Investment Valuation in India

Hi, Do read my article on Independent Directors as mentioned in the Companies Bill 2011 (passed in Lok Sabha as of Dec 2012) Accountants' Adda | Companies Bill 2011 - Independent Directors

Accountants' Adda | Deduction at a lower rate or non-deduction of tax in case of salaries As per Section 192 of the Income Tax Act, an employer is required to deduct tax at source on the amount payable to the employee at the average rate of income tax. Unlike other payments, in case of salary, TDS is deducted only at the time of PAYMENT of salary.  This is to be computed on the basis of rates in force for the financial year in which payment is made. Section 197 enables a tax payer to make an application to his Assessing Officer for deduction of tax at a lower rate or non deduction of tax. The application has to be made in   Form No.13  (vide Rule 28(1)).    If the Assessing Officer is satisfied that the total income of a tax payer justifies the deduction of income tax at any lower rate or no deduction of income tax, he may issue a certificate in   Form No. 15AA   (relevant Rule 28AA) providing for deduction of tax at lower rate or no deduction of tax. The certificate i

TIPS FOR CRACKING GROUP DISCUSSIONS (GDs)   Companies and Institutes are increasingly resorting to Group Discussions (GDs) as important screening criteria for selection of students / personnel.   What is GD? Group discussion is a process where a small group of people (usually between 6 – 10) debate upon a given topic and exchange ideas and share their opinions. The process involves a tester / observer who observes the participants and accordingly decides who should be selected among the group. Remember, it is possible that none or multiple participants are selected. GD helps the tester evaluate the communication skills, interpersonal skills and leadership skills of the participants at a glance. It also helps in mass screening of participants. Points to take care of while appearing for GD: General Professionalism Dress appropriately (formally) Arrive in time Sit straight, avoid leaning back on to the chair or tapping the table with pen or your fingers Ask for th

Growth Investing vs Value Investing                                                          There are a myriad different ways to assess and select stocks and other investment opportunities, two most important strategies are Growth and Value Investing. Growth Investing Growth investing involves picking and investing in stocks that have good growth potential. Usually a growth stock is one whose revenues, cash flows and earnings (profits) are expected to grow at a rate which is higher than the industry or overall market. Growth stocks usually do not pay dividends and concentrate on reinvesting the profits as they expect to generate higher returns. Growth stock investing typically does not put much stress on valuation measures, but on the recent and expected growth in revenue, margins, profits and cash flow.  Parameters such as P/E, P/BV, P/NAV and so on are not of great importance to the investors. It’s the growth rates that are important. The risk of this type of in

It is nearly impossible to document all ideas, issues, terms and techniques that an investment analysis professional encompasses during his or her work. Analysts often use one or more of the strategies while analysing a potential investment opportunity. Personally I believe that no literature can be complete and authoritative on this subject, though many authors, including myself, have attempted to cover as much as possible. This article only aims at stimulating and imaginative and holistic approach to dealing with investment matters and what questions one should be asking while analysing a company. What is the size of the firm (large, small)? What stage is the company and industry in (new, mature, declining)? Who are the customers of the company (individuals, industry, institutions)? Is the company project oriented (drugs, mining, oil & gas producers, construction)? How is the company socially responsible (is it a source of pollution, land contamination)