Archive for the ‘SharesVault Blog’ Category

SharesVault Advisory Service – Advice to companies looking for Public Market

Tuesday, October 2nd, 2012

SharesVault team is meeting with many companies for getting them registered on SharesVault. Many of them are ready to come on SharesVault. No one said clear no for registration as almost every companies are looking for fund now a days – be it working capital or new project finance.

Than why SharesVault doesn’t allow them all to come on board ? Companies might have 100+ Crore turnover but does that make it qualify for SharesVault registration? Answer is No. Turnover is not as important for SharesVault as it is for company. Reason is number only doesn’t justify potential, credibility, reputation and growth of a company. Majority of companies SharesVault met doesn’t pass through SharesVault due diligence process because of hiding some financial numbers in saving taxes.

In saving taxes and bad accounting practices, companies are loosing it’s value which could be multiple of 3 – 4 or more depends on company’s growth, profit, PE multiple and EPS. Reason for such thing would be less awareness for company’s valuation. Family run businesses which are going to last forever and don’t want any exposure like public market or outside investors have such mentality of not disclosing profits.

From the company’s point of view – recession, inflation, government expenditure for company’s industry, government policies, corruption etc are crucial parameters which forces company for bad practices.

SharesVault has started advising companies in their growth stage/early stage or even when companies are partnership/proprietor firm. Good accounting practices will bring good investors for companies and also bring good growth.
It’s not all about accounting practices only, there are other parameters like – share holding pattern, CA and CS consultation, Board of Directors, advisers.

SharesVault provides advisory services for companies to be ready for public market. This takes time but in long run company’s value will be increased like anything. Like company having 100 Crore turnover has current share price of Rs.50 which is too less for such company can go up to Rs.200 or more if good accounting practice and corporate governance is followed.

SharesVault make company follow good practices for the betterment of company and indirectly investors.

How HUF can be benefited by investing in SharesVault ?

Thursday, September 6th, 2012

SharesVault allows investor to register as HUF Karta. If investor has not registered as HUF than he/she can even apply for the same and get HUF PAN Card and bank account before registering on SharesVault.

HUF Information:
HUF or Hindu Undivided Family is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor, including wives and unmarried daughters. Any hindu individual male can create HUF as soon as he gets married to a hindu female. Its not necessary to have children to create HUF.

HUF Benefits:
If you have ancestral property and earning some income from this property, then it is better to transfer this asset to HUF and savetax up to exemption limit applicable to individual.
The income from property of HUF can be further invested in instruments such as shares, mutual funds, etc. and will be assessed under HUF.
In HUF there could be all the females’ members also when the husband dies and she has no sons.
HUF also enjoys wealth tax exemptions available to individuals.

HUF Consists Of:
Karta: KARTA is the father of the family who has the right to do all the things for the family and takes all the decisions on the behalf of the family.
Co-Parceners: Coparcener is the person who has the right to demand the share of the property of family if he/she wants to part away with the family with his/her share.
Member: Are the family members who dont have right to demand the share of the property.

Investment through HUF has to be through HUF Bank Account and HUF PAN Card only. Income generated by returns on share transaction can be count as HUF income which will help in saving tax.

Thus Sharesvault returns can also be helpful in decreasing tax. As it’s combine income and these asset will also get as inheritance to other family members.

Valuation Techniques

Monday, August 20th, 2012

As part of through due diligence, SharesVault also do valuation of the company which helps SharesVault to derive current fair market price of the company.

Valuation is a vast subject and also subject of perspective and personal opinion. Like if a mobile is of X value for person A but same can be of 2X for person B. Valuation is the process of estimating what something is worth.

There are many techniques available for company valuation. Here 3 techniques are described briefly:

1. Discounted Cash Flow
Via this method valuing a company using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values (PVs) — the sum of all future cash flows, both incoming and outgoing, is the net present value (NPV). Discounted cash flow tries to work out the value of a company today, based on projections of how much money it’s going to make in the future.The discounted cash flow analysis quantifies what money to be received in the future is worth today assuming a certain discount rate.
For more information : http://tommydog.hubpages.com/hub/Understanding-Discounted-Cash-Flow

2. Book Value
Value of total asset minus value of total liabilities. It is the total value of the company’s assets that shareholders would theoretically receive if a company were liquidated. In practice, book value is seldom used in the process of securing venture capital, although it is widely believed to be a realistic approach to measuring a small company’s net worth.

3. P/E Multiple:
P/E – Price Earning ratio
a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The financial reporting of both companies and investment research services use a basic earnings per share (EPS) figure divided into the current stock price to calculate the P/E multiple.
EPS – The portion of a company’s profit allocated to each outstanding share of common stock.
EPS = Net Profit / No. of outstanding share
so P/E ratio = Stock Price / EPS
The ratio will also vary widely among different companies and industries.
Once we derive P/E ratio, similar industries listed peer companies will be searched and relative valuation will be worked out.

Courtesy: www.investopedia.com , www.wikipedia.com and http://tommydog.hubpages.com/hub/Understanding-Discounted-Cash-Flow

SharesVault @IIM, Ahmedabad – YourStory.in – TechSparks 2012 Event

Friday, July 20th, 2012

SharesVault is on fast track now since Bhaumik Vasavada has joined as full time Managing Co Founder. Last weekend – (14th and 15th July,2012) SharesVault team spend their time at IIM, Ahmadabad.

Team has attended YourStory.in event – TechSparks 2012. Very fruitful Panel discussion was there on how to pitch VCs and how to scale up.

Mr. Gautam Gandhi, Head – New Business Development at Google India / US, said one beautiful quote in his speech – “My Mom used to say me – Son, Don’t do the things which you can’t tell me !!”. He also emphasize on Vision Statement of the company

Mr.Vishal Mehta, Owner of Infibeam, also interacts with entrepreneurs and gave a very good message that “Run marathon and not 100 meter race !!”

Mr.Aakash Goel from Sequoia Capital was quite impressed with SharesVault concept and shown his interest to see demo of it. Now SharesVault is pitching Sequoia for further round of talks.

Team also met Shradha Sharma, Founder of YourStory.in and decided to meet Sunday Early morning at 6:30 AM. She thought we might not come at such weird time and that on Sunday but we did !!

Roshan, Rushik and Bhaumik met Shradha at 6:30 AM and she was very amazed to see as we all had less than 5 hour sleep previous night. Discussion started for tie up with YourStory.in and it went till 2 hours. Various topics were discussed from he Times of India, CNBC experience to how Gujjus are very much possessive about their equity in company. We had verbal deal to help each other which Shradha and we both have fulfilled in less than a week by helping each other in their work areas.

Overall it was a great weekend for SharesVault and it’s team to get feedback of various people on SharesVault !!

SharesVault at IIM - Rushik Shah and Bhaumik Vasavada

SharesVault at IIM - Rushik Shah and Roshan Shah

Graphical Assets for Sharesvault

Thursday, November 25th, 2010

And here goes the first set of Graphical Assets for SharesVault

SharesVault Business Card

ENVELOPE

SharesVault Envelope

LETTERHEAD

SharesVault Letterhead