BLAW3
UNIT- IDEFINITIONS Q1) Define Accounting Standards as per The Companies Act, 2013.A1) As per Section 2 (7) ‘auditing standards’‖ means the standards of auditing or any addendum thereto for companies or class of companies referred to in sub-section (10) of section 143. Q2) Define Books of Accounts as per The Companies Act, 2013.A2) According to Section 2 (13), ‘books of account’ include records maintained in respect of—(i) all sums of money received and expended by a company and matters in relation to which the receipts and expenditure take place;(ii) all sales and purchases of goods and services by the company;(iii) the assets and liabilities of the company; and(iv) the items of cost as may be prescribed under section 148 in the case of a company which belongs to any class of companies specified under that section. Q3) Define Deposit as per The Companies Act, 2013.A3) According to Section 2 (31), ‘deposit’‖ includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount as may be prescribed in consultation with the Reserve Bank of India. Q4) Define Financial Year as per The Companies Act, 2013.A4) According to Section 2 (41), ‘financial year’, in relation to any company or body corporate, means the period ending on the 31st day of March every year, and where it has been incorporated on or after the 1st day of January of a year, the period ending on the 31st day of March of the following year, in respect whereof financial statement of the company or body corporate is made up:a) Provided that on an application made by a company or body corporate, which is a holding company or a subsidiary of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Tribunal may, if it is satisfied, allow any period as its financial year, whether or not that period is a year:b) Provided further that a company or body corporate, existing on the commencement of this Act, shall, within a period of two years from such commencement, align its financial year as per the provisions of this clause. Q5) What is a Foreign Company as defined in The Companies Act, 2013?A5) Section 2 (42) states that, ‘foreign company’ is any company or body corporate incorporated outside India which—(a) has a place of business in India whether by itself or through an agent, physically or through electronic mode; and(b) conducts any business activity in India in any other manner. Q6) Define Independent Director as per The Companies Act, 2013.A6) Section 2 (47) states that, ‘independent director’‖is an independent director referred to in sub-section (6) of section 149. Q7) What is Indian Depository Receipt as defined in The Companies Act, 2013?A7) According to Section 2 (48), ‘Indian Depository Receipt’ means any instrument in the form of a depository receipt created by a domestic depository in India and authorised by a company incorporated outside India making an issue of such depository receipts. Q8) What is One Person Company as defined in The Companies Act, 2013?A8) According to Section 2 (62), ‘One Person Company’‖ means a company which has only one person as a member. Q9) What is Small Company as defined in The Companies Act, 2013?A9) Section 2 (85) defines ‘small company’ as a company, other than a public company,—(i) paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees; or(ii) turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees:Provided that nothing in this clause shall apply to—(A) a holding company or a subsidiary company;(B) a company registered under section 8; or(C) a company or body corporate governed by any special Act.
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