Know your CA final SFM faculty Tarun Mahajan

CA Tarun Mahajan is a commerce graduate from Vikram University. His academic excellence was well displayed since schooling days, he used to stood first in school and this came to light with his All India 10th Rank CA Foundation. He became a member of ICAI in 1999.

 
Using his academic excellence and quest for sharing his knowledge, he took up teaching since the date he became CA. He has been teaching Strategic Financial Management(SFM) to CA final students.

He acquired Diploma in Information Systems Audit from ICAI in 2005. He was well settled in his profession but his curious learning attitude lead him to pursue CFA from CFAI(USA) during 2006-08. He was the first to acquire CFA chapter in whole Madhya Pradesh and there were less than 400 CFAs in the whole country at that time. He thirst for accepting challenges made him run 42Kms in Mumbai marathon.

His core area of teaching is Financial Management. His deep love from the subject helps him connect the concepts of FM with life. He believes in "follow the excellence and success will follow you" and his mantra for CA students is "Do not study just for the sake of passing the exam, but do it for the sake of knowledge".

All the CA final students, who are yet to take the classes of SFM, are invited to join his satellite classes from 1st July at 8 am in Star Plaza. Lease which is one of the important chapters of SFM, will start from Tuesday.

He believes in teaching all the SFM topics conceptually and also explains the derivation of formulas, rather than giving the formula straightaway. You yourself can experience his style of teaching by attending his SFM batch at Star Plaza.   

IDT batch starting from 1st July at Star Plaza

By दिव्य जोशी
Sanjay Jain sir is starting the Indirect Tax(IDT) batch for the CA final students from 1^st July at 8 am in Star Plaza. All the CA final students, who are yet to take the classes of IDT, are invited to join the batch.

Having a great command over the concepts of IDT, he is the only face to face faculty available in Meerut for the CA final’s group 2 subject - Indirect Tax. The significant feature of his teaching is his ability to teach IDT with the examples of daily practical life.

Sanjay sir will ensure that difficult concepts of Excise Duty like place of removal, deemed manufacturing etc. are going to be on your finger tips. He has specialised himself in teaching the Service Tax and Custom Duty as well. His student Gaurav Jain scored 86 marks in IDT in 2006.

If you have any doubt over his teaching skills then you yourself can attend his lecture for removing all your doubts. For further queries, you can contact on these numbers – 8410009360, 9690101007.

Marks Distribution
Particulars	Marks Weightage
Excise Duty	25
Service Tax	50
Custom Duty + Foreign Trade Policy	25

Company Law amendments - Series II

As I promised, I will keep posting the company law amendments frequently. In this post, you can read some more amendments in paragraph form as well as summary presented in tabular form.

Annual return

The section 92(2) of 2013 Act mentions that necessity of certification by a company secretary in practice of annual return will be extended to companies having paid up capital of five crore INR or more and turnover of 25 crore INR or more. While, Companies Act 1956 had required certification for listed companies only. The information that requires to be incorporated in the annual return has been enlarged. The extra information necessary, includes details of holding, subsidiary and associate companies, remuneration of directors and key managerial personnel, penalty or imprisonment imposed on the company, its directors or officers [section 92(1) of 2013 Act].

Place of keeping registers and returns

The section 94(1) of 2013 Act permits registers of members, debenture-holders, any other security holders or copies of return, to be kept at any other  place in India in which more than one-tenth of members leave  While, as per the 1956 Act, all these documents can be kept at that city, town or village only in which the registered office is situated.

General meetings

The section 96(1) of 2013 Act mentions that the first annual general meeting should be held within nine months from the date of closing of the first financial year of the company. While, the 1956 Act requires the first annual general meeting to be held  within 18 months from the date of registration. At present, the 1956 Act does not mentions business hours, which the 2013 Act currently defines as between 9 am and 6 pm. The section 96(2) of2013 Act mentions that annual general meeting can now be held on a national holiday. While, the AGM cannot be held on a public holiday as per the section 166(2) of the 1956 Act. In order to call an AGM at shorter notice, the  section 101(1) of 2013 Act states that consent of 95% of the members is required as against the current requirement in the 1956 Act which needs approval of all the members [section 101(1) of 2013 Act]. The section 102(1) of 2013 Act mentions that apart from director and manager, the nature of concern or interest of every director, manager, any other key managerial personnel and relatives of such director, manager or any other key managerial personnel in every item of special business will also require to be stated in the notice of the meeting. While, as per the section 102(2) of 2013 act, the threshold of disclosure of share holding interest in the company to which the business relates of every promoter, director, manager and key managerial personnel has been reduced from 20% to 2%.

The section 103(1) of  2013 Act states that in case of a public company, the quorum will depend on number of members as on the date of meeting. The required quorum is as follows:

•             Five members if number of members doesn’t exceeds one thousand

•             Fifteen members if number of members is more than one thousand but up to five thousand

•             Thirty members if number of members exceeds five thousand

The section 105(1) of 2013 Act has introduced the limit on the number of members which a proxy can stand for. The 2013 Act has introduced a double limit in terms of number of members, which is set as 50 members and also prescribes a limit in terms of number of shares holding in the total not more than 10 % of the total share capital of the company carrying voting rights. Further as per the section 106(1) of 2013 Act, it is significant to make a note of that the private companies cannot force restrictions on voting rights of members barring unpaid calls or sums or lien.

According to section 121 of 2013 Act, it will be essential for listed companies to file with the ROC a report in the form prescribed in the rules on every annual general meeting including a substantiation that the meeting was convened, held and conducted as per the provisions of the 2013 Act and the applicable rules.

Other matters

As per section 93 of 2013 Act, it is mandatory for the Listed companies to file a return with the ROC with respect to the alteration in the number of shares held by promoters and top ten shareholders within 15 days of such an alteration.

Key Points
S. No.	Particulars	As per Companies Act 1956	As per Companies Act 2013
1	Requirement of certification of annual return by a CS in practice of annual return	Certification required for listed companies only	Certification of annual return is required for all the companies having paid up capital of 5 cr and turnover of 25 cr
2	Place of keeping registers and returns	At the city, town or village only in which the registered office is situated	At any other place in India in which more than one-tenth of members resides
3	First AGM	Should be held within 18 months from the date of incorporation	Should be held within 9 months from the date of the closing of the first financial year of the company
4	Business Hours	No business hours defined	9 am to 6 pm
5	AGM on national holiday	Cannot be held	Can be held
6	AGM at shorter notice	Consent of all the members required	Consent of 95% of the members is required
7	Threshold limit	The threshold limit of disclosure of share holding interest in the company to which the business relates of every promoter, director, manager and key managerial personnel is 20%	Reduced to 2%
8	Quorum on the basis of number of members	No such provision	If members are less than 1000 - 5 members
			1001-5000 - 15 members
			More than 5000 - 30 members
9	Limit on the number of members which a proxy can represent	No such limit	In terms of number of members - 50 members
			In terms of number of shares holding in total - not more than 10 % of the total share capital of the company carrying voting rights
10	Report to ROC in respect to the alteration in the number of shares	No requirement of filing a return with the  ROC	it is mandatory for the Listed companies to file a return with the ROC with respect to the alteration in the number of shares held by promoters and top ten shareholders within 15 days of such an alteration.

CA final and CPT results may be declared on 28th July

The results of CA final and CPT exams of June 2014 attempt may be declared on 28th July, 2014, claims total.com website.

Notably, CA Final attempt was held one month later this time around due to the lok sabha polls.

It will be interesting to see the passing percentage of CA final exams this time around as result was just around 3% for the November 2013 attempt.

"The result of Nov 2013 attempt was a shocker for me, I was pretty confident of clearing my first group but 39 marks in SFM had disappointed me a lot. Hopefully result will be better this time around," Rajat Gurnani told to our blog.

The registration for the November 2014 attempt will also begin after the declaration of result.

Company Law amendments - Series I

There are plenty of amendments in company law after the introduction of 2013 Act. But there is no need to panic for the IPCC and CA final students as I am going to present all such amendments through my blog and students can go through my articles as they will be more than sufficient for them. As you all know, famous authors are yet to publish company law book after these amendments and there is confusion going all around. So, I have taken an initiative to present these amendments in front of you. There will be one article daily on these amendments, so stay tuned for the further updates. CA final students can also join my law batch at 5:30pm in Star Plaza's third floor.

One-person company: The 2013 Act introduces a new form of entity to the existing list i.e. aside from creating a public or  private limited company, the 2013 Act enables the creation of a new entity a ‘one-person company’ (OPC). As per the section 3(1) of the Companies Act 2013, an OPC means a company with only one individual as its member.

Private company: The 2013 Act introduces an amendment in the meaning for a private company, inter-alia, the new necessity extends the limit of the number of members from 50 to 200. [section 2(68) of 2013 Act].

Amendments in the limit of number of members for Private Company

Members	Prior to Companies Act 2013	After  amendment
Minimum	2	One man company(OPC)
Maximum	50	200

Small company: The meaning small company has been defined as a company, except a public company.

(i) Paid-up share capital of which does not surpass 50 lakh INR or such higher amount as may be approved but it shall not be  more than five crore INR

(ii) Turnover of which according to its previous profit-and-loss account does not surpass two crore INR or such higher amount as may be prescribed but it shall not be more than 20 crore INR:

As specified in the 2013 Act, this section will not be relevant to the following:

• A holding company or a subsidiary company

• A company registered under section 8(formation of company with charitable objects)

• A company or body corporate governed by any particular Act [section 2(85) of 2013 Act]

Dormant company: The 2013 Act mentions that a company can be classified as dormant when it is created and registered under this 2013 Act for an upcoming scheme or to clasp an asset or intellectual property and has no important accounting transaction. Such a company or an inactive one may be relevant to the Registrar of Companies(ROC) in such way as may be set for obtaining the position of a dormant company.[Section 455 of 2013 Act]

Know your CA final audit faculty Aseem Trivedi

The 39-year-old CA Aseem Trivedi  is a renowned  faculty for CA final Auditing. Known for his excellent communication skills, he has great knwoledge and command over auditing concepts. He has expertise in teaching Standards on Auditing(SAs).

Aseem is a senior faculty at NAHATA Professional academy, whose satellite classes franchise has been taken by Sanjay Jain classes. With a teaching experience of fifteen years, he is arguably the best auditing faculty available in Meerut. The feedback of his brilliant teaching can also be taken from the students, who have attended his initial auditing classes in our institute.

Aseem has generated the great interest amongst the students even in the theoretical subject like auditing which students finds somehow boring. He is ICAI’s trainer at Accounting Standard Board(ASB) and Auditing & Assurance Standard Board(AASB) and as well as the author of many books.

To know more about him, CA final students are invited to attend his live session which will be held soon in the Sanjay Jain Classes situated at third floor, Star Plaza, Meerut. We will update you as soon as the date and timings of live interaction will be decided with Aseem ji.

Exclusive: How railway can save 10,000 cr rupees annually without rail fare and freight charges hike

(Divye Joshi in http://idharudhar24x7.blogspot.in/) No one can deny that Indian railway is ill. Though, it’s a different thing that it is not essential to give bitter medicine of hiking the rail fare and freight charges for improving the health of railway. Indian railway can easily save 10,000 crore rupees annually by just increasing the speed of electrification. Despite being the 1/3rd cost, in comparison of diesel, only 38% railway tracks have been electrified so far.. Railway Minister Sadananda Gowda is going to present rail budget on 8th July.

According to railway ministry documents, Up to 1st March 2014, only 38% of 65,436 km rail tracks have been electrified. While, ministry believes that  supply of 67% of 1.1 arab ton goods is being done through electrified tracks. Similarly, 51% passengers travels through electrified tracks. Electricity, which lifts that much huge burden, is very cheap as well. Railway spend 20.5% of its revenue on Diesel but it’s expenditure on diesel is 9.8% only.

One senior official of railway believes that only 1300 km rail track annually is being able to electrified currently. He also thinks that this can easily be extended to up to 2000 km annually. If railway will able to do just 15000 km electrification also on rail tracks in next 7-8 years, it will able to save 10,000 rupees annually. After seeing the benefits of electrified tracks, China has also work on this rapidly in the last few years.

Rakesh Mohan Committee, which has 20 members including the secretaries of eight ministries, has also clearly emphasised  the need of more electrified tracks in the report which this committee submitted just before the lok sabha polls. The committee feels that such electrified tracks are essential not only for money saving but also for pollution and as well as for reducing the dependence on foreign currency. It will also help in removing the doubts over fuel supply.

Know everything about HRA

You will have to submit the rent slip to your employer as a proof of rent payment for claiming the exemption of house rent in Income Tax. Some companies can also demand for rent agreement. Employer calculates the exemption of HRA and deduct the TDS on the basis rent slip. If rental amount is less than one lakh then it is not mandatory to give the landlord's PAN number along with rent slip but whenever this limit crosses one lakh, it is mandatory to give landlord's PAN number to the employer for claiming HRA exemption. For claiming the HRA exemption, employees were used to present fake rent slip but after the new ruling on PAN number, it is not only difficult but also become impossible.

HRA is an important part of salary income. The HRA amount is always been a certain percentage of basic salary, which employee gets for the rental house. Thus, as per the income tax provisions, tax exemption is available for HRA. Notably, employees resides in their own house doesn't get HRA  as they don't pay the rent. Today, we are discussing the Income Tax exemption on HRA that employee can claim HRA in which circumstances and what is the procedure of claiming it.

By now, one thing must have been cleared to you that only those employees can claim HRA exemption who resides in rental house and pays rent for it.

The HRA exemption will be lower of the following:-
1. 50% of Basic Salary if employee resides in Delhi, Mumbai, Kolkata and Chennai. While, it is just 40% of Basic Salary if employee leaves in any other city of India.

2. Rent paid - 10% of Basic Salary

3. Actual HRA received

Now, we are trying to explain the HRA exemption as per the example.

Mr. X has monthly salary slip like this-
Basic Salary - 25,000, HRA - 14,000. He leave in Indore and pays monthly rent of Rs.11,000. His HRA computation on technical grounds will be like this:

1. 40% of Basic Salary = 1,20,000(40% of 3,00,000)

2. Rent paid - 10% of Basic Salary = 1,02,000(1,32,000-30,000)

3. Actual HRA received = 1,68,000

Rs. 1,02,000 is lower of the above three. Thus, Mr. X will get HRA exemption on Rs. 1,02,000 only. But he gives the12,000 rupee rent slip to his employer every month. Due to this, his exemption limit on HRA has increased to Rs. 1,14,000(as per step 2 computation). Thus, 66,000 rupees would have been added to his total income but now only 54,000 rupees will be added due to the fake slip presented by him. However, new rules related to PAN number have ensured that such manipulations are no longer possible for claiming more HRA exemption.

Know your inspiring CA final teacher Sanjay Jain

By दिव्य जोशी

Mr. Sanjay Jain is a first class commerce graduate with an teaching experience of more than fifteen years. He is also a founder of Meerut's biggest CA coaching institute - IPC.  CA Amit Gupta and CA Vijit Jain have joined the institute in 2004. While, FCA Rajeev Gupta became a part of IPC in 2011.

“The medic0re teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires”.  Sanjay Jain is one of those inspiring teachers. He teaches law, tax and auditing at CA's IPCC level. While, he is the only teacher in Meerut along with Atul Agarwal(ISCA faculty) who take face to face classes of CA final students.  He has a great knowledge of tax, law and audit with an excellent motivating and communication skills.

The 36-year-old teacher believes in teaching all the topics deeply and conceptually. He has great command over the concepts of tax which in no means is less than Delhi faculties.  He has also ensured that Meerut's CA students won't have to move to Delhi for taking coaching of various subjects at CA final level. Several students who took teaching from Sanjay Jain have been selected in Big Four. Due to Sanjay's concept-based teaching, his students always shines in practical life.

The excellence of Sanjay Jain's teaching can be made out from this thing only that his student Shubham Agarwal scored 65 marks in CA final's Corporate & Allies Laws in the November 2013 attempt. Let me tell you that papers of CA final nov 2013 attempt have been labeled as most difficult in the last ten years by various world class faculties and members of ICAI. The CA final result was only around 3% in the November attempt last year. While, his another student Gaurav Jain scored highest marks in Meerut in the Direct Tax(DT) and Indirect Tax (IDT) in 2006. Gaurav, who is now working at Reliance in Mumbai, had 87 and 86 marks in DT and IDT respectively.

Sanjay Jain's coaching institute has recently started the satellite classes of Nahata Professional Academy for the Financial Reporting(Accountancy), Auditing, Stategic & Financial Management and Advance Management Accounting(Cost).

Subject wise faculty list for CA final students
Subject	Faculty	Mode of Class
Accountancy	Anil Nahata	Satellite
SFM	Tarun Mahajan	Satellite
Auditing	Aseem Trivedi	Satellite
Corporate & Allied Laws	Sanjay Jain	Face to Face
Direct Tax	Sanjay Jain	Face to Face
Indirect Tax	Sanjay Jain	Face to Face
Cost	Saral Agarwal	Satellite
ISCA	Atul Agarwal	Face to Face