Accountancy
A grounding in business laws
SECTION 2(b) provides that when one person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise. Thus, once the offer is accepted, it is converted into a binding cont ract and cannot be revoked. The general rules regarding acceptance are:

Many happy returns
NPV and IRR are widely used discounted cash-flow methods. But they can create conflicting signals, say

Annexed vs attached
These terms have significantly different meanings in the Companies Act. So is the case with `approval' and `adoption', says P. S. Kumar

Time to change lanes -- II
THE opening up the economy and reforms brought in a new sense of hope. The policy framework and the road map towards reforms were well drawn up and was presented before the nation with rare courage and determination. Sorrowfully, this was not b acked by serious action. At no stage was there a conscientious effort to build a modern India.

Taxation
Private affairs
THE amendments to the Companies Act in 2000 include significant changes to the definition of a private company -- it must have a paid-up share capital of at least Rs 1 lakh or such higher paid-up capital as may be prescribed, and one more restriction in its articles, prohibiting invitation or acceptance of deposits from public. In my view, an existing private company need not add the above restriction in its articles till December 14, 2002, by taking care not to raise its paid-up capital to Rs 1 lakh ti ll then, as a private company has been given two years' time from the date of commencement of the amendment to bring up its capital to the prescribed level. Is this correct?

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