Archive | Company Accounts

Misleading Prospectus and its consequences are explained in a more descriptive manner as follows…

The main points of difference between shares and stocks are a company cannot make an original issue of stocks, only shares when fully paid up can be converted into stocks…

The following factors were responsible for the growth of public sector in India. It has grown both in scope and depth. It now controls the “commanding heights of the economy.”…

The 3 main types of underwriting agreements are Complete underwriting, Partial underwriting and firm underwriting…

Complete information on Goodwill, its nature, features, types and classes are goodwill consists of the advantages a business- has in connection with its customers, employees and outside parties with whom it has to contact…

The following are the differences between a share certificate and a share warrant like both public as well as private companies can issue a share certificate whereas a share warrant can be issued by public limited companies only…

A holding company is better defined in the context of the definition of a subsidiary company. Section 4 of the Companies Act, 1956 defines a subsidiary company. According to this section, (1) a company shall be…

For the preparation of Statement of Affairs, the 8 essential points are: first of all, take all assets which are not specifically pledged. These assets are taken at their realizable values and not at book values because creditors for their payment are concerned with…

This Interim dividend is declared between two annual general meetings. As per regulation 86 of Table A, the Board may from time to time pay to the shareholders such interim dividends as appear to…

The liabilities of a company secretary, may be studied under two leads: (1) statutory liabilities, and (2) contractual liabilities….

In accordance with the nature and scope of the public enterprises, they have been divided into the following categories…

The steps for valuation of rights issue can be elaborated below. Usually a company offers rights issue at a price which is lower than the market price of the shares so that existing (i.e., old) shareholders may get the monetary benefit of being associated with the…

The advantages which accrue as a result of issuing further shares to the existing share holders only are Controlling of the company is retained in the hands of the existing shareholders. Issue of right shares makes possible equitable distribution of shares without disturbing the established equilibrium…

Liquidation or winding up is a legal term and refers to the procedure through which the affairs of a company are wound up by law. Winding up of a company has been defined in the Companies Act…

Generally speaking, the public sector refers to the wide range of economic and social activities undertaken by the central government, state government, municipalities and other public bodies…

The difference between term loan and debentures are debentures provide more flexibility than term-loans as they offer greater variety of choices with respect to maturity…