Indian Company Master Data Made Simple

A

21 terms

AOA - Articles of Association

A document containing rules and regulations for the internal management of a company.

Authorized Capital

The maximum amount of share capital a company is authorized to issue to shareholders.

AGM - Annual General Meeting

A mandatory yearly meeting of shareholders to review company performance and approve financial statements.

Alternate Director

A director appointed to act in place of an original director who is absent for 3+ months.

Additional Director

A director appointed by the board to fill a vacancy or add expertise.

Associate Company

A company in which another company has significant influence but not control.

Angel Tax

Income tax levied on unlisted companies receiving investments at a valuation higher than fair market value.

Advance Tax

Income tax paid in advance in installments during the financial year.

Assessment Year

The year in which income earned in previous year is assessed and taxed.

Audit

Independent examination of financial statements by a qualified auditor.

Authorized Signatory

A person authorized to sign documents and execute transactions on behalf of the company.

Audit Committee

Committee of Board responsible for oversight of financial reporting, audit process, and internal controls.

Advance Ruling

Binding decision by tax authority on tax liability before transaction is undertaken.

Affidavit

A written statement confirmed by oath or affirmation, for use as evidence in court or for official purposes.

Apostille

A certificate that authenticates the origin of a public document for use in another country that is a member of the Hague Convention.

Arbitration

A private dispute resolution process where parties agree to have their dispute decided by an impartial arbitrator.

Anticipatory Bail

Pre-arrest legal protection granted by court when a person apprehends arrest for a non-bailable offense.

Advance Tax

Income tax paid in advance during the financial year on estimated income, also known as pay-as-you-earn tax.

Amortization (Tax)

Systematic allocation of the cost of intangible assets over their useful life, similar to depreciation for tangible assets.

API - Application Programming Interface

A set of protocols and tools that allows different software applications to communicate and exchange data with each other.

Artificial Intelligence (AI)

Simulation of human intelligence processes by computer systems including learning, reasoning, and self-correction.

C

29 terms

CIN - Corporate Identity Number

A unique 21-digit alphanumeric code assigned to every company incorporated in India. Think of it as a company's "birth certificate number" that stays with it throughout its existence.

Chairman

The presiding officer of a company's board or general meetings.

Casual Vacancy

A vacancy in the office of a director occurring due to death, resignation, or disqualification.

Cost Audit

Detailed verification of cost records and accounts to ensure accuracy and compliance.

Company Secretary

A professional responsible for ensuring company compliance with laws.

Chartered Accountant

A professional accountant qualified to audit financial statements.

Cost Accountant

A professional specializing in cost and management accounting.

CEO - Chief Executive Officer

The highest-ranking executive responsible for overall company operations.

CFO - Chief Financial Officer

Senior executive responsible for financial planning and management.

Composition Scheme

Optional scheme with lower GST rates and simpler compliance.

Charge - Company Mortgages

A security interest created over company assets to secure a loan or debt.

CGTMSE - Credit Guarantee Fund Trust for Micro and Small Enterprises

Scheme providing collateral-free credit to MSMEs through credit guarantee cover to lending institutions.

Copyright

Legal right that protects original works of authorship including literary, artistic, and musical works.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations.

Cash Flow

The net amount of cash being transferred into and out of a business.

Capital Expenditure (CapEx)

Funds used by a company to acquire, upgrade, or maintain long-term assets.

CAGR - Compound Annual Growth Rate

The mean annual growth rate of an investment over a specified time period longer than one year.

Caveat

A formal notice or warning that a person files with a court to prevent any action or order being passed without hearing them.

Charge (Legal)

A security interest created over assets to secure repayment of a debt, without transferring ownership.

Conciliation

A voluntary dispute resolution process where a neutral conciliator assists parties in reaching a mutually acceptable settlement.

Cognizable Offense

A serious offense for which police can arrest without a warrant and investigate without court permission.

Capital Gains

Profit arising from the sale or transfer of a capital asset such as property, shares, jewelry, or mutual funds.

Carry Forward of Losses

Provision allowing taxpayers to carry forward unadjusted losses to future years for set-off against future income.

C2C - Consumer to Consumer

Commercial transactions between individual consumers, typically facilitated by a third-party platform or marketplace.

Churn Rate

The percentage of customers who stop using a company product or service during a specific time period.

Customer Acquisition Cost (CAC)

The total cost of acquiring a new customer, including marketing, sales, and related expenses divided by the number of new customers.

Cap Table (Capitalization Table)

A spreadsheet or table showing the equity ownership capitalization for a company including shares, options, and valuations.

Cloud Computing

Delivery of computing services including servers, storage, databases, and software over the internet.

CI/CD - Continuous Integration/Continuous Deployment

Automated pipelines that build, test, and deploy code changes to enable frequent, reliable software releases.

D

22 terms

DIN - Director Identification Number

A unique 8-digit identification number assigned to every director of an Indian company. Think of it as a director's "lifetime ID card" that stays with them forever.

DSC - Digital Signature Certificate

An electronic signature used to sign documents and filings with MCA and other government portals.

DIR-3 KYC

Annual KYC verification required for all directors holding a DIN.

DPIN - Designated Partner Identification Number

Similar to DIN but for Designated Partners of an LLP.

Dividend

Distribution of a portion of company's profits to its shareholders.

Director Removal

The process of removing a director from the board before their term expires.

Disqualification

Circumstances that make a person ineligible to be appointed or continue as director.

Dormant Company

A company formed for future projects or holding assets with no significant accounting transactions.

DPIIT - Department for Promotion of Industry and Internal Trade

Government department responsible for promoting industrial development and internal trade in India.

Digital Signature Certificate (DSC)

Electronic equivalent of physical signature used for secure online document signing.

Due Diligence

Comprehensive investigation of a company before investment, acquisition, or partnership.

Debt-to-Equity Ratio

A measure of the extent to which a company is financing its operations through debt versus equity.

Defendant

The party against whom a lawsuit is filed or criminal charges are brought.

Depreciation (Tax)

Reduction in the value of tangible assets over time, allowed as a deduction from business income under the Income Tax Act.

D2C - Direct to Consumer

Business model where manufacturers or brands sell directly to consumers, bypassing traditional intermediaries like retailers and wholesalers.

Due Diligence

Comprehensive investigation and verification of a business before signing a contract or making an investment.

Data Room (Virtual Data Room)

A secure online repository for storing and sharing confidential documents during due diligence or M&A transactions.

Dilution

The reduction in ownership percentage of existing shareholders when new shares are issued to investors or employees.

Decryption

The process of converting encrypted data back into its original, readable form using the appropriate key.

Database

An organized collection of structured data stored electronically, allowing efficient retrieval, management, and updating.

Data Warehouse

A centralized repository that stores large volumes of structured data from multiple sources for analysis and reporting.

DevOps

A set of practices combining software development and IT operations to shorten development lifecycle and provide continuous delivery.

P

17 terms

PAN - Permanent Account Number

A 10-character alphanumeric identifier issued by the Income Tax Department for tax purposes.

Paid-up Capital

The amount of capital actually subscribed and paid by shareholders.

Producer Company

A company formed by primary producers (farmers) to improve their standard of living and ensure better income.

PLC - Public Limited Company

A company whose shares can be traded publicly on stock exchanges.

Private Placement of Shares

Issue of shares to a select group of investors rather than the general public.

Professional Tax

A state-level tax on professions, trades, and employment levied by state governments in India.

Patent

Exclusive right granted for an invention providing monopoly rights for 20 years.

Public Trust

Legal arrangement where property is held by one party for benefit of another, registered under State Trust Acts.

PAT - Profit After Tax

The net profit earned by a company after all expenses including taxes have been deducted.

PBT - Profit Before Tax

Profit earned before deducting tax expenses.

Plaintiff

The party who initiates a lawsuit by filing a complaint with the court.

Petitioner

A person who makes a formal written application to a court, tribunal, or other authority requesting a specific action or order.

Pledge

A bailment of goods as security for payment of a debt or performance of a promise.

Previous Year

The financial year immediately preceding the assessment year, in which income is earned.

Product-Market Fit (PMF)

The degree to which a product satisfies strong market demand, indicating readiness for growth and scaling.

Pivot

A fundamental change in business strategy when the current approach is not achieving desired results.

PaaS - Platform as a Service

Cloud computing model providing a platform allowing customers to develop, run, and manage applications without infrastructure complexity.

S

29 terms

Share Certificate

A legal document certifying ownership of shares in a company.

Special Resolution

A resolution passed by 3/4th majority of shareholders for important matters.

Special Notice

A 14-day advance notice required for certain resolutions.

Strike Off

Removal of a defunct company's name from the register of companies.

Small Company

A company with limited paid-up capital and turnover, enjoying exemptions.

Section 8 Company - Non-Profit Organization

A company formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.

Subsidiary Company

A company controlled by another company (holding company).

Self Assessment Tax

Balance tax paid by the taxpayer after accounting for TDS and advance tax.

Statutory Audit

Mandatory annual audit of financial statements by an independent external auditor.

Secretarial Audit

Compliance audit to verify adherence to applicable laws, rules, and procedures.

SAC Code

Services Accounting Code for classifying services under GST.

Startup India

Government initiative to promote and support startups in India with benefits and incentives.

Statutory Registers

Mandatory books and records that every company must maintain at its registered office.

Share Transfer

Process of transferring ownership of shares from one person to another.

Share Allotment

Distribution of shares to applicants who have applied for them.

Sweat Equity Shares

Shares issued to employees or directors for providing know-how or intellectual property.

Shop and Establishment Act

State legislation regulating the working conditions of employees in shops and commercial establishments.

SEZ - Special Economic Zone

Designated areas with flexible labor laws, tax incentives, and simplified regulations to promote exports.

STPI - Software Technology Parks of India

Autonomous society under MeitY providing infrastructure, statutory support, and tax benefits to IT/ITES exporters.

Settlement Commission

Body for settling tax disputes through mutual agreement between taxpayer and tax department.

Society Registration

Non-profit entity registered under Societies Registration Act for literary, scientific, or charitable purposes.

Share Premium

The amount received from shareholders in excess of the face value of shares.

Stay Order

A court order that temporarily stops or suspends a proceeding, action, or the execution of a judgment.

Summons

A formal court order directing a person to appear before the court or produce documents.

Subpoena

A court order requiring a person to appear as a witness or produce documents in court.

Set Off of Losses

Adjustment of losses from one source of income against profits from another source within the same or different heads of income.

SDK - Software Development Kit

A collection of tools, libraries, and documentation that developers use to build applications for specific platforms.

SaaS - Software as a Service

Software licensing model where applications are hosted by vendors and made available to customers over the internet.

Smart Contract

Self-executing contracts with terms directly written into code that automatically enforce agreements when conditions are met.

T

16 terms

TAN - Tax Deduction Account Number

A 10-digit alphanumeric number required for deducting or collecting tax at source.

TDS - Tax Deducted at Source

A system where tax is deducted at the point of payment to ensure timely tax collection.

TCS - Tax Collected at Source

Tax collected by sellers from buyers at the point of sale for certain goods and services.

TAN Number - Tax Deduction and Collection Account Number

An alternate name for TAN, the account number for tax deduction and collection.

Tax Audit

Audit of accounts required under Section 44AB of Income Tax Act.

TRACES

TDS Reconciliation Analysis and Correction Enabling System.

Treasury Stock

Shares that a company has bought back and holds in its own treasury.

Tax Deducted at Source (TDS)

A system where tax is deducted by the payer when making specified payments like salary, interest, rent, or professional fees.

Tax Collected at Source (TCS)

Tax collected by the seller from the buyer at the point of sale of specified goods or services, including foreign remittances.

Tax Refund

Amount returned by the Income Tax Department when taxes paid exceed the actual tax liability of the taxpayer.

Tax Rebate

A reduction in the amount of tax liability directly, applicable on the tax computed before adding cess.

Tax Relief

Provision to reduce tax burden in specific situations like receiving arrears of salary or double taxation of income.

Tax Exemption

Income that is not subject to tax and is excluded from total taxable income under specific provisions of the Income Tax Act.

Tax Deduction

Reduction in taxable income allowed for specific investments, expenses, or contributions made by the taxpayer during the financial year.

Tax Allowance

Specific amounts given by employers to employees for particular purposes, part of which may be exempt from income tax.

Term Sheet

A non-binding document outlining the key terms and conditions of an investment deal between investors and a company.

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