Maintenance of Registers and Records-Chapter-14-Best CS Executive Live Classes

MAINTENANCE OF REGISTERS AND RECORDS

Statutory Registers to be maintained under Companies Act, 2013

S.No.

Form

Name of the Register

Relevant Section and Rule

1

MGT-1

 

Register of Members

Section 88 (1) and Rule 3(1) of the Companies
(Management and Administration) Rules, 2014

2

MGT-2

 

Register of Debenture Holders/ Other Securities Holders

Section 88 (1) and Rule 4 of the Companies
(Management and Administration) Rules, 2014

3

MGT-3

 

Foreign Register of Members, Debenture holders, other security holders or beneficial

owners residing outside India

Section 88(4) and Rule 7 of the Companies
(Management and Administration) Rules, 2014

4

Register

 

Register of Directors and Key Managerial Personnel and Their Shareholding

Section 170 & Rule 17 of Companies (Appointment & Qualification of Director) Rules, 2014

5

Register

Index of Members

Section 88 (2) and Rule 6 of the Companies
(Management and Administration) Rules, 2014

6

Register

Index of Debenture Holders

Section 88 (2)

7

Register

Register and Index of Beneficial Owner

Section 88(3)

8

SH-2

Register of Renewed and Duplicate Share Certificate

Rule 6 of the Companies (Share Capital and

Debentures) Rules, 2014

9

SH-3

Register of Sweat Equity Shares

Section 54 and Rule 8(14) of the Companies
(Share Capital and Debentures) Rules, 2014

10

SH-6

Register of Employee Stock Option

Section 62 and Rule 12(10)

11

SH-10

Register of Shares/Other Securities Bought Back

Section 68 and Rule 17(12) of the Companies
(Share Capital and Debentures) Rules, 2014

12

Register

Register of Deposits

Section 73 and Rule 14 of the Companies
(Acceptance of Deposits) Rules, 2014

13

CHG-7 Register

Register of Charges

Section 85 and Rule 7 of the Companies (Registration of Charges) Rules, 2014

14

MBP-2

Register of Loans, Guarantee, Security and Acquisition Made By Company

Section 186 and Rule 12 of the Companies
(Meeting of Board and its Powers) Rules, 2014

15

MBP-3

Register of Investment Not Held In Its Own Name By The Company

Section 187 and Rule 14 of the Companies
(Meeting of Board and its Powers) Rules, 2014

16

MBP-4

Register of Contracts with Related Party and Contracts and Bodies etc. in which
Directors are Interested

Section 189 and Rule 16 of the Companies (Meeting of Board and its Powers) Rules, 2014

 Other Important Books and Registers

Minutes Book

  •  Board Meeting Minutes Book
  • General Meeting Minutes Book (i.e. AGM, EGM, Postal Ballot, Creditors Meetings, Debenture holders Meetings)

 

Books of Accounts/Financial Statements

 

Register of Directors Attendance at Board/Committee Meetings.

 

 Financial Records required to be maintained by Enterprises

Income Records
To be able to accurately state income is important due to several reasons. Not only is it important to be able to assess the viability and strength of the business but it is also important that financial records neither overstate nor understate the incomes earned by the business.

Overstating revenues subjects the business to additional tax costs whilst understatement of income can attract penalties on account of tax evasion.

Ordinarily invoices must contain the following information heads :

  • Name of issuing business
  • Address of business
  • Date of issue
  • Serial No
  • CIN ( company identification no) if business is being run by a company
  • Service tax, VAT registration numbers ( if applicable)
  • Description of goods, services as well as prices
  • Details of taxes levied, if any
  • Total invoice Value

 

Expenses and Purchase Records
To be able to determine your business’s profitability it is important that you should record and retain details of expenses and purchases made by your business. Documents that contain such details include:

  • Invoices received
  • Credit card statements
  • Receipts/ counterfoils
  • Cheque book counterfoils
  • Cash vouchers
  • Salary information
  • Credit Documents

Collectively, these will represent the sum total of monies expended by the business in the pursuit of its main activities. Retaining and filing this data shall lead to meaningful information on the expense patterns of the company which can then be used to make informed decisions by the business owners.

This data is also useful in a tax context as it will form the basis for the justification of profitability figures as reflected by the business in its returns of incomes during scrutiny proceedings undertaken by the income tax department.

Banking Records
Bank records offer great insight into the transaction undertaken by a business. To be able to correctly ascertain the financial strength of an enterprise it is necessary that the bank balances as per records be in sync with the reality. To accomplish this a business must maintain up to date records of :

  • Bank account statements along with reconciliations
  • Cheque books, with completed counterfoils
  • Cheque/ Cash Deposit Counterfoils

The aforementioned data sets allow one to determine the exact deposits and withdrawals from the bank as well as identify the nature and purpose of such withdrawals along with the identity of the person to whom such payments have been made.

Cash Records
Despite all advances in banking technology and facilities, businesses must still undertake a large number of transactions in cash. Due to the very sensitive nature of cash holdings and transactions, It is important from a business as well as reporting perspective to have a tight handle on the cash in circulation within the enterprise.

To be able to actively ascertain the exact amount of cash available, a business must maintain two principle documents:

  • Cash collection register, to record and reconcile all collections made by the business in cash, and;
  • Day books / Cash book to map the inward and outward movement of cash from the Business

Checklist For Compliances

Checklist For Incorporation

Incorporation as One Person Company

Serial No.                                                       Compliance                                     Action

1.

Obtain Digital Signature Certificate(DSC) for the proposed Director(s)

 

2.

Obtain Director Identification Number(DIN) for the proposed Director(s)

 

3.

Select suitable Company Name, and make an application to the Ministry of Corporate Affairs for availability of name

 

4.

Draft MOA & AOA

 

5.

Sign and file various documents including MOA & AOA with the Registrar of Companies electronically

 

6.

Payment of Requisite fee to Ministry of Corporate Affairs and also Stamp Duty.

 

7.

Receipt of Certificate of Registration / Incorporation from ROC

 

Incorporation as Small Company

1.

Obtain Digital Signature Certificate(DSC) for the proposed Director(s)

 

2.

Obtain Director Identification Number(DIN) for the proposed Director(s),

Notified by the Income Tax Authorities

 

Annual Compliances for Sole Proprietorship

1.

Proprietorship will have to file their annual tax return with the Income Tax Department. Other tax filings like service tax filing or VAT/CST filing may be necessary from time to time, based on the business activity performed .However, annual report or accounts need not be filed with the Ministry or Corporate Affairs, which is required for Limited Liability Partnerships and Companies.  

 

Annual Compliances for Partnership

1.

Intimation of change in Principal Place / nature of business/firm name in Form B

 

2.

Intimation of change in the name (person/Limited Company and address of the partner)in Form D

 

3.

Intimation of change in Constitution-Admission/Retirement/Dissolution/Death of Partner/Minor partner in Form E

 

Notes:
Failure of the company to maintain statutory register could result in a fine of not less than Rs.1 lakh, which may extend to Rs.10 lakh. Further, the Officers of the company may also be punishable with imprisonment for a term which may extend to six months or with a fine not less than Rs.25 thousand which may extend to Rs.1 lakh.

Place of Keeping the Records and Registers
Unless otherwise notified, it is assumed that statutory registers are kept at the address of the registered office of the company. Such registers may also be kept at any other place in India in which more than one-tenth of the total number of members entered in the register of members reside, if approved by a special resolution passed at a general meeting of the company.

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