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Home/Corporate Laws/Page 14

Taxchopal Latest Questions

CA Sanjiv Kumar
CA Sanjiv KumarEnlightened
Asked: March 24, 2022In: Corporate Laws

Can we deal with one partner on the name of a partnership firm ?

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CA Sanjiv Kumar
CA Sanjiv KumarEnlightened
Asked: March 24, 2022In: Corporate Laws

Can we file legal case against a partnership firm?

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CA Sanjiv Kumar
CA Sanjiv KumarEnlightened
Asked: March 24, 2022In: Corporate Laws

What is the limit on the number of partners in a partnership firm?

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CA Sanjiv Kumar
CA Sanjiv KumarEnlightened
Asked: March 24, 2022In: Corporate Laws

Is a partnership deed necessary to form a partnership firm?

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CA Sanjiv Kumar
CA Sanjiv KumarEnlightened
Asked: March 24, 2022In: Corporate Laws

Is it compulsory for a partnership firm to be registered?

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Ramesh Sharma
Ramesh SharmaEnlightened
Asked: March 15, 2022In: Corporate Laws

What is Internal Financial Controls, is it a mandatory requirement for companies?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on March 21, 2025 at 12:27 pm

    Internal Financial Controls (IFCs) are the systems, policies, and procedures implemented by a company to ensure that its financial reporting is accurate and reliable, assets are protected, and the risks of fraud and error are minimized. Key Features of Internal Financial Controls: Accuracy of FinancRead more

    Internal Financial Controls (IFCs) are the systems, policies, and procedures implemented by a company to ensure that its financial reporting is accurate and reliable, assets are protected, and the risks of fraud and error are minimized.

    Key Features of Internal Financial Controls:

    • Accuracy of Financial Reporting:
      IFCs help ensure that accounting records and financial statements are prepared correctly.
    • Asset Protection:
      They safeguard company assets from misuse or theft.
    • Fraud Prevention:
      Robust controls help prevent fraudulent activities.
    • Operational Efficiency:
      These systems streamline processes, reducing errors and inefficiencies.

    Are They Mandatory?

    • For Listed Companies:
      Yes, all listed companies are required to have strong internal financial controls. Their effectiveness must be reported in the Director’s Report under Section 134 of the Companies Act, 2013.
    • For Other Companies:
      While the requirement is more stringent for listed companies, other companies—especially those meeting certain thresholds for paid-up capital, turnover, or net worth—are also expected to establish adequate internal financial controls. Even if not strictly mandatory for every company, implementing IFCs is considered a best practice for good corporate governance.

    Conclusion

    Internal Financial Controls are essential tools for ensuring the integrity of financial operations. They are a mandatory requirement for listed companies and are strongly recommended for all companies to promote transparency, safeguard assets, and manage risks effectively.

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Advocate Dr Amit Dua
Advocate Dr Amit DuaExplainer
Asked: February 25, 2022In: Corporate Laws

What Is Farmers Producers Organization (FPO)?

  1. Ramesh Sharma Enlightened
    Added an answer on February 28, 2022 at 7:38 am

    FPO is an organization where the members are farmers. Farmers Producers Organization provides end-to-end support and services to the small farmers and covers technical services, marketing, processing, and others aspects of agriculture inputs. The object behind the Farmer Producer Organizations (FPO)Read more

    FPO is an organization where the members are farmers. Farmers Producers Organization provides end-to-end support and services to the small farmers and covers technical services, marketing, processing, and others aspects of agriculture inputs.

    The object behind the Farmer Producer Organizations (FPO) is that the “Farmers, who are the producers of their agriculture products, can form the groups and can register themselves under the Indian Companies Act

    The Small Farmers Agribusiness Consortium (SFAC) supports the State Government to form the Farmer Producer Organizations (FPOs). The goal is to enhance the farmers’ competitiveness. The major operations of the Farmers Producer Organization (FPO) include the supply of seed, machinery, market linkages & fertilizer, training, networking, financial and technical advice.  

    The Farmer Producer Organization ensures a better income for the producers through an organization of their own and to increase their advantage in emerging market opportunities. 

    Small producers do not have the volume individually to get the benefit of economies of scale. Also in agricultural marketing, the chain of intermediaries take the advantage of small farmers by buying their products at lower rates. By FPO they will be eliminated. Farmers Producers can get the advantage of better bargaining power by bulk production and supplies.

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Advocate Dr Amit Dua
Advocate Dr Amit DuaExplainer
Asked: February 19, 2022In: Corporate Laws

Clause of LLP Deed for distribution of only profits to sleeping partner

Profit and Loss to Partners Clause of LLP Deed for distribution of only profits to a sleeping partner Distribution of Profit and Loss to active and sleeping Partners of LLP  This article aware us of the situation wherein we can add a sleeping ...Read more

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on March 21, 2022 at 3:36 pm

    Mutual rights and duties of partners and mutual rights and duties of LLP and its partners are governed by the LLP Agreement between the partners, or between the LLP and its partners. In case the LLP Agreement is silent on any matter, provisions in the First Schedule to the LLP Act relating to that mRead more

    Mutual rights and duties of partners and mutual rights and duties of LLP and its partners are governed by the LLP Agreement between the partners, or between the LLP and its partners. In case the LLP Agreement is silent on any matter, provisions in the First Schedule to the LLP Act relating to that matter will apply.

    All the partners of LLP are entitled to share equally in the capital, profits, and losses of the LLP. However, they are free to decide the ratio in which they will share profits. Accordingly, they can decide to share profit but not the losses as per the conditions of agreement. 

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Advocate Dr Amit Dua
Advocate Dr Amit DuaExplainer
Asked: February 19, 2022In: Corporate Laws

Can a LLP firm trade in share & commodity markets, as it’s activity?

  1. CA Sanjiv Kumar Enlightened Chartered Accountant
    Added an answer on March 21, 2022 at 2:45 pm

    Yes,  An LLP can have an activity of Trade in Stock and Securities. There is no bar in the LLP Act, 2008 for having this activity. Further, as per section 451(c) of the RBI Act, an LLP is considered a financial institution and allowed to do investment activities by investing in marketable securitiesRead more

    Yes,

     An LLP can have an activity of Trade in Stock and Securities. There is no bar in the LLP Act, 2008 for having this activity.

    Further, as per section 451(c) of the RBI Act, an LLP is considered a financial institution and allowed to do investment activities by investing in marketable securities.

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CA Sanjiv Kumar
CA Sanjiv KumarEnlightened
Asked: August 2, 2021In: Corporate Laws

Do the Statutory Auditors have a right to access all the Board Agenda and Minutes thereof?

  1. Advocate Dr Amit Dua Explainer
    Added an answer on February 19, 2022 at 11:07 am

    All audits on behalf of the Comptroller and Auditor General are required to be conducted as per the auditing standards. In other words, auditing standards shall apply to all types of audit including financial audit, compliance audit and performance audit. In conjunction with obtaining an understandiRead more

    All audits on behalf of the Comptroller and Auditor General are required to be
    conducted as per the auditing standards. In other words, auditing standards shall apply to all types of audit including financial audit, compliance audit and performance audit.

    In conjunction with obtaining an understanding of internal control over financial reporting, the auditor should obtain an understanding of the company’s process for:

    1. Identifying related parties and relationships and transactions with related parties;
    2. Authorizing and approving transactions with related parties; and
    3. Accounting for and disclosing relationships and transactions with related parties in the financial statements.
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