Monday, August 21, 2023

Cost Accounting: Origin, Concept, Techniques, Methods, Features, Principles, Importance (लागत लेखांकन: उत्पत्ति, अवधारणा, तकनीक, विधि, विशेषताएं, सिद्धांत, महत्व)

Cost Accounting: Origin, Concept, Techniques, Methods, Features, Principles, Importance,

Key Points:

1.The origin of Cost Accounting.
2. Concept of Cost accounting.
3. Techniques of Cost Accounting
4. Methods of Cost Control
5. Nature and Features of Cost Accounting
6. Principles and Rules of Cost Accounting
7. Methods of Costing
8. Importance /Advantages of Cost Accounting

Link : https://smckk14.blogspot.com/2023/08/prospectus-introduction-meaning.html

 

1. The origin of cost accounting:

Cost accounting has been developed to achieve the concept of maximum profit at minimum cost by calculating the cost of a product, controlling the cost, and analyzing the cost.

In 1944, the 'Indian Institute of Cost and Works' was started as a limited company. The Government of India passed the 'Cost and Works Accountants Act', in 1959 and established the 'Indian Institute of Cost and Works Accountants of India'. Its head office is in Kolkata.

2. Under the concept of cost accounting, the following information is required:

(i) Cost:

The expenditure incurred on the production of a commodity is called 'Cost'. The following types of costs exist: Prime Cost, Factory Cost, Office Cost, Total Cost, etc.

(ii) Costing:

The Technique and Process used to calculate the cost of a commodity is called "Costing". The Technique and Process include all the principles and rules.

(iii) Cost Accounting:

Cost accounting is a method of accounting that includes the cost from the beginning of the production of goods to the final stage of finished goods.

Cost accounting is the determination of the cost per unit of production of a commodity. So that the cost can be controlled.

(iv) Cost Accountancy:

The study of the cost of a commodity, costing, cost accounting, cost control, and profit determination is called "Cost Accountancy.

3. Techniques of Cost Accounting:

(i) Historical Cost Accounting

(ii) Standard Cost Accounting

(iii) Marginal Cost Accounting

(iv) Direct Cost Accounting

(v) Absorption Cost Accounting

(vi) Uniform Cost Accounting

4. Methods of Cost Control -

(i) Reducing Cost

(ii) Budgetary Control

(iii) Standard Cost Accounting

(iv) Accounting Responsibility

(v) Activity-based Costing

(vi) The improvement of the process

(vii) The optimization of resources

(viii) Decision making.

5. Nature and Features of Cost Accounting:

(i) It is based on a double accounting system.

(ii) Cost accounting is based on principles and rules. Its principles and rules are based on cost data, so cost accounting is both an art and a science.

(iii) Assist in managerial decisions.

(iv) Help in determining the production cost and profit /loss of the commodity.

(v) Under this system, information related to problems is obtained by collecting, classifying, analysing, and recording of data.

(vi) Helps in improving efficiency.

(vii) Reduction in cost, leading to maximization of profit.

6. Principles and Rules of Cost Accounting:

The following principles and rules of cost accounting -

(i) The cost accounting system is based on the double accounting system.

(ii) The main objective of the cost accounting method is to determine the cost of production of goods and services.

(iii) Various techniques and methods are used to control the cost of production of goods, cost control, and managerial decisions.

(iv) Normal costs are included in the cost of production. Unusual or abnormal costs are not included as a loss.

(v) Cost accounting is an integrated system of accounting. In which the financial position of the company or organization can be shown.

(vi) Cost accounting is made as per the framework of the company or organization.

(vii) In a cost accounting system, the cost is classified keeping in mind the objective or aim of management.

(viii) Cost accounting does not include unnecessary costs or expenses.

(ix) In cost accounting, additional cost savings can be achieved by comparing the cost of production of specific goods with historical costs, standards, and data.

7. Methods of Costing:

(i) Unit Costing Method

(ii) Contract Costing Method

(iii) Job Costing Method

(iv) Batch Costing Method

(v) Process Costing Method

(vi) Operating Costing Method

(vii) Departmental Costing Method

(viii) Target Costing Method

(i). Unit Costing Method:

The total cost and per-unit cost are determined by this cost method. This method is applied in manufacturing concerns where standard goods are produced on a wide scale.

Elements of cost under output costing:

(a) Material

(b) labour

(c) Direct Expenses

(d) Overhead

(ii) Contract Costing Method:

The total cost and profit and loss of the contract work are determined by this cost method. This cost method is used by the Company, Organization, or Industry engaged in the contract work.

(iii) Job Costing method:

This costing method determines the cost, profit and loss of non-standard operations. This method is used by Printers, Engineers, and Advertising agencies. This method is also called Job Order Costing, Specific Order Costing, or Production Order Costing.

(iv) Batch Costing Method:

Under this costing method, the production work is done in Batch's or Lots. The group cost method is used to determine the cost, profit & loss of each Batch's or Lots. This is also known as Factory Job Costing. This method is used by Companies producing Medicines, Spare parts, TVs, etc.

(v) Process Costing Method:

This cost method is used by large-scale production companies and industries. The production process involves several stages. The per- unit cost of all the processes is calculated. This method is used by Companies producing Chemical substances, Soaps, Oils, etc.

(vi) Operating Costing Method:

This method is used to determine the service cost per unit. The service cost per unit depends on the service provided by the business. This cost method is used by Companies providing Transportation services, Supply services, Entertainment services, etc.

(vii) Departmental Costing Method:

Under this cost method, the cost of the department is determined. The cost per unit is calculated by dividing the total cost of the department by the number of units manufactured in the department. This method is used by companies with different departments.

(viii) Target Costing Method:

Under this cost method, the estimated cost of the work is determined before it is started. This is called the "Target Cost". This method is used by government construction companies.

8. Importance /Advantages of Cost Accounting:

(i) It helps in the formulation /making of policies, procedures, practices, programs, and budgets involved in the planning of a company.

(ii) It helps in determining the production cost, administration cost, sales and distribution functions cost of a company or industry.

(iii) Wages are determined by cost accounting, which is helpful in determining the remuneration of the worker in the company and industry.

(iv) It helps in cost control through various techniques of cost accounting, such as the standard costing method, budgetary control, and responsibility accounting.

(v) It helps in material management.

(vi) It helps in keeping the labour cost under control.

(vii) It is helpful in determining production policy.

(viii) Helps in managerial and business decisions.

(ix) It helps in increasing the efficiency of the worker. 

-------------------------------------------------------------------------------------------------------------------

लागत लेखांकन: उत्पत्ति, अवधारणा, तकनीक, विधि, विशेषताएं, सिद्धांत, महत्व,

प्रमुख बिंदु:

1.लागत लेखांकन की उत्पत्ति.
2. लागत लेखांकन की अवधारणा.
3. लागत लेखांकन की तकनीकें
4. लागत नियंत्रण के विधि
5. लागत लेखांकन की प्रकृति एवं विशेषताएँ
6. लागत लेखांकन के सिद्धांत एवं नियम
7. लागत लेखांकन की विधियां
8. लागत लेखांकन का महत्व/लाभ

 

Link : https://smckk14.blogspot.com/2023/08/prospectus-introduction-meaning.html

1. लागत लेखांकन का विकास:

लागत लेखांकन का विकास, किसी उत्पाद के लागत की गणना, लागत पर नियंत्रण एवं लागत का विश्लेषण कर, कम लागत पर अधिकतम लाभ की अवधारणा को प्राप्त करने के लिए किया गया है।

सन 1944 में 'इंडियन इंस्टिट्यूट ऑफ़ कॉस्ट एंड वर्क्स' सीमित कंपनी के रूप में प्रारंभ किया गया। भारत सरकार द्वारा सन 1959 में 'कॉस्ट एंड वर्क्स अकाउंटेंट एक्ट' पारित किया गया तथा 'इंडियन इंस्टीट्यूट ऑफ कॉस्ट एंड वर्क्स अकाउंटेंट ऑफ इंडिया' के रूप में स्थापित किया गया। जिसका प्रधान कार्यालय कोलकाता में स्थित है।

2. लागत लेखांकन के अवधारणा के अंतर्गत निम्नलिखित की जानकारी आवश्यक है

(i) लागत

किसी वस्तु के उत्पादन पर किया गया व्यय लागतकहलाता है। निम्न प्रकार की लागत - मूल लागत, कारखाना लागत, कार्यालय लागत, कुल लागत इत्यादि।

(ii) लागत गणना

किसी वस्तु के लागत की गणना करने के लिए उपयोग में लाई जाने वाली तकनीक एवं प्रक्रिया कोलागत गणनाकहते हैं। तकनीक एवं प्रक्रिया के अंतर्गत सभी सिद्धांत एवं नियम शामिल होते हैं।

(iii) लागत लेखांकन

लागत लेखांकन, लेखांकन की वह पद्धति है जिसमें वस्तु के उत्पादन से आरंभ होकर, तैयार माल के अंतिम चरण तक की लागत शामिल होती है।

लागत लेखांकन, द्वारा वस्तु के उत्पादन के प्रति इकाई लागत ज्ञात की जाती है। ताकि लागत पर नियंत्रण रखा जा सके। 

(iv) लागत लेखाशास्त्र

किसी वस्तु के लागत, लागत निर्धारण, लागत लेखांकन, लागत नियंत्रण एवं लाभ निर्धारण के अध्ययन को लागत लेखाशास्त्रकहा जाता है।

3. लागत निर्धारण की तकनीकें

(i) ऐतिहासिक लागत लेखांकन

(ii) प्रमाप लागत लेखांकन

(iii) सीमांत लागत लेखांकन

(iv) प्रत्यक्ष लागत लेखांकन

(v) अवशोषण लागत लेखांकन

(vi) एकरूप लागत लेखांकन

4. लागत नियंत्रण की विधि

(i) लागत कम करना

(ii) बजटरी नियंत्रण

(iii) प्रमाप लागत लेखांकन

(iv) उत्तरदायित्व लेखांकन

(v) Activity Based Costing

(vi) Improvement of Process

(vii) Optimization of Resources

(viii) Decision Making

5. लागत लेखांकन की प्रकृति एवं विशेषताएं:

(i) दोहरा लेखा पद्धति पर आधारित होता है।

(ii) लागत लेखांकन सिद्धांतों एवं नियमों पर आधारित है। इसके सिद्धांत एवं नियम लागत समंकों पर आधारित होते हैं इसलिए लागत लेखांकन कला एवं विज्ञान दोनों होता है।

(iii) प्रबंधकीय निर्णय में सहायक।

(iv) वस्तु की उत्पादन लागत एवं लाभ के निर्धारण में सहायक।

(v) इसके अंतर्गत समंकों का संग्रहण, वर्गीकरण, विश्लेषण एवं अभिलेखन द्वारा समस्याओं से संबंधित जानकारी प्राप्त की जाती है।

(vi) दक्षता बढ़ाने में सहायक।

(vii) लागत में कमी, से लाभ अधिकतम करने में सहायक।

6. लागत लेखांकन के सिद्धांत एवं नियम:

निम्नलिखित सिद्धांत एवं नियम होते हैं

(i) लागत लेखांकन प्रणाली दोहरा लेखा पद्धति पर आधारित होती है।

(ii) लागत लेखांकन प्रणाली का मुख्य उद्देश्य वस्तुओं एवं सेवाओं के उत्पादन लागत निर्धारित करना होता है।

(iii) वस्तुओं की उत्पादन लागत, लागत नियंत्रण एवं प्रबंधकीय निर्णय के लिए अनेक तकनीक एवं विधियों का उपयोग में लाया जाता है।

(iv) सामान्य लागत को ही उत्पादन लागत में शामिल किया जाता है। असामान्य लागत को हानि मानकर शामिल नहीं किया जाता है।

(v) लागत लेखांकन, लेखांकन की एकीकृत प्रणाली होती है। जिसमें कंपनी /संगठन के वित्तीय स्थिति दर्शाया जा सकता है।

(vi) लागत लेखांकन कंपनी संगठन के ढांचे के अनुसार बनाया जाता है।

(vii) लागत लेखांकन में, प्रबंध के उद्देश्य को ध्यान में रखकर लागत का वर्गीकरण किया जाता है।

(viii) लागत लेखांकन में अनावश्यक लागत /व्यय को शामिल नहीं किया जाता है।

(ix) लागत लेखांकन में विशिष्ट वस्तुओं के उत्पादन लागत का ऐतिहासिक लागत, प्रमाप एवं समंकों से तुलना करने पर अतिरिक्त लागत-बचत प्राप्त किया जा सकता है।

7. लागत लेखांकन की विधियां:

(i) इकाई लागत विधि

(ii) ठेका लागत लेखांकन विधि

(iii) उपकार्य लागत विधि

(iv) समूह लागत विधि

(v) प्रक्रिया लागत विधि

(vi) परिचालन लागत विधि

(vii) विभागीय लागत विधि

(viii) लक्ष्य लागत विधि

(i) इकाई लागत विधि:

इस लागत विधि के द्वारा कुल लागत एवं प्रति इकाई लागत का निर्धारण किया जाता है। यह विधि उस फैक्चरिंग कंसर्न में लागू किया जाता है, जहां प्रमाप वस्तुओं का उत्पादन विस्तृत पैमाने पर किया जाता है।

Elements of cost under output costing -

(a).Material

(b) Labour

(c) Direct expenses

(d) Overhead

(ii) ठेका लागत लेखांकन विधि:

इस लागत विधि के द्वारा ठेका कार्य की कुल लागत एवं लाभ हानि के निर्धारण किया जाता है। इस लागत विधि का उपयोग ठेका कार्य में संलग्न कंपनी /संगठन /उद्योग द्वारा किया जाता है। 

(iii) उप कार्य लागत विधि:

यह लागत विधि गैर-मानक कार्यों की लागत एवं लाभ हानि निर्धारण करती है। इस विधि का उपयोग प्रिंटर्स, इंजीनियर, एडवरटाइजिंग एजेंसी द्वारा किया जाता है। इस विधि को जॉब ऑर्डर कॉस्टिंग, स्पेसिफिक ऑर्डर कॉस्टिंग, प्रोडक्शन ऑर्डर कॉस्टिंग भी कहते हैं।

(iv) समूह लागत विधि:

इस लागत विधि के अंतर्गत उत्पादन कार्य 'समूह' में किया जाता है। प्रत्येक समूह की लागत एवं लाभ हानि के निर्धारण के लिए समूह लागत विधि का उपयोग किया जाता है। इसे फैक्ट्री जॉब कॉस्टिंग भी कहते हैं। इस विधि का उपयोग दवाइयां, स्पेयर पार्ट्स, टीवी, उत्पादन करने वाली कंपनियों द्वारा किया जाता है।

(v) प्रक्रिया लागत विधि:

इस लागत विधि का उपयोग large-scale में प्रोडक्शन करने वाली कंपनी एवं उद्योग द्वारा किया जाता है। जिसमें उत्पादन कई प्रक्रियाओं से होकर गुजरता है। इसमें सभी प्रक्रिया की प्रति इकाई लागत की गणना की जाती है। इस विधि का उपयोग रसायनिक पदार्थ, साबुन, तेल उत्पादन करने वाली कंपनियों द्वारा किया जाता है।

(vi) परिचालन लागत विधि:

इस विधि का उपयोग प्रति सेवा इकाई लागत ज्ञात करने के लिए किया जाता है। प्रति सेवा इकाई लागत, व्यवसाय द्वारा प्रदान की गई सेवा पर निर्भर करता है। इस लागत विधि का उपयोग परिवहन सेवाएं, सप्लाई सेवाएं, मनोरंजन सेवाएं प्रदान करने वाली कंपनियों द्वारा किया जाता है।

(vii) विभागीय लागत विधि:

इस लागत विधि के अंतर्गत विभाग की लागत का निर्धारण किया जाता है। विभाग की कुल लागत को विभाग में बनी इकाइयों से विभाजित कर प्रति इकाई लागत ज्ञात की जाती है। इस विधि का उपयोग विभिन्न विभागों वाली कंपनियों के द्वारा किया जाता है।

(viii) लक्ष्य लागत विधि:

इस लागत विधि के अंतर्गत कार्य प्रारंभ के पूर्व ही कार्य की अनुमानित लागत निर्धारित की जाती है। इसे ही लक्ष्य लागत कहते हैं। इस विधि का उपयोग सरकारी निर्माण कार्य करने वाली कंपनियों द्वारा किया जाता है।

8. लागत लेखांकन का महत्व:

(i) किसी कंपनी के नियोजन में शामिल नीतियां, प्रक्रियाए, रीतियों, कार्यक्रम एवं बजट बनाने में सहायक होता है। 

(ii) किसी कंपनी /उद्योग के उत्पादन, प्रशासन, विक्रय एवं वितरण कार्यों के लागत निर्धारण में सहायक होता है। 

(iii) लागत लेखांकन के द्वारा मजदूरी का निर्धारण किया जाता है, जो कि कंपनी और उद्योग में पारिश्रमिक निर्धारण में सहायक होता है। 

(iv) लागत लेखांकन की विभिन्न तकनीकें जैसे - प्रमाप लागत विधि, बजटरी नियंत्रण एवं उत्तरदायित्व लेखांकन के द्वारा लागत नियंत्रण करने में सहायक होता है। 

(v) सामग्री प्रबंध में सहायक होता है। 

(vi) श्रम लागत को नियंत्रण में रखने में सहायक होता है। 

(vii) उत्पादन नीति निर्धारण में सहायक होता है। 

(viii) प्रबंधकीय /व्यसायिक निर्णय में सहायक होता है। 

(ix) श्रमिक के क्षमता वृद्धि में सहायक होता है। 

(x) उपभोक्ताओं को कम लागत पर वस्तुएं उपलब्ध कराने में सहायक होता है।

Wednesday, August 9, 2023

Prospectus: Introduction, Meaning, Characteristics, Issue, Legal Rules, Contents,

Prospectus: Introduction, Meaning, Characteristics, Issue, Legal Rules, Contents,

Key Points:

1. Meaning of Prospectus
2. Introduction of Prospectus.
3. Characteristics of Prospectus.
4. Who can issue prospectus?
5. Steps to be taken one by one Issue of Prospectus.
6. Legal Rules Regarding Issue of Prospectus.
7. Contents of Prospectus.


(I) Matters specified under rule 3 of companies (Prospectus and Allotment of security) rules, 2014.

(II) Matters specified under rule 4, 5 of companies (Prospectus and Allotment of securities) Rules, 2014.

(III) Other matters and reports specified under rule 5 of companies (Prospectus and Allotment of securities) Rules, 2014.

 

Link : https://smckk14.blogspot.com/2023/08/promotion-and-incorporation-of-companies.html

1. Meaning of Prospectus:

"Prospectus" means a document issued by a company through which the public is invited to purchase shares or debentures or for making deposits in the company. i.e. prospectus is a document obtain capital form the public.

Under Section 2 (70):

"Prospectus means any document prescribed or issued as a prospectus and includes a Red Herring Prospectus refund to in section (32) or shelf prospectus refunded to in section (3) for any notice, circular, advertisement or other documents inviting offer from public for subjects or purchase of any security of a body corporate".

2. Introduction of Prospectus:

After obtaining certificate of the incorporation, a private company and company without share capital may start their business but a public company having share capital cannot do so. It has to obtain certificate of Commencement of Business and this certificate is issued after following the prospectus of section (32). To obtain this certificate, the company has to make declaration before ROC under section (31) that the prospectus or the state in lieu of prospectus has been submitted to the office of ROC or Registrar of Company. Prospectus is issued to arrange capital. A public company having share capital may arrange the capital through its own sources or may invite the public to buy its shares and debentures. The company which arranges capital through own sources, it has to submit state in lieu of prospectus to the office of ROC or Registrar of Company. While the company which invites public to purchase its shares and debentures or both, has to submit prospectus by submitting the one copy of prospectus to the Registrar of Company. Thereafter it can obtain certificate of Commencement of business.

So, any notice, circular, advertisement or document through which a company invites common public to make deposits in the company or to purchase shares or debentures is called a “Prospectus”.

3. Characteristics of Prospectus:

(i) A private company cannot issue prospectus.

(ii) It can be issued by an incorporated organisation.

(iii) Mention of date is compulsory.

(iv) Prospectus includes offer for sale also.

(v) For every public company having share capital, it is mandatory to issue prospectus or statement in lieu of prospectus.

(vi) It has many forms - Notice, Circular, Advertisement or any other documents.

(vii) It must certain signature of each director or proposed director.

(viii) It can be issued to invite public deposits from the public.

(ix) Through prospectus, offer from public invited to subjects or purchase shares or debentures.

4. Who can issue prospectus?

(i) By public company.

(ii) By any person on behalf of public company.

(iii) By any person who is related with formation of the company or having interest in formation of the company.

(iv) By any person on behalf of the person related with formation of the company or having interest in the formation of the company.

(v) By any person or organisation to whom the shares have been allotted to resell it.

5. Steps to be taken one by one Issue of Prospectus:

(i) Appointment of different experts like Banker, Auditor, Secretary, Legal Advisor etc.

(ii) Making Underwriting Commission.

(iii) Cannot for brokerage.

(iv) Listing of shares in any recognised stock exchange.

(v) Determining Capital Structure.

(vi) Ascertaining the all-time date of Commencement of company.

6. Legal Rules Regarding Issue of Prospectus:

Registration of prospectus is mandatory and it is possible only when it is legal.

(i) Cannot be issued before Incorporation.

(ii) Compliance of guidelines of SEBI.

(iii) Person having rights of issuing the prospectus.

(iv) Must be dated.

(v) Must be registered:

Before issuing to public, its copy must be signed by each director or proposed director. Thereafter, should be sent to ROC or Registrar of Company with following documents -

(a) Written consent of experts.

(b) Written consent of officers.

(c) Copies of important contracts (according to 16th rule of the section II of the Act)

(d) Copy of contracts with managerial personnel.

(e) Report of adjustment.

(vi) Issued to public within 90 days.

(vii) Making available the prospectus having features of prospectus with the application form.

(viii) Penalty on the violation - Minimum ₹50,000 maximum ₹3 lakhs of three years under section (26).

(ix) Expert to be not connected with formation or management of the company under section (26).

(x) Terms of contracts not to be varied under section (27).

(xi) Contents as per section II (26).

(xii) Not to apply in fictitious name (38).

(xiii) Refusal by the ROC to register the prospectus:

(Opposite to legal rules regarding issue of prospectus)

7. Contents of Prospectus:

(I) Matters specified under rule 3 of companies (Prospectus and Allotment of security) rules, 2014.

(II) Matters specified under rule 4, 5 of companies (Prospectus and Allotment of securities) Rules, 2014.

(III) Other matters and reports specified under rule 5 of companies (Prospectus and Allotment of securities) Rules, 2014.

(I) Matters specified under rule 3 of companies (Prospectus and Allotment of securities) Rules, 2014:

Matter specified in part 1 of scheme II may be divided into eight parts -

1. General Information:

(i) Name and address of registered office of company.

(ii) Names of stock exchanges where application has been submitted to enlist the shares.

(iii) Declaration regarding refund of amount received if till the closing date minimum 90% of issuance or nor subscribed.

(iv) Declaration of issuing allotment letter/refund order within 10 weeks and in case of late in refund, declaration to pay interest.

(v) Opening date of issue.

(vi) Closing date of issue.

(vii) Names and address of auditor and lead managers.

(viii) If proposed debentures /proposed shares have been valued through any rating Agency and afterwards not valued, it should be mentioned as 'Not valued'.

(ix) Names and address of underwriters along with the amount underwritten, in addition,

(x) Permission of central Govt. for proposed issue along with letter of interest and included licence, on behalf of Central Government should be earlier given that for truthfulness of statements and financial soundness, the central government would not be liable.

(xi) Declaration regarding punishment for the applicant (s) with fictitious name U/S (38).

(xii) Board of director's will submit a declaration that the amount received from issue shall be deposited into Bank in a separate account. The amount utilised, amount unutilised shall be shown in the balance sheet under appropriate head.

2. Capital Structure of Company:

(i) Authorised, issued, subscribed and paid up capital of company.

(ii) Size of issue. In this, amount referred for or allotment to promoters and others shall be started separately.

3. Terms of Present Issue:

(i) Terms of payment.

(ii) How to make application.

(iii) Any special tax benefit available to company and its shareholders.

(iv) Rights of holders of Institution.

4. Details of issue:

(i) Purpose of issue.

(ii) Cost of project.

(iii) Sources of finance.

5. Company Management and Project:

(i) Background and main objective of company. Present business of company and if it has any subsequent company then the name and address of that company.

(ii) Background of promoters.

(iii) Place of project.

(iv) In case of any collaboration, detail of Guarantee of performance or assistance in control (if any).

(v) Nature of product, possibility of export, guarantee of export,

(vi) Data of capital market related to shares and debentures of company. It should include minimum and maximum value of each year for last 3 years and minimum and maximum value of every month for last 6 months.

(vii) Name, address, occupation of MD or Managing Director, WTD or Whole Time Director, other directors in which Nominee directors and managements will be included also and number of posts of directors hold by them each in other companies.

(viii) Details of Plant & Machinery and Technology.

(ix) Implementation of scheme of project with progress report. It will include dates of land acquisition, production work, installation of plant and machinery, dummy production and commercial production.

(x) Proposed marketing strategies.

(xi) Fundamental facilities like Raw Material, Water, and Electricity etc.

(xii) Future possibilities.

6. Details of Companies listed under same management who have issue any capital in last 3 years:

(i) Name of company.

(ii) Year of issue.

(iii) Type of issue.

(iv) Date of closing issue.

(v) Date of allotment of shares and debentures certificate.

(vi) Date of completion of project, if the purpose of the issue is to fulfill the financial needs of any project.

(vii) Amount of issue.

(viii) Rate of dividend paid.

7. Outstanding Litigation:

(i) The cases which can affect the activities and financial position of the company. It includes all tax disputes.

(ii) Such criminal cases against company or its directors which come under part I of scheme XIII.

(iii) Default made in case of payment of legal dues, institutional dues and instrument holders like debentures, FD and accumulated preference shares.

(iv) Details of important charges happened after the date of latest balance sheet and their effects on performance of possibilities of company.

8. Perception of Management regarding risk factors:

Perception of management of company regarding fluctuation in foreign exchange rates, differentials in availability of raw materials, differentials in marketing of products, delay in commerce of business (cost) etc.

(II). Matters specified under rule (4), 5 of companies (Prospectus and Allotment of securities) Rules, 2014:

1. General information:

(i) Written consents from Directors, Auditors, Legal Advisors, Issue Managers, Issue Registrar, Bankers of Issue, Bankers of Company and Experts.

(ii) Advice /suggestion received from experts (if any).

(iii) If there has been any change in directors and auditors in previous 3 years, its details with reason.

(iv) Detail of authority of issue and resolution passed for issue.

(v) Method and duration of allotment and issue of certificate.

(vi) Names and address of company security, Technology advisor, Lead Managers, auditors, banker's, issue bankers and Agents.

2. Financial information:

(a) Report of auditors of company:

(i) Detail of projects, losses, Assets and payables.

(ii) Report regarding dividend distribution on each type of shares for each year preceding the five years of issue of prospectus. It should also include details of those shares on which no dividend has been paid in the previous year.

(iii) If no accounts have been prepared before 3 months of issue of prospectus preceding five years, then the statement that no such accounts have been prepared.

(iv) If the company has no subsequent company then report of auditors of each year preceding five years of prospectus regarding Profit and Loss and Assets and Liabilities of each year, which should be related to the financial ending just before issue of prospectus.

(v) If the company has subsidiary company (s), report of subsidiary companies or the companies may be prepared jointly or separately.

3. Statutory and Other Information:

(i) Minimum subsequent amount.

(ii) Expenses on issue in which the expert made on the fees of the following -

(a) Consultant /Advisors.

(b) Issue register.

(c) Issue management.

(d) Trustee of the debenture holders.

(iii) Underwriting commission and brokerage.

(iv) Prior issues for cash.

(v) Detail of any public or right issue in previous 5 years.

(vi) Commission or brokerage paid on previous issues.

(vii) Shares issued other than cash.

(viii) On the date of issue of prospectus, detail of issued outstanding debentures, unredeemed preference shares and other documents.

(ix) Detail of opinion for subscribing/opinion of exchange of share from depository interest.

(x) Detail of assets to be purchased from the amount of issues.

(xi) Detail regarding directors, proposed directors, WTD, their remuneration, appointment and remuneration of MD, interest of directors, their borrowing powers and qualification shares.

(xii) Rights of members regarding voting, dividend and lien on share and method of amalgamation and method of forfeiture of share.

(xiii) Restriction on transfer and transmission of shares. (If any) amalgamation of shares and their division.

(xiv) If assets have been valued in previous 5 years, its detail.

(xv) Inspection of important contents.

(III) Contents of Prospectus and SEBI guidelines:

As per SEBI guidelines, 2000, following information and statement should be included in prospectus -

Cover page - The front cover page will be of white colour and without any pattern for picture. It should be sufficient thick.

This page shall contain following particulars -

(i) The word 'Prospectus'.

(ii) Name and address of Registered Office.

(iii) Nature, number, value and amount of proposed documents.

(iv) Risk regarding first issue.

(v) General risk factors.

(vi) Liabilities clause.

(vii) Names and address of legal merchant bankers. 

Accounting Conventions: Meaning, Main Accounting Conventions

Accounting Conventions: Meaning, Main Accounting Conventions Key Points: 1. Meaning of accounting conventions. 2. Convention of Conser...