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 not...

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 ...

When the two of the 10 richest people joined hands to start The Giving Pledge, they had a tough time convincing billionaires across the world to contribute most of their wealth for philanthropic causes. The Indian government took a leaf out of the concept and made it mandatory for specific class of companies to ensure they spend on Corporate Social Responsibility (CSR) through the new Companies Bill that has been passed in the Lok Sabha in November 2012. Although some European countries require companies to report their CSR information in their Annual Reports, India is arguably the only country in the world that has made CSR mandatory through an Act. What is CSR? CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members who may also be considered as stakeholders. A firm's implementation of CSR may go b...

Hi, Do read my article on Independent Directors as mentioned in the Companies Bill 2011 (passed in Lok Sabha as of Dec 2012) Accountants' Adda | Companies Bill 2011 - Independent Directors

Companies (Auditors Report) Order, 2003 [CARO 2003] ‘CARO’ is applicable to every company including a foreign company as defined in section 591 of the Companies Act, 1956 (‘the Act’), except to: - a banking company, - an insurance company, - a company licensed to operate under section 25 of the Act and - to private company meeting all of the following conditions:     -- paid up capital and reserves not more than Rs.50 lacs     -- has not accepted any public deposit     -- does not have a loan outstanding from any bank or financial institution of Rs.10 lacs or more     -- does not have a turnover > Rs.5 crores The Order deals with the matters to be contained in the Auditor’s report under Sec 227 of the Companies Act, 1957. Fixed Assets Whether the company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets Whether these fixed assets have been p...

RBI, wide notification no. Notification No. FEMA 20 / 2000-RB dated 3rd May, 2000 have amended the pricing and valuation guidelines for a private company issuing shares to a person resident outside India. RISGHTS ISSUE The offer on right basis to the persons resident outside India shall be at a price which is not less than the price at which the offer on right basis is made to resident shareholders. ISSUE OF SHARES Current Provision - Price of shares issued to persons resident outside India is required to be issued at a value arrived at by a Chartered Accountant who would determine the price in accordance with the erstwhile Controller of Capital Issues (CCI) Guidelines [conservative method of valuation by considering an average of the Net Asset Value (NAV) of the company and the company’s Profit Earning Capacity Value (PECV), which was arrived at based on its past financial performance]. Revised Guidelines - Price of shares issued to persons resident outside India, shall not be...

Hi Friends, Here is the list of approved insitutions eligible for imparting Industrial training Approved Organisations - Eastern Region SIEMENS LIMITED 43 SHANTI PALLY E.M.BY PASS CALCUTTA 700042 CITI BANK N.A. TATA CENTRE 41,CHOWRINGHEE ROAD CALCUTTA 700071 RECKITT & COLMAN OF INDIA LTD 41,CHOWRINGHEE ROAD CALCUTTA 700071 BRITANIA INDUSTRIES LTD . 14, TARATALA ROAD CALCUTTA 700088 ICI INDIA LTD 34, CHOWRINGHEE ROAD CALCUTTA 700071 GRASIM INDUSTRIES LTD. INDUSTRY HOUSE 14TH FLOOR, 10, CAMAC STREET KOLKATA 700017 AMERICAN EXPRESS BANK 21, OLD COURT HOUSE STREET CALCUTTA 700001 BALMER LAWRIE CO. LTD 21, NETAJI SUBHAS ROAD CALCUTTA 700001 INDIAN OIL CORPORATION LIMITED 2,GARIAHAT ROAD(S) DHAKURIA CALCUTTA 700068 SRF LIMITED EXPRESS BUILDING 1ST FLOOR BAHADUR SHAH ZAFAR MARG NEW DELHI 110002 INDIAN RAYON AND INDUSTRIES LTD RISHRA HOOGHLY 712249 PEPSI-COLA INDIA MARKETING COMPANY SREE MANJURI BLDG. SUITE NO.6 , 1ST FLOOR 8/1, MIDDLETON ROW CALCUTT...