A company is simply a business structure that the law treats as its own independent person after registration under the Companies Act, 2013. In practical terms, this means the business gets its own identity separate from the people who started it. Once formed, a company can: So even though real people run the business, legally the company stands on its own. The Idea … [Read more...] about What Is a Company in India? Meaning, Features & Types Explained Simply for Beginners
Understanding the income statement of a company
Financial statements are prepared and reported by all listed companies to present the financial position for a period to the stakeholders. Financial statements of a company have five main parts: the balance sheet, income statement, cash flow statement, notes to accounts and shareholders / owner’s equity. In this article, we will be looking at the income statement. You will … [Read more...] about Understanding the income statement of a company
Post incorporation compliance for a private limited company
After getting certificate of incorporation, a private limited company is required to comply with certain rules and regulations as per the Companies Act 2013. Certain new provisions are added to the Companies Act 2013 as compare to the old Companies act 1956. There are many requirements that a company should comply to carry on its business. But, today we are going to discuss … [Read more...] about Post incorporation compliance for a private limited company
How to calculate company’s Earnings per Share or EPS
Calculating net profit margin is not enough in order to invest in a company. You have to analyse the company from all steps in order to know whether the stock is a good investment for you. One of such factors is earnings per share or EPS. Earnings Per Share (EPS) is one of the most important metrics for an investor. Companies while reporting their income statement, mention … [Read more...] about How to calculate company’s Earnings per Share or EPS
Balance sheet: A beginners guide to understand company’s financial position
Balance sheet is prepared by accountants to present the balances of company's asset, liabilities and owner's equity on the last day of the profit period. Therefore, Balance Sheet can be defined as a snapshot statement that shows what a company’s assets are, what its liabilities are, and what its equity is at a specific point in time. Balance sheet show the financial … [Read more...] about Balance sheet: A beginners guide to understand company’s financial position
What is an Initial Public Offering (IPO) and Why Should You Care?
An Initial Public Offering (IPO) happens when a company offers its stock to the public for the first time. Before an IPO, the company is privately owned, meaning only a few people or groups—like the founders or investors—own shares. After the IPO, anyone can buy shares and own a part of the company. So, an IPO is like a company opening up to the world, allowing everyday people … [Read more...] about What is an Initial Public Offering (IPO) and Why Should You Care?