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To borrow   Money is required to operate a business. Now, it can either be in the form of investment in money, or it can be borrowed from outsiders. Capital investment can be made by the issuance of equity securities, while money can be borrowed from external sources, i.e. external sources, through issuing debentures, bonds, bank loans, external commercial borrowings, etc.   Basically, borrowing means arranging cash with the intention of running a company and generating income and eventually returning the money borrowed.   Borrowing means borrowing cash. Loans can come in many ways, such as short-term loans, long-term loans, secured loans, unsecured loans, private borrowing, public borrowing, etc.   The firm's power to borrow     In its articles for borrowing capital, a corporation has its own life and has articulated powers. The company's power to borrow money is exercised by its directors by passing a resolution authorizing them to borrow money, and that resolution should als

The Negotiable Instrument Act is a very interesting subject of Economic, Business and Commercial Law, explained below:   The Negotiable Instruments Act was enacted in India in 1881 and entered into force on 1 March 1881. Prior to its enactment, the provisions of the English Negotiable Instrument Act were applicable in India and, with certain modifications, this Act is also based on the English Act. It extends to the whole of India, with the exception of the state of Jammu and Kashmir. The Act operates subject to the provisions of Sections 31 and 32 of the Indian Reserve Bank Act, 1934.   What's the Negotiable Instrument?   A "negotiable instrument" means a promissory note, a bill of exchange or a check payable either to the ordering party or to the holder.   EXPLANATION – A promissory note, bill of exchange or check is payable to an order which is expressed as being payable or which is expressed as being payable to a particular person and does not contain words prohibiti

I ndustrial, Labor & General Law Important terms related to the Law on the Transfer of Property Act. Vested and Contingent Interests Vested Interest is an interest that is created for the benefit of a person – without specifying the time at which it is to take effect, or specifying that it is to take effect immediately, or on the occurrence of an event.   Contingent Interest means an interest created in favor of a person – to take effect only on the happening or not happening of a specified uncertain event, which may or may not happen.   Contingent Interest means an interest created for the benefit of a person – to take effect only on the occurrence or non-event of a specified uncertain event that may or may not occur.   In simple terms, as provided for in the Transfer of Property Act; where interest is granted, the transfer is complete but where the interest is contingent, the transfer depends on the preceding condition, i.e. where the transfer takes place and the interest is gran

SOCIAL RESPONSIBILITY CS Executive CORPORATE Corporate Social Responsibility is a regulation which obliges companies to take an active part in complying with the legal spirit of the ethical norm and international norm. CSR activities help the organization to have a better impact on society, consumers and our stakeholders. It gives the edge to CSR-following business over others.   APPLICABILITY OF CSR ON BUSINES As per section 135 of the Act 2013 of the Company,   Every company that lies in these conditions must spend the prescribed amount on CSR activities:-   1.  Company with a net value of 500crore ropes or more 2.  Company with a turnover of roupees 1000crore or more 3.  Company with a net profit of 5crore or more Upon compliance with any of the above conditions, the company shall establish a CSR committee, which shall establish policies related to CSR expenditure and shall be disclosed in the report of the board of directors. The company shall make expenditure of at least 2 per cen

In CS Online Coaching Classes, the Negotiable Instrument Act is a very interesting subject of Economic, Business and Commercial Law, which is discussed in a cheque that is explained below:   What's a Cheque? A cheque is a bill of exchange drawn from a specified banker and not expressed as payable otherwise than on demand and includes an electronic image of a truncated cheque and a cheque in an electronic form. (Sec. 6 of the NIA)   Explanation I – For the purposes of this section, the terms-   An electronic form cheque means a cheque that contains the exact mirror image of a paper cheque and is generated, written and signed in a secured system that ensures minimum safety standards with the use of a digital signature (with or without a biometric signature) and an asymmetric cryptosystem; A truncated cheque shall mean a cheque which is truncated in the course of a clearing cycle, either by the clearinghouse or by the bank, whether paying or receiving payment, immediately on the gener

  Composition Levy under GST – Goods and Services Tax GST is an indirect tax used in India on the delivery of goods and services (goods and services tax). The Indian government entered into force on 1 July 2017. Tax on goods and services is divided into five tax burdens for collection of tax – 0%, 5%, 12%, 18% and 28%. Petrol, alcoholic, and energy goods, however, are not subject to GST levy. This tax substituted the current various taxes imposed by the state and central governments. GST prices rise for everyday products while the rates for luxury goods are reduced. GST ID Number is a special 15 digit number given by the PAN of a company to companies registered in the framework of GST. The composition levy is a tax levy system planned for small taxpayers with revenues of up to Rs. 1,5 crore. Small taxpayers are forced to pay a flat tax, irrespective of their production, supply or trade. In Northeastern countries and hill countries, such as Sikkim and Himachal Pradesh, the limits of GST

Meaning, Petition & Process -  Winding Up Of A Company The process of setting up a business and winding up is a process of law. In the modern era, setting up business/ incorporation has been simplified by way of ease of doing business. In light of the Companies Act, 2013, winding up is a process of dissolving the legal existence of the company. In the practical scenario under the earlier Companies Act, winding up of a company takes years to complete and was a tedious process. This article covers the overview of the winding up and modes as prescribed under the Companies Act, 2013 and Insolvency & Bankruptcy Code, 2016. In this article we will discuss the Process of Winding up a Company in accordance with the syllabus of  Setting up of Business Entities and Closure  – SBEC CS EXECUTIVE. MEANING OF WINDING UP Winding up is the process by which the assets of the company are saved and the affairs of the company are wound up. Even during the process of winding up the company continue

DIRECTORS (Composition, Qualification & Appointment) – COMPANY LAW A director in Company Law is the one who directs. This significant term follows the normal meaning under the  Company Law  as well. A Company being an artificial juridical person cannot act by itself. It is the individuals who severally and jointly run the business as representatives of the company and act on behalf of it. The concept of the Board of Directors under Company Law, it is an extensive topic. Especially the  Companies Act, 2013  which brought many new concepts of directors in order to be consistent with other laws in force such as Listing Regulations. This article will cover the basics of directors, Board of Directors, the composition of Board of Directors, qualification of Director and appointment of Director, etc. Being one of the vast topics, it is hard to line up all about directors in one brief article. Let us begin with the basic terms:   BOARD OF DIRECTORS   Section 2(10) – “Board of Directors” or

Concept of Cost Accounting & Objectives of Cost Accounting | CS Executive CONCEPT OF COST ACCOUNTING - CS EXECUTIVE  The term Cost is a very common word in our daily lives. More specifically we used it to signify something that we incur to take in back a benefit, maybe goods or services or anything. As we say everything comes at a cost. Even in  accounting , the concept of cost is referred to as the amount that has to be paid or given to get something in return. In other words, the cost is the number of resources either monetary or otherwise, given in exchange for some goods or services.   DEFINITION - CONCEPT OF COST ACCOUNTING The Chartered Institute of  Management Accountants  (CIMA), London defines cost as “the amount of expenditure (actual or notional) incurred on or attributable to a specified thing or activity”. The concept of cost is wide enough to include anything and everything that is put in to derive an output. Say, for instance, the electronic gadget you are using righ