Shruti

A share is a unit of ownership in a company and has an exchangeable value that is influenced by market forces. As per Section 43 of the Companies Act, 2013, a company’s share capital is of two types of shares, namely – equity shares and preferential shares. When it comes to raising capital for a company, one common approach is to issue shares. Equity shares and preference shares are two types of shares that companies can offer to investors. While both represent ownership in a company, they have distinct characteristics and rights associated with them.  Type Equity Shares Preference Shares Voting Rights Typically have voting rights Limited or no voting rights Dividend Preference Receives dividends after preference shareholders Receives dividends before equity shareholders Repayment Preference Repaid last in case of liquidation Repaid before equity shareholders in case of liquidation Conversion Cannot be converted into preference shares Can be converted into equity shares Fixed Dividend No fixed dividend Fixed dividend rate Redemption Not redeemable Can be redeemable after a certain period Risk Higher risk, as returns depend on company performance Lower risk, as fixed dividends are assured Control Equity shareholders have control and management rights Preference shareholders have limited control Residual Claims Entitled to residual claims after preference shareholders No residual claims Participation in Surplus Participate in surplus profits after preference shareholders No participation in surplus profits What are Equity Shares? Companies issue these shares to the public to raise capital. The funds thus raised are used for the expansion of a start-up. Since equity shares are non-redeemable, they serve as a long-term source of finance for companies. The share capital is held by the company throughout and is distributed at the event of winding up. The fact equity shareholders avail the residual share during liquidation makes them the actual risk bearers of a company. In fact, it is also a point of origin of the difference between equity share and preference share. Equity shares come with voting rights, and its holders are also entitled to receive surplus and claim company assets. The company’s management determines the rate of dividend be distributed among such shareholders. Moreover, these shares are transferable and can be transferred without consideration. Notably, the unit of shares held by investors signifies the proportion of ownership they have in a said company. Generally, they are traded in the market through a stock exchange. The value of these shares is expressed in issue price, face value, market price, book value, intrinsic value, etc. Types of Equity Shares Equity shares appear on the liability side of a company’s balance sheet. They do not have any types as such and are hence considered as ordinary stocks. Nonetheless, they are usually categorised as – Authorised share capital Subscribed share capital Issued share capital Paid-up capital Bonus shares Right shares Sweat equity shares Equity shares offer substantial dividends to shareholders and also entitle them to benefit from price appreciation in investment value. Also, their liquidity enables shareholders to sell them off effortlessly and gives rise to another point of difference between equity share and preference share. On the other hand, besides being a permanent source of capital, equity shares also help companies to secure credit easily. Both investors and creditors consider companies with large equity capital as creditworthy. Furthermore, the liability arising out of equity shares are required to be paid, and companies are also not obligated to pay a dividend to shareholders. What are Preference Shares? The capital that a company raises through the issuance of preference shares is termed as preference share capital. These shares come with a fixed rate of dividend and a preferential right to avail profits and claim assets during liquidation. In fact, these shares are ranked between debt and equity in terms of priority and repayment of capital. Like equity shares, preference shareholders are also partial owners of a company. However, they are not entitled to voting rights and hence do not really possess the power to control or influence company-oriented decisions. Also, shareholders do not have a claim over the bonus shares and are a prominent preference shares and equity shares difference. What is most noteworthy is that preference shares are similar to debentures, and they could be converted to preferred stock. Furthermore, preference share issuers can repurchase the shares at a given date. These shares extend substantial dividends to their holders but do not come with a closing date. The decision to declare dividend on preference shares lies with the management, and it is not mandatory in case of loss. This is the most crucial difference between equity share and preference share. Types of Preference Shares The following are the major types of preference share – Cumulative preference shares Non-cumulative preference shares Redeemable preference shares Non-redeemable preference shares Convertible preference shares Participating preference shares Non-participating shares It must be noted that dividends paid on preference shares are not deducted from taxes. Also, redeeming such shares creates a financial burden on the company and erodes its capital. Similarly, when profits are earned companies must pay off the arrears dividends, especially in case of cumulative preference shares. Difference between Equity and Preference Shares S.N.  Parameter Equity Share Preference Share 1. Definition Equity shares represent the extent of ownership in a company. Preference shares come with preferential rights when it comes to receiving dividend or repaying capital. 2. Dividend payout Shareholders receive dividends after all liabilities have been paid off. Preference shareholders are given more priority over equity shareholders when it comes to the dividend payment. 3. Rate of dividend The rate fluctuates as per earnings. Rate of dividend remains fixed. 4. Bonus shares These shares are entitled to receive bonus against existing shareholdings. These shares do not offer bonus against existing shareholdings. 5. Capital repayment It is repaid at the end. It is repaid before equity shares. 6. Voting rights The shares come with voting rights. Preferential shares do not have voting rights. 7. Role in management Equity share comes with the power to participate in the company’s management. Preference share does not extend management rights.

India is one of the biggest democracies in the world. In order to ensure law and order throughout this vast country, every state has its own judiciary system in place. Under the judicial structure of each state of India, the High Court is regarded as the highest authority. Below the High Court, other courts make up the subordinate judiciary system. These courts are known as subordinate courts. Types of Subordinate Courts The subordinate courts have been named such because they come under the authority of the state’s High Court. In every district in India, there are many types of subordinate courts. These include:  Civil Courts that hear civil cases Criminal Courts that hear criminal cases Revenue Courts that attend to revenue-related cases Civil Courts are ruled by a District Judge or a District and Sessions Judge. Under them come a Sub-Judge who attends to matters at the family courts. In some places, below this, there is the Munsif, and there can also be small-causes courts that make up the lowest rung of the hierarchy of civil subordinate courts. Criminal Courts are ruled by a Sessions Judge or a Sessions and District Judge. Under a Sessions Judge, there can be a Metropolitan Magistrate. When it comes to Revenue Courts, the highest power remains with a Board of Revenues, followed by a Collector or Commissioner, then a Tehsildar, and at the lowest level, there can be a Naib Tehsildar. So the High Court, along with this hierarchy of subordinate courts, also known as lower courts, make up a state’s judicial system. The subordinate courts comprise the District Judges, Judges of any of the city civil and criminal courts, Metropolitan magistrates and all the members of the judicial service of that state. Revenue courts in India Revenue courts deal with cases of land revenue in the state. The Board of Revenue is the district’s highest revenue court, followed by the Commissioners’, Collectors’, Tehsildars’, and Assistant Tehsildars’ Courts. The Board of Revenue is in charge of hearing final appeals from the lower revenue courts. The primary goal of these courts is to address all issues relating to land revenue, as well as issues affecting agricultural land boundaries and tenancy. Suits referred to here include succession, land transfer, the partition of holdings, demarcation of boundaries, removal of encroachments, eviction of trespassers, and declaratory suits (specifically in Uttar Pradesh) in several states. In any case, such lawsuits do not fall under the jurisdiction of civil courts.  The different types of revenue courts are provided hereunder; Board of Revenue Commissioner’s Court Collectors’ Court Tehsildar’s Court A uniform designation has been brought about in the subordinate judiciary’s Judicial Officers all over the country, by means of:  District or Additional District Judge, Civil Judge (Senior Divisions) and Civil Judge (Junior Division) on the Civil side, and  On the criminal side, Sessions Judge, Additional Sessions Judge, Chief Judicial Magistrate and judicial magistrates made in existing posts by indicating their equivalent with any of these categories by all state Government/Union Territories Administrations. The administrative control over members of the subordinate judicial service is vested in the concerned high court under Article 235 of the Indian Constitution. In addition, in the execution of the powers entrusted to the appropriate designated individual, the state government shall create rules and regulations in consultation with the high court exercising jurisdiction in connection to Article 309 read with Articles 233 and 234 of the Constitution. Constitution of revenue courts Board Members (Both admin and judicial): This board usually consists of a Chairman and any other members are chosen by the state government. The principal duty of this board is to act as the ultimate decision-maker in instances involving disposition, appeals, or modification. Also, in all other issues provided in separate state codes, subject to the supervision, direction, and control of the state Government. Commissioners or Additional Commissioners: Each division will have a commissioner nominated by the State Government. One or more extra commissioners may be appointed by the State Government in one or more divisions. Collectors or Additional Collectors: The person in charge of revenue administration is known as a collector. As a result, a state government must appoint a commissioner in each district, as well as one or more additional commissioners in one or more districts. Assistant Collectors: The state Government has the ability to appoint as many people as it sees fit for the positions of first and second-class assistant collectors. In addition, if necessary, the state government may designate an assistant-collector first class to serve as extra sub-divisional officials for one or more tehsils in a district. Chief Revenue Officers: A revenue inspector’s job is to ensure that village records are properly maintained, supervised, and corrected, among other things. Each district’s collector has the authority to designate one or more tehsils. Settlement Officers and Assistant Settlement Officers: They have generally involved settling disputes between parties to a suit.  Record Officers and Assistant Record Officers: These officers are responsible for maintaining all official records that are required in day to day activities of the revenue board or courts in general.  Tahsildars and Tahsildar (Judicial): A tax officer accompanied by revenue inspectors is known as a tehsildar. They are responsible for collecting taxes on land revenue from a tehsil. A tehsildar is often referred to as the tehsil’s Executive Magistrate. Naib Tahsildar: The state Government has the authority to appoint as many Naib Tehsildars as it sees fit in each district. Powers of revenue courts in India Power to ask for records: The board or commissioner has the authority to request any records relating to any kind of suit or proceeding that is being judged by any subordinate revenue court in which no appeal has been filed, or even if an appeal has been filed, it is to be deemed that the same has not been filed yet. The purpose behind the same is to ensure the satisfaction of board members, legality or propriety, of any such order passed in a particular suit or proceeding referred to by the Board member. Power to review: A revenue board has the power to review any of

The Ministry of Corporate Affairs (MCA) endeavors of implementing the launch of a new set of forms on the MCA V3 portal, MCA is set to launch a third set of Company Forms covering nine e-forms on 15 July 2024 at 12:00 AM. In order to facilitate the implementation of these forms on the V3 portal, MCA has decided to disable the V3 portal from 13 July 2024 12:00 AM to 14 July 2024 11:59 PM. The Ministry of Corporate Affairs (i.e., MCA) is progressively implementing the third version of the flagship project MCA21 (NCA 21 Version-3). As a part of the first phase, MCA will carry out the following- Upgradation of the current version of the MCA website; and Introduction of the following two new public-facing modules- E-Consultation; and E-Book. Features up-gradation of MCA website Restoration of the following web pages- Home, Data & Reports, About Us, Contact Us, News and Updates, and Mediation and conciliation. Introduction of the following new services/ modules- E-Consultation, and E-Book. Essential services access in the new MCA website E-Books, Name Reservation (Company), Name Reservation (LLP), DIR-3 KYC, View Public Documents, View Company/ LLP Master Data, Track Transaction Status, Associate DSC, Update DSC, Independent Director/ Databank Registration, Enquire Fee, and E-Auction. E-Books and use thereof- Basically, the E-Books module is launched by the Ministry of Corporate Affairs to- Simplify the compliance procedure; and Provide complete information and data about the applicable act; rules and regulations. Both registered as well as non-registered users can access the E-Books by following the below steps- STEP 1 – Visit site https://www.mca.gov.in/content/mca/global/en/home.html, STEP 2 – Click ‘Acts & Rules’ available on the home page. STEP 3 – By following the above steps, a List of Acts and a List of Recent Amendments will be displayed. E-consultation and use thereon- E-consultation is featured as one of the web page available on the home page of the MCA website. Mostly, e-consultation is an online platform, wherein, following would be undertaken- Proposed amendments/ draft legislation will be posted for public consultation, Users are allowed to submit their comments/ suggestions on such proposed amendments/ draft legislations. Following are the two ways through which the E-Consultation module can be accessed- Registered user – such a person can access the module by login into the MCA website. Guest user – the non-registered person can even access the module available on the home page of the website. Important points regarding the posting of comments/ suggestions- Documents available for comments will be accessible with the posting date and comments due date on the E-Consultation home page. For successful posting of comments by the guest user, it is necessary to- Fill in the user profile information like- Name, Name of the organization, E-mail ID, Address, Industry of operation. Verify the e-mail ID and mobile number via OTP. While commenting, the user can attach the supporting documents up to a maximum size of 25MB. The users are allowed to modify the comments/ suggestions in the following manner- Type of user Manner to modify the comments Registered user Login to the MCA website. Visit the E-Consultation page.  Modify the comments and submit the same. Guest user Enter the new comment. Provide the same PAN/ Aadhar/ CIN/ FCRN/ LLPIN/ FLLPIN which was provided while entering an earlier comment. On entering the same number, a confirmation will appear asking to overwrite the previous comment. On confirming overwriting, the previous comment will be over-written with the new comment. Access to the primary services in the new MCA website Register your company, Register your LLP (Limited Liability Partnership), Company forms download, LLP forms download, Close your company, Close your LLP. FAQs What is the MCA website? The MCA (Ministry of Corporate Affairs) website is an online portal where companies and professionals can access a wide range of services related to company registration, compliance filings, and other corporate affairs. It is the official platform for accessing the MCA’s e-governance initiatives. What recent upgrades have been made to the MCA website? The recent upgrades to the MCA website include improvements in user interface design, enhanced security features, faster load times, and the introduction of new services like improved e-filing systems, better integration with other government databases, and a more intuitive navigation structure.

Setting up a petrol pump in India involves a structured process, and obtaining a license is a crucial step in this venture. With the increasing demand for fuel across the country, the petrol pump business presents a lucrative opportunity. However, navigating the licensing procedures is vital for a smooth establishment. To initiate this process, individuals or entities must adhere to the guidelines laid out by the government. The licensing authority, typically the State Level Coordinator of Oil Industry & Petroleum Planning, governs the issuance of petrol pump licenses. The application process encompasses various stages, including eligibility checks, site feasibility assessments, and compliance with safety standards. Eligibility requirements to obtain a Petrol Pump License The applicant must be a citizen of India. The applicant must be a resident of India or in the previous financial year, he must have spent more than 182 days in India. The age of the applicant must be between the ages of 21 to 58. A document proving your identification is needed. The age of the applicant should be verified by presenting a copy of his or her matriculation Certificate (10th), Secondary School-Leaving Certificate, Passport, Birth Certificate, etc. What Are the Criteria for Opening a Petrol Pump? The person must be an Indian citizen. The applicant should be a resident of India, meaning they must have stayed in India for more than 182 days in the preceding financial year. The age of the applicant must be between 21 and 58 years. Individuals classified as freedom fighters are not eligible. A valid identification document is mandatory. How Much Money Required for a Petrol Pump License? To obtain a petrol pump license in India, candidates must demonstrate the financial capacity to invest a minimum of Rs. 25 lakhs for a standard petrol pump and Rs. 12 lakhs for a rural petrol pump. Institutional investors can use various methods such as bonds, shares of listed companies in demat form, national savings certificates, deposits with banks, registered companies, postal schemes, shares of mutual funds, and more to meet the investment requirement.  It’s important to note that assets with unproven provenance, such as IOUs and jewellery, will not be considered. Additionally, only 60% of the total value of shares, collective investment schemes, and notes will be considered in the assessment. Additionally, a Chartered Accountant must provide the necessary investment assessment certification for the petrol pump license application. How Much Land Required for Petrol Pump Dealership? Proximity to the Highway: The land should ideally be located alongside a highway, ensuring easy accessibility for customers. Ownership or Rental Contract: Candidates must either own the land or have a valid rental contract for a suitable property near the proposed site. Formal Offer for Acquisition: Preferential consideration is given to candidates who have a formal offer for acquiring or entering a long-term rental agreement for a suitable piece of land. Documentation: Applicants must provide various documents demonstrating ownership of the property or their intent to acquire the specified piece of land. The size of the land should meet the specified requirements. Property Improvement: If selected for the petrol pump franchise, applicants must enhance the property to street level by appropriate earthwork procedures. This includes creating a concrete structure and a composite wall with a minimum height of 1.5 meters, considering soil conditions. How to apply for Petrol Pump License? An applicant can apply online and the procedure for getting the petrol pump license is given below: Visit the site of www.petrolpumpdealerchayan.in. Press Register Now which is given on the home page. Fill out the form and create an account for further processing.  Login with your Id and Password and then click on Available Advertisement which is located on the dashboard.  Now select the name of your preferred company and your resident state.  After that, you will see the place in which the company wants to open the petrol pump in your selected state.  Choose your nearby area then click on Apply Now  Now fill out the form within the given time limit which is 40 minutes. Select Individual or Partnership from the drop-down box and pay the fee of Rupees Ten Thousand.  Now fill in your personal and necessary information, upload your photo and signature then click on    Submit button.  Now you will pay the fee to complete the process. FAQs What is the petrol pump license fee in India? The license fee for a petrol pump dealership in India ranges from Rs. 18/KL to Rs. 48/KL for motor spirit, depending on the category of the retail outlet. Can I sell petrol without a license? No, it is illegal to sell petrol without a license in India. A petrol pump business requires various licenses and permits to operate legally and in compliance with regulations

Per square foot guidelines value for various kinds of lands and buildings is notified by the state government for all zones. Guideline value can be updated periodically by the state government, so state government takes average market values of last 6 months or 1 year and update the guideline value and they also take into account the kind of infrastructure and facilities in that area, so generally the guideline values lags behind the market value(knows as circle rate or reckoner rates).In Madhya Pradesh each city is divided into various Taluk or Tehsil which further divided into various subareas, wards and villages.Well developed or Posh localities will have a higher guideline values while least or lower developed localities has lower guideline values.Per square foot guidelines value for various kinds of lands and buildings is notified by the state government for all zones. Guideline value can be updated periodically by the state government, so state government takes average market values of last 6 months or 1 year and update the guideline value and they also take into account the kind of infrastructure and facilities in that area, so generally the guideline values lags behind the market value(knows as circle rate or reckoner rates).In Madhya Pradesh each city is divided into various Taluk or Tehsil which further divided into various subareas, wards and villages.Well developed or Posh localities will have a higher guideline values while least or lower developed localities has lower guideline values. Provision for agricultural Land In all areas except the areas / villages in which the value of property located on the road is determined separately, the value of the land situated on the national highway or their bypass is 100 percent more than the fixed price for agricultural land. The value of land situated on the state road or their bypass will be 50 percent more than the value of agricultural land, 20 percent more than the value of agricultural land on the main district road or other district route.In areas whose prices have not been set or missed in the guide line, the District Registrar will submit the proposal of the District Appraisal Committee to the Inspector General of Registration for approval. Guidelines for these areas can be issued separately during the year.If there is an intention to have more than one rate in respect of a property, then the maximum rate among them will be accepted. Provision for buildings Multi-storeyed buildings in which Madhya Pradesh Cell Ownership Act, 2000 and rules made thereunder are applicable.In relation to the provisions of section 4 (3), 4 (5) and 8 of the said Act, the market value of the apartment is calculated according to the built-up area of the apartment along with its common areas and facilities, Including the area of undivided share.If a document transfers an independent multi-storey bungalow of two or more floors to one kata, the value of the plot will not be calculated separately for each floor, but will be included only once. For the first, second and third and above floors, a reduction of 5, 10 and 15 percent in the construction cost will also be accepted. Importance of Property Valuation Certificate Property valuation certificate includes the property information like property size of the land and building, Property value, details on the construction. Property valuation Certificate is also used as collateral for the educational loan from the Bank. Property Valuation certificate is required for purposes of income and wealth tax For submitting annual returns in the Income Tax department. Documents Required Aadhaar Card Proof of Land Tax Copy of Encumbrance certificate. Proof of ownership of property. Voters ID Application Procedure for Property Valuation Step 1: Please visit the e-Panjiyan portal of Registration and stamp department. Step 2: Click on “Login” option which is on the homepage of the portal. Step 3: The user has to enter the valid email ID and password and click on the “Login” button. Step 4:  If the user is not registered, then the user can register using the New User option on the login screen and then the new user registration form will open on the next screen. Step 5: The user has to fill the form with required details and click on the “Register” button. Step 6: After registering the page will be redirected to the login page enter login details and select a property valuation tab. Step 7: Then choose the District of the property from the map to continue. Step 8: Then the applicant will enter the property details like District, Tehsil, Area Type, Ward/Patwari,  Colony, Property Type. Step 9: Enter the details of the property type (plot)selected. Step 10: If the applicant wants to define area separately for Residential Plot, Commercial Plot, Industrial Plot, Education Plot, Health Plot and Others. The applicant has to enter their respective areas in the fields for valuation of property. Step 11: If in case the applicant does not want to define areas for commercial and residential plot separately, you can select “If the plot is used for commercial cum residential purpose”. Step 12: In the case of Health and Education institutes, the applicant can select – “If layout passed by T&CP”. If the applicant selects this checkbox, the user has to present a document evidencing the same. Step 13: Select relevant sub-clauses and read instructions carefully before clicking the Next button. Step 14: Click on “click here to view property details” to view the same. Step 15: Property details are displayed after clicking on the link. FAQs Should we register our property at Guidance Value by state government or Circle rate? Market price or circle rate of a property in a particular area can be much higher than the circle rate fixed by the Revenue Department, then homebuyer can register property at a rate anywhere between guidance value and circle rate. How guidance value affect the property price? If the Guidance value of particular land is higher than the circle rate then a homebuyer cannot register the land below guidance value, so property can be registered at guidance value or circle rate whichever is lower, but registration on the circle rate leads to pay higher