Chartered accountants, the nuts-and-bolts professionals in the world of finance, are scoring brownie points over suave MBA finance graduates as India Inc gets increasingly risk-averse in a post-slowdown environment. Companies are focusing more on risk-compliance than pursuing ambitious targets as they recover from an 18-month economic downturn, paving the way for recruitment of more CAs, perceived to have core competence in financial matters.
Reserve Bank of India on Monday allowed foreign institutional investors to offer domestic and foreign government securities as collateral to stock exchanges for cash segment transactions. According to market regulator Securities and Exchange Board of India’s regulations, FIIs are required to post collaterals for their transactions in the cash segment of the market.
Despite being one of the most complex methods of stock valuation, Discounted Cash Flow (DCF) analysis gained wide popularity following the Great Stock Market Crash of 1929. Though DCF calculation has been used in some form or other since ancient times, it was formally expressed in modern economic terms for the first time by Mr Irving Fisher in his book “The Theory of Interest” in 1930.
EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) multiple is often called as Enterprise Multiple since it takes into account entire enterprise irrespective of capital structure. It takes into account a company’s debt and cash levels in addition to its stock price and relates that value to the firm’s cash profitability. It is calculated by using the following formula:
Price-To-Earnings Ratio is one of the simplest and most popular method of valuation which measures the price paid for a single share in comparison to its earnings per share. It is calculated by using the following formula:PE Ratio= Market Value Per Share / Earnings Per Share (EPS)
Whether the capital markets are bearish or bullish, most of the investors generally face a common problem as to when to take position in a particular stock and when to exit so that they can maximize their profits. Investors usually want to know the value of stock that they are going to buy, hold or sell. The value of the stock may be the current value or future value. Every investor likes to buy stock at a cheaper market price and sell at a higher price than its actual value. However, the million dollar question is “How to value a particular stock???” Though, there are several methods of valuation, all of them need valuation of the business of company as a whole.
Mumbai bench of Income-tax Appellate Tribunal (the Tribunal) in the case of Alcatel USA International Marketing Inc (see note-1 below) (taxpayer) has held that the transfer of licensed software cannot be considered as ‘royalty’ within the meaning of article 12(3) of the India-US tax treaty (the tax treaty) in view of the decision of the Special Bench of the Delhi Tribunal in the case of Motorola Inc., Ericsson Radio Systems AB and Nokia Corporation Inc (see note-2 below).
MSK Projects India Limited (‘MSK’ or ‘the Target Company’), issued and allotted fully paid-up equity shares to Subhkam Ventures (I) Private Limited (‘Subhkam’), erstwhile Subhkam Holding Private Limited, on preferential basis representing 17.90 percent of the post preferential issued share capital of MSK (out of total issue of 19.91 percent). A Share Subscription and Shareholders Agreement (‘the Agreement’) was executed between Subhkam, the existing promoters of MSK and MSK to govern the investment made by Subhkam in MSK.
When a Chartered Accountant is performing a statutory audit, he is acting as an agency of the revenue department. Many times, we have seen that the dealers’/assessee’s assessment has been made on the basis of the auditors’ report. It is very well settled doctrine of the law that in any given case, one person can not be the solicitor for both the parties.
Clarification on amendments to clause 41 of the Equity Listing Agreement.Securities and Exchange Board of India [SEBI] had, on 5 April 2010, directed Stock Exchanges to amend the Equity Listing Agreement [LA]. One of the amendments to Clause 41 of the LA relates to inter alia timelines for submission, disclosure and publication of quarterly and annual financial results. As per the amended Clause 41, listed entities shall disclose:
