Are we ready for Ind AS implementation?

IND AS!! The hot topic everywhere specially for the listed companies! and for all the companies whose net worth exceeds Rs. 500 cr for FY 2016-17 and Rs. 250 cr for FY 2017-18.

Why Ind AS is so hot topic and Companies are ready to pay good to professionals to carry out Ind AS transition project? The reason is, it is not a so quick exercise for anyone.

The basic idea of introducing Ind AS in India is to make enable Indian Companies financial statements comparable at international level. Ind AS is adopted from IFRS though there are few carve outs.

Ind AS and IFRS speaks about fair value everywhere. The Ind AS balance sheet now has a little different presentation and line items. MCA has published a circular related thereto dated 7 April 2016. As you'll go through, you'll find assets are now shown at the top followed by liabilities. There is a concept of financial assets and liabilities. Some more disclosures in notes related to interest risk, commodity risk, liquidity risk, market risk, sensitivity analysis are required to be given.

What are financial liabilities and assets?

For a simple understanding, where there is an establishment of contractual obligations or rights against cash or equity are financial liabilities or assets.

Practical Issues

There are some more practical impacts by introducing Ind AS such as for Toll road companies, the contractual right to use or operate a toll to be shown as intangible assets or financial assets. Though MCA and ICAI have not issued guidance notes related to all the areas and industries, there are some available on which call can be taken on practical issues faced by the Companies while implementing Ind AS.

Exemptions

There are certain exemptions available in Ind AS 101 for first time adoption of Ind AS, the Companies may avail. In such case, the cost of the assets shall be considered as deemed cost. These exemptions mentioned in relevant paragraphs of Ind AS 101 exempts retrospective effect of the specified cases.

How many comparable figures we have to present in Ind AS financials?

The Companies alongwith presenting the Ind AS figures as at the balance sheet date in the year of adoption shall also present comparative figures (Ind AS) of previous year and opening figures (Ind AS) of preceding year. For example, for the Companies adopting Ind AS in the FY 2016-17 (31 March 2017) shall give comparative figures as at 31 March 2016 and opening figures as at 1 April 2015 (Closing as at 31 March 2015)

Fair value impact

The recognition and de-recognition of assets and liabilities resulting from the fair value done will have more impact on the statement of profit or loss, other comprehensive income and equity component of financial instruments. Though there can be a great fluctuation on the profit and loss figures.


Implementation of Ind AS is a great step for Indian economy to compare the Indian Companies financial statements at the international level. They will provide a more fair idea to the users of financial statements about the value of assets and liabilities of the Company.

For any questions or queries, e-mail me on urvashimaharshi@gmail.com 

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How To Get Ones Attention While Talking

When you speak to someone, always look into the person's eyes to whom you are communicating. And if you want him/her to just get focused into your talks, here's the way.

Just look between the eyes at a point and talk constantly with enthusiasm and interest. The person would be so busy and would get involved in your talks that he/she even wouldn't realise whats happening around.

When you look into someones eyes and pass messages i.e. verbal communication, this is due to 'vision tunnel'. It makes people get involved only in what one is saying and this makes one ignore whats happening around irrespective of crowd or loud noise.

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Choose Career for - Interest or Money?

Our nation trying to increase the education ratio for the citizens to have a good career but are the citizens truly serving their nation in the way they should?
The answer is NO. I'll tell you how!

Good brains do not want to earn in India and they settle in abroad whereas others only think and earn for themselves.

Forget that, majority of the Indians are into a field either they are forced to do it or that course is popular or there is a good return in future. But very few speaks about their interest as their career.

Food for thought:
In India, can a common man irrespective of his/her financial condition, family background and all other similar factors are into the field by their choice of interest and passion?
(Here I am not addressing few people, common man is a huge bunch and the views are on majority basis)

Again, the answer is NO.

People in India are taught to earn money to survive and not to live life lively.
I understand money is very much important and for that one should have a settle or fine job or work.

But does all these give a person a self satisfaction?
The answer is NO again.
Whole life, people chase money and do the same thing for years to earn but they never enjoy it! Later they regret for what they were doing and think to switch their career but it be too late to do so.

This is what you call a life? I call it a common Indian life! Where majority does so.

Education is important. Alongwith that one's interest and passion is the most important for one to live a life like one should.

Many will suggest to become a Doctor or Engineer or Chartered Accountant or Lawyer or so as such degrees bring money in future and they are trendy courses but hardly common man's parents will allow easily one to become a choreographer, actor, Disk Jockey, Artist or so!

There always be a family and close ones pressure of Do's and Don'ts.

Secret tip: Do what you like and Don't obey them ;)

Follow your passion! Do what you like! Live your life like you want! Enjoy! And think BIG!

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Reverse Mortgage Scheme

Reverse Mortgage is a financial scheme for senior citizens above 60 years who own a house can mortgage it for a source of regular income.

The purpose of Reverse Mortgage is to provide regular periodical based income without selling the house. It is a loan against your house and do not have to payback as long as you live.

Such income is TAX FREE. Individual opting for such must own self-acquired or self-occupied residential property in India.

The objective is to secure rest of the life of senior citizen by providing fixed income monthly where the financial support is weak and health issue expenses are more. You may find many banks providing this scheme.

The following links are few bank schedules providing Reverse Mortgage Scheme:

Union Bank of India: http://www.unionbankofindia.co.in/personal_retail_reverse_mortage.aspx
Bank of Baroda: http://www.bankofbaroda.co.in/pfs/bobashray.asp
Punjab National Bank: https://www.pnbindia.in/en/ui/ReverseMortgageScheme.aspx
State Bank of Mysore: http://www.statebankofmysore.co.in/advances/personal-banking-/reverse-mortgage-scheme-.html

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How To Read Minds

People with the interest to read other's mind or want to know whether people talking to them are speaking truth or not, go on!
Whenever you meet people, you always try to find out what that person is thinking currently but many times we ignore to find what they think.
★Below are the few techniques by which you can read minds and find out what are they thinking:
Look into the eyes of the person to whom you are interracting, if they look here and there, there are chances they aren't saying the truth. Continuous blinking of eyes is also an example.
Observe their body movements, gestures, expression and the level of confidence when they are talking.
Ask them some question indirectly so that you might come to know whats revolving in their mind.
Ask them questions politely by straight looking into their eyes and dont give them time to frame a safe answer.
Observe their speaking pace whether it is fast or slow. Many times we dont realise what we are speaking when we speak fast in terms of speed.
This is because we dont get time to think before we speak.
Thats a human tendency.
If person talking to you, fumble or stammer, here's the hint he is not speaking the truth.
If you know that person since, its more easy to read mind of such people as we are much familiar with their behaviour.
To read minds of new people is a task but its quite simple too as you just need to do is observe them and follow these basic techniques.
In our routine life we hardly observe to people who are talking to us.
Observation not in terms of what they are wearing or how do they look today, but observation in the meaning of knowing their mentality approach by simply observing their basic behaviour and view points.
The aforesaid basic techniques are very useful and should be adopted to know people and their minds.

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"T+2" Rolling Settlement (Indian Share Market)

Many people are still confused about the T+2 concept adopted in Indian Share Market for trade settlements.
Here is the precised explanation with example.
In rolling settlement, the trades of each day are settled after 2-3 days.
This is also known as T+2 rolling settlement system where trades outstanding at the end of the day are to be settled within 2 business/working days from transaction.
For example: If transactions are entered into on Monday, their pay in and pay out takes place on wednesday.
But such transaction should be reflected in the DP within 24 hours/at the end of the transaction day

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Small Scale Industry (SSI)

★Meaning of SSI is not defined in the Central Excise Act. The meaning can be understood as per Notification No. 8/2003

Where the Turnover in the previous year of a unit is not more then Rs. 4 crore (Rs. 400 lakhs) that unit is known as Small Scale Industry (SSI)

★EXEMPTION/CONCESSION:

Duty applicable on amount exceeding Rs.150 lakhs turnover.
Also no Cenvat Credit can be availed.

★OTHER APPLICABILITIES:

●If the turnover in the Current Year exceeds Rs. 90 lakhs, intimation has to given to the officer in the Next Year.

Note:
This is required to be done every next year of the current year in which such turnover is exceeded.

●If the turnover exceeds Rs. 140 lakhs, the unit need to register itself in such scheme.

●If the turnover exceeds Rs. 400 lakhs, the unit cannot avail exemption of Rs. 150 lakhs in the next year.

★OTHER CONCESSIONS:

●Return filing - Quaterly
●Payment of duty - Monthly instead of Quaterly (except for March)
●100% Cenvat Credit availability on capital goods in the first year
●Audit once in 2 to 5 years
●Exemption of duty if goods manufactured under brand name of others in rural area

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Audit of Public Sector Undertaking (PSU)

OBJECTIVE:
●There is an involvement of public fund
●These funds should be utilized considering public interest
●Normally, these funds are lavishly used by management
●Auditor has to check whether these funds have been used in a manner so as objectives behind creation of PSU
●Auditor has to check whether transactions mainly expenses confirmed to propriety norms
PROPRIETY AUDIT:
E.L. Kohler - "Propriety is that which meets the tests of public interest, commonly accepted customs and standards of conduct and particularly as applied to professional performance, requirement of law, government regulations and professional codes"
PERFORMANCE AUDIT:
It is an adjective and systematic examination for independent assessment of the performance of a government organization program or activity so as to improve public accountability.
SUPLLEMENTARY AUDIT:
CAG may supplement the report submitted by the professional auditor. CAG may issue directives to the auditors in regard to the performance of their function. The person so authorized is having same powers as auditors. Supplementary Auditor may concentrate more on efficiency aspects.
COMPREHENSIVE AUDIT:
Comprehensive audit is examination in detail of various aspects of PSU to ascertain its efficiency and effectiveness. It is conducted in addition to the professional audit which is done on an annual basis. A detailed audit program is prepared by the auditor to cover material aspects.

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Highlights of 82nd Budget 2013-14:

The following are the Highlights of 82nd Budget 2013-14
 presented by Indian Finance Minister - P. Chidambaram:

*Though slab rates are same, there is benefit of Tax credit - Rs. 2,000 for income upto Rs. 500,000/-

*10% Surcharge on income exceeding 1 crore (Individuals/HUF)

*Defence sector allocated Rs. 2.03 trillion which is an increase of 5%

*5 to 10 % increase in surcharge on domestic companies whose income exceeds Rs. 10 crore and 2 to 5% on foreign companies.

*Investment allowance of 15% for investment in plant and machinery of Rs. 100 crores or more apart from depreciation

*TDS of 1% on amount exceeding Rs. 50 lakh in case of property transactions

*First home loan from a bank or housing finance corporation upto Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh.

*TDS on royalty payment to NR hiked from 10% to 25%

*Rajiv Gandhi Equity Savings Scheme to get benefit for 3 years and Income limit for tax savings raised from Rs. 10 lakh to Rs. 12 lakh

*Rs. 1000 crore invested for skill development of youth

*Government allocated 97,000 crore for Women's Development

*India's first women's bank as a PSU proposed, Rs. 1,000 crore working capital announced

*Government allocated Rs. 1,000 crore to setup Nirbhaya Fund for social cause

*Tax Administration Committee to be set up

*Service tax covered on all Air conditioned Restaurants.

*Excise duty on cigarettes, cigar and cheroots to be increased by 18%

*The target for farm credit for 2013-14 has been set at Rs. 7,00,000 crore against Rs. 5,75,000 crore
during the current year.

*No change in service tax rates

*30% excise duty hike on SUVs and 6% excise duty hike on mobile phone over Rs. 2000

*Commodity Transaction Tax is introduced @ 0.01% on non-agricultural commodities future contracts

*Rs. 9,000 crore allocated for compensating for differential in CST and GST.

*100% deduction for contribution to National Children's Fund

*Rs. 800 crore provided to wind energy projects for the purpose to Ministry of New & Renewable Energy

*Two new ports to be setup in West Bengal and Andhra Pradesh

*Tax-free infrastructure bonds of Rs.50,000 crore to be issued

*Foodgrain production will be over 250 million tons in 2012-13

*Allocated Rs. 500 crore for promoting crop diversification

*Allocated Rs. 200 crore for promoting nutrient-rich crops

*Allocated Rs. 50 crore for farmer-producer organisations

*Rs 13,215 crore for mid-day meal programme

*Allocated Rs. 17,700 crore for Integrated Child Development Scheme

*Allocated Rs. 37,300 crore for Ministry of Health & Family Welfare.

*Allocated Rs. 41,000 crore for Scheduled caste and Scheduled tribe sub-plans

*Allocated Rs. 110 crore for to the department of disability affairs

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Important Notes for CA students

Marginal Costing (By Urvashi Maharshi) - PDF File
Standard Costing (By Urvashi D. Maharshi) - PDF File
Internal Audit Report (Sample by Urvashi D. Maharshi)
Audit tips (By Urvashi D. Maharshi) - PDF File
Internal Control Questionaire (By Urvashi D. Maharshi) - PDF File
MVAT and GVAT

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Leases and its Types

What is lease?

Lease can be defined as a right to use an asset or capital goods on payment of periodical amount in which lessor is the actual owner and lessee is the one who acquires the right to use such leased asset.

Types of Leasing:

(a) Operating lease - 

In such lease, the primary lease period is short and the lessor would not be able to realize the full cost of the asset and other incidental charges thereon during the initial lease period. Besides cost of the asset, the lessor also bears insurance, maintenance and repair costs.

(b) Financial Lease - 

It is a long term arrangement, which is irrevocable during the primary lease period which is generally the full economic life of the leased asset. Financial lease involves transferring almost all the risks incidental to ownership and benefits arising therefrom except the legal title to the lessee.

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Zero Coupon Bond

●In Zero Coupon Bond, there will be no interest payment during the tenure of the bond
●It will be offered at a huge discount to its Face Value
●It also known as 'Deep Discount Bond'
●The benefit of such bond is instead of interest receipt, it will be offered at discount and redeemed at PAR.
i.e. Redeem Value = Face Value

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Planning to start a business?

★If you want to expand your wealth and income in life and eager to start a business but wondering what and how to start it?
GO ON..

○More than a capital, a business requires a good IDEA inorder to operate for long run.

○Choose the background and nature of business according to your idea and the business you want to do.

○Think  different and creative from other entities in that line of business to attract the market and plan accordingly.
For example if you want to start with a coffee shop, you can go for coffee shop cum book stall to grab the customers of both lines of business at one place also the concept seems to be different which also attract customers.

○Capital is not a major issue as that can be arranged from any close related parties like relatives, friends, family, well wishers as in terms of loans and borrowings.

★But if you are not sure what business you really want to start with than
FURTHER GO ON..

○Do a survey and observe which business is popular in the area where you want to setup your business.

○Aim the group of customers you are seeking for.
For example: If you want to start a Coffe Shop, you need to choose the location where the public gathering is more or can easily get attracted such as college area, shopping area, and so on.


★Other essential factors to run your business:

●Promoting and advertising
●Management of staff
●Control on cost
●Customer feedback
●Power of bargaining in case of retail business
●Customer handling
●Correct planning and execution
●Market trends
●Competitors and rival actions
And many more.


NOTE: THE ABOVE ARTICLE IS MAINLY FOR BEGINNERS.

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