Companies Act, 2013: Preliminary Definitions

Key definitions and provisions from the Preliminary section of the Companies Act, 2013, including Body Corporate, Books of Accounts, and Government Company specifications.

Body Corporate

Includes a company incorporate outside India, but does not include: i. a co-operative society and ii. Any other body corporate.

Books of Accounts

Includes records maintained in respect of: all sums of money recd and exp by company; all sales and purchase of goods and services; the assets and liabilities of company; and items of cost as may be prescribed u/s $148$.

Charge

Means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage.

Financial Statements

Includes a Balance Sheet as at end of financial year, Profit & Loss for the financial year, Cash flow statement for the financial year, Statement of changes in equity, and any explanatory notes.

Cash Flow Statement Exceptions

Financial Statements with respect to (WRT) OPC, Small Company, Dormant Company, and Private Company (Startup) may not include cash flow statements.

Government Company

Any company where at least $51\%$ of PUSC is held by CG/SG/ Partly CG and one or more SG; includes a company which is a subsidiary of such Govt company.

Government Company (DVR Condition)

If a company has issued shares with DVR, at least $51\%$ of Voting Power shall be considered for this section.

Government Company Status

A Govt company is always a public sector company.