A detailed guide on the Classification of companies in India

Classification of companies according to Companies Act 2013: One of the most important decisions before starting a business is to select the appropriate type of company. As the business evolves, this decision needs to be revisited periodically. As and when it seems necessary, a business entity can exercise the options for conversion and re-conversion. The…

A Complete Guide on Filing of AOC 4 Form

To ensure accountability, good governance, and transparency of a company towards its stakeholders, it is mandatory that proper disclosures of its annual financials, board’s report, and auditors’ report are made. These financials act as a medium of clear communication between the Board of Directors and a company’s shareholders. Form AOC 4 and MGT 7 are…

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All about Cost Audit Applicability under Companies Act 2013

A cost audit is concerned with the verification of cost records/accounts and acts as a check on the adherence to cost auditing standards. Section 148 of the Companies Act 2013 confers powers on the Central Government to direct certain classes of companies to get their cost records maintained and audited by a cost accountant. Here…

Doctrine of Ultra Vires in the Companies Act 2013 – What it says?

The doctrine of ultra vires gains its significance from the legality of Section 4 of the Companies Act 2013. Section 4 says that the objects for which a company is formed and the possible scope of its operations beyond which its actions cannot go must be clearly stated in the Memorandum of Association (MOA). But…

Difference between accounting and accountancy

In practice for a layman, the terms “accountancy” and “accounting” are pretty much used interchangeably, however, there is a thin line of difference between them. Many people often get confused between the two terms as they are very much inter-related. But fundamentally they are different. In this blog, let’s find out how these two terms…

Forecast Vs Budget – Things you probably didn’t know!

If you have been familiar with financial terms or have worked in the financial sector especially in determining a business’s growth potential, a most common question that must have crossed your mind now and then is “Are forecasts and budgets the same thing?” People invariably use these two terms interchangeably. But do they mean the…

Angel Investment vs Venture Capital: How does it differ?

A brief intro: Angel investment vs venture capital Securing funds for your business is no cakewalk, especially when you are kick-starting your business. Every start-up needs access to capital, whether it’s to finance product development, acquire machinery and inventory, or pay its employee salaries. Depending on what stage your company is in, you might be…

Angel Investment: What it holds for you?

The scope of angel investment has accelerated in recent years. This is so because a growing number of individuals pursue better returns on their investments than they would get from conventional investment vehicles. Angel investors have become a primary source of funding for many entrepreneurs, as well as a vital part of existence for many…

Extension of AGM – When and how to seek approval?

All of us are well aware that a company must convene its annual general meeting within the timeline stipulated under the Companies Act, 2013. But there may be circumstances wherein a company is unable to hold its annual general meeting within such stipulated time-limit. Can such a company get some additional grace period to hold…

Difference Between Bookkeeping and Accounting

Introduction: Bookkeeping and accounting are often used on an interchangeable basis, but they vary from one another. Accounting is a wider and more analytical subject. It involves the design of accounting systems that the bookkeepers use, the preparation of financial statements, audits, cost and expense analysis, all work related to income tax, and the review…