VC: a career for a Chartered Accountant

VC is venture capital financing, in that companies or individuals invest into companies when they are just a concept and invest into the company. There are five stages and VC’s invest in the five stages of financing which are seed, start up, second, third and bridge/ pre IPO stage which is when the investors exit the firm through IPO (initial public offering).

It is a very good career line for a chartered accountant because of the following reasons:

  • Business expertise. Aside from the financial backing, obtaining venture capital financing can provide a start-up or young business with a valuable source of guidance and consultation. This can help with a variety of business decisions, including financial management and human resource management. Making better decisions in these key areas can be vitally important as your business grows.
  • Additional resources. In a number of critical areas, including legal, tax and personnel matters, a VC firm can provide active support, all the more important at a key stage in the growth of a young company. Faster growth and greater success are two potential key benefits.
  • Venture capitalists are very well connected in the business community. Tapping into these connections could have tremendous benefits.

There are various disadvantages also:

  • Loss of control. The drawbacks associated with equity financing in general can be compounded with venture capital financing. You could think of it as equity financing on steroids. With a large injection of cash and professional—and possibly aggressive—investors, it is likely that your VC partners will want to be involved. The size of their stake could determine how much say they have in shaping your company’s direction.
  • Minority ownership status. Depending on the size of the VC firm’s stake in your company, which could be more than 50%, you could lose management control. Essentially, you could be giving up ownership of your own business.

 

Written by Jyotsna Singh

Finance Intern at CA Learning

 

To know more – http://calearning.com

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ADVANTAGES OF E-LEARNING

advantage

CA learning is a vocational course which has to be complemented with practical hands on experience for three years. A CA trainee should start learning practicalities from the beginning by way of practical training. This needs constant updates in law especially in the subjects of Direct Tax, Indirect Tax, Company Law, Financial Reporting and Auditing. Hence, firstly: updates in the e-learning can play an important role.

Secondly , all of the students are not equal in terms of the learning abilities. Some are fast and some are slow learners. The physical classes and satellite based learning are not helping the students of different abilities to learn with ease. E-learning allows the students to revise and recall the CA course quickly.

Thirdly, the students don’t take their practical training holistically. In order to cover the coaching, they miss their valuable training which is the essence of CA course.  They come late in office and sometimes leave their offices early to reach these classes. They tend to avoid the outstation audit in the pretext of the coaching classes. What does all of this lead to eventually. They can’t become a holistic accountant.

Fourthly, there is always a need to assess which allows a person to check the progress  at the three tier  level. Assessment at the concept level through MCQs along with the net answers and their explanation is desirable. Chapter based questions and answers allow a person to understand their progress. Finally, two mid -term assessments at the half course level and one at the full course level allows a person to become geared to face the CA final exam with confidence.

Lastly, mentorship is required to keep the motivation of the students high as the success rate of the students in this examination is low. Exam related strategy, revision strategy , learning methodology and presentation skills in the examination are required to be known to the examinees.

Hence all the five features are desirable features which are required to make a student face CA exam with confidence. You can be a winner if you can face all the above challenges.  www.calearning.in  allows a student to get all the five solutions.

Eagle’s eye

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SUCCESS HAS NO BOUNDRIES

Friday morning ,as I was browsing through The Economic Times I Came across the ET Panache Section. The front page story’s headline was catchy & difficult to miss ‘Laundry to London”, with pictures of ,a man in his late 30’s, a Mercedes & Mr Arun Lal was more than enough to make me dig deeper & find out what it was about. The story was about the biological son of a laundryman & how he was able to beat the odds & went on to graduate from IIM Kolkata.

He believes that he has two sets of parents, Mrs Lal & Mr. Arun Lal & the other being his biological parents. He has shown his gratitude to the former by gifting them a Mercedes & helping them buy a bungalow.

Mr. Bikash Chowdhury,associates VP of treasury at JSW Steel, a man from Kolkata was taken under the wings of Arun Lal & his wife Debjani has went on to achieve great things, which at 11,he would never have thought was possible. The impossible dream was made true by the hard working young man with motivation & help from the Lal’s, Mrs Lal’s orange squash & Bikash’s friends & seniors in the college among others.

Sports played a major role in developing a bond between Chowdhury & ‘Piggy” AKA Arun Lal Chowdhury was a midfielder for Young Bengal, a first division football club also played cricket at U16 level even though he was not very fond of it. He want to become a footballer but his mentor,”Piggy”, though encouraging,made him realize that there was no guarantee in sports & so he focused on studies after class 9.

 

Vijay Kapur – President & Dean of CA Learning

PS: The article in ET Panache is available on 

 

 

 

 

Analysis of CA Final Examination

Analysis of CA Final – Corporate & Allied Laws Paper

by CA Learning (CALS) Faculty Mr. R. D. Maheshwari

analysis

Dear students,

With examinations over, students are thinking for the future. How this examination paper May, 2016 looks like?

We have attempted to make analysis of this paper.  Besides, We have given a few suggestions for the preparation. Though the syllabus of the paper is lengthy yet scoring good is no problem. With your passion for work, and your capacity and willingness to work, things are within your grasp and look brighter.

With best wishes.

Few Tips in relation to examination paper May, 2016 Corporate and Allied Laws

Suggestions and Guidelines

Nature of the paper:

  • Paper has more than 30 questions to answer.
  • Paper runs through 11 pages.
  • Paper covers almost all topics
  • Syllabus of the subject can be divided in three parts.
  • Ist Part in relation to Board of Directors
  • IInd Part in relation to remaining portion of Companies Act
  • IIIrd Part in relation to Allied Laws

All parts of the syllabus have been duly covered in the paper

WHETHER EXAMINATION PAPER IS DIFFICULT OR EASY OR EXPECTED QUESTIONS WERE ASKED?

No ready made answer is available.   One has prepared well and his or her preparation is thorough, examination paper poses no problem and this is the essence of the paper.  Read well, understand well, grasp well, and cover almost entire syllabus are critical. However, with half hearted preparation,   with casual approach to the subject, one will have to pay heavily.

WHAT ARE IMPORTANT TOPICS AND WHAT ARE NOT?

This paper does not entertain such thoughts.

WHAT IS CRITICAL OF THIS PAPER?

Paper is based on legal provisions. Though the questions are heavily loaded in favour of problems –based questions, to answer them all needs the appreciation of legal provisions.  Know the legal provisions, answer them and answer them well.

WHETHER THIS SUBJECT IS SCORING?

This paper is scoring. To score 70 plus, 80 plus is possible.  Essence is the reparation of the subject and preparation well.

WITH MATERIAL SUPPLIED CAN ONE ANSWER 100 PER CENT OF PAPER?

Yes. 

Material supplied is in three parts

  • Part I known as volume 1 deals with Board of Directors.
  • Part II known as volume II deals with remaining portion of Companies Act, 1956 and Cos Act, 2013
  • Part III known as Volume III deals with Allied Laws

With the material supplied, Material supplied, 100 % examination paper can be answered.

May, 2016 Examination Paper

CA Final Corporate & Allied Laws

Volume I (Board of Directors)

Q No     Nature of Question      Topic  & Chapter Section involved Marks CA Learning Page
2 (c) Notice for Board meeting Chapter 6 Meetings of the Board 173 (3) of Cos Act 13 4 22
3 (ii) Disclosure of Interest  by Director

Validity of contract

Chapter 19 Disclosure of interest by Director 184 (2) of Cos Act 13 4 80
4(a) To constitute audit committee  & its functions

Draft resolution

Chapter 24 Audit Committee and Nomination and Remuneration Committee 177 of Cos Act 13  

8

101 & 102
4 (b) No. of Independent Directors Chapter 1 Board of Directors 149 of Cos Act 13 4 2 & 3
5(a) (i)(ii)

(iii)

Remuneration to M.D.,

Remuneration to Directors

For Professional services

 

Chapter 17 Appointment of Managing Director, Whole time Director, Manager and Remuneration of Managerial Personnel 197 of Cos Act 13 8 63 to 66
7(a) Small Shareholders Director

Small shareholders serving notice

Tenure of such directors

Chapter 5 Appointment of Director Elected by Small Shareholders 151 of Cos Act 13 4 19 & 20

 Volume 2 Remaining portion of Companies Act

Q No. Nature of Question Topic & Chapter Section involved Marks CA Learning Page
1(a) Filing of Annual  financial statement

Liability for default

Chapter 30 Accounts 137 of Cos. Act, 2013 4 138 & 139
1 (b)

 

1 (D)

Seizure of documents by registrar

 

MCA 21

Chapter  32 Inspection

 

Chapter 41 Corporate Secretarial Practice

220 of Cos Act, 2013

 

MCA 21

4

 

4

168

 

281

2(b) Powers of Govt. to appoint directors Chapter 36 Prevention of Oppression & Mismanagement 408 of Cos Act, 1956

Though question asked was on Cos. Act, 2013. Refer Sec 161 of Cos Act, 2013

 4 202 & 203
3(a)(i) Scheme of Amalgamation Chapter 35 Compromise, Arrangement, Reconstruction 394 of Cos Act, 1956 4 188 to 190
3 (b) Transferability of Shares

Nomination made

Chapter 37 Producer Company 581ZD of Cos Act, 1956 4 230
5(b)(i) Meaning of Govt. Co.

Subsidiary of Govt. Co.

Chapter 34 Govt. Company 2 (45)  of Cos Act, 2013 4 181
6(a) Appointment of Secretary

 

Board of Directors  directing members to surrender shares

 

Donation to Institution & political party

 

Investment of General Reserve

Investment in shares of Co

Chapter 37 Producer Company 581X

 

3581ZD

 

 

581ZH

 

581ZL of  Cos Act, 1956

8

 

224

 

230

 

 

234

 

238

6(b) Fraudulent Preference Chapter 38 Winding up 531 of Cos Act, 1956 4 256 & 257
7(b) Failure to pay Dividend Chapter 29 Dividend 127 of Cos Act, 2013 5 118 to 120
7(e) Accounts of Foreign Co. Chapter 33 Foreign Companies 381 of Cos. Act,2013 Rule 4 4 174 & 175

 Volume 3 – Allied Laws

Q No. Nature of Question Topic & Chapter Sections involved Marks CA Learning Page
1(c)(i)

 

 

(ii)

Procedure for export of software

Period in export value realized

 

Delay in receipt of payment

Chapter 44 Foreign Exchange Management Act 1999  (FEMA) Sec. 7 Export of goods & services regulation 4 311 & 312
1(e) Settlement of Proceeding by Adjudicating Authority for settlement Chapter 47 Securities Contract (Regulation)Act 1956 23JA 4 387 & 388
2(a)(i)

 

 

 

2(a) (ii)

IPO- Promoters contribution

Lock in period

 

 

SEBI undertakes inspection & measures taken

SEBI may order for investigation & to pass cease & desist order

(11)(c) & 11(d)

Chapter 45 Securities & Exchange Board of India Act 1992 Reg.32 (ICDR)

Reg. 36

 

 

11(2) & 11(4)

4

 

 

 

4

343 & 344

 

 

 

323 &324

3(c)(i)

 

 

3(c)(ii)

Products sold below the cost & to eliminate competition (Predatory price) & actions taken

 

Anti – Competitive Agreement

 

Chapter 46 Competition Act 2002 Sec. 4 Abuse of Dominant Position.

 

Enquiry & to discontinue Sec. 3 

4 361 to 363

 

 

360

4(c) Tariff Advisory Committee Chapter 51 The Insurance Act 1938 Sec 64(u) 4 442
5(c) Banking co. taking over management as per SARFAESI

Compensation for Loss of office

Rights of shareholders on take over

Chapter 50 The SARFAESI Act 2002

 

 

Sec 15 & Sec 16 4 424 & 425
6(c) Adjudicating Authority attaching properties.

Remedies available to co. Aggrieved  (appeal to appellate authority)

Chapter 48 Prevention of Money Laundering Act, 2002. Sec 8

 

Sec. 26

4 403

 

409

7(d) Interpretation of Statutes (Means & includes) to give illustration Chapter 42 / Interpretation of Statute, Document & Deed   4 291

 

We wish all the best to all the examinees.

To know more: http://calearning.in

 

 

 

 

 

 

 

Saving Money vs Investing Money

saving

What is Saving Money?

It is process to keep hard cash aside, extremely safe and highly liquid. You can easily access cash and sell without any delay

What is Investing Money?

It is a process to use your money, to buy assets that can generate earnings over a period of time and asset can also be sold to generate profits.

How Much to Save versus How Much to Invest

Building a financial house! Savings has to be the foundation of your house. Saving money always come before investing money. Savings will create the road map for you investment proceeds. Investments are done to make you wealthier. In the time of crisis when you need cash, selling out investments is not likely the best option.  Savings can be a better way to tackle such situations.

Savings Program:

The Key to Saving Money is to Pay Yourself First 

  • The general rule of saving is to save as equivalent to your personal expenses, such as loan payments, bills, food expenses and clothing expenses.
  • Any specific purpose which requires large amount that should be savings driven and not investment driven. For example purchasing house

If you follow these two programs then only one can move forward to investing money.

 SAVE MONEY AND MONEY WILL SAVE YOU

 

 

 

 

TIME AS TRUMP CARD IN CA FINAL

images (21)

 

 

 

 

 

Valuing  time in CA Finals along with the practical training. Organizing time to read, to understand and solve the problems and case studies and answering the exam mock papers is the prerequisite  which can create the difference. Hence a planned study is a must.

Everyday a student must find minimum 4 hours per day to do the self- study. CA is a self -study vocational course and it requires to  optimize the time usage. The first year must be used to learn the different subjects related to work like Auditing, Financial reporting and Company law with much depth.

Students must use second year to learn such subjects which don’t   change much like Advanced Management Accounting, Information System Control Audit. In the third year the subjects like Direct Tax and Indirect Tax must be done where the amendments are happening frequently. Last six months must be devoted to write mock tests and do all amendments.

Hence systematic learning of 12000+ pages of ICAI study materials are required along with the practical training of  working under CA to gain the practical  experience. As you know time is the trump card in CA Final where the success rate is low, hence there is a need of a planner.

In India for the first time, CALS (www.calearning.in) has come with an educational course in CA Final which allows a student to do a planned learning. The embedded software allows a student to plan week by week his study plan. It allows him to see the relevant video of the different subject according to the weekly timetable. He/ She can work out by when the course will be finished. It also allows him to learn all the subjects of the group together. You pass or fail by the group, therefore there is a need of the structured learning through the software.

To know more – http://calearning.in

Real Estate (Regulation and Development) Act, 2016

The Real Estate (Regulation and Development) Act, 2016 (‘the Act’) received the assent of the President on 25 March 2016.

real-estate_01

 

The Central Government has now appointed 01 May 2016 as the date on which the following provisions of the Act will come into force:

  • Section 2
  • Sections 20 to 39
  • Sections 41 to 58
  • Sections 71 to 78
  • Sections 81 to 92

 

Click here for circular.

 

To know more : http://calearning.in/