Posts Tagged ‘SharesVault’

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.

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

Know SharesVault Co-Founder Roshan Shah

Thursday, November 25th, 2010

Roshan Shah, a Canadian Citizen and a successful entrepreneur in the software engineering and social media technology sectors, is actively pursuing goals to save the world. Shah will be conferred the Star Entrepreneur of the Year award in Pune, India at the Fourth Indira India Innovation Summit in January 2011.

Roshan is the CEO and founder of Gloscon Solutions Pvt Limited, a leading Open Source company that specializes in Drupal Development, Ruby on Rails Development, 24×7 server monitoring and performance and maintenance services for high traffic Drupal and Ruby on Rails sites. Roshan has developed professional technology teams and next generation leaders known for their work ethics and high production.

Gloscon fully owns Gujarat Hosting Pvt Limited, a 24×7 Web hosting and infrastructure/application monitoring company and OpenKick Technologies Pvt Limited(the Open Source training company). He has also developed a very large venture, “Kosansh”, the medical tourism portal. The portfolio also includes “Gujarat Startups”, the entrepreneurship portal; “Citiplots”, a real estate portal, and “Galaminds” the instant website template solution and he is working on building “Gujarat Health City” – Luxurious Retirement homes, “Beautiful Gujarat” – Travel portal, “SharesVault” – Pre-IPO Deal Network and “Cheerfoolz” – Entrepreneurship in Children and “Surgeboom” – Social Media Marketing firm. Roshan is an advisor to many international startups and sits on Board of Open Educator, NY.

Roshan works directly with CEO clients as a strategic advisor and lead project manager. These high level executives, whether from the US or around the globe, typically engage Gloscon and its subsidiaries to attract customers and generate new sources of revenue. Clients are extremely loyal and powerfully endorse Roshan’s managerial style as well as his team’s technical expertise and their “perfect” client communication processes.

Roshan is regarded as a valued resource and an unfailing professional who manages expectations, projects and budgets impeccably for clients who require top-level technical services for their projects.

Before starting Gloscon Solutions Pvt Limited, Roshan spend 11 years in various roles supporting clients and companies like IBM, HP, JP Morgan, Macmillan Computer Publishing, Peerflix, Speedware, Satyam as well as Larsen and Toubro Infotech. Roshan was also a Director in NetVision Web Technologies Pvt Limited – a company providing Java Training in Gujarat, India which later went Public.

Roshan Shah holds Bachelors Degree in Computer Engineering from DDIT, Advanced Diploma in Enterprise Management from AIMA, Diploma in Business Finance from ICFAI and is an Entrepreneurship Graduate from SEEDS, Canada. He is also Sun Certified Java Programmer and a Certified Project Manager.

The front page of the Toronto Star recently stated that Roshan has an innovative software engineer’s brain for venture capitalism–and with the rapid growth of his subsidiaries, has a proven track record that combines business savvy with innovative technology solutions.

Roshan believes in building entrepreneurial talent in India. Over last 5 years, 10 of Gloscon’s employees have plunged in starting their own businesses. He is also actively involved in Unique ID implementation project for 3.5 lakh global Khadayata Community.

Know SharesVault Co-Founder Rushik Shah

Thursday, November 25th, 2010

Rushik Shah is the CEO & MD of Alakmalak Technologies Pvt. Ltd, which deals with website development solutions, which is one of the regions’ leading firms. Mr. Rushik also owns and manages a Local Job portal of Gujarat, called Gujarat.com which is currently among the top 5 job portals in terms of database in Gujarat. A Graduate of Gujarat University in Engineering, also  holds a Master degree in IT Management from Illinois Institute of Technology, USA. He is one of the few individuals who have returned back to India after completing education overseas.  Looking at the immense potential India has this days to erupt as a major super power.

He also is a active member of Gujarat Startups which was founded by Mr. Roshan one of the Co-founders of Sharesvault, which revolves around setting up a base for startups in Gujarat.

Know SharesVault Co-Founder Ankur Patel

Thursday, November 25th, 2010

Ankur Patel holds master degree in computer from Utah State University, USA. He has software development experience for over a decade using open source technologies like Linux, Perl, PHP, RoR, Java etc. He has worked with international clients based in USA, UK, Canada, Netherlands, Australia, Italy, Ireland, France etc. He has worked on many different projects – ranging from small software to complex web applications.

Ankur has a passion for teaching and current focus of work has been consulting, training and mentoring teams(at his own company – Infotrex Services Pvt. Ltd.) on open source technologies.

Ankur came back to India in Jan. 2003, and since then he is busy working with various international clients as well guiding small team of developers to deliver their best. Ankur is one of the BEST minds, work with many of the BEST minds and teach to make the BEST minds in this world .