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Showing posts from December, 2013

Should General Employee Benefit Scheme and Retirement Benefit Scheme be covered under the ambit of ESOP Regulations?

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“It might be said that it is the ideal of employer to have production without employees and the ideal of the employee is to have income without work” – E.F. Schumacher. But this conception is far from reality. In order to have efficient business, employee needs to be loyal and motivated and employer needs to nourish and take care of his employees. 
Ms. Mohini Varshney
Assistant Vice President
+919971673332
mohini@indiacp.com A number of employee benefit schemes like General Employee Benefit Schemes (including Retirement Benefits Scheme) where benefits like education, scholarship, medical etc. are extended to employees via Special Purpose Vehicle (i.e. Trusts) either using appreciation from

How to value a Business?

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Valuing a business is a science as well as an art. Before starting the valuation exercise, the very first step is to look into the economy of the geography in which it is operating, then the Industry in which the company falls and then finally the company itself i.e. the top down approach.
The company is a constituent of an industry and then of the economy in which it falls as the valuation of the company vary from industry to industry and from geography to geography.
Two companies with the same top line and the same bottom line may get very different business valuation if there industry segment is different as the market multiple of the two company may vary significantly.

Corporate Professionals Completed Decade of Trust, Quality and Innovation

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Knowledge Masterclass on Corporate Valuations – Techniques & Application

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Corporate valuations form the basis of corporate finance activity, including capital raising, mergers, acquisitions, demergers and disposals. The ability of market participants to identify under or overvalued companies drives portfolio out-performance and creation of shareholder value. Even the rapid globalization of the world economy has created both opportunities and challenges for organizations leads to uncertainty blowing across global markets which raise the importance of independent valuations all over the world.

Whether Employee Welfare Trusts acts as an Intermediary for Employees Welfare or a Portfolio Manager for the Promoters??

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With the intent to create belongingness value for the real jewels i.e. Employees of the Company, nowadays, large no. of companies in India are settling their Welfare arm (i.e. Employee Welfare Trusts) for extending various benefits like Medical / Education / Retirement Benefits etc. 
Ms. Mohini Varshney
Assistant Vice President
+919971673332
mohini@indiacp.com Apart from extending above benefits, the companies are using these Trusts to channelize monetary values to the Employees via Employee Stock Options Plan whereby such Welfare Trusts are being used either for transferring direct ownership rights to the Employees i.e. equity shares or the monetary benefit arising out of the equity shares. Prior to the SEBI Circular dated 17th January,

Rules of Employment in India

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The applicability of employment legislation in India is determined by the industry sector, the class and number of employees, the location of business establishment and the notifications issued by the relevant government. An employer may nevertheless choose to formulate its work rules, company policies, employee handbooks, or similar documents into employee contracts of employment, though in doing so the employee consent is required and for this reason, many employers establish policies or handbooks that are expressed not to form part of the contract of employment, but with which employees are nevertheless required to comply. The Industrial Employment (Standing Orders) Act, 1946 (“Act”) governs the rules and conditions of the employment in industries covered under the Act. 

Valuation of Patents

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A patent is a set of exclusive rights granted to an inventor or their assignee for a limited period of time, in exchange for the public disclosure of the invention. An invention is a solution to a specific technological problem which helps in inventing something new or which helps in increasing the efficiency of a process.

In the current context, the intangible plays a significant part in creating value preposition of the company. The business value covers both the tangible and intangibles. Valuation of intangibles becomes relevant when there is a need to do purchase price allocation i.e. when you want to allocate the excess of the consideration paid for acquiring the asset over and above the tangible assets.