Internal Re-construction

🧠 Dive into the World of Corporate Transformation with Dr. Mohd Saifi Anwar's "Internal Re-Construction" Course!

Course Title:

Mastering Internal Re-Construction for a Prosperous Future

Course Headline:

Learn Internal Re-Construction in Depth 🚀

Welcome to an enlightening journey through the intricacies of Corporate Reconstruction! In this comprehensive course, you will gain a deep understanding of how to strategically rearrange and revitalize your business operations. Whether it's to curb losses, amplify profits by eliminating inefficiencies, or to simply set the stage for a more prosperous future, Dr. Anwar will guide you through the process step-by-step.

Course Contents:

• 1. Re arrangement of business 🏗️
• 2. To decreasing losses 💸
• 3. To increasing profits by removing inefficiency 📈
• 4. Removing the debit balance of P/L (negative) 🧹
• 5. Sacrifice today for a better future (contributor) ⏰
• 6. Example:- Air India, UTI, Bharti Airtel (2003) 📉

Understanding Internal Re-Construction: The concept of internal reconstruction involves restructuring the company's operations and financials from within to enhance its operational efficiency and profitability. It often involves tough decisions like removing debit balances, reorganizing business processes, and making sacrifices that pave the way for future growth.

Procedure of Internal Re-Construction:

1. Director: Initiates the process with NCLT (National Company Law Tribunal) using the current balance sheet and a 'Dream' balance sheet, along with obtaining a NOC (No Objection Certificate).
2. NOC + Application + Dream balance sheet = NCLT 📝
3. Meeting of creditors = 51% ➫ Meeting of shareholders = 51% 🤝
4. Order passed by the judge = ESC, PSC, Liability, fixed assets, current assets reduced (with signature) ✍️
5. Order must be fulfilled within 30 days ⏰
6. Chartered Accountant (CA): Handles entries, accounts, and the balance sheet.
7. Execution by the judge 🧕
8. “and reduced” - The company's balance sheet is transformed accordingly.

Exploring External Re-Construction: External reconstruction involves restructuring the company through external means, such as mergers, amalgamations, or takeovers. It's a transformative process that often leads to the creation of a new entity altogether.

Examples of External Re-construction:

• (i) Forhans India Ltd --- Hindustan Ciba-Gigy Ltd 🌟
• (ii) Uninor --- Telenor Communications Pvt Ltd. 🌍
• (iii) Union Carbide India Ltd.  --- Eveready Industries India ⚛️
• (iv) U.T.I  --- Axis bank Ltd 🏦
• (v) Tata Sky  --- Tata Play (27 Jan 2022) 📺

Differences between Internal and External Reconstruction: Understanding the nuances that distinguish internal from external reconstruction is crucial. Both have their unique approaches and outcomes, which we will delve into during the course.

Rules of Debit and Credit: We'll explore both the American and English approaches to accounting, offering a comprehensive view of the traditional and modern methods in managing debits and credits.

Journal Entries for Internal Re-construction: Learn the step-by-step accounting treatment required for internal reconstruction, ensuring that your financial records accurately reflect the changes taking place.

Accounting Treatment Steps:

• Accounting for intangible assets
• Recognizing fictitious assets
• Establishing a Capital Reduction Account or Reconstruction Account
• Consolidating shares
• Subdividing shares

Join Dr. Mohd Saifi Anwar in this insightful course and transform your understanding of corporate restructuring. Whether you're a seasoned professional or just starting out, this course will equip you with the knowledge and tools to navigate the complexities of internal reconstruction. Enroll now and be part of the elite group of individuals who understand how to reshape businesses for a brighter future! 🌟

"Transform, Reconstruct, Prosper!" 💼🚀