Where the depositor dies, the company may repay the deposit at the request of the joint holders within the lock-in period.

Define a Non-Banking Financial Company (NBFC)?

The term debt has been defined under Section 2 of “The Recovery of Debts Due to Banks and Financial Institutions Act, 1993” as: Liability (including interest) due from any person, as claimed by a bank/ financial institution/ consortium of banks/ financial institutions during the course of any business activity undertaken by such institution, which is in cash/otherwise, secured/unsecured, or assigned or to be paid under a decree or order of a civil court or arbitration award or otherwise or under a mortgage and recoverable on, the date of the application.

The company registered under the Companies Act, 2013 whose principal business is Financial activity such as chit fund business, insurance business, loans and advances, acquisition of shares or other types of securities, leasing, etc. is a Non-Banking Financial Company (NBFC).

A Non-Banking Financial Company (NBFC) is a financial institution that works like a bank but does not have a banking license offering financial products and services to customers.

Thus, NBFCs cannot depend on the Current Account Savings Account, which raises the requirement for locating another source of supply for funds for NBFCs.

One of the initiatives taken by the government is the Scheme for Facilitating Startups Intellectual Property Protection (SIPP), which was introduced in 2016 with the aim of facilitating the protection of Intellectual Property by Startups.

This article focuses on providing the variance between NBFC and Fintech companies.

The exempted categories of NBFC are: Venture Capital Fund Merchant Banking companies Stock Broking Companies Insurance Company  Nidhi Companies  Chit Companies  Housing Finance Companies Mandatory requirements for obtaining CoR from RBI: A company willing to work as an NBFC must fulfill the below-mentioned conditions: The company must be registered under the Companies Act, 2013.

The computation of the "Net Owned Fund" can be done as:  (a) Aggregate the paid-up equity capital and free reserves as per the latest balance sheet of the company after deducting therefrom the accumulated balance of loss; deferred revenue expenditure; and other intangible assets; and (b) Deduct the following – Investments of such companies in shares of its subsidiaries; companies in the same group; all other non-banking financial companies; and Book value of debentures, bonds, outstanding loans and advances (including hire-purchase and lease finance) made to, and deposits with, subsidiaries of such company; and companies in the same group,to the extent, such amount is more than 10% of (a) above.

The broad categorization of NBFCs are: Asset Finance Company (AFC)  Investment Company (IC) Loan Company (LC) Infrastructure Finance Company (IFC) Systemically Important Core Investment Company (CIC-ND-SI) Infrastructure Debt Fund (IDF-NBFC) Micro Finance Institution (NBFC-MFI) Non-Banking Financial Company – Factors (NBFC-Factors) Mortgage Guarantee Companies (MGC) Non-Operative Financial Holding Company (NOFHC) Various Returns and Intimations to be filed by NBFCs: NBS-1 Return: To be submitted by deposit-taking NBFCs on a quarterly basis to report financial details.

NBFC is incorporated under the Companies Act and its activities are governed by RBI.

Further, when the provisional registration is done, the applicant must within a period of twelve months from the date of filing the application file the complete application.

The applicant can provide more than one independent claim in his application.

The drawing shall be presented in a neat and clear manner on a durable paper sheet.

The following points would elaborate on the role and responsibilities of an internal auditor: Evaluation of risk management An internal auditor assesses and informs risk management activities within the company.

Introduction Section 204(1) of the Companies Act of 2013 mandates secretarial audits of all listed entities and companies in other defined classes.

  As per Section 204 (1) of the Companies Act, 2013 read with rule 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, Secretarial Audit is applicable to every company that is: • A listed company  • A public company having paid-up share capital of Rs. 50 crore or more. • A public company having a turnover of Rs. 250 crore or more.

The guidelines for obtaining CoR include, the applicant company must be registered under the Companies Act, 2013, the company shall maintain minimum NoF amount as specified by the bank for different categories of NBFC, and fulfill the 50-50 criteria of assets and income.

When investment is done in an Indian company by an entity/a person based outside India is termed as Foreign direct investment (FDI).

The company deals in nutritional products which also include personal care products.

Ventilation: The shop must be properly ventilated having cross ventilation and may have at least one electric fan and one exhaust fan.

The Controller shall publish the notification of the application made for the surrender by the patentee to invite any opposition from a person having contrary interest to the application made.

If the patent applicant is a different person from the inventor, then the same details of the applicant Details of the Priority Patent Application, including: Filing Number of Applications  Filing Date Jurisdiction Priority Documents - certified copy If the application is not in English - True Translation Copy of Complete Specification recorded in a conventional country Proof of Rights Power of Attorney  Does the Convention Patent Application have any advantage?

India is one of the signatories to the World Trade Organization, which levies exceptions and limitations to patent rights in compliance with Article 30 of the TRIPS.

Trade secrets include methods, processes, or any other company information that determines the monetary value of the business that a company is making a generous effort to keep secret.

Furthermore, in companies, investments can also be withdrawn through buyback of shares and or by way of reduction capital which again becomes a time-consuming process, and therefore the trend to invest in Limited Liability partnerships is increasing every day.

LLP is considered a newer form of the business model as it combines a partnership firm and that of a joint-stock company.

Foreign Exchange Management (Borrowing and Lending in Foreign Exchange) Regulations, 2000 (“FEMBLFER”) states provisions regarding how an Indian person or a Company can do borrowing in foreign exchange.

As a company is a separate legal entity, it is also an artificial person and therefore requires an individual who can look after it.

Brand value is an intangible asset that companies are ready to spend millions on brand.

  The purpose of the statutory audit is to ensure that the company's present financial condition is shown honestly and accurately on the balance sheet.

If the employees require a role change, for example, the persons working in marketing have shown some efficient sales skill, those can be identified and raised in an internal audit.

What is NBFC (Non-Banking Financial Company)?

The takeover of NBFC signifies the purchase of one NBFC by another company.

  NBFCs are companies registered under the Companies Act of 1956 or 2013.

  NBFCs are companies registered under the Companies Act of 1956 or 2013.

It is recommended that the audit procedure remains limited to one or two designated personnel.

For an NBFC license, fulfill the following requirements: The company must be registered in India following the Company Act 2013 as a private limited company or a limited liability company.

Primarily there are three approaches for the business valuation: Market-Based Approach: Under a market-based approach, it is necessary to identify a firm under the same industry with whom the concerned company is compared based on the suitable multiples: The earnings of the company post-tax deduction are multiplied to calculate an estimation of the value of equity.

In layman’s language, any non-banking institution which is a duly registered company under the relevant act has its principal business similar to that of a bank.

Particulars of food products to be dealt with Food Safety Management System Plan For State License: Details (with name, ID, complete address, and contact) for: Directors or  Partners or Proprietor or Members of Society or  Trust Authorised Signatory List of: Machinery/equipment (their registration number, working capacity, and power usage) Food to be manufactured Certificate by Cooperatives (Coop – 1861/Multi-State Coop Act – 2002) Declaration/Undertaking by Food operators Form B (attested by the Proprietor/Partner/Authorized member) Authority letter by the manufacturer nominating the person (along with details of the alternative person) Self-Declaration (for Proprietorships) Copy of License from manufacturer NOC from manufacturer NOC from Municipality or local body Food Safety Management System Plan Form IX: Details of persons nominated by the Company and copy of Board Resolution Analysis report of water portability to be used in food.

On the one hand, FBOs can gain benefits of better brand image in the market, easy reach towards the targeted customers, authorized approval on the quality of the food articles being dealt with.

NBFCs offer the following products in India: Funding for commercial vehicles Funding for infrastructure assets Retail financing Loan against shares Financing of plants and machinery Project finance Unsecured personal loans Trade finance Venture finance Small and Medium Enterprise Financing: Specialized in equipment financing Operating leases of cars, etc.

Loan Company: A company involved in providing finance by lending loans or advances for any activity other than its own.

The business valuation report is a document recording the analysis to estimate the value of a company or its assets or group of assets based on the performance in the market, industry and economic growth.

State FSSAI Registration Rent Agreement for Business Premises ID Proof of the Concerned Person (Aadhaar Card / Driver's License / Passport / Voter ID) Government Registration Certificates (Company Incorporation Certificate / Firm Registration / Partnership Deed / Pan card / GST Registration Number / Shop and Establishment Registration / Trade License), if any.

Once registered, the term of a patent in India is twenty years from the date of filing the patent application.

Except in a few situations, a verbal valuation report is not called for, only for certain internal discussions where the valuation of the company requires to be referred to informally.

  Categorrization of Non Banking Financial Companies  NBFC can be categorized on following basis: On basis of liabilities: Deposit and Non-Deposit accepting NBFCs Non deposit taking NBFCs on basis of size: Systemically important and Other non-deposit holding companies On basis of activity: Investment and Credit Company (ICC)- Perform function of Lending and investment.