Explanation
(i) General rate applicable to plant and machinery not covered under special plant and machinery
(a) Plant and Machinery other than continuous process plant not covered under specific industries: 15 years
(b) Continuous process plant for which no special rate has been prescribed under (ii) below [NESD]: 8 years
(ii) Special Plant and Machinery
1. Companies Act, 2013 specified useful life to compute depreciation under schedule II in part A, part B and part C for assets
2. As per point IV. (Plant and Machinery) of part C of schedule II, plant and machinery divided into two parts:
Schedule II of Companies Act, 2013 specified different useful life for different types of assets as per its nature. Building has been divided into five categories, among which useful life specified for factory building is 30 years.
Schedule II of Companies Act, 2013 specified different useful life for different types of assets as per its nature. Furniture and fittings has been divided into two categories as mentioned below:
(i) General furniture and fittings: 10 years
(ii) Furniture and fittings used in or furniture and fittings used in hotels, restaurant, school, colleges etc.: 8 years
Schedule II of Companies Act, 2013 specified different useful life for different types of assets as per its nature for calculating depreciation wherein under part C useful life for Electrical Installations and Equipment specified as 10 years.
Schedule II of Companies Act, 2013 specified different useful life for different types of assets as per its nature for calculating depreciation wherein under part C useful life for aircraft and helicopters specified as 20 years.
As per section 128(5) of companies act, 2013 requires every company to preserve its books of accounts, together with vouchers relevant to any entry in such books for a period of not less than eight years immediately preceding the relevant financial year and if a company incorporated less than eight years then for the entire period. In the case of investigation the Central Government may direct that the books of account may be kept for such period longer than 8 years, as it may deem fit and give directions to that effect.
According to section 138, a company cannot appoint an individual as an auditor for more than one term of five consecutive years or an audit firm as an auditor for more than two terms of five consecutive years. Hence a company cannot appoint an auditor for more than 10 years.
Shareholders’ fund is an account on a company’s balance sheet that consists of share capital plus retained earnings. It also represents the residual value of assets minus liabilities. Shareholders fund basically accumulated funds of shareholders that’s why it is the major head under equity and liabilities part of company balance sheet.
Accounting equation: Shareholders’ fund = Assets-Liabilities.
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