Debt to Equity Ratio & Debt to Capital Employed

Debt to Equity

The Debt-to-Equity (D/E) ratio is a financial metric that compares a company’s total debt to its shareholder equity. It measures the degree to which a company finances its operations through debt rather than wholly owned funds. This ratio is essential for investors, analysts, and creditors because it provides insights into a company’s financial leverage and […]

Alternative Investment Funds

Alternative Investment Funds

What are Alternate Investment Funds Alternative Investment Funds (AIFs) in India are regulated under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. These funds are privately pooled investment vehicles that collect funds from investors, both Indian and foreign, to invest by a defined investment policy for the benefit of their investors. […]

Dividend Distribution Tax

Dividend Distribution Tax

Dividend Distribution Tax (DDT) is a tax levied by the Indian government on dividends, which a company pays its shareholders out of its profits. It is a form of tax paid by the company distributing the dividend, not by the shareholder receiving it. DDT is levied at a fixed rate, currently set at 15% (plus […]

Operating Expenditure (OPEX) – Definition, Example, Formula

Operating expenses

What is Operating Expenses Operating expenses are the costs associated with a business’s day-to-day operations. They are necessary for a company to conduct its business and generate revenue. Operating expenses are reported on a company’s income statement and are crucial for assessing the business’s financial health and operational efficiency. Types of Operating Expenses Operating expenses […]

Capital Expenditure (CAPEX) – Definition, Example, Formula

Operating expenses

What is Capital Expenditure Capital expenditure, often abbreviated as CapEx, refers to the funds a company uses to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment. This kind of expenditure is considered an investment in the business with the expectation of benefiting the company over the long term beyond the […]

Ideal Time to Transition from Employment to Entrepreneurship?

job

Only passion and energy can drive to begin, and age has nothing to do. I want to take you through some of my experiences: Mid age crises If you keep doing similar work for 15 to 20 years, and it is only a company change, the job becomes mundane and boring. For the sake of […]

Understanding Equity: A Comprehensive Guide

equity

Types of Equity Private Equity Definition:  Private equity is a form of investment into privately held companies not listed on public exchanges. Private equity firms or funds usually engage in direct investment or buyouts of such companies. The investment is made from a long-term perspective and at different stages of the company’s growth and funding […]

Introduction to Minimum Alternate Tax (MAT)

Minimum Alternate Tax

Minimum Alternate Tax (MAT) is a tax mechanism introduced by the Indian Income Tax Act to ensure that companies paying minimal or no income tax through legal tax exemptions and incentives pay a certain minimum amount of tax to the government. The rationale behind MAT is to bring tax equity, ensuring profitable companies cannot entirely […]

Guide to the Competition Act, 2002

Competition Act 2002

Guide to the Competition Act, 2002 In the wake of globalisation and the liberalisation of the Indian economy, the need for a modern competition law to replace the archaic Monopolies and Restrictive Trade Practices Act 1969 became evident. The Indian government responded by enacting the Competition Act 2002, which aimed to foster competition, curb anti-competitive […]

Shaping Success: The Influence of My Life Mentors

mentors

We all have mentors who keep teaching us the good, bad, and ugly during our lifetime. We don’t have to find mentors on Google; it is there around us; we have to identify and give them importance for what they are. In this article, I will share how some of my mentors impacted my life […]

Corporate Social Responsibility Explained

Corporate Social Responsibility

What is Corporate Social Responsibility in India?  An In-Depth Analysis Corporate Social Responsibility Law (CSR) in India has evolved from voluntary donations and philanthropy to a statutory requirement, integrating social, environmental, and ethical responsibilities into the corporate sphere. The Indian government’s mandate on CSR under the Companies Act 2013 marked a significant step towards embedding […]

Hedge Fund Definition, Examples, Types, and Strategies

Hedge Fund

Hedge Fund Definition, Examples, Types, Benefits, and Strategies Definition – What is a Hedge fund Hedge funds are investment vehicles designed to maximise returns and hedge against market volatility. Some of the concepts are: Core Concept: Hedge funds use diverse investment strategies to generate active returns and aim for high returns by leveraging various asset […]

Learn Everything About Banking Regulation Act 1949

Banking Regulation Act 1949

Banking Regulation Act 1949, including specific details like Section 35A and a reference to the Bare Act: Banking Regulation Act 1949  The Banking Regulation Act of 1949 stands as a cornerstone in the banking regulation framework in India, enacted to oversee and streamline the operations of banking institutions within the country. Introduced on March 10, […]

Understand Securities and Exchange Board of India SEBI

Securities and Exchange Board

Securities and Exchange Board of India SEBI Securities and Exchange Board of India SEBI Securities and Exchange Board of India SEBI Introduction to SEBI  The Securities and Exchange Board of India (SEBI) is the principal regulator of the securities market in India. It was established in 1988 and was given statutory powers on January 30, […]

Understanding Money Laundering Act

Money Laundering Act

Money Laundering Act Introduction Money laundering is a critical concern globally, affecting economic stability and security. The Prevention of Money Laundering Act, 2002 (PMLA) marks India’s commitment to combatting financial crimes. In this article, we aim to unravel the complexities of the PMLA, shedding light on its historical background, objectives, features, and the legislative framework […]

What is an Employee Provident Fund

Employee Provident Fund

Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 is the Act applied. What is an Employee Provident Fund The Employees Provident Fund (EPF) is a crucial social security initiative that is pivotal in ensuring employees’ financial well-being in many countries. This fund provides financial stability to individuals during their retirement years. This comprehensive article will […]

What is National Company Law Tribunal (NCTL)

National Company Law Tribunal

What is the National Company Law Tribunal (NCLT) The National Company Law Tribunal (NCLT) plays a pivotal role in the legal and regulatory framework governing corporate entities in India. Envisioned as a specialised forum for corporate dispute resolution, the NCLT was established to address complex issues arising from the Companies Act and other related statutes. […]

Risk Management In the CFO Role

Risk Management

Risk Management In the CFO Role General risks in financial systems of firms Startup Financial risk management Financial risks management structure for business What is Business Risk Business risk is the potential for adverse events, circumstances, or outcomes that can negatively impact a business’s operations, financial health, or overall performance. These General risks in financial […]

Foreign Exchange Management Act 1999 Guide

Foreign Exchange Management Act

Understanding of Foreign Exchange Management Act 1999: Understanding the Dynamics of the ACT Foreign Exchange Management Act 1999, called FEMA, was introduced to cater to the need for growing regulations around foreign exchange transactions after the Indian economy opened for foreign investment in 1991. It also replaced the Foreign Exchange Regulation Act of 1973 with […]

A Deep Dive into the Strategies and Benefits of Taxes Saved by Businesses

Taxes Saved

Saving on taxes or understanding tax-saving tips is a crucial aspect of managing business finances effectively. A common question often arises about how to save ta in a private limited company in India. Can we do something legally so that taxes are saved? Some tax planning tips can be implemented in today’s business life to […]

The Evolution and Landscape of Startup Funding in India: A Comprehensive Analysis

Startup

The Evolution and Landscape of Startup Funding in India: A Comprehensive Analysis India has emerged as a hotbed for startup innovation and entrepreneurship in recent years. Fueled by a booming digital economy, a growing pool of skilled talent, and supportive government initiatives, the Indian startup ecosystem has witnessed remarkable growth. Central to this growth is […]

A Complete Guide To ESPOs

ESOPS

ESOPs are the employee stock options that are direct compensation offered by the companies to their employees, granting them the right to purchase a specific number of company shares at a predetermined price within a specified period. ESOPs allow employees to benefit from the potential growth of the company’s stock over time. To whom ESOPs […]

Tax collected at source on the sale of goods

TDS

Tax deductions at source, primarily called as TDS (Withholding Tax in some countries), are collected for making the payment of services. Likewise, Tax collected at sources (TCS) is a significant method employed by the tax authorities to gather taxes on the sales of certain goods. The government ensures all sellers collect TCS at the point […]

GST amnesty scheme 2023

GST amnesty scheme 2023

GST Amnesty Scheme is the process in which the government of India allows a taxpayer to apply for notices received before March 2023 in the Amnesty schemes launched in the year. It is to apply for an appeal against the orders filed.  The Central Board of Indirect Taxes and Customs (CBIC) announced an amnesty scheme […]

Appointment of Directors: Managing Director, Shareholders

Appointment of Directors

Appointment of Directors in company law is an essential topic for discussion in corporate governance and how the Director role differs from the Shareholder and the company. Directors’ responsibilities include: Overseeing the management, Custodian of corporate governance, Assume multifaceted role within the organisation, Making strategic decisions, and Safeguarding the interests of various stakeholders.  These individuals […]

Meaning, Benefits, & Reasons for Company Buyback of Shares

Buyback of shares

Buyback of Shares – Meaning To understand the buyback of shares, it is essential to understand what shares are, which shares the companies are interested in buy-back, and why. What are Shares Equity shares in Common and preferential stocks are issued to ordinary people or investors through Initial public offerings or private placements. Shares are […]

Startup Company registration in India

startup company Registration

What is the definition of Startups? A company established through the Legal structure of an LLP, OPC or a Private Limited company as governed by the Central Government of India Ministry of Corporate Affairs. A company should have one or more entrepreneurs with a shared vision to create unique and irreplaceable products or services. A startup […]

Gratuity Exemption: a Term Explained in Detailed

Gratuity Exemption

Understand Gratuity Exemption most simplistically. A retirement benefit is given to the employee upon completing 5 or more years in the organization. Specific regulations govern it and come with certain benefits and exemptions for employees’ post-retirement finance needs. The amount received by the employee is quite significant and valuable. To explain the Gratuity exemption sections […]

The Procedure For Recovery Of Customer’s Outstanding

Sales is always an integral part of the business because when there is sale there is business and growth.  Many times in the enthusiasm of selling to customer business end up blocking funds by not performing the right collection process. Customer takes advantage of our weaknesses and keeps blocking the money with no timeframe to […]

An Introduction to Tax Advisory Service

Introduction  Taxes are mandatory and an integral part of every business’ finance out there. Taxes payable vary from business to business depending on niche, size, and type of business. But more often than not, this entire process becomes rather tiring, as taxation is a long and onerous process. Hence, businesses these days outsource tax accounting […]