January 7, 2024 | CA B K Goyal & Co LLP

Draft Format of Directors Report: Small Company

All the registered companies are required to hold annual general meetings and file the company’s annual return with the ministry of corporate affairs. Undoubtedly a director’s report is a very important document for all types of companies. According to the Companies Act, 2013 every board of directors of a company has to attach the reports to its financial statements to be given before the members of the company at the annual meeting Financial reporting is necessary for companies as it provides details of the state of a company and its compliance with financial, corporate social responsibility and accounting standards. Public and private limited companies must file a financial document called the directors’ report at the end of the financial year. The directors’ report is the report prepared by the Board of Directors of the company and should be attached to every financial statement Directors Report and Abridged Directors Report The financial documents containing all the details of the company’s state and its compliance with financial and accounting responsibilities are known as the director’s report. As per the Companies Act, 2013 every board of directors of a company has to attach the reports to its financial statements before giving them to the members of the company at the annual meeting. whereas, the one-person companies (OPC) and the small companies don’t need to file the director’s report. Instead of that, they can file an abridged director’s report and the abridged director’s report is the short version of the director’s report. The Ministry of Corporate Affairs (MCA) introduced this kind of report for OPC and small companies in 2018. Moreover, the board reports of these companies are based on the standalone financial statement of the company in the form of abridged director’s reports according to the prescribed rules. Contents of Director’s Report as per Companies Act,2013 The number of meetings by the board of directors Information about annual return extract as provided under section 92(3) of the companies Act, 2013. Responsibilities of the director’s as per section134(5) of the act. All the details regarding the frauds reported by the auditors as per section 143(12) of the Act other than those reportable to the central government. The statement of the declaration provided by the independent directors as per section 149(6) of the Act. Particulars of guarantees, Investments or loans made under section 186 of the Act. The company’s state of affairs. The amount that companies propose to carry to any reserve if any. Comments and explanations by the board on every reservation, qualification, adverse disclaimer, or remark made by the auditors. Details of the policies developed and implemented by the company. The conservation of energy, technology absorption and foreign exchange earnings, as per the manner given under rule 8(3) of the companies (accounts) rules, 2014. Further, such other matters and information of the company are given in the report. Purpose of the Director’s Report According to section 134(3) of the companies Act, 2013, the directors of a company report at the end of every financial year. It ensures greater transparency, for this reason, the director’s report helps shareholders of the companies to understand various information like: How the company is performing in the market and how the market is performing in general. The finances of the company are in good condition or not. Whether the company can develop, grow and expand or not. Is the company complying with accounting standards, financial regulations, and corporate social responsibility requirements Small Company under the Companies Act To provide various benefits to companies with less turnover the government introduced the concept of a small company. So, companies with less turnover and paid-up capital are called small companies and these companies have no separate registration, and they will be registered as Public Limited Companies. Small companies are defined under section 2(85) of the companies Act, 2013, as a company, other than a Public Company having: Firstly, paid-up share capital not exceeding Rs. 2 crore or such specified higher amount which shall not be more than Rs. 10 crores. Secondly, a turnover of such companies not exceeding Rs. 20 crore or such specified higher amount which shall not be more than Rs. 100 crores. The definition of small companies does not include the following companies: A company registered under section number 8 of the Companies, Act, 2013. A Subsidiary or holding company A company or body corporate governed by any special act of both central and state. Disclosures to be made in the abridged Director’s Report: Small Company Rule 8A of the Companies (Accounts) Amendment Rules, 2018 states that the following matters should be disclosed in the abridged director’s report of an OPC and small company: It should display the web address where the copy of the annual return is placed as given in section 92(3) of the Act. A Total number of the board of directors’ meetings. Director’s responsibility statement as per section 144(5) of the companies Act. All the details regarding the frauds reported by the auditors as per section 143(12) of the Act other than those reportable to the central government. The company’s state of affairs. The summary and highlights are related to the company. Comments and explanations by the board on every reservation, qualification, adverse disclaimer, or remark made by the auditors. Details related to appointment and resignation of directors during the year. Further, The Other significant orders, details or material passed by the regulations, tribunals and court. Which will impact the company’s status and its future operations. Contents of a Directors’ Report as per Companies (Accounts) Rules, 2014 Rule 8 of the Companies (Accounts) Rules, 2014, provides that the board’s report should include the following information: The directors must prepare the board’s report on the basis of stand-alone financial statements of the company The directors’ report must contain a separate section where a report on the financial position and performance of all associates, subsidiaries, and joint venture companies included in the consolidated financial statements is presented. The following are the details relating to the conservation of energy: The

Trademark Search

Business / CA Bhuvnesh Goyal / January 7, 2024

A trademark search is a vital tool in your business’s marketing arsenal. This process enables you to identify trademarks already used within the market and gain insights into them. Moreover, it helps you ascertain if someone is attempting to register a trademark that might infringe upon your brand name or other brand-related identifiers. Here, we will delve into the importance of trademark searches and how to conduct them effectively. A trademark search is an important tool in your business’s marketing arsenal. A tm search can help you identify trademarks that are already being used on the market and find out more about them. It can also help you find out if someone else is trying to register a trademark that could potentially infringe on your brand name search or other brand-related identifiers. Trademarks A trademark represents a unique word, design, or symbol that sets a product or service apart from others in the market. It forms an integral part of intellectual property rights (IPR). According to Section 2(zb) of The Trademarks Act 1999, a trademark is a mark that can be visually represented and distinguishes the goods or services of one person from those of others. This comprehensive definition encompasses various elements, including product shapes, packaging, and combinations of colors. Benefits of Conducting Trademark Search Avoiding legal problems: It helps you find existing trademarks to avoid conflicts. Protecting your investment: Ensures your chosen trademark can be registered. Building trust: Registered trademarks boost customer confidence. Expanding your business: Opens doors to growth and partnerships. Avoiding application rejection: Reduces the risk of trademark office refusals. Secure marketing efforts: Allows confident marketing without legal worries. Preventing infringement: Gives you the legal right to stop others from using a similar mark. Gaining customer trust: Shows commitment to quality and compliance. Facilitating global expansion: Eases the process of international trademark protection. The Purpose of a Trademark Search Search involves conducting a thorough analysis of your brand name, logo, design, and other identifiers. This information is then compared against various databases containing registered trademarks. These trademarks are entered into the database by their registrants. If another party attempts to register a version of your brand identity or a similar mark Considerations for Conducting a Trademark Search Availability Legal Jurisdiction Ensure that you are conducting your trademark search within the correct legal jurisdiction. In India, the Indian Trademark Registry is the governmental agency responsible for registering trademarks and copyrights. If you are also filing for a trademark in another country, it’s advisable to search through that country’s trademark office as well. Type of Trademark Determine the type of trademark you are searching for. Is it a word, a symbol, a design, or another identifier? Understanding the nature of your trademark is crucial before initiating the search. Differentiate Between Goods and Services Consider differentiating between goods and services when conducting trademark searches. Some marks are exclusive to specific types of goods (e.g., “Jaguar” for cars), while others are more suitable for services (e.g., “Bose” for headphones). While finding a trademark for service-based goods may be more challenging, conducting a thorough search is essential and considering submitting an application if needed. Required Information for Application Ensure that all necessary information is included when applying for trademark registration. This typically includes the full name and address of the applicant, as well as the date of the application. How to Conduct a Trademark Search Begin with a keyword search using terms or phrases related to your brand or product that you suspect might be similar to existing trademarks. If the name you enter doesn’t yield any matches within your search parameters, proceed to the next step. To determine if the name is on file with the trademark registry, visit the Indian government’s trademark registry or perform an IP India Public Search. These databases often provide insights into whether another company has filed for protection of their brand name in a manner that could affect your use of yours. FAQs Q: What is a trademark search? A trademark search is a process of checking existing trademarks to determine if a proposed mark is already in use or registered. It helps businesses avoid potential conflicts and legal issues before applying for a new trademark. Q: Why is a trademark search important? A trademark search is crucial to ensure that the chosen mark is unique and does not infringe on the rights of existing trademarks. It helps avoid legal disputes, rejection of the trademark application, and potential financial losses. Q: When should I conduct a trademark search? It is advisable to conduct a trademark search before finalizing and adopting a new trademark. Early searches can prevent investing time and resources in a mark that may face legal challenges later. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online Company Registration Services in major cities of India Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company

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