~Maintenance Of Statutory Register And Records~💛

HELLO EVERYONE! I AM HERE TODAY TO HELP YOU IN KNOWING ABOUT WHAT STATUTORY RECORDS AND REGISTER HAS TO BE MAINTAINED BY A COMPANY UNDER “COMPANIES ACT 2013".

# LIST OF RECORDS AND STATUTORY REGISTER TO BE MAINTAINED BY AN ENTERPRISE 

1) REGISTER OF MEMBERS

form used in this is - MGT-1

2) REGISTERE OF DEBENTURE HOLDERS

form used in this is - MGT-2

3) FOREIGN REGISTER MEMBERS

form used in this is - MGT-3

4) DUBLICATE SHARE CERTIFICATE

form used in this is - SH-2

5)REGISTER OF SWEAT EQUITY SHARES

form used in this is - SH-3

6) EMPLOYEE STOCK OWNERSHIP PLAN

form used in this is - SH-6

7) BUY BACK

form used in this is - SH-10

8) REGISTER OF CHARGES

form used in this is - CHG-7

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# INCOME RECORDS

Income record is not only strength and viability but it also important that financial records neither overstate nor understate the income earned by one's business. income record is important for several reasons.

INVOICE MUST CONTAIN THE FOLLOWING HEADS:-

1) Serial number

2) Address of business

3) Name of issuing business

4) Date of issue

5) Description of goods and services as well as price 

6) Service tax, VAT registration number (if applicable)

7) CIN ( company identication no)if business is being run by a company

8) Total invoice value

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# BANKING RECORDS 

To ascertain the financial strength of an company or an enterprise it is necessary that the bank balance as per records be in sync with the reality. Bank records offers a great insight into the transaction undertaken by a business.

BUSINESS MUST CONTAIN UP TO DATE RECORDS OF -

• Cheque books with complete counterfoils

• Cheque/Cash deposit counterfoils

• Bank account statement along with reconciliations

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# EXPENSES AND PURCHASE RECORDS

To determine your business profitability it is important that you should record and keep more details of expenses and purchases made in your business or by your business.

IT SHOULD CONTAIN -

• Invoice received

• Credit card statement

• Receipt/Counterfoils

• Cheque books counterfoils

• Cash vouchers

• Salary information

• Credit documents

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~Strike Off The Name Of The Company And LLP~💛

HELLO EVERYONE! I AM HERE TODAY TO HELP YOU IN KNOWING ABOUT STRIKING OFF THE COMPANY AND LLP.

On Incorporation Name Of The Company And LLP Is Entered In Register Of The Company Maintained By Registrar.

Striking Off The Name Of The Company/LLP Is Temporarily Removing The Company From  Register.

Name Of The Company Can Be Restored In The Register On Making An Application.

THE MINISTRY OF CORPORATE AFFFAIRS (MCA) VIDE NOTIFICATION DATED 26TH DECEMBER 2016 NOTIFIED SECTION 248 TO 252 OF COMPANIES ACT 2013 Dealing With The PROVISION FOR REMOVAL OF NAME OF COMPANIES FROM REGISTER OF COMPANIES.MCA HAS ALSO ISSUED THE COMPANIES (REMOVAL OF NAMES OF COMPANIES FROM THE REGISTER OF COMPANIES) RULES,2016(RULES) TO BE EFFECTIVE FROM THE SAME DATE i.e 26th DECEMBER 2016 IN ORDER TO PROVIDE PROCEDURAL ASPECTS OF STRIKING OFF.

A company which is undergoing the process of striking off either voluntarily or by action of the registrar is given the status as“ STRIKING OFF" and the status of the company is  changed to dissolved or liquidated when affairs of the company are completely wound up by following the provision of winding up of company . after dissolution or liquidation ,the company cease to exist.

WAYS OF STRIKING OFF A COMPANIES:-

By registrar of company on suo moto(on its own)

By application of company for removal of name/strike off of company.

STRIKE OFF BY REGISTER OF COMPANIES (ROC) BY SUO MOTO :-

In case of existing company which fails to commence a business within 1 year of its Incorporation Or the company does not carry any business or Operation for a period of two immediately preceding financial year and also has not made a application to ROC for applying for status of dormant company under section 455 of companies act 2013. The registrar have to give a opportunity of being heard after that roc willl publish a notice in official Gazzette of striking off the name of the company from registrar after that the company shall stand dissolved.

According to subsection 1 of section 248 of companies act 2013 read with the rule 3 of the companies rules 2016.On this basis registrar can remove the name of company from register.

I)when a company fails to commence a business within one year of its Incorporation.

II)when a company is not carrying on any business or Operation for a period of two immediately preceding financial year and has not made an application for the status of dormant company.

Before the removal of the company name from register the registrar is required to send the notice to the company and all its director at the addresse available in record, by Registered post with acknowledgement due or by speed post in form STK 1. On the receipt of the notice all the directors of the company are required to send their representation along with the copies of the relevant documents, if any , explaining the reason why the name of the company should not be removed from register of companies

Such representation should be given within a period of thirty days from the date of the notice.

STRIKING OFF THE NAME OF COMPANY BY MAKING AN APPLICATION FROM THE COMPANY TO REGISTRAR OF COMPANIES (ROC):-

The company will apply to ROC for striking off the name of the company from its registrar. On receipt of an application along with the necessary fees, The registrar will issue a public notice for intimating the general public to submit their objection,if any. In case of no objection received the registrar may proceed to strike off the name of company from register and publish an notice in official Gazzette about the same and then the compay stands struck off with effect from the date.

Procedure to strike of the name of company by Application to ROC.

I) first the company has to call a board meeting to pass a board resolution for the purpose of striking off the name of the company from the register of the ROC subject to approval of shareholders of the company and to Authorize any director to file an application for fixing a date,day,time,venue for extra ordinary general meeting of shareholders.

II) After the resolution is passed, if there is any liability in the company you have to set off/pay all liablities.

III) There should be made an indemnity form STK 3 and Affidavit  in form STK 4 which should be signed and execute it. In case the directors are foreign national or non resident indian, the document is to be notarized or apostilled or consularised.

IV) Company has to make an statement of accounts showing the assets and liabilities up to date, not more then thirty days before an application made. Such statement should be certified by Charted Accountant.

V) General Meeting should be held on the day ,date,time,venue as fixed earlier for passing of the special resolution. That special resolution which is passed for the purpose of striking off the name of the company should have a consent of members of the company in terms of  paid up share capital of an 75% members.

VI) In general meeting after obtaining the consent, company shall file MGT -14 within thirty days from the date of passing special resolution.

VII) Approval of concerned authorities is required in case of a company regulated by any other authority.

VIII) Application should be made in form STK-2 along with the fee ₹5000/- .

ATTACHMENT WITH FORM STK-2 : RULE 4(3).

NOC ( no objection certificate) from an appropriate concerned authority, if required (RBI,SEBI,IRDA,Housing finance etc.)Rule 4(2).

Statement of accounts certified by Charted Accountant, statement should not be older then 30 days from the Application.

Indemnity bond from every director in form STK-3.

An affidavit from every director of the company in form STK-3.

CTC of special resolution duly signed by each director.

Statement regarding pending litigation, if any, involving company.

IX) E-Form STK-2 shall be signed by authorised director.

X) E-Form STK-2 shall be certified by company secretary in whole time practice or charted accountant in whole time practice or cost accountant in whole time practice.

XI) public notice by ROC : after filing Application for strike off by the company the ROC shall publish a public notice in form STK-6 inviting objections to the proposed strike off, if any.the notice will be published for the information of general public in the following ways :

Official website of Ministry of Corporate Affairs.

Publish on official Gazzette.

Publish in English language in a leading English news paper and at least in one vernacular language in leading vernacular language newspaper, both having wide circulation in the state in which the Registered office of the company is situated.

XII) Intimating to regulatory authorities about the proposed action of removal or striking off the name of company should been sent to income tax, service tax, central excise duty having jurisdiction over such a company.

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~Dormant Company (Inactive)~💛

HELLO EVERYONE I AM HERE TODAY TO HELP YOU IN KNOWING ABOUT DORMANT COMPANY WHICH MEANS AN INACTIVE COMPANY TO HOLD YOUR ASSETS OR PROPERTY FOR FUTURE BUSINESS.

DORMANT COMPANY

Sec 455 Of Companies Act 2013 With (miscellaneous)Rules 2014 Stipulate The Provision Pertaining To “DORMANT COMPANY".

A Company Is Formed And Register Under This Act To Hold An Assets Or Intellectual Property For Future Project.

This Company Has No Significant Accounting Transaction And Has To Apply The Registrar For Obtaining The Status Of Dormant Company.

1)It Does Not Carry Any Business or Operation.

2)It Should Not Have Any Financial Transaction During Last Two Financial Years.

3)It Should Not Have Been Filling Any Financial Statement Or Annual Returns During Last Two Financial Years.

ONLY THIS TRANSACTION ARE VALID

1)If company pays fees to registrar.

2) payment made by company to fulfill any requirement of companies act or any other law.

3)alloting shares to fulfil the requirements of companies act or any other law.

4) payment made for maintenance of office and records.

If Company has made any of the above transaction in last two years then also that Company will fall under definition of dormant company.

OBTAINING DORMANT STATUS

We can obtain dormant status (inactive) in Two ways 

1)SUO MOTO:- a company which meets a above criteria can apply for Registration as suo moto(On its own).

For the status of dormant company in form MSC-1 along with the fee provided in the companies .

2) REGISTRAR OF COMPANY (ROC):- if a company has not filed an annual return or an financial statements in two financial year consecutively.the registrar will issue a notice to such company and enter the name of such company in the companies registrar maintained for dormant company.

REGISTRAR WILL STRIKE OFF (CANCEL)THE NAME OF THE COMPANY IF IT REMAINS IN DORMANT STATUS FOR A PERIOD OF CONSECUTIVE 5 YEARS. BEFORE THE END OF 5 YEARS YOU HAVE TO CHANGE THE COMPANY STATUS  FROM DORMANT TO ACTIVE.

PROCEDURE TO OBTAIN THE STATUS OF DORMANT COMPNAY:-

1)company shall call a board meeting in which they will fix a date ,day ,time,venue for calling a general meeting of Members of the company in which they will pass resolution for making application to ROC to obtain the status of dormant company.

2)the company shall obtain the statement affairs which will give the companies financial position at the time of passing resolution in shareholder meeting from the auditor of the company

3)the company shall hold the general meeting at the appointed time,place and date as per the notice calling the said meeting.the notice shall propose the resolution as a special resolution.

4)the company shall pass special resolution in which there should be 3/4th consent of the shareholders and  then Authorize an director to make an application to ROC for Obtaining the status of dormant company.

5)after passing special resolution the company shall e-file form MGT-14 with ROC for filing special resolution.

6)After filing of form MGT-14 the company shall file form MSC-1 with ROC along with the copy of special resolution, statement of affairs, declaration of directors and other necessary documents.

7)on being satisfied with the merit of the application the ROC Will issue certificate in form MSC-2(confirming reply from ROC that you are now registered as dormant company) on confirming the application.

BENEFITS PROVIDED TO DORMANT COMPANY:-

1) This Company shall hold only two board meetings in a years with the gap of 90days.

2)This company is not required to include the statement of cashflows in its financial statement.

3)The provision of rotation of auditor's is not applicable to Dormant Company.

4)This Company enjoy the advantage of lower statutory compliance cost as there are few statutory compliance applicable to Dormant Company as compared to active company.

5)Dormant company is an advantage to promote who wants to hold an intellectual property or assets under the Corporate sheild for its usage at the later stages.

6) Companies can enjoy the status of Dormant Company for the period of 5 consecutive years.

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~All About Mutual Fund~💛

HELLO EVERYONE! I AM HERE TODAY TO HELP YOU IN KNOWING ALL ABOUT MUTUAL FUND.

There are many different Investment avenues available for investors and Mutual fund is one of them.mutual fund gives good investments opportunities to investor's.mutual fund also have certain risk like other investments.The investor should compare the risk and expected yields after adjustment of tax on various instruments while taking investment decisions.Diversification reduces the risk becuase all the stocks don't move in same direction ,same proportion at the same time.mutual funds normally come out with a number of schemes with different Investment objectives which are launched from time to time.Mutual fund is registered under SEBI regulation 1993.

WHAT IS MUTUAL FUND ?

* A Trust That Raises Money Through Sale Of Units.

* Investors Get Access To Proffesional Management.

* A key Participant In The Capital Market.

* Source For Corporates To Raise Money.

* Exposure To Different Segment Of Market.

LIST OF ALL STAKEHOLDERS IN INDIAN MUTUAL FUND INDUSTRY :- 

* RBI

* SEBI

* AMFI

* MINISTRY OF FINANCE

* SROs(in general)

* INCOME TAX REGULATIONS

* INVESTOR'S ASSOCIATION

STRUCTURE OF A MUTUAL FUND 

It is set up in form of trust.which has sponsor,trustee,asset management company and custodian.it is established by more than one sponsor who is like a promoter of company.A trusty of mutual fund hold its property for the unit-holder.

TYPES OF MUTUAL FUNDS.

___________________________________________

OPEN ENDED                         CLOSE ENDED

______________________________________________

1) It can be purchased     1)It can be purchased

on any transaction day.      Only during NFO(new

2) It can be redeemed        fund offering).

On any transaction day.   2)It can be redeemed

3)High liquidity.                  Only at maturity.

                                           3) low on liquidity.

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REGULAR PLANS                    DIRECT PLAN      

1)It is sold through           1)It is sold directly by 

Distributor.                          By the AMC

2)It is higher expense      2)lower expense ratio

Ratio(due to commision   (No commision paid 

Paid to distributor).           To distributor).

3)It Potentially has lower 3) potentially higher 

Returns to the investor       Returns.(due to lowe

(Due to higher expenses).   r expenses).

SCHEMES ACCORDING TO INVESTMENT OBJECTIVE.

1)INCOME ORIENTED SCHEMES:- This scheme offers a fixed income to investor.investments are made in main securities fixed income yielding ones like Bond, Corporate debenture, Government securities & money market instruments,etc.

2)GROWTH ORIENTED SCHEMES:- This scheme offers growth potential associate with investment in capital market - highly source of income by way of divided & rapid capital appreciation both from holding good quality scrips.this satisfy the investors growth needs.primarily concerntrate on the low risk and high income.

3)HYBRID SCHEME:-This funds are also known as ‘BALANCED  FUNDS'. This scheme cater both the investment needs of the prospective investors namely fixed income as well as growth orientation.hybrid schemes have target of these mutual funds are judicious mix fixed income securities like Bonds and Debentures also sound equity scrips.This fund utilize the balanced investment management .

4)REAL ESTATE FUNDS :-These are close ended mutual funds which invest predominantly in real estate and Properties.

5)OFF-SHORE FUNDS :- These funds invest in securities of foreign companies with RBI permission.

6)FUND OF FUNDS :-This funds invest only in units of other mutual funds.such funds do not operate at present in india.

7)HEDGE FUNDS :- This funds employ their funds for speculative trading.i.e for buying shares whose prices are likely to rise & for selling shares whose prices are likely to fall.

8)NEW DIRECTION FUNDS :- This scheme invest in companies engaged in scientific and technological research such as birth control, anti-pollution, oceanography etc.

9)TAX SAVING  SCHEMES :-These scheme offer tax rebates to the investors under tax law as prescribed from time to time.This is made possible because the government offers tax incentive for Investment in specified avenues. i.e equity linked saving schemes(ELSS) & pension scheme.

10)CAPITAL PROTECTION ORIENTED SCHEME :- This is a scheme which protects the capital invested in the mutual fund through suitable oreintation of is portfolio structure.

11)SPECIAL SCHEMES :-This schemes includes index scheme that attempt to replicate the performance of particular index such as BSE,Sensex or the NSE-50 or industry specific schemes, Sectoral schemes.Index fund schemes are ideal for investors who are satisfied with a return approximately equal to that of an index.sectoral fund scheme are ideal for investor who have already decided to invest in particular sector or segment.

12)LEVERAGE FUND :-These scheme is also known as BORROWED FUND,increase the size and value of portfolio and offer benefits to members from out of the excess of gains over cost of borrowed funds.

13)EXCHANGE TRADE FUNDS (ETFs):-This schemes are new variety of mutual funds that introduced in 1993.it is sometimes described as mere ‘tax efficient' than traditional equity mutual funds.some large ETFs have made smaller distribution of realised and taxable capital gains than most mutual funds 

14)MONEY MARKET MUTUAL FUNDS:-These scheme funds invest in short term debt securities in the money market like certificate of deposits,commercial papers, goverment treasury bill etc.owing to their large size,the funds normally get a higher yield on such short term investment than an individual investor.

15) INFRASTRUCTURE DEBT FUND :-This scheme funds invest primarily in the debt securities or securitized debt Investment of infrastructure companies.

ADVANTAGES OF MUTUAL FUNDS

1)PROFESSIONAL MANAGEMENT.

2) DIVERSIFICATION.

3)CONVENIENT ADMINISTRATION.

4)RETURN POTENTIAL.

5)LOW COSTS.

6) LIQUIDITY.

7) TRANSPARENCY.

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MUTUAL FUND IS A TRUST THAT COLLECTS MONEY FROM NUMBER OF INVESTORS WHO SHARE A COMMON INVESTMENT OBJECTIVE AND INVEST THE SAME IN EQUITIES,BONDS,MONEY MARKET INSTRUMENTS AND OTHER SECURITIES.

MUTUAL FUNDS ARE REGULATED BY SEBI REGULATION ,1996.

MUTUAL FUND SCHEME COULD BE ‘OPEN ENDED' OR ‘CLOSE ENDED’ AND ACTIVELY MANAGED OR PASSIVELY MANAGED.

THERE ARE FIVE PRINCIPAL CONSTITUENTS AND THREE MARKET INTERMEDIARIES IN THE FORMATION AND FUNCTIONING OF MUTUAL FUNDS.

THE NAVs OF ALL MUTUAL FUND SCHEMES ARE DECLARED AT THE END OF TRADING DAY AFTER MARKETS ARE CLOSED ,IN ACCORDANCE WITH SEBI MUTUAL FUND REGULATION.

HOLDING PERIOD RETURN IS CALCULATED ON THE BASIS OF TOTAL RETURNS FROM THE ASSET OR PORTFOLIO.i.e.INCOME PLUS CHANGES IN VALUES.

SEBI (LODR) REGULATION,2015 IS APPLICABLE TO THE AMC MANAGING THE MUTUAL FUND SCHEME WHOSE UNITS ARE LISTED ON THE RECOGNISED STOCK EXCHANGE.

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~Portfolio Management For Buying And Selling Stock~💛

HELLO EVERYONE! I AM HERE TODAY TO EXPLAIN YOU ABOUT PORTFOLIO MANAGEMENT IN STOCKS.

WHAT IS PORTFOLIO MANAGEMENT:-

Portfolio management is the Art and Science of making decisions about mix Investment & matching Investment to objectives, assets allocation & balancing risk against performance.It is an essential function of finance manager.portfolio managers have license so they can work on behalf of clients .on the other hand many Individuals opt to supervisor and build their own portfolio.

RISK PENALTY :-

The more risk one bears the more undesirable profit you get.It can be assumed that twice the risk is four times as undesirable.The size of risk tolerance of an investor reflects the willingness of Investor to bear more risk for more return.low & high tolerance indicates low & high willingness.

For e.i, The portfolio expected return is 13%, Variance of return (risk squared) is 225% And the investor risk tolerance is 50 .

Risk penalty = 225 ÷ 50 which is 4.5

As UTILITY is expected return minus the risk penalty ,we have utility= 13-4.5 = 8.5.

Does The Choice Of Risk Adjusted Performance Measure Matter ?

Risk adjusted performance measures are an important tool for Investment decision.whenever an investor evaulates the performance of an investment he will not only be interested in achieving an absolute return but also in the risk adjusted return.(I.e) the risk which has to be taken to realise the profit.

RETURN :- 

The return measured can be any (i.e. Daily, Weekly, Monthly, or Annually)as long as they are normally distributed.weekness of the ratio normally is not all the assets return are  distributed.

RISK-FREE RATE OF RETURN:-

The risk free rate of return is a shortest dated government T.bill. This types of securities have least volatility.some would agrue that the risk free security should be compared against the investment.for i.e- equity shares are the longest security asset available.so shouldn't they be compared with the longest duration risk free assets available-government issued inflation protected security.

THERE ARE TWO TYPES FOR INVESTMENT PROCESS:-

1) Security analysis which focal point is on assessing the risk & reciprocate characteristics of the available Investment alternatives.

2)Portfolio selection which involves selecting the best viable portfolio from the set of feasible portfolio.

STEPS TOWARDS THE PROCESS OF PORTFOLIO MANAGEMENT:-

1) IDENTIFY THE OBJECTIVES

Identify the limits,risk &objectives.focus on them.the importance of objectives should be defined clearly .the objective may be income with minimum amount & less risk.

2)SELECTION OF MIX ASSETS

Identify the assets that can be included in portfolio to minimize loss.the security may contain all shares like preference shares,equity,debentures and bonds.risk depends on Investment and tolerance of investors.

3)PORTFOLIO STRATEGY

a)Active portfolio

b)Passive portfolio

4) SECURITIES (SHARES) ANALYSING

Select security by analysing which involve both micro & macro analysis 

Micro- Analysing one script is micro.

Macro-Analysing market is macro.

Securities for the portfolio are analysed falling into account of the price ,risk adjusted measure,return ,risk free rate of return,standard deviation and Sharpe ratio.

5)PORTFOLIO SECURED

Now buying and selling of the security will take place in the give amount .investor has to bear the Investment results.it is consider one of the important part in portfolio management.

6)PORTFOLIO REVISION

Analysis market constantly & keep buying and selling the shares & bonds from one to another.

7)PORTFOLIO EVALUATION

It gives usefull feedback to improve the quality of portfolio management & continue the process.there should be quantitative measurement of return,risk free rate of return.these are compared against the objects of the assets to relative performance of portfolio management.there should be selected period of time to asses the performance with the help of relative merits & demirts.

PORTFOLIO MANAGEMENT REFERS TO MANAGING EFFICIENTLY THE INVESTMENT IN THE SECURITIES BY PROFESSIONAL FOR BOTH SMALL INVESTOR AND CORPORATE INVESTORS .WHO MAY NOT HAVE THE TIME AND SKILLS TO ARRIVE AT SOUND INVESTMENT DECISION.PORTFOLIO ANALYSI SEEKS THE PATTERN OF RETURN EMANATING FROM A PORTFOLIO OF SECURITIES.A SECURITY MARKET LINE DESCRIBES THE EXPECTED RETURN FOR ALL ASSETS AND PORTFOLIO OF ASSETS , EFFICIENT OR NOT.

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