Tax, business & compliance,
explained clearly.

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Corporate Laws

Search and status report on the charges of a company: why a lender asks for it, the records examined under sections 77 to 87 of the Companies Act, 2013, and what the report sets out

The Companies Act, 2013 never uses the words "search report" or "status report"; it is a practice document, not a legal requirement. Its legal base is the duty to register a charge (section 77), the Registrar's register (section 81), the company's own register (section 85), satisfaction entries...

7 min read11 Oct 2026→

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Corporate Laws

Shareholder activism under the Companies Act, 2013: requisitioning a general meeting, proposing a resolution, special notice to remove a director, inspection rights, and the Tribunal remedies for oppression and class action

The Act gives members a ladder of tools, from the mildest (information) to the strongest (an application to the Tribunal). Each tool has its own eligibility test, printed in the section itself, and most turn on a share of the voting power or capital. This is a map of statutory tools, not advice to...

8 min read11 Oct 2026→

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Corporate Laws

Directors and officers liability insurance and the other protections for directors: section 197(13) on the premium, relief by the court under section 463, the limit in section 149(12), and indemnity in the articles

The only provision of the Act on insurance is section 197(13): it says how the premium is treated, and it does not make insurance compulsory. Beyond that, a director may look to relief by the court (section 463), the limited liability of independent and non-executive directors (section 149(12))...

7 min read11 Oct 2026→

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Corporate Laws

Crisis management for a company board: the kinds of crisis, the response team, the first decisions, communication, statutory reporting and the review afterwards

No statute requires an unlisted company to have a "crisis management plan"; it is good practice, not a legal requirement. The Companies Act, 2013 does touch the subject through the risk management statement in the Board's report, the auditor's duty to report fraud and the vigil mechanism. A good...

6 min read11 Oct 2026→

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Corporate Laws

Term sheet and share subscription agreement for a private company funding round: what each document does, the key clauses, conditions precedent, and the Companies Act steps that follow

The term sheet is a commercial document: mostly non-binding on price and structure, with a few clauses usually made binding as practice (confidentiality, exclusivity, costs). The share subscription agreement is the binding contract under which the investor pays and the company issues shares, after...

6 min read11 Oct 2026→

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Corporate Laws

Intellectual property audit for a company: what it covers, the steps, the IP register it produces, and the gaps it usually finds in ownership, registration and contracts

There is no statutory requirement for a company to run an IP audit; it is practice, not a legal requirement. A good audit lists every asset, checks who owns each one on paper, confirms registration and renewal status, reviews licences in and out and encumbrances, and ends with an IP register and an...

6 min read11 Oct 2026→

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Corporate Laws

Intellectual property commercialisation: assignment, licence or franchise, how to choose between them, and what the trade mark, patent, copyright and design laws require for each

An assignment transfers the right itself; a licence lets another person use it while you stay the owner; a franchise is a licence of a brand together with a business system. India has no single franchise statute, so a franchise rests on contract plus the trade mark and other laws. Each IP Act has...

6 min read11 Oct 2026→

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Corporate Laws

Forensic audit and investigation of a company in India: the laws under which it arises, who can order it, and what follows, under the Companies Act, the insolvency law and the money-laundering law

The Companies Act, 2013 does not define or prescribe a "forensic audit". Its phrase "forensic audit" appears only in the list of fields from which experts of the Serious Fraud Investigation Office are drawn (section 211(2)(iv)). The Act does provide separate routes: the auditor's fraud report, the...

6 min read11 Oct 2026→

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Corporate Laws

Statutory audit, investigation and forensic audit compared: purpose, who appoints, scope, powers, evidence and the report, and how a board commissions a forensic review

A statutory audit gives an opinion on the financial statements, by sampling, under the Companies Act. An investigation is ordered by the Central Government or on a Tribunal order, and inspectors hold statutory powers. A forensic review is usually a contractual engagement that traces specific facts...

6 min read11 Oct 2026→

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Corporate Laws

Essential Commodities Act, 1955: what an essential commodity is, the Schedule, how the Central Government controls production, supply and trade by orders under section 3, and delegation to the States

A commodity is "essential" if it is in the Schedule (section 2A). Section 3 lets the Central Government, by order, regulate or prohibit production, supply, distribution and trade in it, and sub-section (2) lists what such an order may cover. The order in force for your commodity and State decides...

8 min read11 Oct 2026→

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Corporate Laws

Sections 6A to 7 and 10 to 12A of the Essential Commodities Act, 1955: confiscation by the Collector, show cause notice and appeal, penalties, offences by companies, cognizance and summary trial

Confiscation by the Collector (sections 6A to 6E) and prosecution (sections 7 onwards) are separate tracks. A confiscation order needs a written show cause notice and a hearing (section 6B) and can be appealed within one month (section 6C). Contravening an order under section 3 is punishable under...

9 min read11 Oct 2026→

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Accounting Standards & Bookkeeping

When the law requires a valuation report in India: the Companies Act triggers, who appoints the registered valuer, and where income-tax and FEMA ask for a different valuation

Where the Companies Act requires a valuation, section 247 says who values and who appoints. The Act itself names a registered valuer in a handful of places: a share issue to chosen persons, a non-cash deal with a director, a debt restructuring scheme before the Tribunal, a buy-out of the minority...

7 min read11 Oct 2026→

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Accounting Standards & Bookkeeping

Discounted cash flow (DCF) valuation of an unlisted company: forecasting the cash flows, choosing the discount rate, the terminal value and the equity value, with a worked example for a small manufacturer

DCF = forecast cash flow available to the firm (FCFF) for each year, discount each at the cost of capital, add a terminal value for the years after the forecast, and deduct net debt to reach equity value. Terminal value by constant growth = FCFF in the last year × (1 + g) ÷ (discount rate − g)...

6 min read11 Oct 2026→

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Accounting Standards & Bookkeeping

Net asset value (NAV) method of business valuation: book value, adjusted net assets and value per share, and when the asset approach fits, with a worked example for a property-holding company

NAV = value of all assets − all liabilities, including claims ranking ahead of equity such as preference capital. Book NAV uses the figures in the balance sheet; adjusted NAV restates assets to realisable or replacement value, brings in liabilities that are not on the books, and allows for tax on...

6 min read11 Oct 2026→

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Accounting Standards & Bookkeeping

Comparable company multiples method: EV/EBITDA, P/E, price to book and revenue multiples applied to an unlisted company, with a worked example for a regional distributor

Multiple = value of the comparable ÷ its earnings measure. Apply the chosen multiple to your own normalised earnings measure. Enterprise multiples (EV/EBITDA, EV/revenue) give enterprise value, from which net debt is deducted; equity multiples (P/E, price to book) give equity value directly. The...

5 min read11 Oct 2026→

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Accounting Standards & Bookkeeping

From enterprise value to equity value per share: net debt, surplus assets, preference shares, control premium and the discount for lack of marketability, with a worked example for a private company

Equity value = enterprise value − debt and debt-like items + cash and surplus assets − preference capital. Value per share = equity value ÷ fully diluted equity shares. A control premium may be added for a block that carries control, and a discount for lack of marketability may be taken off a block...

6 min read11 Oct 2026→

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Accounting Standards & Bookkeeping

Small business and MSME valuation: normalising the profit, capitalisation of maintainable earnings and a cross-check on net assets, with a worked example for a proprietorship being sold

Maintainable earnings = the profit a new owner could expect, after normalising the accounts. Value of the business = maintainable earnings ÷ capitalisation rate. Goodwill = that value − adjusted net assets. The capitalisation rate is the valuer's assumption, not a market figure, so show the value...

6 min read11 Oct 2026→

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Accounting Standards & Bookkeeping

Business model types and unit economics: how a business creates, delivers and captures value, the common revenue models, and contribution per customer, with a worked example for a subscription service

A business model describes who the customer is, what is offered, how it reaches the customer, how money comes in, what it costs and what resources it needs. Unit economics measures one customer: revenue less variable cost is the contribution; the cost of acquiring the customer, divided by monthly...

6 min read11 Oct 2026→