Market Capitalization-Sales ratio: Market Capitalization (Market Cap) is defined as the product of Stock price and Number of shares outstanding. It is also known as market value of equity. The Market Cap to Sales ratios of the companies are given below (in Multiple “X” terms) B.2.16.Working Capital to Sales ratio Working capital is given as difference between current assets and current liabilities. It is defined as the capital requirement for a company to manage its day to day operations. The Working Capital to Sales ratios of the companies are given below (in Multiple “X” terms) B.2.17.Cash Conversion Cycle (CCC): “A firm’s cash cycle is the length of time between when the firm pays cash to purchase its initial inventory and when it receives cash from the sale of the output produced from that inventory.” It can be calculated using CCC formula69 CCC = Accounts Receivable Days + Inventory Days - Accounts Payable Days Here Accounts Receivable Days = Accounts Receivable / Average Daily Sales Inventory Days = Inventory / Average Daily Cost of Goods
• The company must have at least US$ 200 million in global market capitalization. • The company is to have at least 400 round lot shareholders or 2,200 total shareholders and 100,000 shares monthly trading volume (based on most recent 6 months) or 500 total shareholders and 1,000,000 shares monthly trading volume (based on most recent 12 months) The tests for domestic companies are: • Earnings Test Issuer must have aggregate pre-tax income for last 3 years of US$ 10m and a minimum of US$ 2m in each of the most recent two financial years Or Issuer must have aggregate pre-tax income for last 3 years of US$ 12m, minimum of US$ 5 million in the most recent year and minimum of US$ 2 million in the next most recent
So market capitalization is Rs.3crores. The firm has Rs.30 lacs from the sale of a division. As discussed in the Corporate Valuation, the firm’s value V is the present value of its expected future cash inflows, discounted at the weighted average cost of capital (WACC). Since the buyback will not affect the future cash flows or the cost of capital, so the repurchase doesn’t affect the value of firm. The total value of the company is the value of its present operations and the value of the extra cash generated from sale of division.
The total amount is divided into small fragments and each part is called as share. The one who holds certain number of shares in a company is called the shareholder. The person who holds the maximum number of shares is made as the chairmen of the group and is responsible for making the crucial decisions in a company. Types of Share Capital: 1) Authorized Capital – It is basically the maximum amount that a company can raise with issues of shares in the market. So the share capital can never be more than the authorized capital and this is also called as Registered Capital.
Good Corporate Governance serves to decrease corporate dangers and embarrassments. A set of principles is basically kept up by all organizations and all standards of moral practices are imparted to the stakeholders. Along these lines, this research paper would empower a superior comprehension of the moral and corporate governance issues tormenting a percentage of the best organizations of the world. Section 205 of the Companies act 2013, deals with the functions of a company secretary. Further, Rule 10 of the companies (Appointment and Remuneration of managerial personnel) rules, 2014 discusses how company secretaries help to control and direct the organization to accomplish world class
Corporate Governance as stated in the statement above, function as agents of shareholders, within the corporate governance ecosystem. Shareholders who exercise their rights as shareholders, directly influenced the boards, can ensure responsible actions by companies. Gatekeepers and influencers, insinuated between the shareholders and company, play an important role in promoting self and market discipline, hence in reducing the need for regulatory discipline. Last but not least, private and public enforcement have an important role in ensuring that corporate governance are held accountable through actions by the regulators parties. Proactive actions by the various parties is crucial and this reinforces the corporate governance culture and ultimately
In other words, corporate governance is defined as the moral, ethical and legal corporation values that safeguard stakeholders’ interests. Zingales (1998) expresses the view that “allocation of ownership, capital structure, managerial incentive schemes, takeovers, board of directors, pressure from institutional investors, product market competition, labour market competition, organisational structure, etc., can all be thought of as institutions that affect the process through which quasi-rents
chemical distributor at about $3.03 billion with shares closing at $25.4, premium of 15.5%, at the end of the first day of trading. The company expected the IPO to be priced between $20 and $22 per share and offered a total of 35 million shares. The deal size was 83% larger than originally proposed after it priced at the high end while CVC Capital added 15 million shares (43% of the total). It also raised as much as $500 million from Temasek in a private placement. Recently, the shares touched a 52 week high of $29.81/share gaining over 179.91% or $19.16/share from a 52 week low of $10.65/share attained on 02/11/2016.
The higher the ratio, the more ringgit of a company convert the revenue into the profit. For the net profit margin of the company, it is slightly increase from 99.99% in 2014 to 100.04% in 2015. This may be due to increasing in the price of the product selling by Nestle (Malaysia) Berhad. The debt-to-equity ratio refers to the percentage of money invested by shareholders to a company. The higher the ratio, the more risky of the company for the shareholders to invested.
It is an association of persons formed voluntarily, having minimum paid up capital of Rs. 1,000,000. The maximum number of members is 50 excluding the employees and ex-employees who were the members during their employment or after the termination of employment in the company. The company restricts the transfer of shares and prohibits invitation to the