Practical Issues/ Questions relating to Charges

PRACTICAL ISSUES/ QUESTIONS RELATING TO CHARGES

v  Whether the date of confirmation (or) the date of deposit of title deeds, for extending the immovable property as security is to be taken into consideration at the time of preparation of e-Form?

v  In consortium finance, the lead banker and all other bankers to consortium - file separate Forms for their credit facilities, which reflects higher amount of loan availed by Company in MCA website.

          

          Ex: “A” the lead banker has filed Form for the entire loan of Rs.100 Crores. “B” one         of the lender in consortium files another form for Rs.25 Crores. This leads to increase         in liability of Rs.25 Crores.

v  Many small companies do not reflect the Corporate Guarantee in their Balance Sheet under “Contingent Liability.” Will this affect the disclosure requirements under Accounting standards?

v  Rectification Order is filed through Form INC 28. However, there is no procedure to rectify the defective e-Form. Only on reading both the Forms together, one may know about the rectification.

v  An individual has advanced her/his property as security for the loan availed by Company. In such a case, whether such property details are to be mentioned in e-Form? Bankers are insisting this now a days.

v  In Form CHG 4 - after mentioning the Charge ID and pre-filling, the name of the Charge Holder is sometimes shown and sometimes not.

v  When A gets amalgamated with B, the Corporate Guarantee given by A to B prior to amalgamation is recorded in the Index of Charges of the A and thus, increasing the amount and number of charges in the index of B.

v    The e-form CHG – 1  is prepared within the time limit of 30 days & forwarded to client for their DSC with the option “whether the form is being filed within 30 days” as YES. If the form is received beyond thirty days for filing, it requires changes in the form in this regard.

v  As a stop-gap measure against the issue of registering the DSC of the Bankers, the option “Others” in place of the “BANK” in “Get list of charge holder” is being selected.

v  Time given for filing particulars of Creation / Modification of Charges with the ROC is 300 days (with additional fees) whereas time limit for filing Satisfaction of Charges in only 30 days (No option of payment of additional fees).

v  Form for Creation / Modification / Satisfaction of Charges requires even the Chargeholder to digitally sign the form, which will result in delay.

v  Different dates of execution of instrument creation / modification of charge leads to filing of form separately, i.e, for each date of instrument we need to file a form for Creation / Modification of Charge.

v  For Public Companies, Form MGT-14 also has to be filed for the Board Resolution authorising borrowing of monies, which the Banks do not insist on.

Prepared by:

Mr. Balu Sridhar

AK Jain & Associates, Practising Company Secretary

  

Success story of CS Toppers in Foundation Exams

HEAR THE SUCCESS STORY OF TOPPERS OF DECEMBER 2015 EXAMINATION (FOUNDATION) STRAIGHT FROM THEM

Mr. ATHARVA ABHIJIT SAMANT

Through this write up I would like to share some points that helped me secure AIR 1st rank in CS foundation exams

1. I analysed the whole syllabus and made a study plan.It is really very important to develop a study schedule before starting exam preparartion. I studied 2 subjects in a day,one theory and other practical

2.For subjects like Law,Accounts and Audit,conceptual understanding is important.I prepared my own notes for these subjects.This helped me in revising the whole syllabus the day before my exams.

3.Revision is very important as one can remember only 50% of what one studied the day before. I used to wake up at 4:00 am to recall the material which I had studied the previous day.

4.Practice is the most important part of exam preparation.After initial preparations I solved the past papers and also mcqs from the Scanner.

Ms. KARISHMA MAHENDRA MADRECHA

I started my journey back in Mar’15 when I did my registration for CS, post which my classes started. My aim was always to get a good rank in final exam hence I started early by paying serious attention in classes. I used to ensure daily practice of what was taught in class which helped me avoid last minute stress. It was not the quantity of time spent on preparation but the quality time spent on the studies which help me at the end.

Apart from individual studies, group discussion with my CS friends help me a lot especially for complex problems. I spent my time reading the study material given by the institute and practiced more MCQs by solving scanner and other notes.

Closer to the exams I did cut down on my leisure activities.

Ms. SANIKA SANJEEV BARVE

I would like to attribute my success in the foundation course examinations to the Online Papers provided by the ICSI institute on their website, as well as to laying down a subject wise time table to ensure timely revision of subject matter before exams .

I always maintained a positive approach towards my studies as well as during the examination period as it is very crucial not to get intimidated by the vast syllabi and the notion of an examination.

 I tried to focus equally on all the subjects and generally tried to cover 2 or 3 subjects in a day. I would also like to emphasis on the fact that though lengthy the modules should be read at least three times as this will allow you to get a better understanding of the concepts. I also made it a habit to mark all important points as well as tricky concepts in the modules provided by the institute during the first reading itself so that I could refer only to those points later on.

During the last 2 months before the exam however I allocated specific days to the four papers seperately, so that I could give sufficient time and attention to each subject . During this period I studied for at least 9 to 10 hours per day.

Ms. SANIKA SANJEEV BARVE 

Another point I’d like to emphasise on is that in practical subjects like statistics and accountancy deriving the formulae for yourself and understanding the transactions from which the entries originate helped me to understand and retain better.

But most importantly , solving past papers as well as model test papers uploaded by the institute on their website helped me a greatly as they gave me an overview of what to expect in the examination and how to overcome time constraint but most importantly it helped me to analyse whether I had missed any concept during my revisions.

Mr. SUMEDH ANIRUDDHA PAWSE

I, Sumedh Pawse, recently scored 364 marks out of 400 in CS Foundation Exam held in December 2015. I am declared as the Third Rank Holder in this exam.

With respect to my studies, I mainly referred the modules given by the Institute. They are really good and useful for studying.

I recommend reading each model at least 3 times. I revised all the syllabus thoroughly 3 times. I also took some guidance from some Company Secretaries, Lawyers and Chartered Accountants. I think the content in the modules is good and can be understood and is also helpful.

The subjects are vivid and cover most of the interesting and useful things like law, management, accounts, auditing, communication, etc.

Lastly, I would like to say something about the exam. The exam being a computer based MCQ test helps to cover most of the syllabus. The ICSI mock tests are also very helpful in understanding the pattern of exam, the UI, the way the exam is held, etc. Thank you and all the best!
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Note: This was published in icsi.edu; Sharing it again for the benefit of students.