While a task can be delegated, the responsibility or consequence arising from that task can never be, as the delegator pays the price for its non-performance or wrong-performance. This point needs reiteration especially in the case of MBP-1, where Directors give the details of the companies and firms in which they are interested-in for [...]
(this article is the third and final part of a trilogy that traces the origin of the three elements of financial statements- the balance sheet, the profit and loss account and the cash flow statement) Financial Statements consisting of the three- Balance Sheet, Profit and Loss Account and the Cash Flow Statements, form the [...]
Just as salt enhances the taste in food, brevity in communication enhances comprehension and effectiveness. More so in corporate communication to shareholders, where the audience consist of individuals with a wide range of interest and knowledge. The Corporate Governance Report that forms a part of the Annual Report of listed companies in India, despite [...]
(This article is the second of a trilogy that traces the origin of the three elements of financial statements, the balance sheet, the profit and loss account and the cash flow statement) Financial Statements consisting of the three- Balance Sheet, Profit and Loss Account and the Cash Flow Statements, form the core segment of [...]
Shell companies are in focus in India today. Given this context, what a shell company means is very different from what is generally understood, especially as there is no legal definition for it in India. US Security Exchange Commission (SEC) provides a narrow definition of the shell company as a publicly held company in [...]
On December 31, 1600, East India Company was formed by the grant of a charter by the English Parliament. Though not the first joint stock company to be formed, it was perhaps the most influential company in the global corporate history, surviving for over 270 years before being liquidated on June 1, 1874. During [...]
Law is distinct from all other aspects of regulations, as its breach involves punishment. This punishment may be either a monetary penalty or loss of personal freedom for specific duration or both, and in some extreme cases, loss of the human life itself. Given that the punishment in itself is quite harsh and carries [...]
Landing on the moon, Neil Armstrong said ‘That’s one small step for man, one giant leap for mankind’. On a similar vein, Amardeep Singh Bhatia, Jt. Secretary to the Government of India may as well have remarked, ‘One small notification issued, one giant leap for enforcing the company law.’ By notification dated June 13, [...]
Imagine a banking customer handing over their ATM card and PIN number to another person for withdrawing cash. What do we make of that person? A gullible fool, an imbecile or a digital idiot. How many such persons would exist in India today? A handful, tiny, miniscule minority of the ATM customers at the [...]
Revenue Secretary Hasmukh Adhia on April 29th brought into public domain something that is well known to the corporate professionals, 8-9 lakhs of the 15 lakh registered companies in India do not file their annual return with the Ministry of Company Affairs. A brief review and enquiry for this wide-spread non-compliance reveals three specific [...]
