Review of Professional Management- A Journal of New Delhi Institute of Management

Ramendu Roy ¹, Tanushree Roy ²

Affiliations
1 University of Allahabad, IN
2 Department of Commerce, Jagat Taran Girls Degree College, University of Allahabad, IN

Abstract

The paper after analyzing the historical factors on the emergence of entrepreneurial class in predominantly agrarian Europe and Britain from the social class of affluent trading community, migrant community or a class within the a society yet distinct in nature, attempts to tress the nature of development of entrepreneur class in different parts of India. By the middle of 19^th century, India had a fairly developed business community. Indian entrepreneur class developed mainly from business community such as bania among Hindus, Parsis in Gujarat, Subarna Baniks in Bengal. Since Gujarat was the most urbanized in India, there were a well developed entrepreneurial class consisting of Hindu banias, Muslim business community as well as Paris. The Environmental Conditions Stable government. External security (protection from war and invasion) Internal security have influence the emergence of entrepreneurial class. Yet the analysis finds that it is capability of investment funds with these communities that enabled them to emerge as the entrepreneurial class. The paper also looks into different types of entrepreneurial classes that are existing in the modern world.

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Tanushree Roy ¹, Dolly Roy Choudhary ²

Affiliations
1 S. S. Khanna Girls' Degree College, University of Allahabad, Allahabad, IN
2 Department of Commerce & Business Administration, University of Allahabad, Allahabad, IN

Abstract

Creative accounting is all about making manipulations in accounts by taking advantage of flexibility in accounting system to reflect the desired financial position. It is a tool for fulfilling aspirations of the management. There may be many reasons behind adapting the technique of creative accounting viz. finance from banks, adjustment for abnormal profits, hiding losses, inflating share prices, achieving higher remuneration and increasing income or assets and decreasing expenses or liabilities by making artificial transactions or adjusting the timing of recording transactions or choosing among different alternative methods are some commonly employed methods of creative accounting. This paper is an attempt to bring out actual implications of creative accounting and highlight reasons why management resorts to this method of accounting. It, then suggests a few common methods to present the financial statements in more transparent way. To prevent or discourage the tendency of creative accounting in India, many provisions have been made in the Company Act 2013. A brief summary of those provisions are presented in this paper. At the end, it can be said that ethical behavior on the part of the management, auditors and accountants will ultimately result in the reduction of malpractices seen in creative accounting.

Keywords

Creative Accounting, Transperant Way, Company Act of 2013.

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