TR Consultancy Services

28/04/2014

28/04/2014

Bangalore

23/04/2014

Actuarial Valuation:

Types of schemes covered under AS 15 (revised, 2005):
Within Indian accounting framework, AS 15 (revised, 2005) deals with the accounting of employee benefits. AS 15 requires that actuarial valuation should be done in respect of following employee benefits:
1. Gratuity
2. Leave benefits (for both encashable and non-encashable leaves)
3. Pension schemes (including both defined benefit and defined contribution schemes which guarantee a minimum investment return)
4. Exempt Provident Fund (those PFs managed in-house and not by EPFO)
5. Long-term service awards (e.g. awards given on completion of certain number of years of service or at retirement)
6. Bonus and profit-sharing arrangements
7. Leaves for leisure and travel purposes

Actuarial valuation results:
The actuary calculates the following as per provisions of AS 15 for each applicable employee benefit scheme, which then need to be disclosed in company's annual accounts:
1. A liability in respect of the benefits in company's balance sheet
2. An expense in respect of the benefits in company's P&L account

Companies covered under AS 15 (revised, 2005):
AS 15 (revised, 2005) is applicable on the following firms:
1. Listed companies on any stock exchange in India
2. Banks/FIs/Insurance companies
3. Companies having turnover of more than 50 crores
4. Companies having borrowings or deposits of more than 10 crores
5. Companies employing more than 50 employees
6. Holding or subsidiary company of any of the above

Above-mentioned companies must get actuarial valuation done externally as per AS 15 by a certified actuary atleast once a year (usually 31 March). Company officials or auditors cannot do this valuation by themselves.

Companies which do not fall within any of the above six categories also need to consult a qualified actuary whether they need actuarial valuation or not. The need for actuarial valuation is determined by the actuary in consultation with the auditors after assessing materiality issues. Therefore, requirement of actuarial valuation falls more or less on every registered company.

Contributions made to insurance companies in respect of employee benefits cannot be booked as expense in P&L as per AS 15 - the expense has to be calculated by an actuary using actuarial methods.

23/04/2014

Advantages of Digital Signatures
The following are the main benefits of using digital signatures:
Speed: Businesses no longer have to wait for paper documents to be sent by courier. Contracts are easily written, completed, and signed by all concerned parties in a little amount of time no matter how far the parties are geographically.
Costs: Using postal or courier services for paper documents is much more expensive compared to using digital signatures on electronic documents.
Security: The use of digital signatures and electronic documents reduces risks of documents being intercepted, read, destroyed, or altered while in transit.
Authenticity: An electronic document signed with a digital signature can stand up in court just as well as any other signed paper document.
Tracking: A digitally signed document can easily be tracked and located in a short amount of time.
Non-Repudiation: Signing an electronic document digitally identifies you as the signatory and that cannot be later denied.
Imposter prevention: No one else can forge your digital signature or submit an electronic document falsely claiming it was signed by you.
Time-Stamp: By time-stamping your digital signatures, you will clearly know when the document was signed.

23/04/2014

How a Digital Signature Works?
If you are sending a sensitive document, you would want the recipient of the document to know that it was from you and you would also want to ensure that the document gets to the recipient in the very same state you sent it in, without any alterations. The process of digitally signing your document would go something like this:
First, you should copy the document and paste it into an e-mail note.
Second, you use a special software to obtain a mathematical summary (commonly known as a message hash) of the contract.
Thirdly, you will use a private key that you purchased from a trusted public-private key authority for encrypting the message hash.
Lastly, you send your document with the message hash as your digital signature.
The digital signature can be used for signing any form of electronic document whether or not the message is encrypted. The digital signature is protected with a digital certificate that authenticates it. Your digital certificate will contain the certification-issuing authority’s digital signature which makes it possible for anyone to verify that your certificate is real.

23/04/2014

e-Token is hardware device, which is used to store Digital Signatures for security. It is secure device and certified by International standards (FIPS level I). (n)Code recommends all Digital Certificate subscribers to store their DSCs on e-Tokens. DSc stored in e-Token can not be copied to any other device. (n)Code offers quality Tokens from Aladdin, Israel.
e-Token is hardware mechanism used for password authentication via using identity management technique and provides hacking problem solution to the user. It fits in the USB port of the computer.
Besides, it is also very useful where security is must like personal computer or cyber café pc. It can be most widely used in accessing E-banking, E-commerce, stock trading, and online data and money transactions tasks.

23/04/2014

A digital signature is a mathematical scheme for demonstrating the authenticity of a digital message or document. A valid digital signature gives a recipient reason to believe that the message was created by a known sender, such that the sender cannot deny having sent the message (authentication and non-repudiation) and that the message was not altered in transit (integrity). Digital signatures are commonly used for ROC, online IT Returns Filing, E-Tendering, software distribution, financial transactions, and in other cases where it is important to detect forgery or tampering Digital Signature also ensures that no alterations are made to the data once the document has been digitally signed. A DSC is normally valid for 1 or 2 years, after which it can be renewed Digital signatures are going to play an important role in our lives with the gradual electronization of records and documents. The IT Act has given legal recognition to digital signature meaning, thereby, that legally it has the same value as handwritten or signed signatures affixed to a document for its verification.