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Ramesh Sharma
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  1. CA Vishnu Ram Enlightened

    There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.

    There is no technical issue if an employee raises a service invoice with his company. The only thing is that it should not violate his appointment terms with the company.

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Ramesh Sharma
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  1. CA Dipali Bhatia Beginner

    An executive director is the full-time working director of the company. They look after the affairs of the company and have a higher responsibility towards the company. A non-executive director is a non-working director and is not involved in the everyday working of the company. They might participaRead more

    An executive director is the full-time working director of the company. They look after the affairs of the company and have a higher responsibility towards the company.

    A non-executive director is a non-working director and is not involved in the everyday working of the company. They might participate in the planning or policy-making process.

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Ramesh Sharma
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  1. CA Vishnu Ram Enlightened

    A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnoveRead more

    A vendor registered under the MSMED Act, 2006 is called an MSME vendor. There are three categories of vendors in MSMED act which are based on their investment and turnover.

    1. Micro manufacturing and services units- Rs. 1 Crore of investment in plant and machinery or equipment and Rs 5 Crore of turnover.
    2. Small manufacturing and services units- Rs. 10 Crore of investment investment in plant and machinery or equipment and Rs 50 Crore of turnover.
    3. Medium manufacturing and services units- Rs. 50 Crore of investment in plant and machinery or equipment and Rs. 250 Crore of turnover.
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Ramesh Sharma
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  1. CA Vishnu Ram Enlightened

    Hi, Please refer to section 149(1) of the Company Act,2013, according to which: A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a maximum of 15 which can also be increased by passingRead more

    Hi,

    Please refer to section 149(1) of the Company Act,2013, according to which:

    A One Person Company needs to have a Board of Directors consisting of individuals as directors and shall have a minimum of one director. It can have directors up to a
    maximum of 15 which can also be increased by passing a special resolution as in case of any other company.

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Ramesh Sharma
Enlightened
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  1. CA Vishnu Ram Enlightened

    Hi, Section 135 of Companies Act is applicable to every company  which is having : • net worth of Rs 500 crore or more; or • turnover of Rs 1000 crore or more; or • a net profit of Rs 5 crore or more during any of the three preceding financial years. The word used here is ’every company’, However, iRead more

    Hi,

    Section 135 of Companies Act is applicable to every company  which is having :
    • net worth of Rs 500 crore or more; or
    • turnover of Rs 1000 crore or more; or
    • a net profit of Rs 5 crore or more
    during any of the three preceding financial years.

    The word used here is ’every company’, However, in terms of rule 6(2) of companies (Incorporation) Rules, 2014, an OPC loses its status if paid-up capital exceeds Rs. 50 lakhs or average annual turnover is more than 2 crores in three immediate preceding consecutive years.

    In view of this, it is quite clear that an OPC would not meet the criteria specified in section 135 as detailed above.

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Ramesh Sharma
Enlightened
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  1. CA Vishnu Ram Enlightened

    Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in India is eligible to incorporate OPC. Therefore, the question of any “body corporate” or other organizations can not constitute a One person companRead more

    Please refer the rule 3 of the Companies (Incorporation) Rules, 2014, which provides that only a natural person who is an Indian citizen and resident in
    India is eligible to incorporate OPC. Therefore, the question of
    any “body corporate” or other organizations can not constitute a One person company. Naturally, they are not a natural person.

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Ramesh Sharma
Enlightened
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  1. CA Vishnu Ram Enlightened

    Following are the differences between advances and loans. A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services. Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance doeRead more

    Following are the differences between advances and loans.

    A Loan is a financial assistance given with an absolute promise to repay, whereas an advance is given against the supply of goods and services.

    Generally, Loan carries a rate of Interest against the financial assistance whereas an Advance does not carry such a rate of interest.

    A loan can be for a long-term period whereas an advance is given for a short-term period and against work or project.

    A loan is always repaid, whereas an advance is adjusted with the outstanding bill amount.

    Example-Advance given to employees against the current month’s salary. A loan is given to employee for buying a Car.

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Ramesh Sharma
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  1. CA Manish Kumar Gupta Enlightened

    Hi, It's a very interesting question and  I was waiting for it. Lots of companies are appointing a CFO cum Company secretary to save costs. Following provision will help to understand the context of the question: As per section 203, prescribed class of companies shall have the following whole-time kRead more

    Hi,

    It’s a very interesting question and  I was waiting for it. Lots of companies are appointing a CFO cum Company secretary to save costs. Following provision will help to understand the context of the question:

    As per section 203, prescribed class of companies shall have the following whole-time key managerial personnel
    (i) managing director, or Chief Executive Officer or manager and in their absence, a whole-time director;
    (ii) company secretary; and
    (iii) Chief Financial Officer
    Here, the term used is ‘whole-time’ and therefore, three different individuals are required to hold these three key positions.
    Further, as per Regulation 78 of Table F,

    ‘a provision of the Act or these regulations requiring or authorizing a thing to be done by or to a director and chief executive officer, manager, company secretary or chief financial officer shall not be satisfied by its being done by or to the same person acting both as director and as, or in place of, chief executive officer, manager, company secretary or chief financial officer’.

    Hence, with the above provision of the act, it is crystal clear that a CFO can not be appointed as company secretary of the company.

     

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Ramesh Sharma
Enlightened
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  1. CA Manish Kumar Gupta Enlightened

    Hi, As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means: 1. A director or key managerial personnel or relative thereof; 2. A firm, in which a director, manager, or his relative is a parRead more

    Hi,

    As per Section 2(76) read with Rule 3 of the Companies (Specification of definitions, details) Rules, 2014 of the Act, Related party with reference to a company means:

    1. A director or key managerial personnel or relative thereof;

    2. A firm, in which a director, manager, or his relative is a partner;

    3. A private company in which a director or manager or his relative is a member or director;

    4. A public company in which a director or manager is a director AND holds along with his relatives, more than two percent of its paid-up share capital;

    5. Any Body Corporate whose Board of Directors, managing director, or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager.

    (b) Any person on whose advice, directions, or instructions a director or manager is accustomed to act.
    Note: nothing contained in clauses (a) and (b)  shall apply to the advice, directions or instructions given in a professional capacity.

    6. Holding, subsidiary, or an associate company of such a company.

    7. Subsidiary of a holding company to which it is also a subsidiary.

    8. Investing company or the venturer of the company.

    Explanation—” investing company or the venturer of a company” means a body corporate whose investment in the company would result in the company becoming an associate company of the body corporate

    Note: Term relative in relation to a person means and includes Father, Mother, Son, Son’s wife, Daughter, Daughter’s husband, Brother, Sister, members of a HUF, Husband and wife

    Thanks

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