Investment Valuation in India

Sec 130 of the Companies Act 2013 prescribes that a company may apply to the Central Government / SEBI / Income Tax authorities or any other statutory regulatory body to re-open and re-cast the financial statements if: a) the relevant earlier accounts were prepared in fraudulent manner or b) the affairs of the company were mismanaged in the relevant period, casting a doubt on the reliability of financial statements If the competent court or tribunal passes an order to re-open and recast the financial statements, the company may do so. The accounts so revised or recast shall be final. #CompaniesAct2013

Sec 12 (3) of the Companies Act 2013 prescribes that every company shall...  ( a ) paint or affix its name, and the address of its registered office, and keep the  same painted or affixed, on the outside of every office or place in which its business is  carried on, in a conspicuous position, in legible letters, and if the characters employed  therefor are not those of the language or of one of the languages in general use in that  locality, also in the characters of that language or of one of those languages; ( b ) have its name engraved in legible characters on its seal; ( c ) get its name, address of its registered office and the Corporate Identity  Number  (CIN) along with telephone number, fax number, if any, e-mail and website addresses,  if any, printed in all its business letters, billheads, letter papers and in all its notices and  other official publications; and ( d ) have its name printed on  hundies , promissory notes, bills of exchange and such other documents

The importance of internal audit has been well acknowledged in Companies (Auditor Report) Order, 2003 (CARO 2003), pursuant to which auditor of a company is required to comment on the fact that the internal audit system of the company is commensurate with the nature and size of the company’s operations. However, CARO 2003 did not mandate that an internal audit should be conducted by the internal auditor of the company. CARO 2003 acknowledged that an internal audit can be conducted by an individual who is not in appointment by the company. The 2013 Act now moves a step forward and mandates the appointment of an internal auditor who shall either be a chartered accountant (CA) or a cost accountant (CMA), or such other professional as may be decided by the Board to conduct internal audit of the functions and activities of the company. The class or classes of companies which shall be required to mandatorily appoint an internal auditor as per the draft rules are as follows: *

Finance Act 2013 introduced a concept of TDS on Real Estate transactions under Sec 194IA. Under this section, any person who purchases any immovable property (except agricultural land) for a consideration (Rs 50 lakh or more), shall be required to deduct tax at source (TDS) @ 1% of the amount paid to resident seller. The Buyer of the property is required to deduct tax, at the time of credit of consideration to the account of seller or at the time of payment by any mode (cash cheque, demand draft etc.). A simple one pager form (Form 26QB) has been introduced for compliance of this section. BUYER OF THE PROPERTY IS NOT REQUIRED TO OBTAIN TAIN NO. Buyer is required to furnish information in Form 26QB which includes: - Full Name, Address and PAN of buyer and seller - Address of the property - Value of property - Date of agreement / booking - Amount paid / credited, payment in instalments or lump sum - TDS etc. Subsequently, buyer can make the payment online or off