Accounting policies are essentially a combination of the accounting principles selected and the methods of applying those principles. Accounting principles refer to the fundamental theories and conventions that guide the preparation of financial statement
Just like banks, companies can also accept deposits from its members as well as the public subject to conditions specified in companies act 2013. Section 2(31) of the act defines deposit as It includes any receipt of money by way of deposit or loan or in
Before going to charges it is important to understand mortgage, pledge & hypothecation. Mortgage means transfer of interest in specific immovable property to secure the payment of loan. The transferor is called mortgagor and transferee is called mortgagee
In simple terms, Buyback of Equity Shares means taking back equity shares from the holder of it at their will for pre determined consideration. It can be done to increase Earning per Share, defence mechanism against hostile takeover, provide additional ex
Debenture means a document that acknowledges debt. It is a type of borrowing that may be secured or unsecured. Debenture holders get interest as return on investment and the company is liable to pay it irrespective of profit available. Debentures have a
A Company can issue preference shares if it is authorised by its Article of Association, if it is not authorised then alter the AOA as per section 14 of companies act. To proceed further, call board meeting to pass board resolution to authorise issue of p
A prospectus is a crucial document for companies seeking to raise funds from the public through the issuance of securities such as shares and debentures. It provides important information to potential investors, including the company's financials, man
The term Capital has variety of meanings. It may mean one thing to economist, another to accountant while another to businessman. A layman views capital as the money invested in business to meet its requirement by way of acquiring business premises and st
In the previous article Memorandum and Article of Association of Company & related doctrines we discussed memorandum and article of association, now it�s time to discuss how to alter it. Let�s have a look at alteration of each clause of memorandum:
MOA is a legal document that defines the power and limitation of company. It is also known as charter document that defines objects for which company is formed. It is mandatory for every type of companies to submit MOA to the Registrar of Companies at the
The word Company is derived from two Latin words Com which means with or together & Panis which means Bread & it originally referred to an association of persons who took their meals together. A Company under Law is a corporate body and legal person hav
