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Showing posts from April, 2012

ZOOM LENS: SAT ORDER IN THE MATTER OF RAKESH RAMNIKLAL SHETH

Case Detail:               Zoom Lens of SAT order in the matter of Rakesh Ramniklal Sheth Target Company:      Genus Commutrade Limited Acquirers:                  Rakesh Ramniklal Sheth Industry:                     Finance and Investments Merchant Banker:     NA
CASE ABSTRACT: Target Company: Genus Commutrade Limited (GCL) was incorporated in May 1995 as Ganapati Hi-Tech  by Hitesh R Bhatt, Bharat P Bhatt and Ramanbhai M Patel. On December 3,

World Intellectual Property Day

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Corporate Professionals wishes  all its subscribers a wonderful  "World IP Day" 

EXTERNAL COMMERCIAL BORROWINGS FOR CIVIL AVIATION SECTOR

In line with the announcement made in the Union Budget for the year 2012-13 to address the financial crunch faced by Indian aviation industry, RBI vide A. P. (DIR Series) Circular No. 113 dated 24th April, 2012 has allowed companies in civil aviation sector to avail ECBs on or before 23rd April 2013 for working capital/refinancing of outstanding working capital rupee loan(s) under approval route subject to following conditions: Airline Companies are registered under Companies Act, 1956 and has obtained license from DGCA for passenger transportation.ECB will be based on the cash flow, foreign exchange earnings and their capability to service the debt.Overall ceiling for the entire aviation sector would be USD One Billion and the maximum permissible ECB that can be availed by an individual airline company will be USD 300 Million.

CORPORATEVALUATIONS.IN ADDED TWO NEW TOOLS

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Corporate Professionals adds new tools of “Innovative FREE Business Valuation Calculator” and “Articles and Research Hub” on its Online Portal “www.corporatevaluations.in
Get Online Biz Valuation (FREE)

FDI POLICY 2012: A REVIEW

Finally after delay of a week or so,  DIPP has unveiled much awaited policy on Foreign Direct Investment on 10.04.2012. This policy supersedes all earlier policies, circular, press notes issued on FDI by DIPP. Until now, the FDI policy was issued after every six months but from now onwards it will be issued after every year.

Barring few changes, this policy is more of a compilation of circulars issued by Reserve Bank of India in last few months. The speculation on defining joint venture or liberalizing norms for aviations sector, liberalizing outsourcing requirement in case of single brand retail has remained a speculation itself, with none of the issues finding its ways into the policy document. The key features of new FDI policy are as follows:

CORPORATEVALUATIONS.IN: AN INTRODUCTION

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Mr. Chander Sawhney
Vice President
+9810557353
chandeer@indiacp.com CorporateValuations.in is a venture promoted by Corporate Professionals Capital Private Limited, the Merchant Banking arm of  Corporate Professionals, a fast mounting Consultancy Group in India. At Corporate Valuation, we provide a sophisticated business valuation service to aid clients in determining the value of their enterprise or one in which they plan to purchase. This formal process analyzes a company by utilizing different valuation methods (eventually using one, or a combination of several) to arrive at a fair market value.
A valuation not only assists business owners in determining the value of their business, it also help them maximize value when considering a sale, merger, acquisition, joint venture or strategic partnership.

DISCOUNTS APPLICABLE TO HOLDING COMPANY

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Holding Company Mr. Chander Sawhney
Vice President
+9810557353
chander@indiacp.com When a company is holding a large chunk of investments in other companies and it's not having any material business operations of its own, it is called a "Holding Company". A holding company typically does not have its own business operations other than the retention and management of assets in anticipation of future sale or trade or may be as a part of its corporate structure. The holding company thus derives its income primarily through the return on assets held for investment purpose. To be particular, income of holding company is only the dividends received by it from the investments made in other companies.
Valuation of Holding Companies There are two ways to look at value of a holding company:

Relative Valuation

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What is Relative Valuation? Mr. Chander Sawhney
Vice President
+9810557353
chander@indiacp.com Relative valuation uses the valuation ratios of comparable publicly traded companies and applies that ratio to the company being valued subject to necessary adjustments. The valuation ratio typically expresses the valuation as a function of a measure of financial performance or Book Value Multiples (e. g. Revenue, EBITDA, EBIT, EPS or Book Value).

Relative Valuation technique hinges upon the efficient market theory which indicates that the price of exchanged securities in the market reflects all readily available information, as well as the supply and demand effects of educated and rational buyers and sellers. In other words, the market is continuously evaluating each company and expressing that valuation in bids and offers for its stock.

Please read the whole article on Slideshare...
Relative Valuation: Business Valuation Article from Corporate Professionals
Our Comments A key benefit of Relative …

SEBI BOARD DECISION...

Another long pending decision with respect to formulation of Regulations for Alternative Investment funds is also taken by the SEBI board. The board has now approved to frame SEBI (Alternative Investment Funds) Regulations, 2012.

SEBI BOARD MEETING

Securities & Exchange Board of India (SEBI) in its Board Meeting held on 2nd April, 2012 had taken long pending important decisions with respect to Ownership and Governance of Market Infrastructure Institutions (MIIs) (i.e. Stock Exchanges, depositories & clearing Corporations etc.) and has further approved the proposal to frame SEBI (Alternative Investment Funds) Regulations, 2012.
The key decisions taken at the Board meeting are: 
1.The most important decision taken at the meeting is to allow Stock Exchanges & Depositories to be Listed. In this regard SEBI has further provided that the Exchanges would not be allowed to be listed on itself, shall be permitted to be listed within three years of SEBI date of approval and must put appropriate of mechanism to resolve any conflict of interest. Clearing Cooperation are not allowed to be listed.