April, 2024 | CA B K Goyal & Co LLP

Notification Regarding Special Court For the UP

Companies Act 2013 / CA Bhuvnesh Goyal / April 4, 2024

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Condonation of Delay Scheme, 2018

Companies Act 2013 / CA Bhuvnesh Goyal / April 4, 2024

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Should Profit be the only measure of Company performance?

learn / CA Bhuvnesh Goyal / April 4, 2024

Although the two terms are used interchangeably, profitability and profit are not the same. Both are accounting metrics that are used to analyze the financial success of a company, but there are distinct differences between the two. To adequately determine whether a company is financially sound or poised for growth, investors must first understand what differentiates a company’s profit from its profitability. What Is Profitability? Profitability is a measurement of efficiency. It is a metric that is used to determine the scope of a company’s profit in relation to the size of the business and ultimately its success or failure. Profitability can tell key stakeholders whether a company is able to sustain its position in the market and continue to grow. It is the extent to which a company earns a profit. There are two parts to a company’s profitability: revenue and expenses. As such, a company is profitable if its revenue exceeds its expenses. This metric is often expressed as a financial ratio to help management, analysts, and investors to better understand how the company is able to earn the money necessary to cover its expenses and other company-related costs. These ratios include profit margins and return on equity (ROE). Another key ratio is the earnings before interest, taxes, depreciation, and amortization (EBITDA). This ratio lets stakeholders know whether a company is financially healthy and how it can generate revenue. How Is Profitability Determined? There are several factors that come into play when it comes to a company’s profitability. Most of these can be shaped by the company and its management team while others may not necessarily be easy to control. We’ve highlighted some of the key determining factors of profitability below. Expenses- Costs can eat away at a company’s profits. They can also spell the difference between being profitable or not. That’s why it’s important for companies to do their research. Conducting focus groups during the startup phase means companies will have the right idea of what kinds of products and services consumers want and ensures that products don’t stay on the shelves for too long. Demand- Consumer demand generates production. Knowing what consumers want and producing those products and services can help companies achieve profits. And the more companies sell, the more profitable they may become, especially if their sales outweigh their expenses. Productivity- Being more productive may help keep companies afloat. This doesn’t mean you have to spend more to be more profitable. In fact, it could mean just the opposite. Companies can accomplish this by making improvements to and increasing manufacturing. For instance, companies may consider increasing their production goals and/or upgrading their production equipment and facilities. Competition- This is one factor that companies may not be able to control. However, it’s still a challenge they should be aware of and meet head-on. Businesses that operate in the same industry and provide similar products and services can eat away at each others’ profits. This can decrease their profitability as well. Staying ahead of the competition, diversifying, and/or releasing new product lines can help boost profits and keep companies profitable. Profitability Ratios The following are the most common profitability ratios used in the corporate world: Profit Margin: This ratio measures a company’s profitability as a percentage of the total revenue it keeps as a profit. Put simply, the profit margin indicates the percentage of total sales a company keeps as a profit. Profit margins come in various forms, such as gross profit margin and net profit margin. Return on Assets (ROA): Return on assets expresses a company’s profitability compared to its total assets. Put simply, it indicates how well a company can generate a profit relative to its asset base. To calculate ROA, divide the company’s net income by its total assets. Return on Equity (ROE): This ratio tells stakeholders how profitable a company is based on its ability to generate a profit. A high return on equity indicates that a company’s management is working efficiently by generating income and growth through its equity financing. ROE is calculated by dividing net income by shareholders’ equity. EBITDA: This metric expresses a company’s profitability based on a company’s operations. It does not factor in expenses, such as interest, taxes, depreciation, and amortization. FAQs How Do Companies Generate Profits? A profit is the amount of money that a company earns after all expenses are paid. Companies generate profits by keeping their expenses low and boosting their revenue. This can be done by hiring the right people, assessing business costs, identifying inefficiencies and cutting them out among other things. What Are the Key Differences Between Profitability and Profit? Profitability and profit are often confused as being the same but they are, in fact, different. Profitability is a financial metric that companies use to determine how successful they are. This is a relative measurement and is normally expressed as a ratio. Profit, on the other hand, is an absolute measurement. Put simply, it is a concrete figure that is expressed as a dollar amount. Keep in mind, though, that a company doesn’t have to be profitable to earn a profit. What Is a Profitability Ratio? A profitability ratio is a type of financial metric that indicates whether a company is able to generate a profit compared to costs, expenses, or assets. It is typically expressed as a percentage. Examples of profitability ratios include gross profit margins, return on assets, return on equity, and EBITDA. The general rule is that a company does well compared to its competitors when they have a higher profitability ratio. 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 |

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Section-8 Company (NPO)

Companies Act 2013 / CA Bhuvnesh Goyal / April 4, 2024

A Section 8 Company is a non-profit organization that aims to promote charitable activities, art, science, education, and sports. The profits of such companies are utilized for promoting these objectives and are not distributed among the Company’s members. Section 8 company is incorporated with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members. Section-8 Company can be incorporated as a Private or Public Company. Section 8 Companies are similar to a Trust or Society as the Societies and Trusts are registered under the State Government regulations whereas Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”. Being recognized centrally Section-8 Companies/NPOs have higher credibility amongst the stakeholders and donors. Key Points about Section 8 Company In India, Non-Governmental Organizations (NGOs) can be registered under the Registrar of Societies or as a non-profit entity under Section 8 Company of the Companies Act, 2013. Profit generated by Section 8 Companies cannot be used for purposes other than charitable objectives and cannot be distributed among shareholders. Section 8 Companies are similar to the erstwhile Section 25 Company under the Company Act 1956. As per the prevailing Company Act, these are now recognized as Section 8 Companies. Section 8 Companies are required to comply with the provisions of the Companies Act 2013. They are mandated to maintain books of accounts, file returns with the Registrar of Companies (ROCs), and comply with GST and IT Act. Any changes to the charter documents like the Articles of Association (AoA) and Memorandum of Association (MoA) require the government’s consent. Advantages of Section-8 Company Tax Exemption- Section 8 companies registered under section 12AA of the Income Tax Act are eligible for a 100% tax exemption, as they utilize their profits for charitable purposes. This is a significant benefit as the profits generated by such entities are non-taxable. No Minimum Capital Requirement- Unlike public limited companies, Section 8 entities do not have a minimum capital requirement. They can adjust their capital structure according to their growth, giving them more flexibility. Separate Legal Entity-Section 8 companies have a separate legal identity and perpetual existence, just like other registered companies. This increases their credibility and provides them with more autonomy and legal standing. Increased Credibility- Section 8 companies are subject to strict legal compliance frameworks, enhancing their credibility regarding legal standing. Unlike NGOs and trusts, Section 8 entities follow stringent compliances post-registration, making them more trustworthy. No Title Required- Section 8 companies are free to choose a name that suits their liking during the registration process. Unlike other registered structures, they are not required to affix the term “Section 8” after their name. A Section 8 company in India offers numerous benefits, including tax exemption, no minimum capital requirement, no need to pay stamp duty, separate legal identity, increased credibility, and no title required. These advantages make Section 8 companies attractive for entrepreneurs looking to start a business with a charitable or social cause. Eligibility Criteria for Incorporation of the Section 8 Company Specific eligibility criteria must be met to establish a Section 8 company in India. An Indian national or Hindu Undivided Family (HUF) can incorporate a Section 8 Company. The entity must have at least one director. The primary object of the Section 8 Company should be related to promoting art and science, sports, charitable activities, education, or providing financial assistance to individuals from lower-income groups. These eligibility criteria ensure that the Section 8 Company operates to promote social welfare and contribute to the greater good of society. Documents Required for Section 8 Company Registration Identity Proof of the Member and Directors of the proposed Company;(Aadhar /Voter ID/Driving License/Passport) Address Proof of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months) Latest passport size photograph of Member and Directors Business Address ProofOwned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill) Business Address ProofRented/leased: Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill) PAN Card of the Member and Directors of the proposed CompanyPassport in case of Foreign Nationals Section 8 Company Incorporation Process Step 1: Obtain Digital Signature Certificate (DSC) The first step is to obtain a Digital Signature Certificate (DSC) for the proposed directors of the Section 8 Company. This certificate is required for the online filing of documents with the Ministry of Corporate Affairs (MCA). Form DIR-3 is used for obtaining the DIN and should be filed along with the DSC of the proposed directors. Forms to be used: DIR-3, DSC Step 2: Obtain Director Identification Number (DIN) After obtaining the DSC, the next step is to apply for a Director Identification Number (DIN) for the proposed directors. The DIN number is a unique identification number issued by the MCA to individuals who wish to be directors of a company in India. Forms to be used: DIR-3 Step 3: Reserve the Company Name The next step is to reserve the name of the proposed Company with the MCA. The Section 8 company name should be unique and not be similar to any existing company name. Form INC-1 is used for reserving the company name. Forms to be used: INC-1 Step 4: File the Application for Incorporation After the company name is approved, the next step is to apply for Section 8 Company incorporation. The application for incorporation is filed in Form INC-32 along with the Company’s Memorandum of Association (MOA) and Articles of Association (AOA). Forms to be used: INC-32, MOA, and AOA Step 5: Obtain a License for Section 8 Company Once the application for incorporation is approved, the next step is to obtain a license for the Section 8 Company. Form INC-12 is used for obtaining the license. It should be filed along with the necessary documents. Forms to be used: INC-12 Step 6: Obtain a Certificate of Incorporation After obtaining

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Odisha Records of Rights (ROR)

Government Schemes / CA Bhuvnesh Goyal / April 4, 2024

Odisha Record of Rights is an extract from the land records registers held by the Revenue Department of State Government. ROR contains complete information regarding the land property and history of holders of land. This revenue document is a crucial indicator of the legal status of a property. The Odisha Record of Rights (ROR) register is maintained in the Revenue Department for every village separately. Government issues certified copies of entries in the record of rights to residents of Odisha. Importance of Odisha Records of Rights Odisha Records of Rights (ROR) certifies the real owner of a land This land record – ROR is beneficial to detect false claim on the lands Usage of a certified copy of records of rights or extract of ROR avoids land grabbing Odisha record of rights can be used in court litigations related to property Records of Rights will help holder to avoid any legal hassles in the future Uses of Odisha Records of Rights In Odisha, ROR is used to check the ownership of an ancestral land or any other land. Extracts of ROR can be used to get details of land type, and the variety of activities carried out on land. Odisha ROR is a vital document to obtain information regarding an agricultural aspect of the land and its surrounding areas ROR is required at Registrar’s office when sale transaction of land (mutation) is being done. Odisha record of rights is one of the mandatory documents to raise farm creditor to get a loan from a bank. The court needs land record proofs in case of any civil litigation. Extract of ROR-IB can be produced for this purpose. It is mandatory to check the property card of the seller and ensure his/her ownership of the area while buying property Buyer has to verify the purchase of the land (ROR) on which the flat is being constructed in case of buying flats. Attributes in Odisha Records of Rights The Odisha Records of Rights extract contains the following information about land or property. Changes in ownership Type of irrigation (irrigated kind or rainfed nature) Nature and limits of owner’s rights and conditions Mutation numbers Type of soil (agricultural or non-agricultural) Survey number of the land Area of the earth – Fit for cultivation Details of charges of attachment and decrees under the order of the civil court or revenue authorities Details pending loans for buying seeds, pesticides or fertilisers Information about the type of crops planted in the last cultivating season Aspects of pending litigations, if any The field in possession of each landholder and the classification of each area are entered from the Dag Chitha Aspects of tax paid and unpaid Details of loan taken by the land occupant Check Odisha ROR online Step 1: Visit the Home page of the Bhulekh portal. Step 2: Select the view ROR option from the menu bar, and then click on “Your ROR 1B” to view your ROR details. Step 3:Select District Name, village name, Tahasil RI circle from the drop-down menu. Select khatian/Tenant/Plot details from the drop-down menu. Eligibility Criteria- The certified copy of Odisha records of the rights will be granted only if there is no dispute regarding its ownership and the concerned land should not Odisha Government land or assigned land belonging to the Government. Time Frame- Certified copy of Odisha records of the rights will be issued within 30 days from the date of application. Applicable Fee- The fee structure for obtaining the certified copy of Odisha Records of Rights is explained in details below. S.No Services Amount 1 Service Charges of the kiosk Operator Rs.8 2 Printing Charges Rs.10 3 Scanning Charges Rs.5 4 Certificate Output Charges Rs.10 5 DeGS charges Rs.2 6 The Government fees and User costs Rs.30 Application Processing Time- The certified copy of Records of Rights will be issued within three days from the date of application. Prescribed Authority- Revenue and Disaster Management, Government of Odisha, is the concerned department for the issuance of Odisha Records of rights. The applicant requesting for the certified copy of ROR should apply to the Tahsildar of the concerned Tahasil which is the competent authority. Documents Required-Below-mentioned documents must be furnished to apply for Odisha ROR (Records of Rights). Ration Card Proof of Identify – Voter ID Proof of Address – Aadhaar Card Proof of ownership of property Land Tax Encumbrance certificate Evidence for Income Sources – Income certificate Applying ROR through District Revenue Office Guidelines for applying the certified copy of records of rights through the District Revenue Office is described in detail here. Approach District Revenue Office Step 1: Applicant needs to visit the District Revenue Office to apply for the extract of ROR through offline mode. Submit an Application Step 2: Applicant has to submit an application in the prescribed format for the certified copy of records of rights. Fill the Odisha ROR application form duly according to the norms. Step 3:Submit all other required documents to the concerned office along with application form. Get Acknowledgement Receipt Step 4: Obtain an acknowledgement slip with the unique application number for records of rights application. Keep it safe for future reference. Step 5: Once the application for certified copy of ROR has been submitted; the concerned authority will process the ROR application. Enquiry by the Revenue officer Step 6: Land records enquiry will be conducted for verifying the details of immovable properties. Obtain Records of Rights After local investigation and the request for records of rights have been approved, the concerned revenue officer will issue the extract of ROR. Revisit the office and provide the unique application number. You can collect the Odisha records of rights, and it can be used for the purpose mentioned above. Applying for Odisha records of rights through CSC centre Procedure to get certified copy of Odisha records of rights through CSC centre is explained in detail below. Approach CSC centre Step 1: Applicant needs to approach the nearest CSC centre for obtaining a certified copy of Odisha ROR. Submit an

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LMPC Certificate For weights and measurements

Government Schemes / CA Bhuvnesh Goyal / April 4, 2024

The Metrology Act of 2009 is in charge of defining and enforcing weights and measures standards and regulating commerce and trade in weights, measurements, and other items sold or supplied through the medium of weight, measure, or numbers. This Act applies to the whole country. The Act’s registration may be referred to as Legal Metrology Registration or Legal Metrology Packaged Commodity Licence. Every pre-packaged item is subject to the Legal Metrology Act. The international units of measurement, which identify the following basic units, must be used. (i) Metre in length; (ii) Weight – kilogramme; (iii) Second in time; (iv) Amperes of electric current (v) Kelvin thermodynamic temperature; (vi) Candela luminous intensity; and (vii) Quantity of material – mole Benefits of Legal Metrology Certificate Measurement is essential in everyday business processes. A need for efficient commerce is that it be transparent and achieve a balance between traders and consumers. Some of the highlighted benefits of a Legal Metrology certificate are as follows: Reduction in Transaction charges- Poor measuring procedures are frequently expensive and time-consuming. The negative impact affects both enterprises and consumers. Poor measuring techniques can have a high cost in terms of lengthy judicial challenges and legal fights. It will also harm the company’s reputation and stability. However, when measures are taken precisely & correctly, in accordance with all of the requirements of the Legal Metrology Act, it saves money & time. Supporting Trade- The Legal Metrology Act is in charge of monitoring any illegal or unfair trading practices. This Act seeks to ensure that measuring instruments are in excellent working order and that they can perform their intended function while meeting international standards. Government Revenue Collection- The government generates money through excise fees paid on goods manufactured, sold, imported, and exported, as well as measurement taxes. The Legal Metrology Act assures that no injustice is done to the government or businesses regarding tax collection. The margin produced by a proportion of mass commodities can account for a significant share of both export and national pay, particularly in items such as lumber, rice, coffee, palm oil, coal, iron mineral, gold, jewels, and natural gas. Lowers Trade Technical Barriers- The Legal Metrology Act lowers the limitation of technical impediments while promoting measuring confidence & clarity. A reduction in the number of obstacles boosts national morale and encourages citizens to engage in the global trade system, resulting in increased national economic growth. Using the Legal Metrology Act, a merchant can eliminate unnecessary hurdles in adopting & applying technical laws, standards, & conformity evaluation procedures. Gain Customer’s Trust- When a consumer learns they are obtaining a product that has been validated in accordance with particular norms and regulations, it increases their trust in the entrepreneur, ultimately leading to a successful trading connection. What is Legal Metrology Certificate in India? An importer that pre-packages imports items and afterwards distribute or sells them needs supervision from a department that can monitor the import’s quality. The Legal Metrology Department is that department, and it performs the aforementioned control by granting LMPC Certificates. The entire version of LMPC is the Legal Metrology Packaged Commodities Act, which oversees the certification procedure. A legal Metrology certificate, often known as an import licence, must be requested within 90 days after beginning the import. Eligibility Criteria for Legal Metrology Certificates Declarations that an importer must make before bringing goods into India. Any importer must conform with the Legal Metrology Packaged commodity or Legal Metrology certificate requirements, established in 2011, so give necessary declarations before beginning the import. The declarations are as follows: Product’s country of origin Manufacturer information, including address and name Manufacturer’s address The month and year that the product was made. The year in which the product will be imported. The range of statements, however, would vary based on the nature of the commodity. Food product declarations, for example, might differ from declarations made for electronic or electrical items. Process of Obtaining Legal Metrology Certificate Obtain an Importer License application from the LMPC. Complete the application form Please provide any needed documentation. Submit the application and the LMPC certificate cost to the LMPC. Get the permit. Legal Metrology Certificate Exemptions To import any pre-packaged items into the nation, an LMPC certificate registration is required. However, there are certain exceptions to these norms. The following are the exceptions: Commodities having a net weight or measure of 10 grammes or 10 millilitres or less Agricultural products packaged in quantities of more than 50 kg Packages comprising fast food products that have been packaged by a restaurant or hotel Drugs Price Control Order, 1995 packages containing formulas Furthermore, the Legal Metrology requirements will not apply to the following packages intended for retail sale, according to the LPMC Act: Packages containing items weighing 25 kg or 25 litres, except cement and fertilisers, are offered in 50-kilogramme bags. Packaged commodities intended for industrial or institutional users. Legal Metrology Certificate Renewal The renewal application must be submitted a minimum of thirty days prior to the last date of the original licence, according to Rule 11 of the Legal Metrology Enforcement Rules 2011. The processes for renewing a Legal Metrology Certificate are as follows: The applicant submits a renewal application to the appropriate Legal Metrology Department. The application is filed and sent with all the relevant information and the appropriate fee. The Assistant Controller of Legal Metrology receives the application. The Assistant Controller reviews the renewal application, and then an officer is assigned to check the applicant’s premises. The inspector performs inspections and submits inspection reports and suggestions to the Department, which are then forwarded to the Assistant Controller. The Assistant Controller considers such recommendations as well as the renewal application. The Assistant Controller then forwards their proposal to the Legal Metrology Department’s Deputy Controller/Controller for acceptance or rejection of the applicant’s renewal application. The Deputy Controller/Controller evaluates the recommendation and, if satisfied, grants the applicant a signed renewal legal metrology certificate/licence. FAQs What is a Weight and Measure Certificate? A Weight and Measure Certificate is an

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Business to government (B2G)

learn / CA Bhuvnesh Goyal / April 4, 2024

Business to government (B2G) is the marketing and sale of goods, services, and information to government entities. The term applies to all government entities at all levels — federal, state, and local. Government contracting is lucrative for thousands of businesses of every size. In fact, many startups survive and thrive thanks to government business. A key advantage is that contracts in the public sector are often larger than those in the private sector, and they often last much longer as well. What Is Business to Government (B2G) Business to government (B2G) is the sale and marketing of goods and services to federal, state, or local agencies. In modern lingo, there are three basic business models: business to consumer (B2C), business to business (B2B), and business to government (B2G). B2G is not an insignificant chunk of business. The federal government alone spent anywhere between $18.2 billion and $42.6 billion per day in 2020-2021.1 Notably, a portion of its business is supposed to be spent on small business suppliers. How Businesses Get Government Contracts Governments generally solicit services from the private sector through requests for proposal (RFPs). The GSA website, GSAAdvantage.gov, is a shopping portal for government agencies and gives an idea of the sheer breadth of products purchased by the federal government.Not surprisingly, given the enormous numbers and range of federal, state, and local purchasing requirements, an entire sector of the internet is devoted to matching businesses to government agencies. Some of the sites offering access to information on current government contracts Advantages and Disadvantages of Business to Government (B2G) Businesses that are used to interacting with other businesses or directly with consumers often encounter unexpected hurdles when working with government agencies. Governments tend to take more time than private companies to approve and begin work on a given project. Layers of regulation can drag on the overall efficiency of the contracting process. While businesses may find that government contracts involve additional paperwork, time, and vetting, there are advantages to providing goods and services to the public sector. Government contracts are often large and more stable than analogous private-sector work. A company with a history of successful government contracting usually finds it easier to get the next contract. FAQs What is Business-to-Government (B2G)? Business-to-Government (B2G) refers to transactions, interactions, and relationships between private sector businesses (companies, enterprises) and government entities (local, state, or national governments). It involves businesses providing goods, services, or solutions to government agencies or partnering with them for various initiatives. How can businesses engage with government entities? Businesses can engage with government entities in various ways: Participating in government procurement processes. Attending industry forums, conferences, and networking events. Collaborating on public-private partnerships (PPPs) or joint ventures. Providing feedback on regulatory policies and initiatives. Contributing to government-funded projects or initiatives. Why is B2G important for businesses? B2G interactions are important for businesses because: Government contracts can provide stable revenue streams. Collaboration with government agencies can lead to innovative projects and initiatives. Access to government markets can enhance a company’s reputation and credibility. B2G relationships can open doors to new business opportunities and partnerships. 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Co-operative Credit Societies in India

learn / CA Bhuvnesh Goyal / April 3, 2024

Credit co-operative societies are credit institutions characterized by member ownership and control. Registered with the primary goal of fostering economic and societal progress, they emphasize providing accessible credit at fair interest rates. There are different types of business organisations, one such form is of cooperative society. Cooperative societies are formed with the aim of helping their members. This type of business organisation is formed mainly by weaker sections of the society in order to prevent any type of exploitation from the economically stronger sections of the society. Cooperative societies need to be registered under the Cooperative Societies Act, 1912 in order to function as a legal entity. Members of the society raise the capital within themselves. What is the Purpose of a Credit Co-operative Society? Upon successful registration, credit co-operative societies offer various services for the welfare of their community members, such as: Deposit Procurement: Credit co-operative societies gather deposits exclusively from their members. Financial Assistance: Credit co-operative societies are designed to provide financial aid to their members. Elimination of Intermediaries: Credit co-operative societies often minimize additional expenses associated with intermediaries in trade and business. Low-Interest Loans: Members of credit co-operative societies benefit from loans with favourable interest rates, covering various needs such as housing, personal assets, automobiles, etc. Protection of Rights: Credit co-operative societies are primarily responsible for safeguarding the rights of rural consumers and producers. Eligibility Criteria for Forming a Credit Co-operative Society Bank Certificate: Members are required to furnish a bank certificate validating the presence of a credit balance meeting the society’s requirements. Minimum Members: A minimum of fifty members is essential for establishing a credit co-operative society at the state level. Minimum Directors: A board of directors, comprising at least seven and not exceeding twenty-one members, is vital for fulfilling society’s requirements. Comprehensive Documentation: Detailed documentation outlining the credit co-operative society’s role in social and economic development, including its name and registered office details, is mandatory. Capital Requirements: Members need to provide information on pre-registration compliance, encompassing initial capital, member count, and other pertinent data associated with the credit society. What are the Benefits of Registering a Credit Co-operative Society? Inclusive Membership:– Credit cooperative societies are open for anyone to join without any membership fees. There are no limitations based on gender, creed, race, caste, or religion. Individuals from diverse backgrounds are welcome to become members at any time. Simplified Formation Process: – Establishing a credit co-operative society is a straightforward process. A group of ten or more adults can collaboratively form a society, and the registration process is uncomplicated. Notably, there are minimal legal requirements to fulfill, facilitating the ease of formation. Limited Liability: – A notable benefit is the limited liability that comes with the formation of a credit co-operative society. Members’ liability is confined to the capital contributed to the society. This safeguards members from potential losses, ensuring that their personal assets and properties are not at risk in the event of societal losses. Equal Member Rights: – Every member of the credit co-operative society enjoys equal rights at all times. Members actively participate in policy creation. This democratic management approach underscores the equal value and importance of all members. LLP Registration:– Many co-operative credit societies in India opt for Limited Liability Partnership (LLP) registration. LLP registration combines the benefits of a company and a collaboration, providing a streamlined business structure. How to Register a Credit Co-operative Society: Necessary Documents Model Bye-Laws: – Submit four copies of the model bye-laws that outline the rules and regulations governing the credit co-operative society. Promoter Member Details:– Provide the names and a list of promoter members involved in the formation of the credit co-operative society. Head Office Address: – Furnish details of the head office address where the credit co-operative society will be registered. No Objection Certificate (NOC): – Include a No Objection Certificate obtained through an intensive inquiry letter, affirming compliance with necessary regulations. Specific Plan Document: – Present a written document incorporating a specific plan format outlining how the credit co-operative society intends to contribute to the social and economic growth of its members and the community. Bank Certificate: – Obtain a certificate from the bank confirming that the credit balance is in favor of the respective credit co-operative society. Pre-Registration Meeting Details:– Include details and a copy of the judgment from the pre-registration meeting covering aspects such as funding, membership, operations, board structure, etc. Proposed Society Name:– Provide the suggested name for the credit co-operative society as proposed by its members. Additional Requirements: – The credit co-operative society must have a minimum of 50 members in each state. – The board of directors should consist of a minimum of 7 and a maximum of 21 me How Do You Categorise a Credit Co-operative Society? Primary Credit Co-operative Society Banks: – This category of credit co-operative society comprises of a community of borrowers and non-borrowers residing in a specific geographical area. – There are no restrictions on residency, allowing individuals beyond the defined area to join.– Members within this structure actively engage in each other’s business affairs, fostering a sense of mutual interest and support. Central Credit Co-operative Society Banks:– Central credit co-operative society banks are formed by individuals whose membership is limited to primary societies.– Often referred to as a banking union, members have the opportunity to join almost every central co-operative bank. State Credit Co-operative Society Banks:– These societies are established to secure credit from affluent urban masses – Functioning as intermediaries between joint-stock banks and cooperative movements, they play a pivotal role in facilitating credit accessibility. FAQs How can one confirm if a cooperative credit society is enrolled or not? To verify a cooperative credit society’s enrollment status, individuals can contact the Registrar of Cooperative Societies or check the official website for a list of registered societies. This ensures transparency and helps members make informed decisions about their financial affiliations. How does the Co-operative Credit Society differ from other financial institutions? Co-operative credit societies distinguish themselves by operating on a cooperative basis, where members are also owners. Unlike

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The Insolvency and Bankruptcy Board ofIndia (Annual Report) Rules, 2018

Companies Act 2013 / CA Bhuvnesh Goyal / April 3, 2024

MINISTRY OF CORPORATE AFFAIRSNOTIFICATIONNew Delhi, the 1st May, 2018 G.S.R. 422(E).—In exercise of the powers conferred by clause (zm) of sub-section (2) of section 239read with sub-section (1) of section 229 of the Insolvency and Bankruptcy Code, 2016 (No. 31 of 2016), theCentral Government hereby makes the following rules, namely:—1. Short title and commencement.- (1) These rules may be called the Insolvency and Bankruptcy Board ofIndia (Annual Report) Rules, 2018.(2) They shall come into force on the date of their publication in the Official Gazette.¹Hkkx IIµ[k.M 3(i)º Hkkjr dk jkti=k % vlk/kj.k 32. Definitions:(I) In these rules, unless the context otherwise requires, —(a) “Code” means the Insolvency and Bankruptcy Code, 2016 (31 of 2016);(b) words and expressions used in these rules but not defined, and defined in the Code shall have themeanings respectively assigned to them in the Code.3. Form of Annual Report.- The Board shall prepare its annual report, giving a true and full accounts of itsactivities, policies and programmes, during the previous financial year in the Form annexed to these rules.4. Time of furnishing of the Annual Report.- The Board shall submit a copy of the annual report referred toin rule 3 to the Central Government within ninety days of the end of the financial year.Form of the Annual Report[see rule 3](A) Chairperson’s statement:(B) The year in review:(C) A true and full account of policies, programmes and activities of the Board in respect of-(i) Service Providers, namely, Insolvency Professionals, Insolvency ProfessionalAgencies, and Information Utilities:(ii) Transactions, namely, Corporate Insolvency Resolution, Corporate Liquidation,Individual Insolvency Resolution and Individual Bankruptcy:(iii) Advocacy and Awareness:(iv) Research:(D) A review of the quasi-legislative, executive and quasi-judicial functions of the Board:(E) An analysis of outcomes in terms of transactions and transactional efficiencies:(F) Summary data – time series or cross section – as may be relevant and available, about theoutcomes that may facilitate appreciation of the working of the Code and the Board andpromote research:(G) Impact of the Code on credit market, resource recycling and the economy:(H) An assessment of the effectiveness and the efficiency of the Board in terms of its objectivesand mandate keeping in view its resources, duties and powers:(I) An assessment of performance of the Governing Board and its vision, policies andprogrammes for the following year:(J) A summary of financial performance of the Board;(K) A statement of non-compliance, if any, with statutory obligations by the Board and the reasonfor the same;(L) Organisational Matters, including Human Resources, Finance and Accounts, AuditCommittee, Right to Information and Transparency:(M) Such other details as would enable the stakeholders to review and appreciate the performanceof the Board: [F. No. 30/13/2018-Insolvency]GYANESHWAR KUMAR SINGH, Jt. 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S.O. 1833(E) Commencement Notification

Companies Act 2013 / CA Bhuvnesh Goyal / April 3, 2024

S.O. 1833(E) Commencement Notification Read More »

April 2024