state. The respective states issue the registrations under the Act, and thus ......

The London Stock Exchange is one of the world’s most international capital markets, home to approximately 2,200 companies from more than 70 countries around the world. More than 500 of these companies are Global. The markets of the London Stock Exchange put UK and international companies in touch with one of the world’s deepest pools of global capital. London’s position at the h......

1.1 Incorporation: - Incorporation is the process by which a new or existing business registers as a limited company. A company is a legal entity with a separate identity from those who own or run it. The vast majority of companies are limited liability companies where the liability of the members is limited by shares or by guarantee. A business cannot operate as a limited company until it has be......

As per Section 248(1) of Companies Act 2013 the Registrar has the power to strike off the name of the Company, consequently, it had struck off various companies in India and also in process to strike off other companies, which fulfils the conditions as mentioned under Section 248(1). Now, the important thing comes how one can restore the name of the Company which has been struck off by the R......

Statutory Audit is a type of audit which is mandated by a Law or a Statute to ensure the books of accounts presented to the regulators and public are true and fair. Statutory audit is mandatory if certain criteria are being met by the business. It is performed by Qualified Chartered Accountant who is independent of the business. Statutory Audit - Meaning & Applicability: - Statutory Audit is......

1. Mandatory Compliances under FEMA:- To conduct business dealings within India, all transactions have to be compliant with relevant foreign exchange law. From setting up a bank account for an NRI to adjudication of disputes under FEMA, all the services have to be compliant with FEMA. 2. Why is Compliance under FEMA required? The main aim of FEMA regulation is to ensure that businesses are compl......

In 2002, the Sarbanes-Oxley (SOX) Act was passed by Congress in response to the fallout and uncertainty following frauds at World-Com and Enron. The Act introduced major reforms to the regulation of financial disclosure and corporate governance, with the goal of restoring the public’s confidence in auditing and financial reporting. The SOX Act 2002, also known as the “Public Company A......

1. Registering a Company with the New Zealand Companies Office:- Before starting an application to incorporate a New Zealand company with the Companies Office, Firstly creation of online services account and reservation of company name is mandatory. 2. Set up an online services account :- To file an online application to incorporate a company with the NZ Companies Office, Creation of ID is manda......

NEW ZEALAND COMPANIES ACT 1993 1. Introduction Forms of Corporate or Business Organisations in New Zealand:- The principal forms of business organisations are the following. Bodies Corporate – Body Corporate are the separate legal persons from their- Owners companies, formed under the Companies Act 1993; limited partnerships, formed under the Limited Partnerships Act 2......

1. Definition of the Producer Company: - “Producer Company” means a body corporate having objects or activities specified in section 581B and registered as Producer Company under the Companies Act, 1956. 2. Allowed Activities for Producer Companies:- A producer company is basically a body corporate registered as Producer Company under Companies Act, 2013 and shall carry on or relate t......

“External Commercial Borrowings (ECB)” means borrowing by an eligible resident entity from outside India in accordance with framework decided by the Reserve Bank of India in consultation with the Government of India:- Eligible entities may raise ECB from outside India in accordance with the provisions. 1. Currency of borrowings:- ECB can be raised in any freely convertible forei......

Trademark Assignment is a written document that authorizes a registered proprietor/user of a trademark to assign/transfer the trademark and to give authorisation for any consideration for such assignment. The assignor transfers a registered word, phrase, and symbol or design to another owner. Trademark Assignment takes place when there is a transfer of the owner’s power, title, and interest ......

1. Convene a Board Meeting and send the notice of the general meeting along with the explanatory statement to all its members. 2. Company shall pass the special resolution in its general meeting as per rule 21(1) for the conversion of section 8 company into private limited company. 3. Company shall file its certified true copy of special resolution and notice for convening the general meeting wi......

The branch office registration gives a foreign company the right to operate as a legal business entity in India. The Branch Office can carry out similar business activities as conducted by the parent company in their Home-Country. Branch Office is Restricted in Case of Manufacturing Activities. Eligibility Criteria:- For Setting Up Branch Office In India, The Company Must Fall Under The Followin......

It deals with the responsibilities and duties of Auditor with respect to process of conducting audit and maintaining proper documents including working paper files. Objectives-  The objective of standard is to prescribe a Principle for an Auditor To conduct an audit as per the prescribed audit process. To maintain documentation that provide:- a :- Sufficient and Appropriate R......

1. MEANING OF BONUS SHARES:- Bonus Shares refers to a further issue of shares made by a company having share capital to its existing shareholders without receipt of any consideration from the shareholders for issuance of such shares. It is an offer of free additional shares to the existing shareholders in proportion to their existing holdings. The basic principal behind bonus issue is that the ......

These are the Following Related Parties as per Companies Act 2013:- A director or His Relative (Relative means a member of the same HUF, husband, wife, father, stepfather, mother, stepmother, son, stepson, son’s wife, daughter, daughter’s husband, brother, stepbrother, sister, step-sister). Key Managerial Personnel or his Relatives. A firm in which a director, manager, o......

The Chemical Based and Allied Products from India falls under chemical and Allied Export Promotion Council (CAPEXIL), The Ministry of Commerce which promotes the export of chemical based products. CAPEXIL, a Premier Export Promotion Council was setup in March 1958 by the Ministry of Commerce, Government of India to promote export of chemical and Allied Products from India. And since then has been......

RERA Complaint Regarding Different Projects As per RERA, 2016, it is necessary for both the builders and developers to get their projects registered under the state regulatory authorities of the Concerned State. RERA provides a platform to the buyers where they can keep an eye on the growth and development of the on-going projects and can also lodge a complaint in case of any grievance. The b......

A Forensic Audit is an evaluation and examination of an individual's or a firm's financial records to stem up evidence that can be used in a legal proceeding or court of Law. Forensic auditing is a specialization within the accounting field, and most large accounting firms have a forensic auditing department. Forensic audits necessitate auditing and accounting procedures as well as expert knowled......

1. Registration of Project Office:- The RBI allows a parent company based in another country for project office registration in India to represent the parent company's interests when executing projects in India. However, the parent company must have a contractual relationship to execute a project in India. The project can be entitled to a foreign company by any Indian government sector or private......

Foreign Investment means any investment made by person resident outside India on a repatriable basis in capital instruments of an Indian Company or to the capital of an LLP. Foreign Direct Investment is the investment through capital instruments by person resident outside India as follows:- In an unlisted Indian Company or In 10% or more of the post issue paid-up equity capital on a......

♦ As per (ii) to section 42 of the Companies Act 2013 Preference Share Capital includes that part of the share capital the holders of which have a preferential right over payment of dividend (fixed amount or rate) and repayment of share capital in the event of winding up of the company. ♦ Further, as per (iii) to section 42, when a certain class of shares has either of the follow......

A foreign company or an investor proposing to incorporate a business in Australia may choose from a number of different entities or forms of business organisation. Each of these forms has its advantages and disadvantages. Business owners will need to carefully consider them and take advice to determine which is the most appropriate form for their business. The major forms of business organisation......

1. REGULATORY SCHEME :- CORPORATIONS ACT 2001 The Corporations Act 2001 principally regulates companies and their incorporation, the acquisition of shares, securities, and the derivatives industry. The Corporations Act, together with other major pieces of legislation such as the Australian Securities and Investments Commission Act, the Australian Securities and Investments Commission Guidelines a......

DOCUMENTS REQUIREMENTS:- -Photograph -PAN (in case of Indian National) -Passport- Identity Proof; -Voter ID/DL/Aadhaar/Passport (in case of Indian National) -Bank Statement/Electricity/Gas/Telephone Bill (Not older than 2 months)-Residence Proof ♦ Other Documents:- -Subscriber Sheet of MOA (For Person Residing outside India); -Subscriber Sheet of AOA (For Person Residing outside......

Benefits of a Limited Liability Company (LLC) in Dubai Dubai LLC offers unrivalled access to the wider UAE economy. No specific minimum capital needed. Investors can manage the business without any day-to-day interference from the local partner. Convenient to open corporate bank accounts along with easy availability of credit facilities. This business entity is ideal for a business looking to of......

Basic Information: - Limited Liability Partnership (LLP) is a combination of partnership and corporation. It is a new structure of business which facilitates the flexibility of partnership with benefit of limited liability from company at a low compliance cost. Why to close a LLP: -. LLP may be closed down due to following reasons: - 1-Continuation of regular losses 2-Problems in the management......

A) Basic Info:- “Letter of Undertaking”(LUT) is a document that is submitted by the exporter who wants to export goods & services without the payment of taxes. In case the LUT is not filed, the exporter may export by payment of IGST and then claim the refund of tax so paid. However, the exporters always prefer to export by filing LUT as they don’t want to indulge in refu......

AS 10 Property, Plant and Equipment AS 10 is to be applied in accounting for property, P&E (Plant and Equipment) and this standard are not applicable to: (a) Biological Assets which are related to agricultural activities except for bearer plants. The Standard is applicable to bearer plants, however, it doesn’t apply to the produce on bearer plants; and (b) Wasting Assets which include......

BALANCE SHEET OF ________LTD AS ON 31/03/2021FORMAT AS PER IND-AS GUIDELINES ASSETS Note no. As at 31st March, 2021 As at 31st March, 2020 Non-Current Assets       Property, Plant and Equipment       Capital Work in progress       Financial Assets       ......

Oxygen plays a vital role in the respiration of human beings. Without oxygen, no human life is possible on the planet. Human beings and many other creatures on the earth breathe in oxygen to stay alive. Oxygen is naturally produced by plants during photosynthesis wherein plants take carbon dioxide and release oxygen into the atmosphere.             Oxygen is als......

Merchant Banker refers to entity registered with SEBI with specific purpose and guidelines of activities to pursue in financial market per se securities market. It means any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities issued by corporate who is in process of or already listed in securities market o......

‘Nidhi Company’ means a ‘company which has been incorporated as a Nidhi with the object of cultivating the habit of thrift and savings amongst its members, receiving deposits from, and lending to, its members only, for their mutual benefit’. After being incorporated as a Nidhi Company, it shall comply with all the provisions and restrictions applicable. Registration Proces......

The most significant technology risks for 2021 reflect our COVID-19 world and its impact on business conditions and priorities. What’s increasingly apparent is that more digitally mature organizations have a clear advantage. Post Corona Virus Period  in September/October 2020, Several Big Four Firms and ISACA conducted a global survey of more than 7,400 IT audit and risk leaders and pr......

Trademark list is the process of classifying trademark application form and then companies as per their goods and services. Trademark is the registered mark of a business organization or an individual who is doing his own business. It gives a clear picture about the list of goods and services and various types of trademark lists those are registered under the name of certain companies. These tr......

(Prudent Requirements  under Income Tax Act on holding of Jewellery more than the limit prescribed by the CBDT) FAQ on government’s recent thrust on tracking unaccounted monies and investments in Liquid Assets Such as Gold :- The purpose of this article is to make aware about all the possible benefit available to the searched person(s) in respect of jewellery found during the course o......

A company is referred to as Section 8 Company when it registered as a Not For Profit Organization (NPO) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives. The income of NPO cannot be used for paying out dividen......

Scope This Auditing Standard is applicable to Auditor undertaking any audit engagement under the Companies Act, 2013 or SEBI Act, 1992 or any other law for the time being in force. The Standard deals with Auditor’s roles and responsibilities in agreeing to the terms of audit engagement and entering into an understanding/agreement with the Management for the purpose of audit. Effective Date......

Startups are becoming very popular in India. In order to develop the Indian economy and attract talented entrepreneurs, the Government of India, under the leadership of PM Narendra Modi, has started and promoted Startup India initiative to recognize and promote startups.    Startup India is launched in order to grow Indian economy and attract potential entrepreneurs. Startup India ......

The Real Estate Regulation & Development (RERA) Act, 2016 is an Act to protect home-buyers as well as help to enhance investments in the real estate industry. RERA Act 2016 came into force from 1 May 2016. The real estate sector has developed in the recent years but has mostly been unregulated from the view of consumer protection. Though, consumer protection laws are available, the ......

What is Payment Gateway License? A payment gateway is a financial service that reads payment cards (like debit card, credit card, net-banking and payment through your e-wallet, etc.), payment gateways refer to software and servers that transfer transaction info to acquiring banks and responses from issuing banks. Essentially, payment gateways facilitate communication within banks. A payment gate......

As we all are aware that Ministry of Corporate Affairs (MCA) in strict action mode since last 2-3 years and have strike off large no of Companies on its own motion and disqualified their directors for being a director for five years, just because of non-filing of due Statutory Annual Returns for continuously last 3 financial years. Consequently, the large no of Companies have sound business track......

NEEDED FOR BUSINESS AND CORPORATE HOUSES:-  Income Tax Income Tax return for the Fy 2018-19 has been extended to 30th June 2020. Interest at 9% P.A. instead of 18% for late deposit of TDS however date of TDS deposit remains same. Aadhar PAN linking date extended to 30th june 2020. Vivad se Vishwas scheme also extended to 30th June without 10% additional charge. GST Returns F......

LODR Checklist for Secretarial Audit   Matter for consideration Regulation Reference Compliance Yes/No/NA Comments Workpaper Reference   CHAPTER III - COMMON OBLIGATIONS OF LISTED ENTITIES           1 Whether the has appointed a qualified Company Secretary as the Compliance Officer. 6(1)   &......

Audit Committee (1) Every listed entity shall constitute a qualified and independent audit committee in accordance with the terms of reference, subject to the following: (a) The audit committee shall have minimum three directors as members. (b) Two-thirds of the members of audit committee shall be independent directors and in case of a listed entity having outstanding SR equ......

What is a Board Meeting? The board meeting is a formal meeting of top executives or directors of the company called to debate certain issues and problems and to make decisions. The meetings are held at definite times, at definite places. A Board meeting is organized to solve some special issues, taking important decisions or to make new policies. Board meetings require more planning and det......

A Secretarial Audit is a mechanism to check the compliance of an organization to the laws, rules, regulations, notifications etc prevalent at the time of the audit. In this case, it is to check if a company has been complying with the provisions of the Companies Act 2013 and all of its rule therein. The rules and regulations around companies are very complex and ever increasing. The responsi......

ITS ALL ABOUT CORPORATE DESK- Independent Director The Companies Act,1956 did not provide us the specific definition of an Independent Director. But Independent Directors are in the limelight as per the Companies Act, 2013. A separate criterion has been established for the companies to have an Independent Director. Basically, we can say that an independent director is a non-executive direct......