Climate crisis is a term describing global
warming and climate change, and their impacts. The term has been used to
describe the threat of global warming to the planet, and to urge aggressive
climate change mitigation. We should think on how to protect us from the ills
of industrial farming, petrochemicals, genetically modified seed, and the
corporate greed around our food table.
The concept of buyback was introduced in the 1960s in the US and remained popular in the 1980s. Even today, buyback of shares in practiced frequently in the US and other countries. In India, share buyback was first introduced in 1998 by the Securities and Exchange Board of India (SEBI) under Section 77A of the Companies Act, 1956. The introduction of buyback around the world has put pressure on the Indian corporate sector to allow them to buyback shares so that they can also use their internal surplus cash. The Bombay Stock Exchange (BSE) defines buyback as: 'a caproate action in which a company buys back its shares from the existing shareholders usually at a price higher than market price' . There are numerous reasons for buyback like achieving capital structure, improving certain financial ratios, etc.
Process of developing financial statements and ratios which deal typically with future projections based upon a defined set of assumptions and logical relationship. In simple financial modeling refers Cash flow forecasting involving the preparation of large detailed spreadsheets for management decision making process
Techniques of Financial Modeling
1. Spreadsheet
2. Mathematical programming package
3. Simulation package
SAST Regulations
Securities and Exchange Board of India (SEBI) introduced Substantial Acquisition of Shares and Takeovers Regulations to prevent hostile takeover resulting in the consequences for the company and its investors. In simple prevent hostile takeovers of voting rights in a company and, in turn, ensure good corporate governance in the entity. the main objective of SAST is to protect the interest of minority shareholders when acquisition is taking place.
Companies Act 2013-Independent Director
An independent director is an non-executive director of a company who helps the company in improving corporate credibility and governance standards. he or she does not have any kind of relationship with the company.
Amalgamation
In the Indian context, both merger and amalgamation are treated as one as per section 2 (1A) of the Income tax Act,1961. Amalgamation is seen as merger of one or more companies with another company or it can be a merger of two or more companies to form a new company. It is done in a way that in totality all the assets, liabilities and shareholder's holding of new.
Merger
Merger is a happy bending of two or more organizations. A merger is the end result of two companies combining into one company.
Demerger
Demerger is a technique of corporate restructuring in which an independent company is created from a parent company
Example: Rolls-Royce motors was created from the demerger of the Rolls-Royce car business from Rolls-Royce Limited in 1973. The main objective behind a demerger is to provide for a clear, precise and un-distracted focus on core business for the parent company.
Loan Stock
This is the exchange of common equity stock for debt based loan stock in the new company. Therefore, equity investment is exchanged for fixed interest investment.
Convertible loan stock
The shareholders of one company exchange their shares for convertible loan stock i.e. loan or debt which can be later converted into equity after a certain period of time
Authorized capital of a Private Limited Company is the maximum value of shares a company can allot to its shareholders. therefore, most promoters incorporate their company with the minimum required authorized capital of Rs. 1 lakh and issue shares with a value of Rs. 1 lakh or less to founding members.
