Financial Statement Fraud: Detection & Expert Witness Quick Answer Financial statement fraud — the intentional misrepresentation of a company’s financial position — causes the highest median loss of any fraud category. Detection requires a combination of quantitative screening (Beneish M-Score, ratio analysis, Benford’s Law), forensic transaction testing, and accounting standards analysis (Ind AS/Indian GAAP). At […]
Category Archives: RBI COMPLAINCE
RBI COMPLAINCE
PE/VC Due Diligence: CFE Fraud Risk Checklist Quick Answer Forensic due diligence for PE/VC investments specifically tests for fraud risk indicators that standard financial and legal due diligence misses — inflated revenue, undisclosed related parties, FEMA non-compliance, promoter integrity issues, and hidden contingent liabilities. At Virtual Auditor, forensic due diligence is led by CA V. […]
Share Transfer in Private Company: Procedure, Valuation & FEMA Rules Featured Answer: Share transfer in a private limited company is governed by Section 56 of the Companies Act, 2013 and executed through Form SH-4 (Share Transfer Deed). Unlike public companies, private companies have a restriction on transfer of shares built into their Articles of Association […]
Increase Authorised Capital: EGM Resolution & ROC Filing Under Section 61 Featured Answer: A company increases its authorised share capital under Section 61(1)(a) of the Companies Act, 2013 by passing an ordinary resolution at a general meeting (EGM or AGM), provided the Articles of Association authorise such an increase. The altered Memorandum of Association is […]
EPF & ESI Registration: Applicability, Process & Employer Compliance (2026) Quick Answer EPF (Employees’ Provident Fund) under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, is mandatory for every establishment employing 20 or more persons. ESI (Employees’ State Insurance) under the Employees’ State Insurance Act, 1948, is mandatory for factories with 10 or more […]
GST Registration: Complete 2026 Process, Documents & Timeline 📌 Quick Answer: How to Register for GST in 2026 GST registration is mandatory for businesses whose aggregate turnover exceeds ₹20 lakh (₹10 lakh for special category States) under CGST Section 22. The application is filed in Form GST REG-01 on the GST Portal, followed by Aadhaar […]
Quick Answer: Setting up a foreign subsidiary in India involves dual compliance — incorporation under the Companies Act, 2013 via MCA’s SPICe+ portal, and FDI compliance under FEMA NDI Rules, 2019 for receiving foreign investment. In sectors permitting 100% FDI under the automatic route (IT, manufacturing, consulting, e-commerce marketplace), no prior government approval is needed. […]
Quick Answer: A FEMA valuation certificate is a mandatory document under the FEMA (Non-Debt Instruments) Rules, 2019 that establishes the fair value of shares or other capital instruments being issued or transferred between residents and non-residents. It must be issued by a SEBI-registered Category I Merchant Banker, a Chartered Accountant, or an IBBI-registered valuer. At […]
Pre-Revenue Startup Valuation: Berkus, Scorecard & Revenue Ramp Bayesian Methods 📌 Quick Answer: How do you value a startup with no revenue? Pre-revenue startups are valued using qualitative and probability-weighted methods rather than traditional DCF or earnings multiples. The three most defensible frameworks are the Berkus Method (risk-dimension scoring up to INR 4 crore per […]
Valuation for Mergers & Amalgamation: NCLT & Share Swap Ratio Determination 📌 Quick Answer: How is valuation done for mergers and amalgamation in India? Merger and amalgamation valuation under Sections 230–232 of the Companies Act, 2013 requires an IBBI Registered Valuer to determine the share swap ratio (exchange ratio) between the transferor and transferee companies. […]