Saturday, 26 April 2014

Embezzlement Techniques Illustrated In Arthasastra

1. What is collected earlier is accounted later
2. What is collected later is accounted earlier
3. What ought to be collected is not collected
4. What is hard to collect is shown as collected
5. What is collected is shown as not collected
6. What is not collected is shown as collected
7. What is collected in part is shown as collected in full
8. What is collected in full is shown as collected in part
9. What is collected is of one sort, when what is entered is of another sort, e.g. rice in place of pulses
10. What is realized from one source, is shown as realized from another source
11. What is payable is not paid
12. What is not payable is paid
13. What is payable is not paid in time e.g. delaying payments with a view to receive a bribe
14. What is payable is paid earlier e.g. payment before due date for a consideration
15. Small gifts are accounted as large gifts, when giving gifts
16. Large gifts are accounted as small gifts, when receiving gifts
17. What is gifted is of one sort, when what is entered is of another sort
18. Beneficiary entered in register is different from the one who received the gift
19. Materials received in treasury is removed or materials not received is accounted as received
20. Raw materials paid for are not accounted in the stores, while those that are not paid for are entered as received in stores
21. An aggregate amount received is entered as parts, e.g. tax received from a village is shown as tax received from individuals
22. Parts received are entered as an aggregate, e.g. tax received from individuals is shown as tax received from a village
23. Commodities of greater value exchanged for those of smaller value
24. Commodities of smaller value exchanged for those of greater value
25. Value of goods inflated, by increasing the price
26. Value of goods deflated, by decreasing the price
27. Number of days increased, e.g. with a view of misappropriating wages
28. Number of days decreased, e.g. with a view to collecting lower taxes
29. Discrepancy in the number of months in a year, e.g. not accounting for transactions in all the months
30. Discrepancy in the number of days in a month, e.g. not accounting for transactions in all the days
31. Inconsistency in the transaction carried on under personal supervision
32. Misrepresentation of the source of income
33. Inconsistency in accounting for charities
34. Incongruity in representing work done, e.g. superintendent of boats misappropriating ferry dues, under the false plea that only Brahmins crossed the river
35. Inconsistently in dealing with fixed [regular] items
36. Misrepresentation of the standard of fineness of gold and silver
37. Misrepresentation of the price of commodities
38. Using false weights and measures
39. Deception in counting articles
40. Use of false cubic measures

The article is extracted from the book titled “Corporate Disclosures: The Origin of Financial and Business Reporting 1553—2007 AD” by Shankar Jaganathan. ~Via the internet

Friday, 25 April 2014

Lessons I Learnt From a Client

Here are a few lessons I took from a client while working for them. I hope these are only a FEW from many many more to come.

1. Started with a Failed Attempt: They started their entrepreneurship journey with a failed attempt, but later changed tracks and reinvented themselves. They struggled initially but later on figured how to make things happen.

Lesson: So Entrepreneurs, it’s okay to have a few "issues" here and there. What matters is the attitude to fight and survive. 

2. "Job" Comfort "Monetary" Comfort is a distant dream:They don't know whats in store for them in the future however their spirit keeps them going. They are out there to create their destiny.Tirelessly working day in and day out to make their dreams come true.....

Lesson: Rings that feeling? This is not really a lesson, but a comfort feeling that yes here are the future leaders of the industry...

3. Passion never ceases:Using your entrepreneurial skills to fulfill your passion towards cricket and football (sports)..?? Heard of this..? You will hear it soon...

Lesson: Do what you love, and love what you do. Have a goal and put all your energies in achieving the same.

4. Persistence: ....

Lesson: One of the most vital qualities needed to succeed in business. 

I can draw the same lessons by looking at Sachin Tendulkar. For startup's these pointers should help... 

The path chosen is correct, way to go guys, all the best from Team Propelis.

One Person Company (OPC)

After the implementation of new Companies Act, 2013, the concept of "One Person Company" has become buzz word. Corporate industry recognizes only one type i.w. "Limited Company:. Nowadays Limited Liability Partnership vehicle is getting best response because its own advantages. I was studying new rules and regulations of OPCs and found interesting stuff in this. Less complex structure, less legal formlities, easy conversion option into Private / Public Limited Company and less Government intervention are the plus points of OPC. Any person who is running business as a proprietor may consider this option. The biggest benefit is it gets "Corporate" status being a legal entity formed under the Companies Act.

While analyzing few provisions of the Act, it is clear that this is a small vehicle like Maruti 800 and not any other hatchback or sedan car. You cannot drive your Maruti 800 on expressways with full speed because of its own limitations. I believe you will understand this example! Let me come straight to the point. OPCs have its own limits, once you gets close to maximum limits, by virtue of law, your OPC will get converted into Private / Public Limited Company. Provisions of the law states that when any OPC crosses a turnover of Rs. 2 crores or paid up capital exceeds Rs. 50 lakhs, you have to switch onto Limited Company without any option. I think for small businessmen or traders can take advantage of this form of vehicle at initial stage at least for 2 years. Because once you form OPC, you cannot apply for conversion before expiry of 2 years from the date of formation. 

I am sure coming days will decide the direction and the good response to One Person Companies, otherwise LLPs have already proven excellent form of an organization.

--Ishan Kulkarni