Tag: Accounting
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Whether CSR Expenditure is Appropriation of Profits?
[Posted by Umakanth Varottil] [The following post is contributed by Vinod Kothari of Vinod Kothari & Co. The author may be contacted at vinod@vinodkothari.com] A circular of the Ministry of Corporate Affairs (MCA), with a set of FAQs along with response dated 12 January 2016 through general circular no. 01/2016 has clarified that the expenditure…
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Whistleblowing and Confidentiality Agreements
[Posted by Umakanth Varottil] Earlier this week, the US Securities and Exchange Commission (SEC) issued a settlement order in a case involving a company that required its employees to sign a confidentiality agreement when they were interviewed in internal investigations for allegations of potential violations of federal securities laws. The SEC decried the use of…
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Definition of ‘Remuneration’ Under the Companies Act, 2013
[Posted by Umakanth Varottil] [The following post is contributed by Nivedita Shankar, who is a Senior Associate at Vinod Kothari & Company. She can be contacted at nivedita@vinodkothari.com] As the financial year 2014-2015 approaches its end, companies are gearing up to meet the “many” requirements pertaining to preparation of board’s report in line with the…
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Financial Year Status of Foreign Owned and Controlled Companies
[Posted by Umakanth Varottil] [The following post is contributed by Esha Chakraborty of Vinod Kothari & Co. She can be contacted at esha@vinodkothari.com] The financial year (F.Y.) 2014-15 seems overwhelming for India Inc. as it faces the daunting task of meeting regulatory time-lines on the implementation of several new provisions introduced under the Companies Act,…
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An Instance of Accounting Fraud
[Posted by Umakanth Varottil] /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,”sans-serif”; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:”Times New Roman”; mso-fareast-theme-font:minor-fareast; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:”Times New Roman”; mso-bidi-theme-font:minor-bidi;} The New York Times analyzes an instance of possible accounting fraud at a Chinese company, Longtop Financial…
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MCA grants exemption from attaching subsidiary accounts
[Posted by Satyajit Gupta] Section 212 of the Companies Act, 1956 requires holding companies to attach with its balance sheet, a copy of the balance sheet, profit and loss account etc., of each of its subsidiaries. In recent years, with the globalization of the Indian economy, there has been a large increase in the number…
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Court of Appeal on the ‘True and Fair view’
[Posted by Mihir Naniwadekar] In an earlier post, Shantanu had discussed the judgment of the England & Wales High Court in Macquarie Internationale Investments Ltd. v. Glencore UK Ltd. The decision of the High Court has been upheld on appeal by the Court of Appeal in a judgment available here. The Court of Appeal observes (paragraphs 51,…
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Lehman Bankruptcy Examiner’s Report
[Posted by Umakanth Varottil] The Report of the Examiner in the Chapter 11 proceedings of Lehman Brothers Holdings Inc. provides details about certain transactions that were carried out in the company and the manner in which they were accounted for in its books. The key transaction is question is referred to as “Repo 105”, and…