File Tax Returns

Expert assistance on your annual filings

Get Expert Assistance


When it comes to starting, running a business, complying with all the relevant laws, regulations and internal policies is the first and foremost thing to do. Further, looking a little deeper rather than only at face value of facts or information is what really Analysis means. Let us see this in detail :

Compliance

What is Compliance?

Compliance is nothing but following rules and regulations made by several legal authorities. Sometimes, it is very difficult to follow each law and act according to it  but not obeying those laws may also result in missing various opportunities that come along. Simple examples of compliance include obtaining a business license in your town and paying your taxes on time. Businesses are not only required to obey the external laws and rules but also it should follow internally designed business policies for the betterment of the business. Requirement for compliance increases with as the businesses grow. So, the businesses should also keep changing compliance procedures along with the changes in the external and internal environments. This will help them grow smoothly without any intervention from regulatory authorities. Requirement to obey legal laws and follow company policies may vary from business to business. Following and acting responsibly in the legal and ethical environment can add value to the organization and which in turn will save a lot of time, effort and cost.

Why is compliance important?

A timely compliance with all the relevant laws, regulations and policies can benefit the organizations by keeping things running smoothly, reducing fines & penalties and also maintaining its position in the industry. Some of the benefits are discussed below : Higher Employee retention : Employees have a tendency to switch the workplace if they find any complaints or issues working in the present environment. With an effective internal compliance where there is safety, employee benefits and compensations, a positive work environment is developed. This positive work environment attracts the employees to work and add to the value of the business. Reduced legal charges : No business wants to suffer the results of not complying with various laws and legislations. Complying with those laws will decrease the risk of fines, penalties, lawsuits or also shutdown of the business. There are so many regulations related to how employees should be managed, how products should be manufactured, how buying and selling should be done, how the business should contribute to the society, etc. Obeying them all is the great challenge but if achieved, reward is reduced fines or penalties and greater market share. Competitive advantage to the businesses : The business which follows all the rules and regulations and also has strict internal policies have a competitive advantage over those businesses which have not complied with the requirements timely. Government authorities, stakeholders, employees and customers are attracted to such businesses which strictly follow the compliance and prevent any kind of improper and unethical behaviour. Better public relations : The success of the business depends a lot on its public image. When an organisation starts facing court cases or any government interventions, the market or customers start losing trust in it and this will lead to a negative financial impact. Compliance will ensure that a company maintains its public relations and holds a positive image.

Types of compliances

External Compliance External Compliance refers to following the rules, laws and standards set by the governmental authorities to avoid any negative impact on the goodwill of the organization. These laws are made to help an organisation build public relations, trust and bring transparency to the business it does. Complying with all the laws ensures any unnecessary duplication of efforts of resources. Some of the broadheads can be categorized as follows : pasted image 0 Internal Compliance : Internal compliance refers to internally designed set of rules and regulations which the owners, employees, traders, customers follow to maintain the quality of the services or products provided by the organisation. An organisation will comply with external requirements only when it is working in line with the internal rules and regulations. Some of the broad heads can be categorized as below : pasted image 0 (1)

Example

An example to internal compliance is when the accounts departments follows the company’s policy and reconcilies cash and bank accounts at the end of every month and reports to the internal auditor. An example to external compliance is when statutory audit of the company is done by the due date provided by the companies act.

Analysis

 

What does Analysis means?

Analysis is all about finding problems rather than solutions. One can examine data and facts in depth to understand the issues and then provide the basis for problem solving or decision making. In its business terms, analysis involves communicating complex technical details in easy-to-understand language to stakeholders and employees. Every business has its own goals and objectives to achieve which is only possible if the businesses are able to analyse different aspects of businesses in detail. Analysis of different aspects are required to measure the effect of any negative impact. Every business small or big requires a 360-degree evaluation of all areas to know the core and non-core areas. This analysis of core and non-core areas will help the organization to invest adequate amount of resources and help the businesses to achieve long term objectives and goals. In general terms, businesses should analyze their cost, performance of the employees over different years and departments, performance of the products in the market, their cash movements and many other areas and focus on significant areas to achieve their long term goals.  

Types of analysis

There are number of analysis which businesses can do using the facts and figures available to provide a picture of the present position in the market and also to provide ways to enhance the business internally and externally. These are some of the following types of analysis which can help businesses understand the core problems and areas to focus and resolve them at the earliest :
  1. SWOT/TOWS Analysis
  2. ABC Analysis
  3. Variance Analysis
  4. Ratio Analysis
  5. Cash Flow Analysis
  6. Financial Statement Analysis
  7. Profitability Analysis
  8. Pareto Analysis
 

Example

Under Pareto Analysis,if we do an analysis of how profitable each of our customers are. Often, the results will surprise you, because the biggest customers can often be less profitable than thought. This analysis will help to achieve the profitability goals.
Get an expert at affordable price
Get an Expert

All Articles

  1. the Trade Mark Registrar or private individual may raise an objection for registration of a Trademark. The article explores what steps need to be taken in case a trademark is objected.
  2. Khatha of a property is when that property is recorded in the property register maintained in a Municipality or Corporation.
  3. MSME Delayed Payment Portal or MSME Samadhan was launched expressly to empower micro and small entrepreneurs across the country
  4. The Last Will and Testament is a legal document by a person called the testator that states the distribution of his assets and possessions,
  5. Trademark rights in India is statutorily protected by the Trademark Act, 1999 and also under the common law remedy of passing off.
  6. Registered trademarks have a limitation period of ten years. If the trademark is not being used for a period of five years then it may be cancelled.
  7. A trademark application can be rejected by on certain grounds, the article takes a detailed look at the grounds
  8. Intellectual property is a property that is created by the mind. It is a property that is not physically tangible but nonetheless is protected by law.
  9. e-vahan Bima-Motor insurance in digital format
  10. Maintenance of Welfare of Children and Senior Citizens Act, 2007 provides efficient provisions for the maintenance and welfare of the senior citizens.
  11. The chief motive of the Equal Remuneration Act 1976 is to provide for payment of remuneration to men and women on a uniform basis.
  12. Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) - Established under section 8 of the company law CERSAI was created to restrain fraudulent transactions in lending transactions.
  13. Competition Act, 2002 was enacted by the Parliament of India and replaced The Monopolies and Restrictive Trade Practices Act, 1969
  14. The rapid digitalization has led to many governments across the globe to introduce and incorporate technology into governmental processes.
  15. Section 241-246 of the Companies Act, 2013 lays down the provisions to effectively deal with oppressing and mismanagement in a company.
  16. The DRP is an Alternative Dispute Resolution (ADR) mechanism for resolving disputes related to Transfer Pricing in International Transactions.
  17. DPT 3 is a return of deposits that companies must file to furnish information about outstanding receipt of loan or money other than deposits.
  18. The Consumer Protection Act, 1986 (COPRA) came into force to protect the consumers' interest and to establish state bodies to deal with consumer problems.
  19. The Competition Commission of India is a statutory body established under the Competition Act, 2002, its purpose is to prevent anti-competitive practices
  20. Writs are formal written orders issued by judicial or executive authorities. However, in India, a writ can only be issued by a competent judicial authority.
  21. Consumer Court is a special purpose court which deals with cases related to consumer disputes and grievances. These are set up by the government to protect the consumers' rights. Its primary function is to maintain the fair practices by sellers.
  22. Export is one of the major components of international trade. Exports facilitate international trade and stimulate domestic economic activity by creating employment, production, and revenues. Businesses export goods and services where they have a competitive advantage.
  23. Corporate restructuring is an action taken by the corporate entity to modify its capital structure or its operations significantly. Generally, corporate restructuring happens when a corporate entity is experiencing significant problems and is in financial jeopardy.
  24. The internal rate of return (IRR) is a discounting cash flow technique which gives a rate of return earned by a project. It is the discounting rate at which the net present value(NPV) is equal to zero.
  25. Bank guarantee is given on a contractual obligation between the bank and its customers. Such guarantees are widely used in business and personal transactions to protect the third party from financial losses.
  26. The Prevention of Money Laundering Act, 2002 enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds.
  27. he Double Tax Avoidance Agreement is a treaty that is signed by two countries. The agreement is signed to make a country an attractive destination as well as to enable NRIs to take relief from having to pay taxes multiple times.
  28. A Bonafide certificate is a certificate issued by an organisation to certify that a particular person belongs to that organisation. Usually, educational institutions issue this certificate to its students. Companies may also do so for their employees.
  29. E-form MR-2 needs to be filed for seeking Central Government approval for the appointment of managing director/whole time director/manager. Read more here.
  30. Form AOC 4 is used by the companies to file the financial statements for each financial year with the Registrar of Companies ( ROC ). Read more here.
  31. Form ADT 1 is used by a company to intimate the registrar of companies about the appointment of an auditor after the completion of its AGM. Read more here.
  32. ECGC is an export promotion organization, which seeks to enhance the competitiveness of Indian exports by offering them credit insurance covers. Read more
  33. Job work is the outsourcing of activities by the principal manufacturer. The income received by a job worker will usually be liable to different taxes.
  34. The National Financial Reporting Authority is a body constituted under section 132 of the Companies Act, 2013 and is effective since 1st October 2018.
  35. Banglabhumi(বাংলার ভূমি) is an online web portal for land records and reforms launched by the Government of West Bengal. Read more about this portal here.
  36. ‘Customs Duty’ refers to the tax imposed on the goods when they are transported across the international borders. Read here more about customs duty in brief
  37. The ICAI has developed a method of securing the documents issued by a Chartered Accountant by issuing a UDIN. Read here to know more.
  38. Managerial remuneration is the money or its equivalent paid to the managerial person for services rendered by him/her. This also includes perquisites. Read on to know the limits and provisions for this.
  39. Management accounting is presentation of analysis of business activities to the internal management to facilitate decision making. Read this article to know more .
  40. Non-compliance of guidelines under Companies act, 2013 may attract penalties. This is the first part to the penalties after incorporation of companies.
  41. Non-compliance of guidelines under Companies act, 2013 may attract penalties. This is the second part to the penalties after incorporation of companies.
  42. While winding up of a company, if its agents fail to comply with the rules and regulation they can be held civilly or criminally liable. Read this article to know more about the penalties.
  43. The Companies Act, 2013 may attract penalties in can of non-compliance of rules and guidelines during the incorporation of a company.
  44. The Property Guideline value is used in making purchase decisions regarding a particular property and further for its registration as well. Read here to know more about this, its effects and importance.
  45. Other Comprehensive Income refers to items of income and expenses that are not recognized as a part of the profit and loss account. These need to be disclosed in its own way. To know more about this income and its disclosure, read here.
  46. Banking ombudsman is an authority formed to resolve the complaints customers of banks have. Read on here to know what remedies are available if you have complaints against your bank.
  47. An Income Certificate is a document issued by an authority of the State Government certifying the annual income of a person or his family from all sources. Understand more about this here.
  48. Bureau Of Indian Standards (BIS) lays down standards (Indian Standards) with regard to the quality and safety of the goods. Those products which adhere to the standards mentioned by BIS are considered certified. Read here to know why is it important to know about BIS and its standards.
  49. Any property, whether movable or immovable, tangible or intangible, which has been bought in the name of an other person is called a Benami property. To know more about what can happen when you purchase properties in some one else's name, the punishments and fines connected to this, read on here,
  50. A manufacturing unit that can differentiate its processes and also produces a standard product usually uses process costing method to determine cost of production. Read more about this method here.
  51. NPV (Net present value) is the difference between the present value of cash inflows and outflows discounted at a specific rate. Read about the advantages and limitations of NPV here.
  52. Trade License, one of the important documents to start a business. Read this article to know everything about the trade license and its renewal.
  53. The Food Security Act 2013 aims at fulfilling the nutritional requirements of the State via the methods such as Public Distribution Systems, Midday meals and Integrated Child development services.
  54. Ration card is a document issued by the Government that an identity proof and also indicates an individual’s economic status.
  55. ICEGATE is an online portal which offers e-filing services to trade and cargo carriers and such other clients of the Customs & Central Excise Department. Know more about this portal here.
  56. EGROOPS stands for Electronic Governance for Registration of Partnership Firms and Societies. It is an official platform for registering Societies and Partnership Firms in Kerala through online process. Read here to know more. Open in Docs
  57. All you need to know about the SANKALP scheme and the how it impacts the vocational training sector.
  58. Maa Bhoomi is an initiative by the Telangana Government for digitizing the land records system.
  59. The RUN is a new online form created specifically for streamlining the process of reserving a company name.
  60. Cost Accounting is a method of accounting that considers all costs involved in performing any process, project or product. These costs are noted and analyzed to take strategic decisions. Read more about this method of accounting here.
  61. All companies have to file their Annual returns in Form MGT-7. The last date to do so is generally the 29th of November every year. Read here to know about its contents and consequences for non-filing on time.
  62. Total Quality Management is defined as a customer-oriented process and aims for continuous improvement of business operations. Know more about TQM here.
  63. Break-even analysis is useful in studying the relation between the variable cost, fixed cost and revenue. Generally, a company with low fixed costs will have a low break-even point of sale. Read here for a detailed understanding.
  64. Know about the Major checkpoints of GST Internal Audit and also more about the e-way bill invoices, GSTR 3B vis-à-vis GSTR 1 & GSTR 2A and consequences of mismatch in e-way bill vis-a-vis invoice
  65. Most of the companies are concerned with business planning and meeting their financial commitments. Ultimately all want growth. Analysis of Variances from the budget is one of the ways to keep a check on the performance of the company. To know about what Variance analysis is, read here.
  66. For risk-based internal audit of banks, focus is on risk identification, prioritizing audit areas & allocating audit resources according to risk assessment