company accounts

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Company accounts

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What is a company?
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WHAT IS A COMPANY?

• A COMPANY IS AN ASSOCIATION OF PERSONS WHO
  CONTRIBUTE MONEY OR MONEYS WORTH.

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CHARACTERISTICS OF COMPANY

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CHARACTERISTICS OF COMPANY

• 1. VOLUNTARY ASSOCIATION
• No law can compel a person to form a company.
• 2. SEPAATE LEGAL ENTITY
• Co. can hold purchase sell properties can
  open bank a/c.
• 3. COMMON SEAL
• It acts a legal evidence or on behalf of
  company.
• 4. PERPETUAL SUCCESSION
• Does not affect by any changes in membership
  bcoz of SLE.
• 5. LIMITED COMPANIES
• Liability of a member is limited to amt he has
  agreed to pay to the CO. either by purchasing
  shares, giving a guarantee.

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FORMATION OF COMPANY

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• FORMATION OF COMPANY
• DEFINITION
• STAGES IN FORMATION
• DOCUMENT OF COMPANY
• MEMORANDOM OF ASSIOCATION (MoM)
• ARTICLES OF ASSIOCATION (AoA)
• PROSECTUS OF ASSIOCATION (PoA)

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What do you mean by formation of a company

• A Company comes into existence when a group
  of people
• come together with a view of forming an
  association to exploit the business opportunities
  by bringing together men material money
  management.
• STAGES OF FORMATION OF A COMPANY
• Promotion stage.
• Raising the share capital stage.
• Selection of name.
• Incorporation (Registration stage)

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• promotion stage

• RAISING OF SHARE
• CAPITAL

• discovery of business opportunities
• detailed investigation
• assembling necessary requirements.
• financing of proposition.

• Entering into an agreement with underwriters
• Applying to the stock exchange.
• Issue of prospectus inviting public to subscribe.
• Allotting shares.

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• INCORPORATION STAGE

• selecting company
• name

• A company is said to be incorporated when it
  fulfill the formalities of registration obtain
  Certificate of Incorporation by submitting the
  MoA, AoA and written consent of all directors .
  It acts as conclusive evidence that the co. is
  duly registered.

• To be identified for legal and business
  purpose ( i.e. Ltd or Pvt Ltd) The shouldnt
  be similar to the existing.

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Documents of company
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Documents of company

• MOA

• AOA

• PROSPECTUS (Poa)

• contains the fundamental rules
• charter of co. Defines raison detre
• lays down the area of operation.
• regulates the external affairs of co.

• Contains regulation concerning the internal
  affairs.
• it should be printed, divided into para
• alteration is done by passing special resolution.

• prospectus means any doc. Inviting deposits
  from public to subscribe.

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COMMENCEMENT OF BUSINESS
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Commencement

• To obtain this certificate from Registrar of co.
  following are the conditions to be followed
  sec.149
• A prospectus must be filled with Registrar of
  co.
• The no. of shares allotted is not less than
  mini. Subscription paid in cash
• The directors have taken up paid for
  qualification shares. ( subscription )
• The declaration that NO MONEY IS LIABLE TO
  BECOME REFUNDABLE to applicants for shares.
• A declaration by one of the directors or the
  secretary to the effect that the condition
  regarding commencement of the business have been
  complied with.

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STATUTORARY BOOKS
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STATUTORARY BOOKS

• MEANING
• Statutory Books are the official records kept by
  the company relating to all legal and statutory
  matters. A company's statutory books are usually
  kept at the registered office of the company.
• OR
• In simple terms Statutory books are those which
  are necessary to observe legal formalities of a
  company including registers.

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DEFINITION

• The Statutory Accounting Principles are a set of
  accounting rules for insurance companies set
  forth by the National Association of Insurance
  Commissioners. They are used to prepare the
  statutory financial statements of insurance
  companies.

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Its a duty of company secretary to prepare
maintain the statutory books

• GENERALLY THE STATUTORY BOOKS ARE
• 1 Register of member
• 2 index of member
• 3 register if director
• 4 register of debenture holder
• 5 Register of mortgages and charges
• 6 register of directors shares-holdings
• 7 register of contracts in which director is
  interested

• 8 minute book
• -A of directors meeting
• -B of members meetings
• -C of different meeting
• 9 a file of annual returns
• 10 register of fixed deposits
• 11 register of company investments in companies
  in same group etc.,

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STATUTORY BOOKS ARE opened to inspection by any
member of company as well as by the register of
companies. The company secretary has to
facilitate inspection as and when required.

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BOOKS OF ACCOUNTS

• Books of account refer to the records or books in
  which all financial information (transactions) of
  a business or an entity is recorded and
  maintained. For example, a journal is a book of
  account because it is used to record financial
  information of a business. Similarly, sales
  ledger account, purchase ledger account, cash
  book, general journal, purchase journal etc,. are
  examples of books of accounts.
• The process of recording financial information or
  transactions in the books of account is known as
  bookkeeping

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STATISTICAL BOOKS

• Statistics, in short, is the study of data. It
  includes descriptive statistics (the study of
  methods and tools for collecting data, and
  mathematical models to describe and interpret
  data) and inferential statistics (the systems and
  techniques for making probability-based decisions
  and accurate predictions.)

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Maintenances of accountsState Implementation
Society is required to maintain the following
books of accounts and registers

• (a) Cash Book
• (b) Ledger
• (c) Journal
• (d) Register for Journal / Magazines / News
  Papers
• (e) Register of Advances (
• f) Register of Bank draft received
• (g) Cheque issue register
• (h) Register of remittances made into the Bank
• (i) Bank Pass Book / Bank statement
• (j) Register of bank drafts dispatched
• (k) Bill Register
• (l) Establishment Register

• (m) Stock Register Capital Goods,
  Non-consumable articles, Consumable articles
• (n) Register of works
• (o) Register of grants of advances to mobilizing
  agencies / NGOs / Voluntary Agencies
• (p) Fixed Assets Register
• (q) Register of Investments
• (r) Classification accounts of the Project
• (s) Monthly accounts of Receipts and Payments
• (t) Temporary Advance Register staff,
  contractors / suppliers / VEC
• (u) Dispatch Register
• (v) File Register.

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sebi

• The Securities and Exchange Board of India (SEBI)
  is the regulator for the securities market in
  India. It was established in the year 1988 and
  given statutory powers on 12 April 1992 through
  the SEBI Act, 1992.

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-Presentation by sheetal devda