Most dictionaries define Responsibility as “readily assuming obligations or duties”. But right from my youth I was enamored by a former President of America – Harry Truman’s statement “THE BUCK STOPS HERE. And since then I felt that this statement sums up everything about Responsibility. Truman did not want to pass the Buck and blame someone else. He believed that each and every person was Responsible for who they are and what they become. He probably did not want people to take the easy way out and turn their back on shouldering responsibility because it is very easy to pass the buck than to stand up and declare that “the buck stops here” i.e. Tell that I am responsible.

You’re on a losing streak but want just one more spin of the roulette wheel, just one more hand of blackjack or game of poker. It can become easy to lose control of your money when gambling excessively. As you start losing and the money starts to run out, it becomes very tempting to gamble even more hoping for a big win in order to ‘get back on top’. However, more often than not, this just leads to even greater debts and more desperate gambling. It can get to a point where there seems no way back, and gamblers become to afraid to face their debts so just continue gambling.

If you are faced with this, the most important thing to do is keep calm. If you start worrying about your debt, you will immediately look for a quick solution and often gambling more in the hope of winning seems like a sensible and quick solution. It is not! Take a ‘step back’ and assess your financial situation. Cut your losses and focus on getting out of debt.

Despite the clear regulations in the Companies Act, 1956 as to how every Company should record its transactions, maintain books of account and should submit the approved Financial Statements with the ROC, financial transactions in some closely held companies would be really interesting to note and dealing with the cases of this kind would really be very complicated.  The logic behind the settled accounting principles, the provisions of Companies Act, 1956 dealing with maintenance of accounts, Accounting Standards etc., can very easily be understood. Every Company is expected to be transparent, expected to provide true picture of financial issues to the shareholders and also expected to comply with the regulations with regard to preparation and submission of financial statements with the authorities like ROC in the interests of the Company and also in public interest.  Financial transactions in some closely held Private Companies would really be interesting and we can see routing the Company’s financial transactions through personal Bank Accounts of Directors or the Shareholders. This is why, most of the times, even if there exist procedural irregularities in the Companies with regard to financial issues, those are not taken so seriously at times. For example, there can be going concern which is a closely held company doing business for so many years and if any disputes come among the shareholders suddenly, the adjudicating authority may try to ascertain the true facts in the Company and much emphasis may not be laid on technicalities.  This is a very complicated issue to deal with.  We know the limitations of auditing and we know that it is very easy to find some procedural irregularity in any company with regard to recording financial transactions or maintenance of Books of Account. If these procedural irregularities lead to serious consequences except in exceptional cases, then, many closely held Private Companies may not survive.  It is true that the provisions of Companies Act, 1956 are not directory and mandatory and we know the importance of providing true financial picture of the Company to the shareholders; and as such the consequences of procedural violations can be dealt with strictly as provided under the provisions of the Companies Act, 1956.

I would like to just highlight an observation or noting of in regarding the maintenance of personal Bank Accounts by the shareholders in the Company and the reference is as follows: