There was no institutional credit arrangement for Agriculture and Rural credit in India till the 1970s. Reserve Bank of India and Agricultural Refinance and Development Corporation (‘ARDC’) looked after this need. Therefore, the Reserve Bank of India (RBI) formed a Committee on 30 March 1979 to Review the Arrangements For Institutional Credit for Agriculture...
Continue readingChecking of various Control Procedures in Banks
While checking various control procedures in the bank there are certain points you need to take into consideration. So in this article let’s see the checking of controls in various aspects. General control The staff and officers of the bank should be shifted from one position to another frequently and without prior notice, this...
Continue readingAudit checklist for investment and credit in Non-Banking Financial Company (NBFC)
Checklist related to Investments Physical Verification The auditor should physically verify the securities held by NBFC. Is there any security that is lodged with an institution for a bank robber a certificate from the bank/institution to the effect must be verified. Income recognition Verify that dividend income wherever declared by a company, has been...
Continue readingLeave Encashment
Concept of Leave Encashment Every salaried person as per labor law is entitled to at least a minimum number of paid leave every year. However, an individual employee doesn’t need to utilize all the leave he is entitled to a year. In actuality, most employers allow the employees the option of carrying forward such...
Continue readingDetailed Explanation of Cost Inflation Index
Prices of goods rise over the period resulting in a reduction in the purchasing power of money. For example -If 2 units of goods could be bought for Rs.100 today, tomorrow only 1 unit might be available for Rs. 100 due to increasing inflation. CII is used for calculating the estimated increase in the...
Continue readingTDS on Non-Residents- Section 195
Tax Deducted at Source for the non-resident people of India is governed by section 195 of the Income Tax Act, 1961. This section highlights the tax rates and deductions related to all business transactions. According to this section, the income is chargeable under the Income Tax Act and the certificate for remittance is mandatory....
Continue readingMinimum Alternative Tax
Minimum Alternative Tax is payable by the companies under the Income Tax Act 1961. MAT was introduced with a view to target companies that make huge profits and pay dividends to their shareholders but at the same time pay no or minimal tax under the normal provisions of the Income Tax Act, 1961 by...
Continue readingBUY-BACK OF SHARES
A buy-back of shares means a purchase of by a company of its shares or securities. A company may buy-back for a variety of reasons, e.g., excess floating stock in the market, the poor performance of the share, utilization of excess cash with the company, etc. Several times a company has excess cash on...
Continue readingAppointment of a director other than a retiring director at the Annual General Meeting (AGM)
Procedure to be followed by a public company: The candidate for directorship or any member proposing another person for appointment to the office of the director is required to give a notice in writing not less than 14 days before the meeting, signifying candidature for the office of director or intention to propose another...
Continue readingProcedure for Appointment of Directors to be elected by Small Shareholders
A listed company may have one director elected by small shareholders. Small shareholders mean a shareholder holding shares of the nominal value of not more than Rs. 20,000s or such other sum prescribed. 1. A listed company having a paid-up capital of five crore rupees or more and having one thousand or more small...
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