ICSB CS Executive cheat sheet

Section 2(20) defines a company as a company incorporated under the Companies Act, 2013 or under any previous company law.

Minimum members: 7 for a public company, 2 for a private company, and 1 for a One Person Company under Section 3.

Minimum directors: 3 for a public company, 2 for a private company, and 1 for an OPC; a public company with paid-up capital of Rs. 10 crore or more, or turnover of Rs. 100 crore or more, must have at least 2 independent directors.

Maximum members in a private company is 200, excluding present and past employee-members; joint holders count as one member.

Board meetings: first meeting within 30 days of incorporation, then at least 4 meetings per year with a gap of not more than 120 days between two consecutive meetings.

Annual General Meeting must be held within 6 months of the close of the financial year and within 15 months of the previous AGM; first AGM within 9 months of the first financial year end.

Auditor appointment under Section 139 is for 5 years, ratified annually (ratification requirement omitted by the Companies (Amendment) Act, 2017); rotation applies to listed companies and prescribed classes.

Section 149(1) requires every company to have a board with at least 3 directors for a public company, 2 for private, 1 for OPC, and at least 1 woman director for prescribed classes.

Incorporation under the Companies Act, 2013 uses SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) covering name reservation, DIN, PAN, TAN, and EPFO/ESIC registration.

LLP formation requires at least 2 designated partners, with at least one resident in India; incorporation is through the RUN-LLP and FiLLiP forms.

A One Person Company must nominate a nominee in its memorandum; the nominee's written consent is mandatory, and OPC cannot carry out Non-Banking Financial Investment activities.

Strike-off under Section 248 requires extinguishment of all liabilities and assets; the Registrar may strike off a defunct company after notice and opportunity of being heard.

Voluntary winding up was largely replaced by the Insolvency and Bankruptcy Code, 2016; the Companies Act, 2013 now provides for winding up on grounds including inability to pay debts and just and equitable grounds.

Fast Track Exit (FTE) scheme allows defunct companies with nil assets and liabilities to apply for strike-off with a simplified fee structure.

A company must file INC-20A (declaration of commencement of business) within 180 days of incorporation before commencing business or borrowing.

Foreign companies setting up a place of business in India must file Form FC-1 with the Registrar within 30 days of establishment.

Corporate tax rates: domestic company under Section 115BAA pays 22% (plus surcharge and cess) if it forgoes specified exemptions; under Section 115BAB, new manufacturing companies pay 15%.

Section 115JB Minimum Alternate Tax applies at 15% of book profit for companies claiming specified exemptions; MAT credit can be carried forward for 15 years.

Tax deducted at source under Section 194C applies to contractors at 1% for individual/HUF payees and 2% for others, above the Rs. 30,000 single payment / Rs. 1,00,000 annual threshold.

Section 194J professional fees TDS is 10%; Section 194I rent TDS is 2% for plant and machinery and 10% for land or building.

Advance tax under Section 208 is payable in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March.

GST registration threshold is Rs. 40 lakh for goods and Rs. 20 lakh for services (lower for special category states); composition scheme threshold is Rs. 1.5 crore.

Input Tax Credit under GST requires a valid tax invoice, actual receipt of goods or services, tax paid to the government, and the supplier's return filing.

Section 80JJAA allows additional employee cost deduction of 30% for three years for new regular employees, subject to emoluments up to Rs. 25,000 per month.

Current ratio = current assets / current liabilities; quick ratio = (current assets - inventory - prepaid) / current liabilities.

Return on capital employed = EBIT / capital employed, where capital employed = total assets - current liabilities (or equity + long-term debt).

Break-even point (units) = fixed cost / contribution per unit; contribution = sales - variable cost, and P/V ratio = contribution / sales.

Cost of equity under CAPM = risk-free rate + beta × (market return - risk-free rate); WACC weights each source by its market value proportion.

NPV = present value of cash inflows - present value of cash outflows; accept if NPV > 0; IRR is the discount rate at which NPV = 0.

Payback period = initial investment / annual cash inflow (for even cash flows); discounted payback uses discounted cash flows.

Working capital cycle = inventory days + receivable days - payable days; a shorter cycle frees cash.

Under the Companies Act, 2013, Section 129 requires financial statements to comply with Schedule III; depreciation must follow Schedule II useful lives or a technical justification.

SEBI was established in 1988 and given statutory powers by the SEBI Act, 1992; it regulates the securities market and protects investors.

An Initial Public Offer by an unlisted company requires SEBI ICDR compliance: at least 25% minimum public shareholding post-issue for listed companies under SCRR.

SEBI (Prohibition of Insider Trading) Regulations, 2015 prohibit trading on unpublished price-sensitive information; designated persons must disclose holdings and trades.

Takeover Code (SAST Regulations, 2011) triggers an open offer at 25% voting rights acquisition; a mandatory open offer is for at least 26% of the target's shares.

Insider trading regulations define UPSI as information not generally available that, if published, would materially affect the price of securities.

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 require a listed entity to have at least one-third independent directors where the chairperson is non-executive, or half where the chairperson is executive.

Buyback under the Companies Act, 2013 is capped at 25% of paid-up capital plus free reserves in a financial year, with shareholder approval above 10% of paid-up capital plus free reserves.

The Securities Contracts (Regulation) Act, 1956 governs stock exchanges and contracts in securities; 'securities' includes shares, bonds, debentures, and derivatives.

The Indian Contract Act, 1872 requires offer, acceptance, lawful consideration, capacity, free consent, and lawful object for a valid contract.

Section 27 of the Indian Contract Act voids agreements in restraint of trade, except sale of goodwill and partnership arrangements.

The Sale of Goods Act, 1930 distinguishes a sale (property passes) from an agreement to sell (property passes in future); a condition is essential to the main purpose, while a warranty is collateral.

The Negotiable Instruments Act, 1881: a cheque is a bill of exchange drawn on a banker payable on demand; Section 138 covers dishonour for insufficiency of funds.

The Competition Act, 2002 prohibits anti-competitive agreements, abuse of dominance, and regulates combinations above the prescribed asset/turnover thresholds.

The Consumer Protection Act, 2019 established the Central Consumer Protection Authority and covers e-commerce; 'consumer' includes a person who buys goods or hires services for consideration.

The Indian Partnership Act, 1932: a partnership is the relation between persons who agree to share profits of a business carried on by all or any of them acting for all; maximum partners is 50 under the Companies (Miscellaneous) Rules, 2014.

The Insolvency and Bankruptcy Code, 2016 provides a 180-day corporate insolvency resolution process, extendable by 90 days, with a maximum of 330 days including litigation.

Financial management objectives: profit maximisation versus wealth maximisation; wealth maximisation is preferred because it considers time value and risk.

Leverage: operating leverage = contribution / EBIT; financial leverage = EBIT / EBT; combined leverage = contribution / EBT.

Dividend theories: Walter's model and Gordon's model relate dividend policy to share value; MM hypothesis holds dividend policy irrelevant in perfect markets.

Capital budgeting techniques include NPV, IRR, discounted payback, profitability index, and accounting rate of return.

Working capital management: matching approach finances current assets with short-term funds; conservative approach uses long-term funds for current assets.

Strategic management process: environmental scanning, strategy formulation, strategy implementation, and evaluation and control.

Porter's Five Forces: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and industry rivalry.

SWOT analysis evaluates internal strengths and weaknesses and external opportunities and threats; it is a situational analysis tool, not a strategy itself.

Section 2(20) defines a company as a company incorporated under the Companies Act, 2013 or under any previous company law.

Minimum members: 7 for a public company, 2 for a private company, and 1 for a One Person Company under Section 3.

Minimum directors: 3 for a public company, 2 for a private company, and 1 for an OPC; a public company with paid-up capital of Rs. 10 crore or more, or turnover of Rs. 100 crore or more, must have at least 2 independent directors.

Maximum members in a private company is 200, excluding present and past employee-members; joint holders count as one member.

Board meetings: first meeting within 30 days of incorporation, then at least 4 meetings per year with a gap of not more than 120 days between two consecutive meetings.

Annual General Meeting must be held within 6 months of the close of the financial year and within 15 months of the previous AGM; first AGM within 9 months of the first financial year end.

Auditor appointment under Section 139 is for 5 years, ratified annually (ratification requirement omitted by the Companies (Amendment) Act, 2017); rotation applies to listed companies and prescribed classes.

Section 149(1) requires every company to have a board with at least 3 directors for a public company, 2 for private, 1 for OPC, and at least 1 woman director for prescribed classes.

Incorporation under the Companies Act, 2013 uses SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) covering name reservation, DIN, PAN, TAN, and EPFO/ESIC registration.

LLP formation requires at least 2 designated partners, with at least one resident in India; incorporation is through the RUN-LLP and FiLLiP forms.

A One Person Company must nominate a nominee in its memorandum; the nominee's written consent is mandatory, and OPC cannot carry out Non-Banking Financial Investment activities.

Strike-off under Section 248 requires extinguishment of all liabilities and assets; the Registrar may strike off a defunct company after notice and opportunity of being heard.

Voluntary winding up was largely replaced by the Insolvency and Bankruptcy Code, 2016; the Companies Act, 2013 now provides for winding up on grounds including inability to pay debts and just and equitable grounds.

Fast Track Exit (FTE) scheme allows defunct companies with nil assets and liabilities to apply for strike-off with a simplified fee structure.

A company must file INC-20A (declaration of commencement of business) within 180 days of incorporation before commencing business or borrowing.

Foreign companies setting up a place of business in India must file Form FC-1 with the Registrar within 30 days of establishment.

Corporate tax rates: domestic company under Section 115BAA pays 22% (plus surcharge and cess) if it forgoes specified exemptions; under Section 115BAB, new manufacturing companies pay 15%.

Section 115JB Minimum Alternate Tax applies at 15% of book profit for companies claiming specified exemptions; MAT credit can be carried forward for 15 years.

Tax deducted at source under Section 194C applies to contractors at 1% for individual/HUF payees and 2% for others, above the Rs. 30,000 single payment / Rs. 1,00,000 annual threshold.

Section 194J professional fees TDS is 10%; Section 194I rent TDS is 2% for plant and machinery and 10% for land or building.

Advance tax under Section 208 is payable in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March.

GST registration threshold is Rs. 40 lakh for goods and Rs. 20 lakh for services (lower for special category states); composition scheme threshold is Rs. 1.5 crore.

Input Tax Credit under GST requires a valid tax invoice, actual receipt of goods or services, tax paid to the government, and the supplier's return filing.

Section 80JJAA allows additional employee cost deduction of 30% for three years for new regular employees, subject to emoluments up to Rs. 25,000 per month.

Current ratio = current assets / current liabilities; quick ratio = (current assets - inventory - prepaid) / current liabilities.

Return on capital employed = EBIT / capital employed, where capital employed = total assets - current liabilities (or equity + long-term debt).

Break-even point (units) = fixed cost / contribution per unit; contribution = sales - variable cost, and P/V ratio = contribution / sales.

Cost of equity under CAPM = risk-free rate + beta × (market return - risk-free rate); WACC weights each source by its market value proportion.

NPV = present value of cash inflows - present value of cash outflows; accept if NPV > 0; IRR is the discount rate at which NPV = 0.

Payback period = initial investment / annual cash inflow (for even cash flows); discounted payback uses discounted cash flows.

Working capital cycle = inventory days + receivable days - payable days; a shorter cycle frees cash.

Under the Companies Act, 2013, Section 129 requires financial statements to comply with Schedule III; depreciation must follow Schedule II useful lives or a technical justification.

SEBI was established in 1988 and given statutory powers by the SEBI Act, 1992; it regulates the securities market and protects investors.

An Initial Public Offer by an unlisted company requires SEBI ICDR compliance: at least 25% minimum public shareholding post-issue for listed companies under SCRR.

SEBI (Prohibition of Insider Trading) Regulations, 2015 prohibit trading on unpublished price-sensitive information; designated persons must disclose holdings and trades.

Takeover Code (SAST Regulations, 2011) triggers an open offer at 25% voting rights acquisition; a mandatory open offer is for at least 26% of the target's shares.

Insider trading regulations define UPSI as information not generally available that, if published, would materially affect the price of securities.

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 require a listed entity to have at least one-third independent directors where the chairperson is non-executive, or half where the chairperson is executive.

Buyback under the Companies Act, 2013 is capped at 25% of paid-up capital plus free reserves in a financial year, with shareholder approval above 10% of paid-up capital plus free reserves.

The Securities Contracts (Regulation) Act, 1956 governs stock exchanges and contracts in securities; 'securities' includes shares, bonds, debentures, and derivatives.

The Indian Contract Act, 1872 requires offer, acceptance, lawful consideration, capacity, free consent, and lawful object for a valid contract.

Section 27 of the Indian Contract Act voids agreements in restraint of trade, except sale of goodwill and partnership arrangements.

The Sale of Goods Act, 1930 distinguishes a sale (property passes) from an agreement to sell (property passes in future); a condition is essential to the main purpose, while a warranty is collateral.

The Negotiable Instruments Act, 1881: a cheque is a bill of exchange drawn on a banker payable on demand; Section 138 covers dishonour for insufficiency of funds.

The Competition Act, 2002 prohibits anti-competitive agreements, abuse of dominance, and regulates combinations above the prescribed asset/turnover thresholds.

The Consumer Protection Act, 2019 established the Central Consumer Protection Authority and covers e-commerce; 'consumer' includes a person who buys goods or hires services for consideration.

The Indian Partnership Act, 1932: a partnership is the relation between persons who agree to share profits of a business carried on by all or any of them acting for all; maximum partners is 50 under the Companies (Miscellaneous) Rules, 2014.

The Insolvency and Bankruptcy Code, 2016 provides a 180-day corporate insolvency resolution process, extendable by 90 days, with a maximum of 330 days including litigation.

Financial management objectives: profit maximisation versus wealth maximisation; wealth maximisation is preferred because it considers time value and risk.

Leverage: operating leverage = contribution / EBIT; financial leverage = EBIT / EBT; combined leverage = contribution / EBT.

Dividend theories: Walter's model and Gordon's model relate dividend policy to share value; MM hypothesis holds dividend policy irrelevant in perfect markets.

Capital budgeting techniques include NPV, IRR, discounted payback, profitability index, and accounting rate of return.

Working capital management: matching approach finances current assets with short-term funds; conservative approach uses long-term funds for current assets.

Strategic management process: environmental scanning, strategy formulation, strategy implementation, and evaluation and control.

Porter's Five Forces: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and industry rivalry.

SWOT analysis evaluates internal strengths and weaknesses and external opportunities and threats; it is a situational analysis tool, not a strategy itself.

Section 2(20) defines a company as a company incorporated under the Companies Act, 2013 or under any previous company law.

Minimum members: 7 for a public company, 2 for a private company, and 1 for a One Person Company under Section 3.

Minimum directors: 3 for a public company, 2 for a private company, and 1 for an OPC; a public company with paid-up capital of Rs. 10 crore or more, or turnover of Rs. 100 crore or more, must have at least 2 independent directors.

Maximum members in a private company is 200, excluding present and past employee-members; joint holders count as one member.

Board meetings: first meeting within 30 days of incorporation, then at least 4 meetings per year with a gap of not more than 120 days between two consecutive meetings.

Annual General Meeting must be held within 6 months of the close of the financial year and within 15 months of the previous AGM; first AGM within 9 months of the first financial year end.

Auditor appointment under Section 139 is for 5 years, ratified annually (ratification requirement omitted by the Companies (Amendment) Act, 2017); rotation applies to listed companies and prescribed classes.

Section 149(1) requires every company to have a board with at least 3 directors for a public company, 2 for private, 1 for OPC, and at least 1 woman director for prescribed classes.

Incorporation under the Companies Act, 2013 uses SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) covering name reservation, DIN, PAN, TAN, and EPFO/ESIC registration.

LLP formation requires at least 2 designated partners, with at least one resident in India; incorporation is through the RUN-LLP and FiLLiP forms.

A One Person Company must nominate a nominee in its memorandum; the nominee's written consent is mandatory, and OPC cannot carry out Non-Banking Financial Investment activities.

Strike-off under Section 248 requires extinguishment of all liabilities and assets; the Registrar may strike off a defunct company after notice and opportunity of being heard.

Voluntary winding up was largely replaced by the Insolvency and Bankruptcy Code, 2016; the Companies Act, 2013 now provides for winding up on grounds including inability to pay debts and just and equitable grounds.

Fast Track Exit (FTE) scheme allows defunct companies with nil assets and liabilities to apply for strike-off with a simplified fee structure.

A company must file INC-20A (declaration of commencement of business) within 180 days of incorporation before commencing business or borrowing.

Foreign companies setting up a place of business in India must file Form FC-1 with the Registrar within 30 days of establishment.

Corporate tax rates: domestic company under Section 115BAA pays 22% (plus surcharge and cess) if it forgoes specified exemptions; under Section 115BAB, new manufacturing companies pay 15%.

Section 115JB Minimum Alternate Tax applies at 15% of book profit for companies claiming specified exemptions; MAT credit can be carried forward for 15 years.

Tax deducted at source under Section 194C applies to contractors at 1% for individual/HUF payees and 2% for others, above the Rs. 30,000 single payment / Rs. 1,00,000 annual threshold.

Section 194J professional fees TDS is 10%; Section 194I rent TDS is 2% for plant and machinery and 10% for land or building.

Advance tax under Section 208 is payable in four instalments: 15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March.

GST registration threshold is Rs. 40 lakh for goods and Rs. 20 lakh for services (lower for special category states); composition scheme threshold is Rs. 1.5 crore.

Input Tax Credit under GST requires a valid tax invoice, actual receipt of goods or services, tax paid to the government, and the supplier's return filing.

Section 80JJAA allows additional employee cost deduction of 30% for three years for new regular employees, subject to emoluments up to Rs. 25,000 per month.

Current ratio = current assets / current liabilities; quick ratio = (current assets - inventory - prepaid) / current liabilities.

Return on capital employed = EBIT / capital employed, where capital employed = total assets - current liabilities (or equity + long-term debt).

Break-even point (units) = fixed cost / contribution per unit; contribution = sales - variable cost, and P/V ratio = contribution / sales.

Cost of equity under CAPM = risk-free rate + beta × (market return - risk-free rate); WACC weights each source by its market value proportion.

NPV = present value of cash inflows - present value of cash outflows; accept if NPV > 0; IRR is the discount rate at which NPV = 0.

Payback period = initial investment / annual cash inflow (for even cash flows); discounted payback uses discounted cash flows.

Working capital cycle = inventory days + receivable days - payable days; a shorter cycle frees cash.

Under the Companies Act, 2013, Section 129 requires financial statements to comply with Schedule III; depreciation must follow Schedule II useful lives or a technical justification.

SEBI was established in 1988 and given statutory powers by the SEBI Act, 1992; it regulates the securities market and protects investors.

An Initial Public Offer by an unlisted company requires SEBI ICDR compliance: at least 25% minimum public shareholding post-issue for listed companies under SCRR.

SEBI (Prohibition of Insider Trading) Regulations, 2015 prohibit trading on unpublished price-sensitive information; designated persons must disclose holdings and trades.

Takeover Code (SAST Regulations, 2011) triggers an open offer at 25% voting rights acquisition; a mandatory open offer is for at least 26% of the target's shares.

Insider trading regulations define UPSI as information not generally available that, if published, would materially affect the price of securities.

SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 require a listed entity to have at least one-third independent directors where the chairperson is non-executive, or half where the chairperson is executive.

Buyback under the Companies Act, 2013 is capped at 25% of paid-up capital plus free reserves in a financial year, with shareholder approval above 10% of paid-up capital plus free reserves.

The Securities Contracts (Regulation) Act, 1956 governs stock exchanges and contracts in securities; 'securities' includes shares, bonds, debentures, and derivatives.

The Indian Contract Act, 1872 requires offer, acceptance, lawful consideration, capacity, free consent, and lawful object for a valid contract.

Section 27 of the Indian Contract Act voids agreements in restraint of trade, except sale of goodwill and partnership arrangements.

The Sale of Goods Act, 1930 distinguishes a sale (property passes) from an agreement to sell (property passes in future); a condition is essential to the main purpose, while a warranty is collateral.

The Negotiable Instruments Act, 1881: a cheque is a bill of exchange drawn on a banker payable on demand; Section 138 covers dishonour for insufficiency of funds.

The Competition Act, 2002 prohibits anti-competitive agreements, abuse of dominance, and regulates combinations above the prescribed asset/turnover thresholds.

The Consumer Protection Act, 2019 established the Central Consumer Protection Authority and covers e-commerce; 'consumer' includes a person who buys goods or hires services for consideration.

The Indian Partnership Act, 1932: a partnership is the relation between persons who agree to share profits of a business carried on by all or any of them acting for all; maximum partners is 50 under the Companies (Miscellaneous) Rules, 2014.

The Insolvency and Bankruptcy Code, 2016 provides a 180-day corporate insolvency resolution process, extendable by 90 days, with a maximum of 330 days including litigation.

Financial management objectives: profit maximisation versus wealth maximisation; wealth maximisation is preferred because it considers time value and risk.

Leverage: operating leverage = contribution / EBIT; financial leverage = EBIT / EBT; combined leverage = contribution / EBT.

Dividend theories: Walter's model and Gordon's model relate dividend policy to share value; MM hypothesis holds dividend policy irrelevant in perfect markets.

Capital budgeting techniques include NPV, IRR, discounted payback, profitability index, and accounting rate of return.

Working capital management: matching approach finances current assets with short-term funds; conservative approach uses long-term funds for current assets.

Strategic management process: environmental scanning, strategy formulation, strategy implementation, and evaluation and control.

Porter's Five Forces: threat of new entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitutes, and industry rivalry.

SWOT analysis evaluates internal strengths and weaknesses and external opportunities and threats; it is a situational analysis tool, not a strategy itself.