KINDS OFCOMPANIES

CORPORATE ACCOUNTING

Ms.S.VINOTHINIASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE WITH CAKONGUNADU ARTS AND SCIENCE COLLEGE

COIMBATORE – 641 029

THE COMPANY

o

o

o

Company basically means a group of persons associated for any common object such as business, charity, sports and researchetc.

Legally, Company is an incorporated association which is an artificial person, having separate legal entity, with perpetual succession, a common seal, a common capital comprised of transferable shares and carrying limited liability.

Classification is required to define legal guidelines clearly as per different objectives and ownership patterns.

On the Basis ofIncorporation

Statutory Companies:-

•Incorporated by a special Act of Legislature

•Goals, powers, liabilities and other functionalareas

are defined under the specialact.

Registered Companies

•Formed and registered with the Registrarof

companies under the CompaniesAct.

On the Basis ofLiability

Limited byShares

•

• Liability of the shareholders is limited to the extent of amount unpaid on shares held by them .

Necessary for these companies to use the word limited after theirname.

Limited by Guarantee• Liability of the shareholders is limited to the extent of amount

undertaken by them to contribute to the assets of the firm in the event of winding up.

• It may or may not have sharecapital.

Unlimited Companies••

•

No limit on the liability of its shareholders .

Liability of each member extends to whole amount of the company’s debts and liabilities.

It may or may not have sharecapital.

Has minimum paid capital of one lakh rupees or more Can have a minimum of 2 and maximum of 50members

Hasrestricted the right to transfer its shares to anyother person

Prohibits any invitation to generalpublic for the subscription of

On the basis of Number ofMembers

Private Companies•••

its shares or debentures

Public Companies••

•

•

Has a minimum paid-up capital of rupees five lakhs ormore

Does not restrict the right to transfer its shares to any other person

Caninvite general public for the subscription of its shares or debentures

Can invite or accept deposits from thepublic.

COMPANIES

Registered Cos. StatutoryCos.

Cos. Ltd. Byshares Cos. Ltd. by Guarantee Unlimited cos.

Pubic Private Cos with S.

capital

Cos without S.

Capital

Cos with S.

capital

Cos.

WithoutS.

Capital

Public PrivatePublic Private

Public Private

Public Private

OTHER KIND OFCOMPANIES

Licensed companies or companies not for profit

••

Formed for promoting commerce, art, science or otheruseful object.

Doesnot intend to apply its profit for payment of any dividend to its

members.

One man company or family company• One man holds practically the whole of the share capital of a

company

• Few more dummy members (Family members) to meet the statutory

requirement of minimum no ofpersons.

OTHER KIND OFCOMPANIES Foreigncompanies

• A company incorporated outside the region of a nation but hasa

place of business in the nation [sec.591(1)].

Government Companies

• Companies in which not less than 51 % of thepaid up share capital is

held either by central or state government or both of them jointly.

• All the subsidiary companies of government companies areincluded

in the list of governmentcompanies

OTHER KIND OFCOMPANIES

Holding company• Company which holds more than half of the nominal value of share

capital of another company or controls the composition of board of

directors of another company.

SubsidiaryCompanies• Company whose more than half of the nominal value of share capital

is held by another company or another company controls the

composition of board of directors ofsuch company.

OTHER KIND OFCOMPANIES

Holding company• Company which holds more than half of the nominal value of share

capital of another company or controls the composition of board of

directors of another company.

SubsidiaryCompanies• Company whose more than half of the nominal value of share capital

is held by another company or another company controls the

composition of board of directors ofsuch company.

THANK YOU

CORPORATE ACCOUNTING

INSURANCE COMPANY

Ms.S.VINOTHINIASSISTANT PROFESSOR

DEPARTMENT OF COMMERCE WITH CAKONGUNADU ARTS AND SCIENCE COLLEGE

COIMBATORE – 641 029

What is Insurance

# A promise of compensation forspecific potential future losses inexchange for a periodic payment.

# Insurance is designed to protectthe financial well-being of anindividual, company or other entityin the case of unexpected loss.

Division OF Insurance Sector

Insurance indus t ry

in india

Public sector

Life

Lic Post office insurance

general

Gic and its four

subsidiaries

Private sector

Life

(16Companies)

General

(16Companies)

To spread life insurance and provide life insurance protection to the masses at

reasonable cost.

To mobilize people’s savings through insurance-linked saving schemes.

To invest the founds to serve the best interests of both the policy-holders and the

nation.

TO conduct business with maximum economy ,remembering always that the money

belongs to the policy-holders.

To act as trustees of the policy-holders and protect their individual and collective

interests.

Toinnovate and adapt to meet the changing life insurance needs of the community.

Toinvolve all the people working in the corporation to ensure efficient and

courteous service to the insuredpublic.

To promote amongst all agent and employees of the corporation a sense ofpride

and job satisfaction through dedicated service toachieve the corporate objective.

To spread life insurance and provide life insurance protection to the masses a

reasonable cost.

To mobilize people’s savings through insurance-linked savingschemes.

To invest the founds to serve the best interests of both the policy-holders and the

nation.

TO conduct business with maximum economy ,remembering always that the mone

belongs to the policy-holders.

To act as trustees of the policy-holders and protect their individual and collective

interests.

Toinnovate and adapt to meet the changing life insurance needs of the community.

To promote amongst all agent and employees of the corporation a sense ofpride

and job satisfaction through dedicated service toachieve the corporate objective.

Vision :

It is vision to become “a trans-nationallycompetitive

financial conglomerate of significance to societies

and pride of india”.

Mission:

Its mission is to”explore and enhance the quality of life

of people through financial security by providing

products ans service of assured attributes with

competitive returns,and by rendering resourcesfor

economic development”

Origin And Growth Of Insurance Sector:

# In fiscal 2000-01, the Indian federal government liftedall entry restrictions for private sector investors.

# Foreign investment insurance market was also allowed with 26 percent cap.

# GIC was converted into India's national reinsure From December,2000.

# All the subsidiaries working under the GIC umbrellawere restructured as independent insurance companies.

Origin And Growth Of Insurance Sector:

# Till end of FY 1999-2000, two state-run insurance companies, namely, Life Insurance Corporation (LIC)

and General Insurance Corporation (GIC) were the monopoly insurance providers in India.

#Under GIC there were four subsidiaries:

–National Insurance Company Ltd.–Oriental Insurance Company Ltd.–New India Assurance Company Ltd.–United India Assurance Company Ltd

The Life Insurance Corporation of India (LIC) is undoubtedly

India's largest life insurance company. Fully owned by

government, LIC is also the largest investor of the country.

LIC has an estimated asset of ̀ 8 Trillion. It also funds almost

24.6% of the expenses of Government of India.

Established in 1956 and headquartered in Mumbai, Life

Insurance Corporation of India has 8 zonal offices, 100

divisional offices, 2,048 branch offices and a vast network of

10,02,149 agents spread across the country.

Life Insurance Companies In India1. Bajaj Allianz Life Insurance Company Limited2. Birla Sun Life Insurance Co. Ltd3. HDFC Standard Life Insurance Co. Ltd4. ICICI Prudential Life Insurance Co. Ltd.5. ING Vysya Life Insurance Company Ltd.6. Life Insurance Corporation of India7. Max New York Life Insurance Co. Ltd8. Met Life India Insurance Company Ltd.9. Kotak Mahindra Old Mutual Life Insurance Limited10. SBI Life Insurance Co. Ltd11. Tata AIG Life Insurance Company Limited12. Reliance Life Insurance Company Limited.13. Aviva Life Insurance Co. India Pvt. Ltd.14. Sahara India Life Insurance Co, Ltd.15. Shriram Life Insurance Co, Ltd.16. Bharti AXA Life Insurance Company Ltd.17. Future Generali Life Insurance Company Ltd.18. IDBI Fortis Life Insurance Company Ltd.19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd20.AEGON Religare Life Insurance Company Limited.21. DLF Pramerica Life Insurance Co. Ltd.22. Star Union Dai-ichi Life Insurance Comp. Ltd.

Indian Insurance In 21st Century# 2000:IRDA starts giving licenses to private insurers: ICICI prudential and

HDFC Standard Life insurance first private insurers to sell a policy.

# 2001: Royal Sundaram Alliance first non life insurer to sell a policy .

# 2007:First Online Insurance portal, set up by an Indian

Insurance Broker, Bonsai Insurance Broking Pvt Ltd.

# The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership.

# Minimum capital requirement for direct life and Non-life Insurance company is INR1000 million and that for reinsurance company is INR 2000 million. In the 2004-05 budgets, the Government proposed for increasing the foreign equity stake to 49%, this is yet to beeffected. Under the current guidelines, there is a 26 percent equitycap for foreign partners in direct insurance and reinsurance Company.

THANK YOU