COMPANY DISPUTES MAY SOON BE SETTLED OUT OF COURT

COMPANY DISPUTES MAY SOON BE SETTLED OUT OF COURT

In a bid to check the rise in court cases against corporate houses for company law violations, the government is set to give more powers to its officials to deal with such offences out of court. The framework proposed in the new company law envisages that company disputes should not be dragged to the court.

Presently, the registrar of companies (RoC) moves court against the company whenever it
notices a company law violation and the subsequent litigation stretches too many years even if the offence is minor and technical in nature. Soon, RoC and regional directors would be allowed to settle such cases by levying a penalty. The penalty would not be high for minor offences such as not filing statutory documents on time.

The move is expected to help in reducing litigation involving government and companies which are on the rise in line with a fast-expanding economy. The proposal is part of the companies Bill, 2008, which has recently been cleared by the Cabinet and is expected to be tabled in Parliament soon.

Now, once a case is filed against a company, the government is not at liberty to withdraw the case, which is purely at the discretion of the court. In the absence of flexibility for officials to deal with offences without going to court, 40,000 cases are pending against companies in various courts, some of which are 25 years old, corporate affairs minister Prem Chand Gupta told ET. “Now, legal expenses of both the parties extend to several
lakhs of rupees, and at the end of protracted litigation, the average realisation of fine is only Rs 2,200,” Mr Gupta said, explaining the need to address the issue in the new
company law. The government is also planning to set up exclusive courts to deal with company law offences.

It is believed the new set up will go a long way in reducing the burden of litigation at all levels, extending up to the Supreme Court. Several corporate matters reach up to the apex court, being seen as a result of an ineffective in-house grievance redressal mechanism. The proposal is in line with an expert committee report chaired by senior advocate O P Vaish. The report had called for empowering RoC which acts as the first line of interface with the government.

Special Economic Zones

UGC SAP National Seminar on Special Economic Zone (SEZ)
16-17th March, 2007 at Department of Geography, Delhi School of Economics,
University of Delhi, Delhi – 110007, India
SPECIAL ECONOMIC ZONES-BOON OR BANE?
Shankar Jha 1&
Sangeeta Mishra 2
INTRODUCTION
Special Economics Zones is specially depicted duty free enclave and shall be
deemed to be foreign territory for the purpose of trade operations and duties and also
tariffs. Therefore, goods supplied to Special Economics Zones from Domestic Tariff Area
(DTA) are treated as deemed export and goods brought from SEZ to Domestic Tariff
Area (DTA) are treated as imported goods. This scheme was introduced in EXIM policy,
which came into effect from 1st April 2000. This scheme has been introduced saying,
having minimum paper work, single window clearance and transparent policy. The main
objective behind encouraging SEZ is to give big push to our exports. Any private or
public or joint sector or state government or its agencies can set up special Economic
Zone.
This SEZ s will have factories, IT Parks, office space, warehouses, residential,
apartments and malls. Thus SEZ will be for manufacturing of goods and rendering of
services.
Our economy is plagued with laws relating to labour, environment, small
industries, foreign investment and bureaucratic system, which increases the cost of
production and the price, which keeps us out of global market. These laws will not be
applicable in SEZ.
Special Economics Zones, when operational are expected to offer high quality
infrastructure facilities and support services, besides allowing for duty free import of
capital goods and raw materials. Setting up of SEZ is also treated as an infrastructure
development activity and that is why offered tax incentives.
‘In order to encourage exports, government has set up 8 Export Promoting Zones
(EPZ), which in the year 2000, government replaced by a new scheme Special
Economic Zones (SEZ), with more benefits and incentives offered to SEZ, which were
previously not available to EPZ. The difference between SEZ and EPZ is that, SEZ is an
integrated township with fully developed infrastructure, whereas EPZ was just an
industrial enclave.’ (Aggarwal, 2006).
1 Shankar Jha
Lecturer in the Dept. of Business Economics, Faculty of Commerce,
M.S. University of Baroda.
2 Sangeeta Mishra
Lecturer in the Dept. of Geography, Faculty of Science,
M. S. University of Baroda
UGC SAP National Seminar on Special Economic Zone (SEZ)
16-17th March, 2007 at Department of Geography, Delhi School of Economics,
University of Delhi, Delhi – 110007, India
‘The competitive advantages of SEZ may also be explained within the framework
of the “cluster approach.” Zones are industrial clusters, where external economics of
scales and other advantages help the operating competitive production system and
attractive investment in particular, FDI. ‘(Aggarwal, 2006).
The package of fiscal incentives offered to SEZ units and the developers are:
• Exemption from custom duties. Central excise duties, services tax, central
sales taxes, and securities transactions tax to both, developer and SEZ
units.
• Tax holidays for 15 years that is 100% tax exemption for 5 years, 50% for
the next 5 years, and 50% of the plough back export profit for the next 5
years.
• 100% income tax exemptions for the 10 years in a block period of 15
years for SEZ developer
• On 1st March 2007, the government of Gujarat announced that SEZ units
would be exempted from Value Added Tax and from other state taxes.
Other than Fiscal incentives, SEZ units are also enjoying other benefits which are
• Exemption from industrial licensing requirements for items reserved for
SSI sectors.
• Job work on behalf of domestic exporters for direct export allowed.
• Support services like banking, post office clearing agents etc provided in
zone complex.
• Assurance of continuous and quality power supply to SEZ units.
• SEZ units would be exempted from the electricity duty for 10 years period
from the date of production.
POSITIVE ASPECTS OF SEZ
By Special Economic Zones, we are trying to make India, a global
manufacturing hub. In a country like India where the problem of unemployment is
serious, where majority of youth are busy in finding out job for them, SEZ is to create
more employment to the Indian people, particularly to educated people. Government
also believe that by Special Economic Zone, we can create millions of employment. If we
all people of a country put collective efforts in implementing policies, we will definitely
make India an attractive destination for becoming a Global Manufacturing hub.
The Special Economic Zones policy, based on private sector financing and
aimed at creating both industrial and social infrastructure is clearly an important step in
this direction and deserves the incentives that are given to SEZ.
The SEZ are expected to provide employment to the millions of people. This
employment is expected to outweigh the large revenue losses and large scale
displacement of farmers.
UGC SAP National Seminar on Special Economic Zone (SEZ)
16-17th March, 2007 at Department of Geography, Delhi School of Economics,
University of Delhi, Delhi – 110007, India
‘The Economic Survey of 2006-07 highlighted the positive aspect of SEZ.
Export from functioning SEZs - mainly former Export Promoting Zones that were
converted into SEZ, was worth $ 5 billion in 2005-06.There are 1016 units in operation.
These providing direct employment of about 1.79 lakhs people. Private investments in
these units is to the tune of Rs 3163 crores. The notified 63 SEZ have already attracted
investment worth Rs 11,194 crores in the last year, providing direct employment to
15000 workers. The survey added that once all 63 notified SEZ become fully operational
by the end of 2009, total investment of which would touch Rs . 58.459 crores and also
8.9 lakhs new jobs would be created’(ET-2007)
NEGATIVE ASPECTS OF SEZ
The controversies against SEZ started when this Act was passed in June 2005, without
any discussion. How government could pass this Act without any public discussion?
Ministry of Finance feels that tax rebate would result in huge losses from
direct and indirect taxes. According to the finance minister, country would be losing Rs.
160,000 crores on account of SEZ granted tax rebate by 2010 ,which is certainly not a
small amount.
Ministry of Commerce and Industry, is canvassing for SEZ, in order to make
our industries more competitive in the global economy, but principally they are incorrect
.By giving them tax exemption to SEZ units would not make them competitive in the
global market. Even RBI and IMF have warned against the present trend of promoting
SEZ in India. Thus, SEZ are enjoying huge concession and financial incentives would
provide employment of 5 lakhs people by the end of 2007.Are the benefits in terms of
employments sustainable?
The fiscal deficits of the country are rising, government is trying to control this
deficit. Then, is it justified government action offering tax concession to SEZ units? This
is also not in favour of those people who are paying taxes.
We are planning to achieve double digit growth rate, for that we need to
fasten growth rate of agricultural sector and industrial sector. Industrial sector is already
doing well, having recorded 11% growth rate .Now with the help of SEZ; it will grow
more, but what about the agricultural sector which is already lagging behind, with a
growth of 2.3% to 2.7%, certainly it is not satisfactory against the target of 4%.Then, is it
justified to convert the most fertile agricultural lands into SEZ, making poor farmer
poorer. What would then happen to the supply of food-grains, if the fertile lands are
taken for SEZ? There should be complete ban on conversion of the fertile lands for
commercial use, only barren and waste land should be permitted to use for the
commercial purposes. How can government allow acquiring fertile agricultural land for
industrial use? Why government is not asking the industrialists to set up their units in
waste and barren lands? Thousands of farmers had filed the objections and raised their
voices against SEZ said why their lands and livelihoods should be sacrificed to promote
SEZ, for the profit of the SEZ developer and industrialists?
UGC SAP National Seminar on Special Economic Zone (SEZ)
16-17th March, 2007 at Department of Geography, Delhi School of Economics,
University of Delhi, Delhi – 110007, India
When government has offered tax concessions to SEZ units, why not
government declare entire India as SEZ? Let small and medium entrepreneur also enjoy
tax benefits. These SEZ will certainly kill many small and medium business.
SPECIAL ECONOMIC ZONES IN GUJARAT
In Gujarat, the central government has sanctioned 33 Special Economic
Zones and 20 more are in pipeline. Here also, farmers had raised their voices against
the acquisition of their land for SEZ like the farmers of Haryana and Maharastra. The
said objective of special economic zone is to create more employment opportunities, but
rather SEZ have snatched employment of many farmers and artisans. The farmers of
Gujarat had also complained Prime Minister that they are forced to sale their most fertile
agricultural land at a lower price and in return they are not been properly rehabilitated .In
one of the unit of SEZ, in the Rajula taluka of Amreli district, a power compainy named
“Viza Power” had given notice to 750-850 farmers to quit their lands and sell them at
the price which they had offered. These farmers had complained the concerned authority
for such exploitation.
In Vadodara district also, government acquired 1500 hectares most fertile
land, which had even irrigation facilities, to develop IT Park at Por and Fajalpur. Due to
this IT Park, around 3000 to 4000 people who were directly dependent on those 1500
hectares of land would loose employment and livelihood. Against of that, this IT Park is
expected generate employment of only 800 to 1000 people. So, where economy is
gaining in terms of employment by encouraging SEZ?
Mundra SEZ is for multiproduct. Here, because of SEZ , fishermen have lost their
traditional occupation. For the extension of SEZ, the government has demanded 1500
hectares more of forested land. Since SEZ are also exempted from the environmental
impact assessment , it will certainly have adverse effect on environment .
Surat, which was an export promoting zone, became SEZ, many workers in the
company of SEZ, recruited on contract basis. They are employed on short term contract
so they can be hired and fired at any time. Most of the workers had complained that they
are not even getting the minimum wages, as the entrepreneur by law, are exempted to
pay minimum wages. Since industries in SEZ are very export oriented, emphasis is on
minimizing cost of production and to keep price lower in the world market. Thus, in order
to keep cost of production lower, workers are exploited more. Forcibly they are working
more than 8 hours, as per the labour law, they should get the over-time, but for SEZ,
labour law is also not applicable. Therefore many workers are deprived of their rights of
over-time.
CONCLUSION
The Economic Survey of 2006-07 pointed out some serious problems, which
have risen due to SEZ, like –acquisition of prime agricultural lands could have serious
implication on food security and there could be misuse of lands by the developers for the
real estate. Large scale land acquisition by the developers may lead to displacement of
UGC SAP National Seminar on Special Economic Zone (SEZ)
16-17th March, 2007 at Department of Geography, Delhi School of Economics,
University of Delhi, Delhi – 110007, India
farmers with meager compensation; even this survey pointed out that SEZ would lead to
loss of revenue and possibility of relocation of industries in SEZ to take advantage of tax
concession. (ET, 2007)
The government should promote Special Economic Zones only after analyzing
the cost and benefits of Special Economic Zones.
REFERENCES
1. Aggarwal Aradhana: ‘Special Economic zones’ Economic and political
weekly Nov 4th 2006.
2. Economic Times-Feb 28th 2007.
3. Gujarat Samachar -6th March 2007.
4. Govt of Gujarat policy on SEZ-www.smallindustry.com
5. Gupta R.K. ‘Special Exploitation Zone’ Info change and feature feb-
2007
6. Jhunjhunwala Bharat ‘SEZ Boon or Bane’ free press journalwww.
sify.com
7. Ministry Of Commerce industry and Industry, dept. of commerce ‘SEZ
in India’ www.sezindia.nic.in
8. Suchitra M –‘SEZ Special economic or exploitation zone’ Info change
and feature feb-2007
9. The Times Of India-2nd March 2007.

Interview Questions for Accountants

1.
what is the diffrence between gross profit& net proffit? capitaliq
what is the journal?
one question dr mean debit cr mean credit but cr full form credit but dr full form debit that mean debit not word dr what the answer
What is smallest 4 digit number?
what is the difference between Purchase order and invoice
what is suspence capital? Capital-IQ
Information on Cost accounting vs. Management accounting HDFC
What are the source of gaining long-term funds???? What are the limitations of gaining long-term funds???
What is an Acrual Interest? In which side of the Balance Sheet, it should be shown???? ICAI
how is cost concept extension of on going concept?
WHAT IS IFRS?
WHAT IS IDEAL DEBT-EQITY RATIO BPO
what is the finalisation of balancesheet and how it can be made BPO
Which Exchange determine Foreign Exchange/Currency Rate?
Which Exchange determine Foreign ?
hedge fund, hedging
What cost-cutting measures have you implemented?
differences between liabilities and assessts
when the money introduced in india
what type of account appear on a post closing trial balance? a) income statement accounts b) balance sheet accounts c) cash flow accounts d) temporary owner's equity accounts
What is the Difference between Rectification of Errors and Adjustment Entry ?
What are the general Ledgers?

2.


What is bank reconcilation a/c Accenture
what is profit maximisation
what is a financial statement UBS
What is the Journal entry for advance payments and advance receipts from Debtors and creditors
what is contigent liability and state some examples also.
what is balance sheet, capital budgeting, financial statements, current ratio, profit maximization? UBS
What is the formula of Debt Equity Ratio? Also define its importance in a firm. ICAI
Capital secure should be shown in which side of the balance sheet??? ICAI

3.

why closing balance do not come in trial balance?if it is in which case it comes? HDFC
what is the definition of derivative, what is a security?
TDS is for claming purpose or for filing purpose.
when does accounts receivable have a credit balance?
whatis meant by contigent liability IQ
why is TDS treated as an asset while preparing Balance sheet.
What is the Meaning of Current ratio?
When Trial Balance match?
what is the adjusting entry for wages posted twice? Genpact
wages posted twice what is the entry for that? Genpact

4.
Bank Overdraf is an Asset or a liability for a Bank? ICAI
How is the Cost of Goods Calculated???? ICAI
why should we do accounts in company
WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL RESERVE? Capital-IQ
what is difference between depreciation and amortization ?
principles of accounts
what are the difference between bookkeeping and accounting ?
WHY SHOULD WE PREPARE PROFIT & LOSS APPROPRIATION a/c??? Accenture
what is the difference between shares & debentures
What is a General Ledger Balance? How can it be arrieved at? RBI
whether cash book is a subsidiary book?
What is mean by Tab Group in MS-Excel? IBM
WHAT ENTRY SHOULD WE PASSED IN BOOK A PERSON HAVING SALARY BASIC 10000.00 HRA 4000 PF 1500.00
why opening stock posted in the credit side
Who Invented Accountancy?? Capital-IQ

5.
What steps to be taken at the time of implementation of Oracle ERP and please give the chart of accounts and links to be given Aster-Teleservices
what is the accounting treatemnt for issuing material to a subcontractor on recovery basis?
Entry for the settlement of loans? Wipro
Entry for prepaid expenses? Wipro
what is journal entries for cheque dishonored?
Difference Between Tax Invoice and reatail Invoice ?
Explain the effect of closing stock on gross profit and net profit. comment on the financial health of their business.
whatis mean by accured income? Capital-IQ
what is derivative? Capital-IQ
what is balancesheet adjustment a/c. what is the use of this a/c in sap fico Reliance
what is zero balance clearing a/c. why we r maintaining this a/c in sap fico Reliance
what is inflation accounting
What is put option, call option, mutual fund? Wipro
What is audit,auditing? Wipro
Should I deduct TDS for Dyeing Charges in Garments Industry? If yes what is the percentage under which group it will come?
6.
npv, arbitrage RRDonnelley
equity RRDonnelley
market capitalisation RRDonnelley
nav , npv RRDonnelley
hedge fund, hedging RRDonnelley
investment banking RRDonnelley
types of derivatives RRDonnelley
capital expenditure , revenue expenditure RRDonnelley
deferred revenue expenditure RRDonnelley
what is meant by derivatives RRDonnelley
Plz Give the Inventry Accounting Procedure
1.Domestic Purchases ( VAT,CST,& Excise)
2.Import Purchases ( Direct Expences & Excise )
3.When Will the Price Diffrence Entry Happen?
4.Cash Discount & Trade Discount On Purchases?
5.Domestic Sales ( VAT,CST,& Excise) 6.Export Sales ( Customes ,Excise )
7.Cash Discount & Trade Discount On Sales?
Please let me know the journal entry for the below. "A" paid Rs.100 to "C" on behalf of "B"
What are the legal entities that constitute your business? Does a legal entity have a seperate Federal Tax Id? In which country does a legal entity operate? In which currency does a legal entity operate? When does each legal entity's fiscal year begin?
what are the fundamentals of book keeping
What is Accounting? How to prepare the manual accounts? What are the manual accounts? What are the subsidary books? How to classify, summerising and posting accounts. What are basic and important stpes to take while preparing journal,ledger,cashbook, Bank book, Trailbalance, Trading and profit and loss a/c and Balance sheet.

7.

what is crr
when the money introduced in india
What Is repo transaction
What is Risk Assessment?
what is the golden rules of accountancy ?withdrwal frm atm what will be the transaction ?
what is ZBA hold & balance hold in banking?
What is difference between NSE and BSE? Which company are include in NSE and which are include in BSE? How do i will cme to now that i have invested in NSE or BSE? Catalyst
give narration of cash----a/c---Dr To cash Hindalco
What is Standard Cost? Cap-Gemini
What is mean by ETDS Syntel
Please tell me the process of Selction of Junior Research Associate in Capitaliq(Intervie rounds&written test)
where we have file E-returns in SAP FICO-CIN/Wtax? Wipro
If in a PO, the freight condition is mentioned as Air freight and the material is actually received by Road, how does the system check before making the necessary accounting entries?

8.

what are the balancesheet,profit& loss a/c,profit & loss aprrieation a/c format
What is General Accounting TATA
What are the General Ledgers?
Wat is pivot table
What are the general ledgers
can anyone provide me the Balance Sheet Items & P & L Items with Accounting Heads with Accounting codes?
cany anyone explaing what are the functions of an Account Officer/Manager?
can anyone provide me the Balance Sheet Items & Profit & Loss A/c Items & Accounting Heads with Accounting codes?
pls send me capital iq quition paper pls, ihave 2mr interview thanks
Diffrence between cost, financial and management accounting
what is accounting standard? Genpact
what is the difference between cash system & mercantile system Mico
What is mean by Journalising ? Capital-IQ
What is Financial planning?

9.

differed tax liability
What is the meaning of Equity & Dedt Pls Explain Clearly
What is capital market? Mellon
method of preparing the trial balance ?
what is the cost and financial accounting? what is double entry system ?
what is the organisation chart for accounting and finance ?
what is the nature of accounting function ?
define accounting,scope of account , types of account ?
what is journal and ledgers ? Prolect
differences between liabilities and assessts Prolect
what is credit balance of bank define briefly??? Genpact
What are the general Ledgers?
In Accounts payable process in BPO, how is the due date calculated? It should be Invoice date+ payment terms or Receipt date of invoice + payment terms? Accenture
what is derivaties, equities, and mutul fund BPO
shares journal entries

10.

what is different between expenses (direct) and direct expenses?
Mac Purchased on 15th Jan 12000/- 30th June Machinery damaged due to Fire Accident 31st Dec received the Insurance Premium 13000/-. Pass the Journal Entry for all the above three Genpact
Credit Paurchases Genpact
Machinery Rate is 12000/- and residual value is 2000/- and life span is 10yrs.Calculate the dep in Straight line method. Genpact
New emlpoyee was joined on 15th Jan and salary paid on 28th Feb amt of Rs.20000/- and asked to give the Journal entry for the Month of Jan, Fed and March (His Monthly Salary is Rs.8000/-) Genpact
Rent Paid Rs.12000/- (which is included for the whole year i.e Jan to Dec) and they have asked me to give Journal Entry for the Entry for the Month of Jan, Feb and March Genpact
what type of account appear on a post closing trial balance? a) income statement accounts b) balance sheet accounts c) cash flow accounts d) temporary owner's equity accounts
what does debit and credit mean in accounting and what is its underlying concept and its treatment. in the cash book dr means receipt nad credit means payment? is it correct?
In p&l account where does miscellaneous expenses comes
what is balance sheet? SBI
1. what is debenture? 2.Why company will issue shares? 3. What is audit? 4. What is the role of finance department? 5. What is mutual fund?

11.
What is the depreciation rate for computers?
why should i hire you? what are your outside interest? what was your toughest decision you ever have to make? GE
what do u mean by preliminary expenditure? what r they? where it is comes?
what is the diffrance between fund flow statement and cash flow statement. Genpact
What is private placement in Equity market ? Bank-Of-America
plz send me hsbs finance questions asked in the interview ans appitude also HSBC
what is a reconcilation statement HP
why share capital shown in liability side of a balance sheet

12

What is Suspense A/c? Mafoi
What are Accounting Concept? Mafoi
What is Working Capital Management ? Give the formula for it Mafoi
Can you tell me the closing stock entry? Satyam
HOW MANY TYPES OF ACCOUNT EXAMPLE PLS
CAN PRE OPERATIVE EXPENSES BE CAPITALISED? IF YES, HOW CAN IT BE DONE?
When determining turnover, do you first deduct all sales returns to come to an answer or is turnover the total sales without deductions.
Please send the all account interview question to me SBI
what are the various questions asked on excel in an interview Asian-Paints
Hi Actually Im Accounts Executive Currently I Have one Offer as a Stores & Purchase Accountant can you suggest it is good and what type of works will be there ??
what is stock divient Franklin-Templeton
Can anybody tell what is the link b/w reporate and inflation? How these parameters vary???
out standing salaries goes to whiich A/C I mean personal(or) real(or)nominal a/c
what is the difference between cash flow and funds flow
What is personal Account?

13.
WHAT IS THE DIFFERENCE BETWEEN RESERVE CAPITAL AND CAPITAL RESERVE? Capital-IQ
what is the difference between cash flow and profit and loss account?
What is the Difference between Rectification of Errors and Adjustment Entry ?
What is the Casting ?
What is the Accountancy ? Give the Answer in one sentence.
What are the Trading A/c Components and let explain about Trading account and Profit & Loss Account Focus
what is the effect of repo rate Capital-IQ
what is BRS Capital-IQ
What is a cash flow statement Capital-IQ
what is trailbalance..?
what can increase gearing?
how to reduce axis bank emi Axis-Bank
what is the Entry for Prepaid expenses? which side it come in balance sheet? Wipro

14.

Depreciation, What type of cost? Direct cost or Indirect cost?
Which game is played only by women SBI
What is Cost Accounting SBI
how could we reconcile the cash book balance with pass book balance by pass book Dr. balance with pass book method?
what are adjusting entries? and why we are dioing it?
what is the differance between Equity shares and preferance shares? Panacea
What do u mean by pass through expenses? give examples, how it will be accounted & billed?
What is contingent liability? Syntel
what is cap & floor of call rates?
what are the procedures of paying service tax and vat? Insight

15.
WHICH ASSET IS DEPRICIATED IN TANGIBLE?
WHAT WILL BE ENTRY IF COMPANY PURCHASE A DOG FOR WARE HOUSE?
When is proposed divided a current Liability and when is it non-current liability? Why is it in the list of Current Capital Accounts?
what amounts to appropriation of profits? When provision for taxation does not amount to appropriation of profits?
Where does TDS payable & receivable appear in the books of accounts
Professional fees of Rs.30000/- is paid to a consultant ABC & Co. please pass the necessary entry for the same
Interest of Rs.30000/- is received from deposits Tds of Rs 7500/- is deducted by the bank please pass the necessary entry for the same
Under which headings the following transaction appear in bank reconciliation as on 30.06.03 particulars Interest debited by bank Chq issued to suppliers not appearing in bank statement Chq deposited not appearing in bank statement Income not accounted in books appearing in bank statement
An advance of Rs 10000/- is received from customer. pass necessary journal entries
Name any 3 heads shown under assets side of balance sheet.
Calculate the profit/loss on sale of the following assets as on 30th september 2000 cost of the asset on 01.05.95 50000/- Salvage Value 5000/- Method of depriciation & date WDV 15% sales of asset on 30.09.2000 Rs 25000/-
a) what are the rate of employees & company's contribution for PF & ESIC? b) what is the ceiling in case of ESI deductions? c) what are the due dates for paying ESI/PF
Compute the following selling price for the follwing item: Basic cost CST @ 4% on basic cost freight & insurance Rs 200/- Margin @ 15% on selling price

16.
What is the due date for paying monthly IT deductions, other than deductions towards salary
What is the due date for filing monthly & annual sales tax returns in karanataka
Compute the interest & TDS amount following transaction:
Compute the sales tax amount on the following transactions: MRP rs 1000/- Sales Tax is 10% cess on sales tax is 5% Turnover tax is 1% on net turnover
what is the entry passed for sales return (sales is on credit basis)?
What is the TDS ratio applicable on professional fees?
Can u please give me example of bonds? is National savings certificate a Bond?
What do we mean by the term "Securities" when we say that "Govt injecting/sucking liquidity in/out of the system by buying/selling securities?
why we use the term profit and loss account instead of profit or loss account Syntel
what are the differences between Tally and Focus?
what is the treatement of outstanding expenses in Tally accounting package? where it shown and what is its account type?
What are the different payrolls? how we calculate the exmployee payroll? how we calculate the employee salaries details?

17.

Give me total Details of payroll calculation, payslip with examples.
payroll calculation procedure explain completely?
what are the payroll procedures? Hewitt
what is the order for cashflow statement Capital-IQ
tell the ratio where the numerator and denominator should contain one from asset side and other from liabilities side Capital-IQ
What are the difference between Cash Flow Statement and Fund flow Statement? please explain me fully.
Can you give three examples/names of Public and Private Ltd companies? Syntel
What is the difference between "Primary Market" and "Secondary Market"? Syntel
what is debit card? n what is credit card? if it is a debit card what will be a transaction in personal account and if it is a credit card what will be the tranction in personal account
I want to know how to get Appeared to the examination of State bank of India. And how can i find the question Book Series.
What is the uses of Ratio's in The Finanacial management? Explain it? IBM
What is difference between cash flow and funds flow?
Any two difference of Trading and Profit and loss A/c Syntel
Any Two difference Between Debenture and bonds? Syntel
What is the Entry for Call in arrears? Syntel

18.

What do you mean by Amortization?
What is Electronic clearances? Genpact
What is Accrual (Mercantile Vs Cash System of Accounting) Genpact
why to differentiate between capital and revenue expenditure?
what is the journal entry for bad debts?
What is means by A/c in Accountancy ?
What is the full form of Dr. and Cr. ? Syntel
what is CDD’s configuration
what is the meaning of (PDD’s, DOD’s, CFR’s,) based on understanding of the business process
What is Share? Syntel
company's total overhead expense is containing which are the expenses? Definition of overhead expense.
what is the difference between debit card and credit card Genpact


19.
Where we have to take the Director's current account, wages a/c, Accruals, sales tax payable in Balancesheet
what is leverage?how many types of leverages are there and explain Capital-IQ
what is contingent asset Genpact
What is the full from of DR and CR ? Adani
How to treat the provision for bad debts which appeared on the credit side of the P&L A/c? Wipro
How to treat the provision for bad debts which appear on credit side of the p&L A/c. Capital-IQ
can any one send me payables real time scenarious or any projects
Briefly explain about Stok valuation.
What is depreciation? What are the various methods thereof?
What is Royalty Accounting? How it calculate? Give some example.
What are the accounting conventions and Practices?

20.




What is the means of Limited.they are not asked about public limited or private limited or difference tehy asked only what is the limited
what are the three basic acounting principles.what is account reconcilliation.what is portfolio management GE
what is mean by Red herrting Capital-IQ
What is mean by Dis-investment Capital-IQ
What is accounts recevable & acct. payble? How they are efect in real life accounts of the company? Genpact
i need sbi bank clerk exam model question papers
How can we post Salary, PF etc., can anybody tell me the entry
what is the journal entry for tax refund? HSBC
what is bank reconcilation? HSBC
what is the difference between credit and debit note?
what is the meaning of derivative. Capital-IQ


21.

what is the difference between fund manager and portfolio manger Franklin-Templeton
What is Contra Entry?
how to take print checks in tally SMS-Pharmaceuticals
what is the core accounts SMS-Pharmaceuticals
expense paid but the benefit not been received so far like deferred exp so can we consider it as a prepaid exp. L&T
what is the system of accounting and banking in cooperative bank?
define p&l approprate Genpact
tell me about roll model as father Genpact
tell about friendship Genpact
what is the difference between cost centre and bussiness centre?
contiagent liabilty Genpact
types of inventory Genpact
define cost of goods sold Genpact
define inventory Genpact


22.

How to calculate bank's turnover? HDFC
diiffrence b/w provsion & reserve
do you have debit and credit in balance sheet Capital-IQ
how did you know about capitaliq? what is the meaning of iq. Capital-IQ
What is provision and reserve and how u treat in account Capital-IQ
How many methods are there in capital budgeting? what are those. Capital-IQ
What is meaning of ficticious asset Capital-IQ
what is the meaning of empairment asset Capital-IQ
what is the meaning of preliminary expenses and how you shown in balance sheet Capital-IQ
What is the meaning of capital profite and capital reciet? both are same or any different are there? Capital-IQ
wt is stock split, dividends, rights issues,mergers and acquisitions, and spinn offs? Ness-Technologies
what is corporate action? wt is the purpose and tpes of corporate actions? Ness-Technologies
WHAT IS F& O SEGMENT?
what is cost of goods sold?
What is the closing entry for outstanding amount? IBM

23.

What is suspense Account? IBM
What is Bank Reconcilation Statement? IBM
what is basic accounts rule? Syntel
There is any new golden rule added with remain three? Why bank credited our all deposited?
Why do people call Genpact as Gunpat outside? What do you reply when they ask that What does Gunpat manufacture? Genpact
what is accrual prepayment? Define capital A/c &revenue. Define golden rules. meaning of share capital and its entries e-Serve
What is the diffrecnce between liabilities and owner's equity? ABN-AMRO
what is the procedure to get the duplicate Cform in case the original is lost in transit.
WHAT IS THE MEANING OF BLUE CHIP COMPANY? Capital-IQ
what is the meaning of hedging? Capital-IQ
WHAT IS THE MEANING OF INDENTURE? Capital-IQ
WHAT IS THE MEANING OF CREDIT WORTHINESS? Capital-IQ
Please answer the following question: "Your grandmother sends you a large check for your birthday, asking that you use the money to buy shares of stock in a company. She recommends that you review the company's financial statements before investing. What can a company's financial statements tell you about the investment potential of its stock?"
Ans: Generally financial statement reflects the financial
condition of the firm in terms of profit growth and
sales.There are different type of financial ratio which can
be calculated after seing the financial statement like Eps
ratio tell ur how much co. can pays to its
shareholder,other ratio are PE,Debt-Equity and many ratio
are relyy impotant to evaluate company performance
what is the meaning of LETTER OF CREDIT? Capital-IQ
What is mean by Debt Equity Ratio ?


24.

What is the Accounting Treatment for Contingent Liability ?
Why Closing Stock Not shown in Trial Balance?
WHAT IS MEAN BY SHARE & DEBENTURE? WHAT IS THE DIFFERENCE BETWEEN THEM?
How do u show Drawings In Trading Account ?
Difference between Provision & Reserve?
Difference between Accounts & Finance ?
what is Current Accountant ?
What is the Difference Between Retail Invoice & Tax Invoice?
what is minority interest Capital-IQ
explain accounting concepts Capital-IQ
How to Prepar Balance sheet?
what does bpo means? Genpact
why do u want to join bpo sector Genpact
example irr
What is the trial balance Capital-IQ


25.

What do you mean by Mutual Funds ? Types Capital-IQ
what is ADRs? Capital-IQ
which are company offering jobs in PORTFOLIO MANAGEMENT ?
what is monetary polasy and how it is different from trade polacy? how it will impact on stockmarkets in India?
What is the trade balance ,what is the Trailbalance, ITW-Signode
Where we show the Contingent Assets.
what is inflation?
what is Prime Brokerage? UBS
what is Reconciliation-NOSTRO,VOSTRO? UBS
what is Credit derivatives,equity derivatives,SWAPS? UBS
what is futures and options? UBS
what is Derivative Documentation,Derivative Settlements,Derivative confirmation? UBS
what is pre settlements and post settlements in Derivatives? UBS
what is OTC derivatives and Depository Trust & Clearing Corporation (DTCC) ? UBS
what is Internal Revenue Service (IRS) and Certificate Of Deposit (CD)? UBS

26.

What do you mean by capital?
Define mortgage
what is ADVANCE,DECLINE ratio. also explain how it helps the investor to predict the stock market movements? UBS
why stock market goes to bearish mode when RBI hikes CRR rates? UBS
what is F B T?
what is priority?
what is surcharge? Perot-Systems
what happens in the stockmarket when RBI changes the CRR rates(REPO RATES) Wipro
Canu send me account aptitude questions Genpact
I am going to attend an interview for the post of Accounts Officer in NCMSL Co.(procurement co.),So pls help me for the interview.
meaning of accounts payable
what is accrual income ? Genpact
most recently asked questions
what is bank reconcilietion WNS
what are the point to see when calculating the Company Profit / Loss

27.

salary is which type of account??
how much percentage of shares of a company must be purchased so in order to start the company?? fictitious account is what type of account i.e real,nominal or personal account?? What is the different between each of the following. a) ordinary shares and preference shares b) called and uncalled capital c) bearer debentures and convertible notes d) floating charge and specific charge
how to calculate the Current Ratio, Liquid Ratio & Operating Ratio
What is MEan By Sundry?
Why do call p&la/cas a P&l a/c ?, why not P{or}L a/c Bank-Of-America
What is ment by MIS reporting?
machinery is assets or liabilities
what is the meaning of accountant,accounting & accountancy & account?
how is caluclation of over time (O.T)
what is subsidiary book? ICICI
what is journal?
what is the meaning of double entry system & Double entry system?

28.
what is genpact? Tell us about genpact? what is GE? Tell us about GE? Describe your ideal company,location and job? why we should hire you? why do you want to join our company(GE)? What is capital bugeting? Explain the methods of capital bugeting in detail? GE
what is the usage of Acounting standard?, what is deferred tax?, what is operating Expenses and incomes?, what is the difference between subsidary and holding company? and what is right share and right issue?
what is difference between cash and profit?, and why netprofit comes under capital account? ITC-Infotech
What is cash profit? how can we calcute?
are you a gay? Genpact
What is meant by Kpo?If possible tell me the process too?
What are accounting standards? CTS
why debit notes and credit notes are passed? TCS
Wat is the diff.between revenue and capital expenditure? Wat is meant by deffered revenue expenditure? TCS
what do you meant auction? what is F & o segment?
How to Calculate Turnover? TATA
what about your self Capital-IQ
What is Mean By Defered Tax, How To Calculate?
what is service tax, how much calculated on service? Capital-IQ

29.
what is format of Trial balance
If Bank OD In Balance Sheet Which Site Showing?
What is Meany By MIS Report?What are things covered in the report?
What three Specific Job Positions do you target from the Industry GSK
Why do you want to work with us GSK
Do you have reference list GSK
How do you plan to achieve these goals GSK
What goals do you have in your career GSK
Briefly describe your ideal job GSK
What is difference between profit, revenue?
what is RTGS?
What is the defination/meaning of Mercantile Accounting?
What is mean by mercantile accounting?
In intangible assest, patents ,trade marks,copy rights we can feel or some thing can be done but what about goodwill? Capital-IQ

30.

what are accounting principles Accenture
what is diff between p&l & trading a/c CA
WHAT IS PERSONAL ACCOUNT
What is the difference btwn "Sales" and "Turnvoer".
What is the difference betwn "Inventory" and "Stock".
What is Mean By FRS for HQ reporting, How To Prepare?
what is the difference between pay order & D.D.? ICICI
wat is penny stock? Deloitte
What is operating profit ? how is it different from Gross profit ?
What do you mean by Venture Capitla and Private Equity?
Define cost accounting?
what is Bills Receivables and Bills Payables? HCL
Expand GAAP? Wipro
what is Suspence Account? Wipro

31.

what do you mean by contra entry? and where it is used? Accenture
What is Meaning Of accounting Function , Fund Management, Equities, Mutual Funds, Fixed Income Secrities, Derivative, Accounts of Trade, Share Holder Transaction,Knowledge on Using bloombag?
can debenture is cenverted into share?if yes? how?
what is sweet equity share?
what is the treatment of frieght paid on purchase of fixed asset? & where it shold be shown? John-Fowler
what is profit & loss A/c? difference between income & expenditure A/c
how to study five year balance sheet HBL-Power-Systems
What is Owner's Equity?
What is income tax,sales tax and vat?
sensex is increased and decreased in share market? why?
How many types of banking accounts? tell me about that
What is shadow balance?
In Accounting how many types of formulaes?
What is the diff. between gross profit and net profit?
What is diff. between mutual fund and security?

32.

Tell me about portpolio?
tell me about share?
What is promoters?
what is contract note?
how many types of practice accounts?
tell me about accounting
what is income tax
what is securities?
what is the quick asset Deloitte
what is debuntre
what is your achievements?
Give me solved example of bank book and cash book
wat is finance? Accenture
diff b/w debenture and bond? Bank-Of-America
what is the accounting treatment for contingent laibility? Capital-IQ

33.

WHAT IS DERIVATIVE? India-Infoline
WHAT IS A SHARE? India-Infoline
What is the TDS Rates for the F.Y 2008-09 ?
WHAT IS PORTFOLIO MANAGEMENT? India-Infoline
What is portfolio? India-Infoline
5. What is cost of goods sold?
4. What is the difference between gross profit and net profit? Genpact
What Do You Understand By The Word Accounting ADP
Hi all i did my M.B.A financ enw iam doing a job as a finance executive but i feel it is not good 4 me can any 1 plz guide me 4 the better career my job profile is (INVOICING)hw it is help me out 4 the better career shell i continu ein the same 1 by learning sap or oracle or shall i shift to any other if any other which job is suites to me plz suggest me
What is the difference between Direct expenses and Indirect expenses? FIC
meaningofderivative? UBS
Dividend per share?
Mening of Earning per share?
What is the meaning of net incaome?
please tell me GENPACT and GE finance interview questons Genpact


34.

What is the meaning of Revenue?
what is cnc machine hour rate? how it is calculated? Greaves
what is bank rate? Syndicate-Bank
types of mutual funds?
how to calculate share values of a company.
what is sensex and nifty.
whatis ratio analysis and methods of its calculation.
what is capital budgeting and techniques of capital budgeting.
what is the difference between gross profit and net profit?
what is reverse repo?
what is cost of goods sold ? Capital-IQ
Sales for ABC Company were Rs.150,000 for 2003.The beginning inventory was 30% of the cost of goods sold.The ending inventory was 50% of the beginning invetory.Selling expenses were 10% of sales and absorbed 30% sales.Income taxes were 30% of net income before taxes.
WHAT IS THIS ACCOUNT Genpact


35.

A CAR GIVES 100 KLIO METERS OF TO
what is working management? Genpact
what is the meaning of Journal Ledger?
what is the meaning of P/V Ratio?
what is GAAP?
what is demand?
What are all the items come under P&L and Balance sheet?
what is a share? Franklin-Templeton
what is a security? Franklin-Templeton
what is mutualfund? Franklin-Templeton
what is delapidation? CA
please send me a HSBC basic accounting question & answers to my mail id.
What is the analytical way of accounting?
what is break even point? ADP
what is gross profit?

36.

what is net profit?
pls explain the clear difference between Depreciation and Demortization? HSBC
Explain why retained earnings have an opportunity cost associated?
What are the 3 Basic Rules in Accounting. Franklin-Templeton
What is the difference between cost accounting and financial accounting?
what is diffference between retail invoice and tax invoice ?
what is the difference between provision for bad debts and reserve for bad debts? Genpact
What is the difference between Capital Reserve and Reserve Capital?
Discuss the role of cost accounting in managerial decision making
Distinguish between Piece rate and Time rate?
Discuss the role of cost accounting in managerial decision making?
What is meant by Repo Rate and Reverse Repo Rate. Capital-IQ
What is the Difference between Real Accont and Nominal Account? GE
Tell me something about you
What is Deffered Tax? Capital-IQ

37.

Discuss the role of cost accounting in managerial decision making?
What is meant by Cost Accounting? How it is different from Financial Accounting?
Discuss the role of cost accounting in managerial decision making?
What is meant by Cost Accounting? How it is different from Financial Accounting? Parco
Compare and contrast the accounting procedure followed by a sole trader and a partnership firm.
what are the concepts & conventions of accounting?
what do you mean by debt equity ratio? Capital-IQ
what is the difference between long term debt and short term debt? Capital-IQ
what is ment by memorandom of association? Capital-IQ
share premium? Capital-IQ
what is securites
what is bond and what is debentures
what is debentures
what is bonds
golden rules of accounting? how bank earn profit? Bank-Of-America

38.

What is meant by defferred revenue expenditure Xansa
bonus shares? Capital-IQ
what do you mean by fixed asset? Capital-IQ
what is meant by credit derivative? Wipro
what is the basic difference between accounting and financing? Mafoi
what is meant by mid-cap?
When we are using the DEPB licence for duty adjustment 100 %, there is no cash payment to customs. If i am a trader and registered with excise, Can we avail the modvat credit and pass on to customers? ABC
discuss how accrual concepts and matching concepts are the same
How to calculate india GDP growth rate?
Why depreciation is charged in P&L Account? Deloitte
Why profit is a liability and loss is an assets
apptitude Questions for accounts payable job Airtel
Who to create a budget on software company KLG-Systel
Who to create a budget on software company
Difference betwen debentures and bonds
What is the diffrecnce between liabilities and owner's equity?
Owner and the Company/Firm are both the different entities.
Owner's Equity itself is a liability for the firm/Company
as the owner has invested it into the firm.

39.

what is repo market?
I am going to attend an interview for the post of Sr. Accounts Officer in airport authority of india,pls help me to prepare for the interview
Why you choose commerce faculty & not science or Why you are in commerce & not in science ? What is mean by Corporate accounts?
IN PROFIT AND LOSS ACCOUNT WE MAY EITHER GET PROFIT OR LOSS.SO WHY IT IS PROFIT AND LOSS ACCOUNT INSTEAD OF PROFIT OR LOSS ACCOUNT ?
How to answer for the question, tell me about ur project? I mean in which format can i say?
What is amortization? Capital-IQ
What should be considered as best in the company's view either debt or equity? Explain briefly? Capital-IQ
What is securities market? Capital-IQ
What is operating cycle? Capital-IQ
Which one is best to company either debt or equity? Capital-IQ
THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET Capital-IQ
BY WHOME THE BANK RECONSILIATION STATEMENT IS PREPARED Capital-IQ
Ratio Analysis with its Ratios Bank-Of-America
what is Dual Accounting Bank-Of-America

40.

What is Capital Management Wipro
what are the questions commomly asked in reuter's interview.?
what is the difference between debenture and shares Syntel
what is fundamentals of accounting ?
WHAT IS Z.B.B. ZERO BASED BUDGET? Capital-IQ
What is treasury bills
what is cash flow and funds flow? Difference between cash and funds flow? methods of cash flow Capital-IQ
what is oppurtunity cost Capital-IQ
what is authorised capitla and subscribed capital Capital-IQ
what is sunk cost Capital-IQ
Stock Turnover Ratio? Capital-IQ
What are operating Costs? Capital-IQ
What is Capital Expenditure Capital-IQ
What is Zero Based Budgeting? Capital-IQ
What is meant by marginal cost? Infosys

41.

What is meant by Salaries Outstanding Accounts? HP
what are the models of valuation of the company
ipo Capital-IQ
What is exact difference b/w Accounts and finance IBM
what is net worth Capital-IQ
what is quick asset Capital-IQ
what are different types of invoice? WNS
hwo to joine accountancy
What do you mean by Investment Banking? HCL
What is General Ledger Accenture
what is business entity concept?


42.


what do you mean by BPO,KPO Accenture
What is TDS Accenture
what do you mean by Bank reconcilation statement Accenture
what do you mean by Account receivables Accenture
what do you mean by Accounts payable Accenture
FORFEITURE OF SHARESVS SURRENDER OF SHARES
REALISATION ACCOUNT VS REVALUATION ACCOUNT Andhra-Bank
RULE IN GARNER VS MURRAY
INDEPENDENT BRANCHS
HIREPURCHASE VS INSTALMENT PURCHASE
DEFECTS OF SINGLE ENTRY SYSTEM Mphasis
ACCOUNTING CONCEPTS AND CONVENTIONS
INTE3RNATIONAL ACCOUNTING STD CA
GOLDEN RULES OF ACCOUNTING HP


RECEIVABLES MEANS TO BE RECEIVED, ACCOUNT RECEIVABLES
INCLUDES THE AMOUNTS WHICH HAS TO BE RECEIVED AGAINST SALES
FOR WHICH RECEIVER HAS PROMISED TO PAY IN DUE COURSE OF
TIME , THE PERSON OR THE FIRM IS CALLED DEBTORS

Accounts receivable is somtimes a 'Suspense' account. An
advance is given by debiting this account for purchase of
some article or item for which bill is not received
immediately. After the expenditure is incurred and proper
Invoice or Bill is received , this amount is reversed to
the debit of the expenditure head or after Asset creation
(in case of buying a fixed asset). In brief, accounts
receivable may be a temporary advance and is expected to be
wiped out, shortly.

43.

HOW MANY ACCOUNTING STANDARDS IN INDIA
what is the use of activity based costing, process costing, product costing, what are the steps followed for the same Bosch
how standard costing techniques are applied in manufacturing sectors Bosch
how margnial costing is used in manufacturing sectors, what is the method/steps for using marginal costing Bosch
hi friends this veerendra i faced a qsn from accenture that is "if we use 2 retained earng a/cs what will happened and which places it will affect? give me explain
what are the characteristics of financial accounting Genpact
what is depreciation? Genpact
bills receivables shows which balance Genpact
after adjusting the amounts accountant of the company prepares which accounts?? Genpact
company prepares accounts sometimes on cash basis , sometimes on accural basis A)TRUE B)FALSE C)SOMETIMES TRUE D)SOMETIMES FALSE Genpact
what are concepts and conventions of accounting Infosys
category of acccount TCS
What is peer group comaprision? Office-Tiger
what is holding company? Capital-IQ
what is insider trading? Capital-IQ

44.

What is debt? Nagarjuna-Fertilizers
What is the significance of finance management in day to day life?
What is the difference between Long term Loan and Debt?
What is GDP???
what is the difference between debenture and preference share Indiabulls
Why are bond prices inversely related to interest rates ? ICFAI
DESCRIBE A FAILURE IN PROFESSIONAL OR ACADEMIC LIFE?HOW TO OVERCOME LaSalle
What are GAAP? Brigade
What is Royalty?
What is Bear market?
what is BSE? tell me the details about that? Kotak
What is EBIDTA?
what is sensex,nifty and what is difference between those two Wipro
Profit is a Liability or asset?
difference between Funds Flow and Cash Flow statements? EDS
what is the major difference between ECBs and FCCBs. how is the accounting treatment done to them as to mitigate the forex fluctuation?
What is equity?
what are options?
What is Beta?
What are Mutual Funds?

45.

what is indirect tax? Capital-IQ
what is inflation? Capital-IQ
what is repo rate? Capital-IQ
what is public ltd company and difference between public ltd company and public sector undertaking? Capital-IQ
What is venture capital? Capital-IQ
what is bpo BPO
What is Sensex? What is Nifty ? Difference between these two TCS
Please define Transaction Type , Movement Type , Asset Transaction Type , Item Type & Document type. Please also give examples of each of them Golden-Sands
clasification of accounts Genpact
can anybody describe about the accounts and financ ? what is difference between that , thanks in advance gurus Infosys
Two candles of equal lengths and of different thickness are there. The thicker one will last of six hours. The thinner 2 hours less than the thicker one. Ramesh light the two candles at the same time. When he went to bed he saw the thicker one is twice the length of the thinner one. For how long did Ramesh lit two candles ?please describe full description CMC
can we assign one more currency to the client HCL
Whatis new GL & Odd G.L What is the difference between these two. HCL

46.

What do you think you do well? Bank-Of-America
how to create a profit and loss a/c
Indian Iran Gas pipeline
What is sezs
What is your principles and values in life Ernst-Young
what are all the books maintained in accounts for the purpose of excise? Alnkey-Financial
what is capital work in progress?
What is considered a healthy profit?
Why would dividend declared not be included when calculating net income?
How to enter an invoice already paid? India-Glycols

47.
What is the difference between an Imprest and Non-imprest petty cash account?
How to Determine Bad Debts Expense?
Question and Answer of Accoutant SSC
find the sum of all the numbers 1 to 1000
tell me something about urself? Accenture
how to attract the HR person and give me tips BPO
how to introduce ourself Kamkuo
what are the uniform public construction cost accounting act procedures?
what is the uniform public construction cost accounting act?
What is the greatest difficulty in implementing FCA?
What are the specific types of costs that FCA addresses?
What part can management policy play in the analysis of cost behaviour?
Explain the term linear approximation.
What is the relevant range and why is it important to a full understanding of the behaviour of costs? What is the significance of the function y = a + bx?

48.
vwhy a variable cost is said to be variable?
why a fixed cost is said to be fixed?
Does the Summary Income and Expenditure account in the Charities SORP comply with the Companies Act 1985?
Is fee income unrestricted income or restricted income?
Who would NOT be considered "independent" in the context of an independent examiner?
Do assets have to be analysed between funds?
What information needs to be disclosed in accounts?
Can grants made in stage payments but not yet received be accrued as grants receivable?
Are service charges made on tenants' property rental to be regarded as incoming resources?
How do you value freehold property investment assets?
How do you identify the amount of realised gain or loss on the disposal of an investment asset?
How do you assess the value of intangible assets such as copyrights and logos?
How do we treat grants that are received in advance of the period when they are to be spent?
How do we determine Market Value of shares?
How are fund-raising and publicity and management and administration costs apportioned over funds?

49.
How to value fixed interest stocks, at year-end?
How should you treat money donated to improve a building, which is a permanent endowment?
Who constitute 'staff' for the purposes of showing 'total staff costs' in the accounts?
What does SORP mean?
What is "investment cash" compared with "current assets cash"?
What is Total Expenditure?
What is Gross Income?
What type of report and accounts should a company prepare?
Does there need to be a declaration that the Trustee Investment Act 1961 has been complied with?
Do assets have to be analysed between funds?
Under the SORP, do you have to disclose fees received by a trustee for a professional service even if you have a charging clause in the Governing Document?
What form of classification of expenses is expected for a charity whose gross income does not exceed ?250,000 preparing accruals accounts?
Does the Commission have a policy on the holding of reserves?
Can the Charity Commission recommend any accounting packages for charity accounts?
When did the accounting requirements of the revised SORP & Regulations come into force?

50.

What accounting records must a non-company charity keep, and for how long?
What accounting records must a company charity keep, and for how long?
what is open item managed account? IBM
Mention the differencebetween consiner and consinee?
what is the purpose of Aging bucket Report?
Explain the setup steps for Autoinvoice? Morepen
What is BMP in IMS?
Explain NAFCO?
what is FBT?
what is daily accrual?
Explain the difference between inactive account and dormant account?
what is shadow balance? Reliance
what are time sheets?how they are maintained?
what is the scenario of multi-org setup?
How much percentage of discounts lost did you have in accounts payable ?percentage increased or decreased?
what is the core accounts

Corp Governance

Articles
Ready Reckoner on Compliance with various
Clauses/Provisions of the Stock Exchange
Listing Agreement and SEBI Regulations
Kailash K. Dagar, FCS, Hindustan Aeronautics Ltd., Bangalore.
Various regulatory
authorities have great
confidence in Company
Secretaries and hence
entrusted various
responsibilities on
Company Secretary as
Compliance Officer of the
Company. Compliance
with the listing agreement
is one such responsibility
of the Company Secretary
in listed company. This
article provides a calendar
of compliance with the
provisions/clauses of the
listing agreement.
e-mail :
kkdagar@rediffmail.com
NEED FOR READY RECKONER
There are various statutes, bylaws, guidelines, rules, regulations and norms prescribed by the
various Regulating Authorities like Ministry of Corporate Affairs, Securities and Exchange Board
of India and Reserve Bank of India etc. which are required to be complied with in true spirit and
purport so that all stakeholder derives the benefit due to them and also to avoid the unwarranted
legal actions from regulating authorities. In the present corporate scenario, legal ethos and
regulatory expectations change very fast. Every day one or other regulating authorities come out
with a circular, notification, clarification or amendment concerning corporate affairs. Since laws
are ever changing, one cannot escape responsibility by stating that non-compliance was the result
of ignorance. Daily updates is the necessity of a Company Secretary to prove himself as a ready
reckoner. The profession of Company Secretary requires a continuous learning process and it is
the capacity to learn, unlearn and relearn that helps professional to steer ahead towards professional
prosperity.
Listing Agreement has fastened great responsibility on Company Secretary by designating him as
Compliance Officer. Clause 47 of the Listing Agreement provides for appointment of Company
Secretary to act as Compliance Officer to be responsible for monitoring share transfer process,
report to the Company’s Board in each meeting, liaise directly with the authorities such as SEBI,
Stock Exchanges, Registrar of Companies, Ministry of Corporate Affairs, Registrar and Transfer
Agents, Credit Rating Agencies etc. and investors for resolving their grievances. Company Secretary
also has to provide an e-mail ID of the grievance redressel division/Compliance Officer for the
purpose of registering complaints by investors. Similarly clause 51 also casts responsibility on
Compliance Officer for filing online the Annual Report and various information/data in the
EDIFAR System.
Though a Company Secretary has to play many vital roles in the corporate world, the role of
“Compliance Officer” is like the fulcrum of the profession and timely compliance with various
provisions/clauses of the Listing Agreement (LA) executed with the Stock Exchange (SE) are the main
thrust of a Company Secretary profession in a listed company, in order to remain continuously listed,
create better brand image, enhance creditworthiness and avoid punitive action.
MEANING AND PURPOSE OF LISTING
Listing means admission of the securities to dealings on a recognized stock exchange. The securities
may be of any public limited company, Central or State Government, quasi-governmental and
other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly
to provide liquidity to securities; mobilize savings for economic development and protect interest
of investors by ensuring full disclosures.
The companies desirous of getting their securities listed initially are required to enter into an
agreement with the Stock Exchange called the Listing Agreement and they are required to make
certain disclosures and perform certain acts. Under the Listing Agreement, a company undertakes,
amongst other things, to provide facilities for prompt transfer, registration, sub-division and
consolidation of securities; to give proper notice of closure of transfer books and record dates, to
forward copies of unabridged Annual Reports and Balance Sheets to the shareholders, to furnish
financial results on a quarterly basis; intimate promptly to the Exchange the happenings which are
Articles
likely to affect materially the financial performance of the
Company and its stock prices, to comply with the conditions of
Corporate Governance, etc.
To remain continuously listed, the Companies are required to
comply with various clauses/provisions of the Listing Agreement
executed initially. The very purpose of continued listing is to
ensure free transferability of securities, liquidity in trading, clear
transparency and open disclosure of information relating to the
affairs of the company. Hence listing is a step towards protection
of interest of public in which present and prospective investors
are largely involved.
The process of listing involves the following four steps : -
(1) Initial listing before offer of securities to the public and
registration of prospectus with Registrar of Companies by
making listing application and paying prescribed initial
listing fee.
(2) Final listing of securities that has been offered to the public
by execution of Listing Agreement with Stock Exchange/s.
(3) Enlist the securities openly for the trading.
(4) To list further issue of securities and to remain continuously
listed until it is de-listed either by Stock Exchange or at the
option of the Company.
Stock Exchange provides the market place for dealing in the listed
securities by the registered member/broker on the Stock
Exchanges. Section 11 of the SEBI Act, empowers SEBI for
regulating the business in the Stock Exchanges, registering and
regulating the Stock Brokers, Depositories, prohibiting
fraudulent and unfair trade practices relating to securities market
and protecting the interest of investors in securities.
Section 11B of the SEBI Act provides that SEBI has power to issue
direction to any intermediaries associated with securities market
(including Stock Exchanges) for protection of interest of investors
and orderly development of securities market. Sections 11 and
11B of the SEBI Act vests vast power on SEBI, which include the
enforcement and regulation of listing of securities.
The Listing Department of the Exchange monitors the compliance
of the companies with the provisions of the Listing Agreement
and takes penal action against the defaulting companies.
NATURE OF COMPLIANCES
For preparing the ready reckoner, compliances have been divided
into two categories i.e Periodical compliances and Event based
compliances.
Periodical Compliances
The periodical compliances are further divided into quarterly,
half early and yearly compliances as under : -
[ 1 ] Quarterly Compliances – June, September, December, March
Quarters
Clause 35 – Shareholding Pattern within 21 days of the end of
each Quarter
Clause 41 – Holding Board Meeting to approve Un-audited
Quarterly Financial Results
Clause 49 – Corporate Governance Report by Compliance
Officer of the Company to SE within 15 days of the
close of each quarter.
Regu 55A - Regulation 55A of the SEBI ( Depositories and
Participants) Regulations, 1996 requires submission
of Quarterly Secretarial Audit Report to Stock
Exchanges where company’s shares are listed, from
Practising Company Secretary /Chartered
Accountant within 30 days of the end of each
quarter w.e.f. 31.03.2003 vide SEBI Circular No.
D&CC/FITTC/CIR/16-2002 dated 31st December,
2002.
[ 2 ] Half Yearly Compliances – Half year ended 30th September &
31st March
Clause 47(c) – Half Yearly Certificate about transfer of shares
from practising Company Secretary within 1
month of end of each half year.
[ 3 ] Yearly Compliance
Clause 16 - Notice about closure of Transfer Book/Record
date before 21 clear days of Annual General
Meeting (AGM).
Rule 8(3) – In terms of Regulation 8(3) of the SEBI(Substantial
Acquisition of Shares & Takeovers ) Regulations
1997, every listed company shall within 30
days from the financial year ending March 31,
make yearly disclosure to SE giving details of
persons holding more than 15% shares/voting
rights.
Clause 31 – Submit 6 Copies of Annual Report to SE before
*21 clear days of AGM.
* There is no specific time limit prescribed in Clause 31 to forward copies
of Annual Report as it simply says ‘forward promptly’. However, Section
171(1) of the Companies Act, 1956 requires that at least 21 days’ notice
(exclusive of the day of service and the day of meeting) should be given to
members to call a General Meeting (AGM/EGM). Hence 21 clear days
period taken into consideration.
ASSUMPTIONS FOR PERIODICAL
COMPLIANCE CALENDAR
Board Meeting (BM) for the 1st Quarter from 1st April to 30th June
– on 30th July
Board Meeting for the 2nd Quarter from 1st July to 30th September
– on 30th October
Board Meeting for the 3rd Quarter from 1st Oct to 31st December –
on 30th January
Board Meeting for the 4th Quarter from 1st Jan to 31st March – on
30th April
Annual General Meeting – on 30th September
Ready Reckoner on Compliance of Stock Exchange Listing Agreement & SEBI Regulations
Articles
Compliance Calendar
Sl. No. Particulars of Compliance Clause of LA Due Date
1. Corporate Governance Report by Compliance Officer of the Company to SE within 49 15th April
15 days of close of 4th Quarter
2. File Shareholding Pattern in the prescribed format 35 21st April
3. Notice to Stock Exchange(SE) for holding Board Meeting (BM) to approve Un-audited
Financial Results(UAFR), subject to Limited Review Report (LRR) by Statutory
Auditors, for the quarter ended on 31st March/for approval of Audited results for
the year ended 31st March. Give press release for the same. 41 22nd April
4. Advance intimation to SE if it intends to hold BM for approval of Audited Results 41 22nd April
5. Publication of Notice in 2 Newspapers (one English language circulating in
substantially whole of India and in one Regional Language newspaper of the
State in which Registered Office of the Company is situated ) 41 22nd April
6. Secretarial Audit Report from Practising Company Secretary to SE for the 4th SEBI
Quarter end Regulation 55A 30th April
7. Payment of Annual Listing Fee 38 30th April
8. To hold Board Meeting for approval of UAFR 41 30th April
9. Approved UAFR to be submitted to SE within 15 minutes of conclusion of the BM 41 30th April
10. Submit Certificate obtained from Practising Company Secretary certifying that
all certificates have been issued within one month of lodgement for transfer,
sub-division etc. for the half year ended 31st March. 47 (c ) 30th April
11. Yearly disclosure by the Company regarding persons who hold more than 15%
shares/voting rights and also holding of promoters or persons having control over
the company as on financial ending 31st March. – Rule 8(3) of SEBI(SAST) Regulations Rule 8(3) of
1997. SEBI (SAST) 30th April
12. Publish approved UAFR within 48 hours of BM. 41 1st May
13. Copy of Limited Review Report(LRR) by the Statutory Auditors for the 4th Quarter
to be submitted to SE within 2 months of Quarter end 41 30th May
For 1st Quarter ended 30th June
14 Corporate Governance Report by Compliance Officer of the Company to SE within
15 days of close of 1st Quarter 49 15th July
15. File Shareholding Pattern in the prescribed format 35 21st July
16. Notice to SE for holding BM to approve UAFR (Un-audited Financial Results) for
the 1st Quarter 41 22nd July
17. Publication of Notice in 2 Newspapers 41 22nd July
18. Secretarial Audit Report from Practising Company Secretary to SE for the 1st Quarter SEBI Regu. 55A 30th July
19. To hold Board Meeting for approval of UAFR 41 30th July
20. Approved UAFR submitted to SE within 15 minutes of conclusion of the BM 41 30th July
21. Publish approved UAFR within 48 hours of BM 41 1st August
22. Submit copy of Limited Review Report(LRR) by the Statutory Auditors for the 1st
Quarter to SE within 2 months of Quarter end 41 30th August
For 2nd Quarter ended 30th Sept & AGM
23. Notice of Closure of Transfer Book/Record date before 21 days of AGM 16 7 Sept.
24. 6 Copies of Annual Report to SE * 31 7 Sept.
25. Supply copy of Annual Report/ **, statement containing salient features of the balance
sheet, profit and loss account and auditors report to each Shareholders/members 32 7 Sept.
Ready Reckoner on Compliance of Stock Exchange Listing Agreement & SEBI Regulations
Articles
26. Hold the Annual General Meeting - 30 Sept.
27. Corporate Governance Report by Compliance Officer of the Company to SE within 15
days of close of second Quarter 49 15th Oct.
28. File Shareholding Pattern in the prescribed format 35 21st Oct .
29. Notice to SE for holding BM to approve UAFR (Un-audited Financial Results) for the
2nd Quarter 41 22nd Oct.
30. Publication of Notice in 2 Newspapers 41 22nd Oct.
31. To hold Board Meeting for approval of UAFR 41 30th Oct.
32. Approved UAFR submitted to SE within 15 minutes of conclusion of the BM 41 30th Oct.
33. Submit Certificate obtained from Practising Company Secretary certifying that all
certificates have been issued within one month of lodgement for transfer, sub-division
etc. for the half year ended 30th September. 47(c) 30th Oct.
34. Secretarial Audit Report from Practising Company Secretary to SE for the 2nd Quarter SEBI
Regu. 55A 30th Oct.
35. Publish approved UAFR within 48 hours of BM held. 41 1st Nov.
36. Submit copy of Limited Review Report(LRR) by the Statutory Auditors for the 2nd
Quarter to SE within 2 months of Quarter end 41 30th Nov.
For 3rd Quarter ended 30th December
37. Corporate Governance Report by Compliance Officer of the Company to SE within 15
days of close of 3rd Quarter 49 15th Jan.
38. File Shareholding Pattern in the prescribed format 35 21st Jan.
39. Notice to SE for holding BM to approve UAFR (Un-audited Financial Results) for the
3rd Quarter 41 22nd Jan.
40. Publication of Notice in 2 Newspapers 41 22nd Jan.
41. To hold Board Meeting for approval of UAFR 41 30th Jan.
42. Secretarial Audit Report from Practicing Company Secretary to SE for the 3rd Quarter SEBI
Regu. 55A 30th Jan.
43. Approved UAFR submitted to SE within 15 minutes of conclusion of the BM 41 30th Jan.
44. Publish approved UAFR within 48 hours of BM held. 41 1st Feb.
45. Submit copy of Limited Review Report(LRR) by the Statutory Auditors for the 3rd
Quarter to SE within 2 months of Quarter end 41 28th Feb.
** There is no specific time limit prescribed in Clause 32 to forward copies of Annual Report to each shareholder as it simply says ‘The Company will
supply a copy of complete and full Annual Report to each shareholder. However, Section 219 of the Companies Act, 1956 provides that every company
is required to send to its members, copies of Annual Report not less than 21 days before the date of meeting at which the same would be laid for
adoption. Hence 21 clear days period taken into consideration.
Moreover, SEBI vide its Circular dated 26th April, 2007 has amended Clause 32 of the Listing Agreement permitting Companies to send “a
statement containing salient features of the balance sheet, profit and loss account and auditors report” in prescribed Form 23AB to each shareholder
(instead of Full Annual Report), Provided that the Company, on receipt of written request from a shareholder, shall send the complete and full balance
sheet, profit and loss account and auditors’ report to the said shareholder. Hence 2nd option also added in the particulars of compliance.
[B] Event Based Compliances
Sl. No. Clause Particulars of Compliance Advance Notice /
No. of LA Intimation
1. 19 Prior intimation to SE about BM having agenda of Buy Back, Dividend, Right 7 Days
Issue, Bonus Shares etc
2. 20 Intimation by fax details of Dividend, Buyback etc. Immediately after
conclusion of BM
3. 22 Intimate by fax details of alteration in capital, increase in share capital, issue of Immediately after
forfeited shares etc. conclusion of BM
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Articles
4. 24 File copy of Scheme/Petition proposed to be filed before any Court under section 1 month before it is
391/394 & 101 of Companies Act, 1956. presented to the Court.
5. 29 Notify promptly SE about any proposed change in the general character or nature Notify promptly
of its business.
6. 30 Notify change in Board of Directors, MD, Auditors etc. Immediately after
change
7. 31 Copy of proceedings of AGM/EGM As early as possible
after AGM/EGM
8. 33 File 6 copies of amended AOA & MOA As soon as Changes in
MOA & AOA approved
at the GM
9. 36 Intimation of events/happenings having important bearings and which are Immediately on
likely to materially affect the financial performance of the Company and its occurrence and after
stock prices like strikes, lock-outs, closure of units for any reason, disruption such events
of operations due to natural calamity, litigation/dispute having material
impact. Any price sensitive information like acquisition, merger, amalgamation,
delisting, share forfeiture etc;
10. 47 Submit copy of MOU executed with RTA Within 48 hours of
execution of MOU
11. 51 EDIFAR Filing :-
- Full version of Annual Report
- Corporate Governance Report
- Shareholding Pattern Statement
- Statement of action taken against the company by any regulatory authorities Immediately after AGM
& occurrence of event.
CONCLUSION
The above calendar has been prepared cautiously based on certain
assumptions and latest provisions/clauses of stock exchange
listing agreement and provisions of SEBI, which are subject to
changes/amendment from time-to-time. However, it is suggested
that before acting on the basis of the above calendar the relevant
clause may please be analysed in detail and referance be made
for updation on website “www.bseindia.com” 􀂉
Ready Reckoner on Compliance of Stock Exchange Listing Agreement & SEBI Regulations

Drafting Board Resolutions

The ICSI
Defects in legal language
Resolutions for board and general meetings of companies are as cumbersome to read and
burdensome to understand as any other legal document. They possess all defects of archaic
legal language, namely –
1. Verbiage: An excess of words beyond those needed to express concisely what is meant;
wordiness.
2. Legalese: the conventional language of legal forms, documents, etc., involving special
vocabulary and formulations, often thought of as abstruse and incomprehensible to the layman.
3. Long-windedness: Speaking or writing at great length (often tiresome) length; tiresomely
long.
4. Circumlocution: Use two or more words where one would be enough and a group of
words where a single word would do the job.
5. Jargon: Words or expressions that are used by a particular profession or group of people,
and are difficult for others to understand.
6. Archaism: Use of words and phrases that most people are not familiar with and words which
have no special legal meaning but have legal flavour or which are pompous and heavy.
7. Passivism: Overuse of the passive voice instead of the active voice.
8. Negativism: Putting ideas in negative language rather than positive.
9. Latinism: Needless use of non-English (mainly Latin) words and phrases.
10. Tautology: Needless repetition of an idea in a different word, phrase, or sentence.
11. Nominalisation: Use verbs instead of nouns.
Look at the following resolution
RESOLVED THAT, subject to the requisite approval of the shareholders of the Company
under section 293(1) (e) of the Companies Act, 1956 and such other provisions of that Act as
may be applicable or any statutory modifications or re-enactments thereof for the time being
in force and also such other approvals, sanctions, permissions as may be necessary, the approval
be and is hereby accorded to the company contributing to charitable and other funds not
directly relating to the business of the Company or the welfare of its employees, any amounts
the aggregate of which will, in any financial year, not exceed Rs. … (Rupees …), over and
above fifty thousand rupees, or five per cent, of its average net profits as determined pursuant
to the provisions of sections 349 and 350 of Companies Act, 1956 during the three financial
years immediately preceding, whichever is greater and an extra-ordinary general meeting of
the Company be convened to be held on ........, at .... am/pm, at ..... ..... and RESOLVED FURTHER
that the Company Secretary be and is hereby authorised to issue notice thereof to the members
of the Company in accordance with the provisions of the Companies Act, 1956.
This mammoth 196-word resolution, flouting all norms of writing in plain language, is a
classic example of cumbersome drafting of resolutions. With a few changes, we can make this
resolution a bit more readable. Now look at the following rewrite of the above resolution.
Articles
(A - 145)
The Board approves the proposal of the Company contributing
to charitable and other funds not directly relating to its business
or the welfare of its employees, upto Rs. … (Rupees …), over Rs.
50,000 or 5% of the Company’s average net profits (calculated
according to sections 349 and 350 of the Companies Act 1956 (‘the
Act’) during the last three financial years (…), whichever is
greater, in any financial year, subject to:-
(a) the Company sanctioning the proposal at a general
meeting by an ordinary resolution under section 293(1)(e)
of the Act ;
(b) other necessary approvals
The Board also approves the convening of an extraordinary
general meeting of the Company to be held on
........, at .... am/pm, at ..... ..... and authorizes the Company
Secretary to issue notice of the meeting to the members of
the company in accordance with the provisions of the Act
and the Articles of Association of the company.
What’s happening in the English speaking nations
Legal language is a cause of concern to almost all its readers the
world over (including lawyers and judges). The Law Reform
Commission of Victoria (Australia) voiced its concern and anguish
about the state of legal language, in its report entitled Plain
Language and the Law (1987), in these words: “The language of the
law has long been a source of concern to the community. It has
been the subject of continuous literary criticism and satire. Critics
have highlighted its technical terms, its convolution and its
prolixity. These faults have been noted by judges and by
practicing and academic lawyers as well. Calls have regularly
been made for the use of a more simple and straightforward
style. Some improvements have been made in response to those
calls. But legal language remains largely unintelligible to most
members of the community. It even causes problems for members
of the legal profession. In some cases, the obscurity may arise
from the complexity of the law and of its subject-matter. In other
cases, however, it is due to the complexity of the language in
which the law is expressed. Some lawyers do not take sufficient
care to communicate clearly with their audience. Letters, private
legal documents and legislation itself are still drafted in a style
which poses unnecessary barriers to understanding.”
While the plain English movement has now taken deep roots in
the five English-speaking nations (US, UK, Canada, Australia
and New Zealand), in India, regrettably, we write legal language
in the same old style that the legal writing has tightly seized for
over a century. All these five nations (and all States) have their
Legislative Drafting Manuals and they all have one thing in
common, that is, emphasis on the use of plain language in
legislative drafting. For example, one of the Manuals
recommends: “The most important principle in drafting a bill is that
the finished products accurately accomplish the intent of the author. The
failure to accomplish the intent of the author is often the result of failing
to follow the essentials of good bill drafting. Those principles are: Accuracy,
brevity, clarity, and simplicity. The purpose and effect of a bill should be
evident from its language. A bill should not be written in legalese, but
should be drafted in terms a person without any special education or
qualifications should be able to comprehend. Thus, a drafter should use
words that are plain and commonly understood and convey the intended
meaning to every reader.”
Motions and resolutions
A major part of company secretarial drafting consists of
resolutions for various occasions and different subjects, to be
proposed at various types of meetings. Those who are supposed
to read, or who are likely to be affected by, the resolutions, almost
always turn away from them. Most resolutions flout all plain
language rules; they all have all the defects of cumbersome legal
language that have been mentioned above.
Resolutions are set out in two documents: (1) notices or agendas
of meetings; and (2) minutes of meetings. Motion is a proposal
formally put before a meeting for discussion; a formal proposal
to be discussed and voted on at a meeting. Usually members of a
company who attend a meeting of the company receive notice of
a motion. Generally, a motion relates to some action to be taken
or issue of policy to be decided. It is ‘moved’ or ‘proposed’, ie put
forward for consideration and discussion of the meeting. It is
then discussed and put to vote. If the motion is finally passed, it
becomes a ‘resolution’ (because the meeting so ‘resolves’ or
decides).
A resolution, then, is a motion which has been carried. Resolution
means a formal expression of opinion or intention made, usually
after voting. It is a binding decision made by the members of a
company. Resolution arises from a motion moved at a meeting.
If the motion is passed by a required majority of the members of
the company, it becomes a resolution. If the meeting decides to
amend the motion, the amended motion, known as the
substantive motion, is then discussed and voted upon. If a motion
is put before the members of a company at a general meeting
and the required majority vote in favour of it, the motion is
passed and becomes a resolution. In the Companies Act, the term
‘resolution’ is also used to denote a motion; the Act does not
make a distinction between the two terms. That is why in all
respects in relation to board or general meetings, it is customary
to use the term ‘resolution’ even at the stage prior to the moving
of a proposal, e.g., in the notice of a general meeting or agenda of
a Board meeting. Even at a general meeting, what is proposed is
a resolution and not a motion though at that stage it is in the
nature of a motion.
Style of writing minutes
The term ‘minutes’ (used in plural) denotes an official record of
what was said and done at a meeting, convention, etc; the official
record of the proceedings at a meeting; a summarized record of
the proceedings at a meeting. It denotes records of business
transacted at general meetings, board meetings, and meetings of
committees of directors. Minutes contain record of proceedings of
meetings, including decisions taken and resolutions passed at it.
Drafting Company Resolutions
Articles
(A- 146)
Every company is required, under section 193 of the Companies
Act, to keep minutes of all proceedings of-
􀂄 every meeting of the Board ;
􀂄 every meeting of every Committee of the Board ; and
􀂄 every general meeting.
Section 193 of the Companies Act requires the minutes of each
meeting to contain a fair and correct summary of the proceedings
thereat.
The Act does not give any guidance as to the style of drafting
minutes. Conventionally, there are two styles of minutes: (1)
minutes of resolutions; and (2) minutes of narration. It is often
useful and appropriate to combine elements of the two.
A resolution included in the notice or agenda of a meeting is a
proposal (to be considered in the future) whereas a resolution
recorded in the minutes is decision taken (in the past).
Traditionally, a resolution written in both these documents is
the same though one is for the future and the other is of the past.
Both are written in the present tense. The difference is only in the
preamble. For example, in the notice of a Board meeting, it is
usually written: “The following resolution shall be (or ‘will be’)
placed before the Board.” And in the notice of a general meeting
it is written: “To consider and pass the following resolution as an
ordinary resolution.” After the meeting, the minutes usually state:
“The following resolution was passed unanimously (or ‘by
majority’).” So, the text of the resolution as stated in the notice/
agenda and as recorded in the minutes is the same.
In The Law and Practice of Meetings by Sheckleton, 8th edition, it is
stated at page 76: “The past tense should be used to record events
at the meeting, e.g. “It was reported that,” and the past perfect
tense for events prior to the meeting, e.g. “Mr. X reported that he
had completed this survey.”
On the use of the words ‘Resolved That’ in a resolution, Horsely’s
Meetings- Procedure, Law and Practice, 4th edition. At page 211 states:
“The term ‘minutes of resolution’ is self-explanatory. Such
minutes are confined to the actual words of the resolutions which
have been passed. This is often all that is necessary. The precise
words of each resolution are preceded by two opening words,
namely, ‘Resolved that’. The word ‘Resolved’ is often emphasised,
for example, it is all in capital letters, underlined or italics. This
emphasis ensures that the resolution is brought immediately to
the attention of each person who reads the minutes, including
anyone absent from the meeting, that these decisions were made,
each having a consequential effect, some of them involving action
to be taken; …”
Thus, there is no legal significance or special reason for the use of
the words ‘Resolved That’. It is merely a manner of style and the
style can be changed for the better. Therefore, the omission of
these words wouldn’t result in an illegality and or render the
resolution invalid or ineffective.
At page 216 of Horsely’s Meetings- Procedure, Law and Practice, it
is stated: “When a meeting resolves to take a certain action which
is carried into effect immediately, for example, to elect a person
to office, this needs to be made clear in the minute, which should
read, for example, ‘… be, and is hereby, elected’, or ‘… rate of
subscription be, and it is hereby, increased from … to … ‘. This
form of wording is used only when the transaction is entirely
completed upon the resolution being passed.”
The practices of recording resolutions in the minuets, as
exemplified in text books and precedents, differ. For example,
some books suggest that the resolutions should begin with the
words ‘It was resolved that’ instead of ‘Resolved that’.1 Some
books omit the word ‘Resolved’ and begin with only ‘That’.2
Some authors don’t use the phrase ‘be and is hereby’, others do
use it.
Thus while the law is silent on the style of drafting resolutions,
the practices differ and there is no single style that can be called
an ideal one. The ICSA Meetings and Minutes Handbook3 states:
“Thus, although certain conventions are normally followed, the
presentational style can be tailored. The preferences of the
chairman will usually be the most influential. What can never be
compromised, however, is the principle that the minutes should
contain an accurate record of the decisions taken.”
While minutes contain a record of a past event, the narration of
the proceedings has to be in the past tense, but the text of the
resolutions as passed ought to be in the present tense. In other
words, while the narration should be in the indirect (or reported
speech) the text of the resolutions to be recorded should be in the
direct speech. It is, therefore, justifiable to frame the resolutions
in the present tense, active voice and plain English. For example,
there is nothing wrong if the text of the resolution as placed
before the Board’s meeting states, “The Board authorizes the Secretary
to …”, instead of “The Secretary be and is hereby authorised to ….”
Likewise, if a resolution for the appointment of a director would
be perfectly in order if it written thus: “The Board/Company appoints
Mr. … as a director of the Company” instead of “RESOLVED THAT
Mr. … be and is hereby appointed as a director of the Company.”
The words ‘be and is/are hereby’ seem to be employed to indicate
that resolution is in the nature of both proposal and decision; the
words “be …” (e.g. ‘be … hereby appointed’) indicate that there
is a proposal to be moved at the meeting and the words “is …”
(eg ‘is appointed’) indicate that it is decision taken at the meeting.
It is thus a short-cut. Absurdly, however, the wording indicating
both proposal and decision remains unchanged in both versionsone
written in the notice or agenda and the other written in the
minutes. To be precise, it should be different- ‘be appointed’ in
the notice or agenda (the future action) and ‘is appointed’ in the
minutes (the past action). On the contrary, if the resolution is
1. Sheckleton on The Law and Practice of Meetings, 8th edition, page 77;
One Stop Meetings by David Martin, a publication of the Institute of
Chartered Secretaries and Administrators, UK.
2. For example, see The Encyclopaedia of Forms and Precedents, 5th
edition.
3. A publication of the Institute of Chartered Secretaries and
Administrators, UK, 2001, page 337.
Drafting Company Resolutions
Articles
worded like The Board/Company appoints Mr. … as a director of the
Company, in the notice/agenda it will be preceded by the words
The following resolution will be considered at the meeting and in the
minutes they will be preceded by the words The following resolution
was passed at the meeting.
The word ‘hereby’ makes no contribution in any writing,
including resolutions. It only adds to wordiness. Hereby means
at this moment, with these means, as a result of this statement. In
the context of resolutions, it means nothing more than ‘at this
meeting’ or ‘by this resolution’. There is no need to say that.
When you include a resolution in the notice or agenda and record
it in the minutes of a specific meeting, it goes without saying that
the resolution was passed at that meeting and not at any other
meeting.
There is no justification in writing resolutions in the traditional
complicated language. If one wishes to make resolutions readable
without causing any harm to the essence or substance of the
resolution, one should follow the plain language guidelines
besides the specific guidelines mentioned below.
If you follow the general guidelines of plain English, your
resolution will become a readable, intelligible and digestible piece
of writing and people will appreciate it; that will enhance your
image in the organization as Company Secretary, or as Practising
Company Secretary, and will have a positive impact on your
position and career. Try it! And get rid of the notion that resolutions
ought to be written in a complicated way and that a resolution
written in plain and simple English is invalid or ineffective.
Finally it is desirable that the Institute of Company Secretaries
of India initiates action for changing the style of drafting
resolutions, and consider bringing out either a Secretarial
Standard or a Guidance Note on “Drafting Resolutions and
Minutes in Plain Language.”
General guidelines for drafting in plain language
1. Use plain words and phrases that most people are familiar
with.
2. Keep sentences short, not more than 15-20 words.
3. Avoid verbiage. Eliminate words which are superfluous.
4. Prefer single word instead of a group of words.
5. Replace legalese (words which have no special legal meaning
but have legal flavour) by simple, familiar words.
6. Prefer active voice unless passive voice is more effective.
7. Avoid non-English (mainly Latin) words and phrases.
8. Avoid archaic, outdated, old-fashioned words and phrases.
9. Do not use two or more words where one would be enough.
10. Use verbs instead of nouns.
Specific guidelines for drafting resolutions in plain
language
(1) Don’t use the phrase be and is/are hereby. Instead, use just is/
are.
(2) Don’t use legalese, such as hereby, herewith, hereof, thereof,
notwithstanding, whereas, the said, aforesaid, accorded, etc.
(3) Use plain alternatives for trite words and phrases.
(4) Prefer active voice, unless passive voice is desirable or
necessary; eg instead of approval be and is hereby accorded, say
the Board approves.
(5) Keep sentence length limited to 20-25 words. Use lists with
numbers or bullets to break long sentences.
(6) Don’t use the phrase For the purpose of considering, and if
thought fit, passing, with or without modification(s), the following
resolution as an Ordinary Resolution (or its twin To consider,
and, if thought fit, to pass, with or without modification(s), the
following resolution as an Ordinary Resolution. This wordy
phrase is a needless appendage without meaningful
contribution and not legally required. Firstly, the words for
the purpose of considering, and if thought fit have no useful
purpose to serve because it goes without saying that a
resolution proposed at a meeting is for the purpose of
considering before it is passed. The act of passing inevitably
contemplates consideration of the resolution; so there is no
need to say all that. Secondly, it has been a well settled
principle about company meetings (or any other formal
meetings) that those who are entitled to pass a resolution
also have the right to modify it (subject to certain limitations
with regard to special resolutions); so, there is no need to
say that.
(7) Don’t use “RESOLVED THAT”. This archaic phrase is
misleading when used in the agenda or notice because the
word “resolved” is the past tense of ‘resolve’; when you
include a resolution in the agenda or notice, it is in a draft
stage yet to be considered by the board/committee/general
meeting. Just start with the main verb and write the whole
sentence in the active voice. This makes it possible to avoid
the passive construction which is a common (but evil) feature
of resolutions.
(8) Don’t use phrases like FURTHER RESOLVED THAT, ALSO
RESOLVED THAT. Instead, divide the text in sub-paragraphs
and number them after IT IS RESOLVED THAT at top.
(9) Don’t use such archaic phrases as Subject to the approval of the
Company by a special resolution at a general meeting and
confirmation of the Company Law Board under section 17 of the
Companies Act, 1956, Subject to necessary approvals, permissions,
consents, ... etc. This is unnecessary as it is axiomatic that
every decision of the board, a committee or the company in
general meeting is subject to (conditional on) the necessary
compliances or approvals, permissions, etc., that may be
required under the Companies Act, other Act, Rules,
Regulations, Listing Agreement, agreements with other
parties (eg financial institutions, etc.), articles of association,
etc. It need not be a part of the resolution. It is absurd to say
that a resolution is invalid if the above (and similar other)
phrase is used.
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(10) Omit all unnecessary words, phrases and sentences which
contribute nothing to the substance of the resolution. For
example, after “the Companies Act, 1956” the words
(including any statutory modification(s) or re-enactment thereof
for the time being in force) contributes nothing. At the most
say the Companies Act, 1956 or the new Act, if enacted in its
place.
(11) Avoid the phrase “The Board of Directors be and is hereby
authorised to do and perform all such other acts, deeds and things
as may be necessary or desirable to give effect to this resolution.”
This is unnecessary as when you authorize the Board or any
other person, other acts, deeds and things are incidental or
ancillary and are implied in the general authority conferred.
At the most, write “The Board is also authorised to do everything
that may be necessary to implement this resolution.”
(12) Prefer plain words and phrases to the conventional heavy
words.
(13) Avoid separating the parts of a sentence, clause or phrase,
or the parts of a compound verb, by inserting another verb,
clause or phrase.
(14) Use minimum capital letters; don’t use capital letters for
general words, such as annual general meeting, extraordinary
general meeting, ordinary resolution, director,
chairman, etc., used in the text of the resolution.
(15) Prefer is/are to be, unless be is necessary where it is used for
an action that would take place in future, e.g., It is resolved
that an agreement be entered into; or It is resolved that Equity
Shares of the Company be de-listed.
(16) Use one-word alternatives rather than a group of words,
such as directorship for office of director.
(17) Give details which are nothing but formal appendages,
which contribute nothing to the substance of the
resolution, separately, even below the resolution with
asterisk or note, or in the preamble or explanatory
statement such as the agreement a copy of which duly initialed
by the chairman was placed on the table; in respect of whom the
company has received a notice under section 257 of the
Companies Act, etc.
(18) Use acronyms and abbreviations, for the words and phrases
which occur repeatedly in the resolution, such as the
Companies Act, 1956, annual general meeting, memorandum
and articles of association, etc.
(19) Get rid of the notion that a short resolution is a crime or
that it is invalid and that a resolution has always to be
clumsy, involved and unintelligible piece of writing.
For sample resolutions in plain English, [refer pages 581 and 891
of Volume XXXVI of (January to December 2006) of Chartered
Secretary]. 􀂉
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