Corporate Professionals Blog

Choices add the ultimate spice to life and India with the largest number of people (well almost!) needs a lot of them. That is especially true when it comes to things majorly characterized by the ever-evolving technology. And obviously, when there’s a demand, there’s going to be a large number of industry players competing with each other to bring out the best possible product in a given price change. One such industry is the Indian Automobile Industry which very visibly stays on its toes to bring new models for the domestic and international markets alike. The domestic players are sincerely trying to meet the international standards and yield the best quality. Mr. Manoj Kumar Vice President +919910688433 manoj@indiacp.com Nissan's Managing Director in India, Mr. Kiminobu Tokuyama says “India is a rapidly growing market, so therefore it is very important for global auto manufacturers". India’s potential as a manufacturing country and as a consumer base is being...

Maslow, a world famous psychologist known for his hierarchy of needs; brought to paper the thought which people generally fail to realize. The second most important need after food and shelter is the need for protection and security. That comes even before the need for love, social esteem and self-growth. Believe it or not; ask yourself and you’ll know it’s true. Mr. Manoj Kumar Vice President +919910688433 manoj@indiacp.com With 28 states, 7 union territories and a population of 1.22 Billion; India sure is a huge country. With the huge size comes a huge list of needs. You would say Food security, Education, Infrastructure, Transport, Good Sanitary conditions, Social welfare et al. Did you say Security?

Mr. Chander Sawhney Vice President +9810557353 chander@indiacp.com C ompany A is doing Sugar Business with Value of Say Rs 100 and company B is doing Cement Business with Value of say again Rs. 100 then what should be the value of company C doing both the above business by itself, On unitary basis it should be Rs 200 i.e.  Value of C company  = Value of A company + Value of B company. It seems so simple; however it is not the way how valuation actually happens in the real life scenarios. That’s where the role of a valuer becomes significantly important. A corporate valuer always focus on the risk involved while undertaking any SOTP valuation and gives appropriate discounts accordingly. In the

R ejoices its successful completion of 4 years

SEBI, at its Board Meeting held on June 26, 2012 has taken certain important decisions. The gist of the same is given herein below: 1. Platform for E-Voting by Shareholders of Listed Entities Ms. Anjali Aggrawal Vice President +919971673336 anjali@indiacp.com Top 500 listed companies at BSE and NSE based on market capitalization basis, have to now mandatorily provide for e-voting facilities in respect of those businesses to be transacted through postal ballot. 2. Manner of dealing with Audit Reports filed by listed entities In order to enhance the quality of financial reporting done by listed entities, it has been decided to put in place, a mechanism to process qualified annual audit reports filed by the listed entities It has been, inter-alia, decided that:

Meaning and Purpose: Escrow Account means a bank account which is required to be opened by an acquirer who proposes to make public announcement of offer in pursuance of regulation 3, 4, 5 and 6 of SEBI (SAST) Regulations, 2011. The Regulations have made detailed provisions regarding the Escrow Account. These provisions are contained in regulation 17 of SEBI (SAST) Regulations, 2011. Regulation 17(1) of SEBI (SAST) Regulations, 2011 provides that “Not later than two working days prior to the date of the detailed public statement of open offer for acquiring shares, the acquirer shall create an escrow account towards security for performance of his obligations under these regulations, and deposit in escrow account such aggregate amount as specified. The purpose of these provisions is to ensure that the acquirer has sufficient funds to pay the consideration under the offer and he has secured sufficient financial arrangement. I. Timing of opening of Escrow Account: [Regulation 17(1...

The term Competing Offers refers to an offer given by any other person (Competitor Acquirer) after an offer has already been given by an acquirer to the shareholders of the Target Company to acquire the shares held by them.  E.g. If ‘A’ (Acquirer) has already given an Open Offer in terms of SEBI (SAST) Regulations, 2011 to the shareholders of X Ltd. (Target Company) and subsequently during the relevant period, B (any other person) also gives the similar offer to the shareholders of the Target Company, then offer given by B shall be termed as ‘Competing Offer’ in terms of these regulations. L egal Provision Regulation 20 of SEBI (SAST) Regulations, 2011 deals with the concept of Competing Offer. As per regulation 20 (1), Upon a public announcement of an Open Offer for acquiring shares of a Target Company being made, any person, other than the acquirer who has made such public announcement, shall be entitled to make a public announcement of an Open Offer within fifteen work...

Do you want to own an online Shop? If yes, then, go ahead with starting online business in India. These days’ people are so busy in their lives, that they don’t have time to go out for shopping daily needs. Online businesses have an advantage over businesses in the real world. They all have 13 inch monitors as our windows to the customer. The idea is to start an online daily needs store like online Big Bazaar including grocery products, bathing products, etc. Advantages of doing Business Online in India Mr. Manoj Kumar Vice President +919910688433 manoj@indiacp.com Costs:  One of the biggest advantages of doing business online is the savings that can be achieved by both consumers and businesses. Reducing gas consumption, paper use and employee time are just some of the cost-saving benefits e-commerce provides. Maintaining websites is getting less expensive with tools available that anyone with a computer can easily learn to use.

SEBI in the year 2002 constituted a committee on delisting of shares to inter-alia examine and review the conditions for delisting of securities of companies listed on recognized stock exchanges and suggest norms and procedures in connection therewith. The Report of the Committee was considered and accepted by SEBI Board. Pursuant to the same, SEBI vide Circular SMD/Policy/CIR – 7/ 2003 dated February 17, 2003 issued the SEBI (Delisting of Securities) Guidelines, 2003. Later in the year 2006 SEBI circulated the concept paper on new regulations which were finally published on 10th June, 2009 as SEBI (Delisting of Equity Shares) Regulations, 2009. Ms. Mohini Varshney Assistant Vice President +919971673332 mohini@indiacp.com The salient features of the said new Regulations are: Public Shareholders to be given an exit option if the company or its promoters propose to delist its securities from all the stock exchanges on which they were listed. However, no exit opportunity ...

As the world turned to a global village, India leaped ahead of its Peer Countries due to its several investment opportunities, huge growth potential and favorable business environment and became a hub of Foreign Investment. The steady growth of foreign investment in the Country since the past few years has become one of the pivotal factors in determining the pace of growth of Indian Economy. The foreign Investment in India is not only a growth driver for India Inc. but it also plays a vital role in granting confidence and trustworthiness to the present as well as potential stakeholders of the organization besides earning International repute and recognition for the country. Infusion of foreign funds in the veins of Indian Economy has largely stimulated the growth of Indian Economy and with the government further liberalizing and streamlining the Foreign Investment policies and procedures, is hopefully supposed to play a crucial role even for the times to come. DO READ OUR ARTICL...

After serving the Clients through its web based products like www.takeovercode.com , www.startbizindia.in , www.llponline.in , Corporate Professionals, a leading Corporate Legal and Financial Advisory firm, today added one more feather in its cap and proudly announcing the launch of www.femaindia.in, the one stop online solution for all forex law queries and assignments. Femaindia.in is a very first website which provides in-depth coverage on foreign exchange laws applicable in India. It is a destination for all your FEMA related needs and providing all the relevant information with a click of a mouse. With a back end support of professionals like CAs, CSs and Lawyers who are expert in this field, you can bank upon the contents of this website blindly. Whether it is advisory, audit, valuation or execution of transaction, femaindia.in is a name to be referred. Services Offered on www.femaindia.in

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,

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

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.

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)  

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.

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:

     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.

Securities & Exchange Board of India ( SEBI ) in its Board Meeting held on 2 nd 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.

The RBI vide A.P. (DIR Series) Circular No. 96 & 97 dated 28th March, 2012 has liberalized the provisions related to Overseas Direct Investment. The objective is to provide operational flexibility to Indian Corporate having investment abroad or Indian resident individuals to acquire securities aboard. ; Key terms of circular are outlined below:   Liberalised provision relating to Corporate having investment abroad