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Preparation Tips for IPCC Exams

Preparation Tips for IPCC Exams
Hi students first of all am happy to express my heartiest congratulations those who have achieved success in IPCC examination and let me wish them all the best in their future activities. So my dear students who got negative result do not loss your confidence and start preparation for the next exams with fresh mind and determination, but one thing is famous personalities who failed many times before they tasted success. My dear student’s success it is the product of both intelligence and hard work. So for CA exams both required. Most of the Students are strangling how to start the preparation, from where to start and from which subject to start etc., to overcome such difficulties kindly observe following steps:

Step 1: After completion of your coaching classes analyse yourself
remaining period left for exams and decide for both groups and single group.
Step 2: Draw a schedule for preparation.
Step 3: I would suggest to all, theory subjects better to study early morning.
Step 4: Problematical papers like Accounts, costing & FM have to be practice subject to time constrain otherwise in examinations difficulty to solve the problems with in time.

Step 5: Before going to exams you have to revise total syllabus 2 to 3 times.
Step 6: My dear students in law & income Taxation subjects don't quote wrong section its results may negative marks. If you have 100% confident then quote section otherwise quote as prescribed section.
Step 7: In CA examinations presentation is very important factor and start every question in fresh page and quote question number in middle of the page & try to avoid striking this is helpful to get more marks.

Step 8: After exam don't discuss with your friends regarding the exam. And left your question paper in examination hall and start your preparation for next exam.

Step 9: suppose in group I Accounts paper if you not presented properly just ignore it and prepare for next exam. Normally if any one of the paper not presented properly students are not concentrating on remaining exams. My dear students don't do this kind of mistake may be in remaining papers u may get exemption so think positive.

Step 10: Dear students after completion of your exams in case u have doubt any subject start your preparation immediately because after announcing of the result u have only 2.5 months only for clearing CA exams may be take one or two attempt so don't get mentally stress.

Subject wise tips:
1.    IT & SM: I would suggest to all, start SM subject preparation from last chapter to first chapter. And IT start with flowcharts & decision table later on network, inter net, DBMS finally 1st chapter. From practice manual 40 to 45 marks will expect so concentrate on the same. Remaining part is definition part may be expecting 10 to 15 marks.

2.    INCOME TAX: You have to read every concept in income tax paper & foremost total income problems important. For every problem u have make note points it may help for good marks. Put the currency symbol. My sincere advice is don't start with total income problem in examination y because its take more time for complete. At the time of preparation first of all finish indirect tax (service tax & VAT) because its less concept u may get almost 50 marks.

3.    AUDITING: In auditing subject, company auditor chapter is very important and u can expect 15 to 25 marks. And auditing standards also very important for exams point of view. Auditing is very easy subject and scoring subject.

4.    ACCOUNTS: Group I & II accounts subjects very important subjects and u may expect 12 to 25 marks from accounting standards in each paper. In examination presentation starts with journal entries problem then ledger a/c after that final a/c problem, because time management is very important in CA examinations.

5.     COSTING & FM: In this subject first of all theory part u have to prepare and we can expect 30 to 35 marks later on start practice problems in both costing & FM otherwise u may not  solve the problems in examination.

6.     LAW: First of all prepare company law & other laws because around 50 to 60 marks cover in these topics. Later on business communication etc.
IMPORTENT POINTS:
1.    Time management is very important in CA examination for each question you have 30 minutes and have to finish with time.
2.     And Don't study after 11 :30 PM
3.     Sleep every day 6 to 7 hours and take food properly.
4.    Present your answer point wise.
5.     Don't refer 2 to 3 author books and for IPCC exams coaching materials more than sufficient.
6.    I would suggest you to read the suggested answers carefully its
useful to your examinations.


Before winding up I would wish to all the students who are appearing November 2015 exams. I hope this article useful to your preparation. God bless you and u will come out with the flying colours.

When is Cash Flow statement mandatory for Private limited under New Companies act 2013

Image result for cash flow statement private company

Definition of Financial Statement as per CA, 2013
As per Section 2(40) of the CA, 2013 “financial statement” in relation to a company, includes—
(i) a balance sheet as at the end of the financial year;
(ii) a profit and loss account, or in the case of a company carrying on any activity not for profit, an income and expenditure account for the financial year;
(iii) cash flow statement for the financial year;
(iv) a statement of changes in equity, if applicable; and
(v) any explanatory note annexed to, or forming part of, any document referred to in sub-clause (i) to sub-clause (iv):
Exemption available
Provided that the financial statement, with respect to One Person Company, small company and dormant company, may not include the cash flow statement i.e. there is an exemption given to OPC, small company and dormant Company for preparing the Cash flow statement for purpose of inclusion in financial statement.
What is OPC, Small Company and dormant company ?
a) One Person Company
As per sec 2(62) of The CA, 2013 “One Person Company” means a company which has only one person as a member.
b) DORMANT COMPANY
As per sec 455 of The CA, 2013 “Dormant Company” means a company
(1) Where a company is formed and registered under this Act for a future project or to hold an asset or intellectual property and has no significant accounting transaction, such a company or an inactive company may make an application to the Registrar in such manner as may be prescribed for obtaining the status of a dormant company.
Explanation.—For the purposes of this section,—
(i) “inactive company” means a company which has not been carrying on any business or operation, or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years;
(ii) “significant accounting transaction” means any transaction other than—
(a) payment of fees by a company to the Registrar;
(b) payments made by it to fulfill the requirements of this Act or any other law;
(c) allotment of shares to fulfill the requirements of this Act; and
(d) payments for maintenance of its office and records
c) SMALL COMPANIES:
Sec 2(85) ‘‘small company’’ means a company, other than a public company,—
(i) paid-up share capital of which does not exceed fifty lakh rupees (Rs 50 Lakhs ) or such higher amount as may be prescribed which shall not be more than five crore rupees; ( Rs 5 Crores) or
(ii) turnover of which as per its last profit and loss account does not exceed two crore rupees ( Rs 2 crore ) or such higher amount as may be prescribed which shall not be more than twenty crore rupees ( Rs 20 crores ).
Provided that nothing in this clause shall apply to—
(A) a holding company or a subsidiary company;
(B) a company registered under section 8; or
(C) a company or body corporate governed by any special Act;
Analysis of Small Company:-
(1) A public company will never be a small company.
(2) A Private company should have a maximum of :-
(a) Paid up capital of Rs 50 Lakhs
(b) Turnover of Rs 2 Crores.
(3) Holding and Subsidiary will always be out of the picture of small companies.
Scenario as per old Companies Act, 1956
Such definition of ‘Financial statement’ neither was available under the CA, 1956 nor was the term used in any sections in that Act. Earlier, the Companies (Accounting Standards) Rules, 2006 exempted ‘SMCs’ from preparing the cash flow statement.
Format to be used for preparing Cash Flow Statement
Since no format is prescribed in Schedule III to the CA, 2013, the cash flow statement shall be prepared in the format prescribed in the AS-3 –Cash Flow Statement only.
Applicability of Accounting Standards
Section 129 of the CA, 2013 requires that the financial statements shall comply with the accounting standards notified under Section 133 and Section 133 provides that the Central Government may prescribe the standards of accounting or any addendum thereto, as recommended by the Institute of Chartered Accountants of India, in consultation with and after examination of the recommendations made by the National Financial Reporting Authority.
Rule 7 of the Companies (Accounts) Rules, 2014 provides that as a transition provision, the standards of accounting as specified under the Companies Act, 1956 (i.e. the Companies (Accounting Standards) Rules, 2006) shall be deemed to be the accounting standards until accounting standards are specified by the Central Government under Section 133.
Conclusion
The inclusion of cash flow along with balance sheet and P&L for all companies is a new requirement. Earlier only listed companies under listing agreement clause no. 32 are required to prepare cash flow statement as per AS 3 of Accounting standards issued by the ICAI.
Simply, We can state that the cash flow statement shall be prepared for all companies (including Private Company) however the certain exemption is provided to OPC, Dormant Companies and Small Companies.
Since the Companies Act, 2013 does not lay down any format for preparation of cash flow statement, companies will need to follow AS 3 in this regard. In respect of listed companies, the listing agreement requires the indirect method for preparing cash flow statements. Thus, under the Companies Act, 2013, non-listed companies will have a choice of either applying the direct or indirect method under AS 3 to prepare the cash flow statement. Due to the listing agreement requirement, that choice will not be available to listed companies
This means a private limited company with paid up share capital of less than 50 lakh rupees or such higher amount as may be prescribed (not exceeding 5 crore ruppes) or with a turnover of less than 2 crore rupees or such higher amount as may be prescribed (not exceeding 20 crore rupees) is not required to prepare cash flow statements while preparing financial statements at the end of the financial year.
Please remember, it’s not a mandatory provision. If small companies want then they can prepare their cash flow statements and file it with registrar of companies or ROC.