WHO ARE THE PROMOTERS?
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Answer / surendra
promoters are the persons who develope the idea of creating
a company. the promoters are may or may not the member of
board of directores of company
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Answer / laxmanrao
PROMORORS ARE THE PERSONS WHO INTIATE THE CREATING THE IDEA
OF THE COMPANY.
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Answer / moon
The persons who develop the idea of creating a company is
called promoters.
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Answer / vinotha.v
PUBLIC SHAREHOLDING - PROPOSED AMENDMENTS TO SEBI
(SUBSTANTIAL ACQUISITION OF SHARES AND TAKEOVERS)
REGULATIONS, 1997
It has been decided to harmonise the level of public
shareholding for continuous listing as contained in Clause
40A of the Listing Agreement and vis-à-vis other
regulation / guideline such as the SEBI (Substantial
Acquisition of Shares and Takeovers) Regulations, 1997 and
SEBI (Delisting of Securities) Guidelines, 2003.
As a step in this direction, a draft amendment to SEBI
(Substantial Acquisition of Shares and Takeovers)
Regulations, 1997 {Regulations} has been prepared. The text
of the same is given in the Annexure.
The proposed amendments have been made to provide for the
following:
Revised definition of public shareholding and promoter.
Minimum size of Open Offer to be made under the Regulations.
Cases where procedure under SEBI (Delisting of Securities)
Guidelines, 2003 needs to be followed.
Reduction in the upper limit of shareholding from 75% to
51% for availing creeping acquisition limit of 5%.
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What is EPS?
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DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?
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