Page 5 of Summary of Events

At the “2 Days Extensive Workshop on Private Equity ".

1st and 2nd August 2008, Hotel J W Marriot , Mumbai

 

Mumbai Page 1

Mumbai Page 2 Mumbai Page 3 Mumbai Page 4 Mumbai Page5(this one)
 

 

Next Session on “How to close the Deal”

 

Mr Harjit Singh Sethi, Head-Institutional Sales, at Almonds Global Securities Ltd, and Mr Carlton Pereira had this to share :-

Keylines

There are very few "100% correct, or, 100% wrong answers"

There are so many shades of Grey, that this needs a proper planning, and gut feeling.

Just like a naïve may “keep waiting infinito to choosing your perfect wife/husband”, we must not be naïve in waiting for a perfect correct price.

If the price is good enough, go for it.

Let both parties win.

 

The implications of P-E- ratio

The speakers felt that even PE along is not any perfect barometer.  For Example,

k   Last year

o        30 times PE in engineering was average

o        20 times was cheap

k   This year

o        10  times PE in engineering is average

o        12 times is also expensive ( ????? )

 

 

 

What are the pinpricks, in closing a deal ?

A big thing that happens is that , during due diligence, the skeletons may be discovered in the cupboards. Example,

k   Asset diversions, showing private assets in garb of guest houses,

k   Income Diversions to family members,

k   Illegal adjustments in the books

 

Mr Carlton remarked that if they find a company which is “showing” a Net profit (PBT) of just 1% over last 10 years, suddenly wants to claim that it earns 10% to 15% PBT, and actually hides the balance. This starts creating a major suspicion of “mis-trust”

 

The PE knows that , Greed factor becomes higher with more money coming in, 

And if this Entreprenuer's Greed, if it is a part of his DNA, if the PE finds this, he usually, walks out.

 

 

 

 

Next Session on “International Fund Raising Options”

By Mr Sundeep Makar, Director, Citibank and Mr Pawan Bansal, Doyen of PE Industry

 

 

They discussed in detail about the International options. The talk was applauded. The options , the USD-INR rates, the LIBOR, the case studies discussed were well taken.

 

k   DEBT

o        External Commercial Borrowing (ECB)

o        Foreign Currency Convertible Bonds (FCCB)

o        Compulsory Convertible Debentures (CCD)

 

k   EQUITY

o        Global Depository Receipts (GDR’s)/ American Depository Receipts (ADRs)

o        AIM Listing

o        REITs

o        Special Purpose Acquisition Company (SPAC)

 

 

This session was one of the “Hot & Interesting” one for the audience.

 

Next Session on “Corporate Story Telling”

 

 

In this we had,

Chairman, Mr Bharat Banka, CEO, Aditya Birla( credited with deals of L & T, Ambuja, Idea Cellular) &  Mr Naveen Jain, CEO, Deut India Hotels P Ltd, who was earlier at DLF hotels, and Leela group.  We also had the “Young dynamic and talented”, Mr Jyoti Prakash Gadia, M.D. of Resurgent India Limited.

                       

Mr Gadia, shared with us, some more “Deal-bongers” – the factors which throw away all the preparation and labour to the scrap.

 

Example : Fear of the Promoter 

Promoter starts feeling "will PE start becoming the owner"

and I will become the employee of the PE house

Sometimes, they get scared , à and back out

So, the CA and intermediary, must properly guide them in advance.

 

Example : Non-education of the Technical / Back office Partners of the Lead Promoter 

If one Promoter is the face of the company for this PE,

If PE fund forgets to talk to , and take the other partners in confidence, the other partners may feel giddy, or suspicious, and ditch the whole deal.

So, the CA and intermediary, must properly guide them in advance.

 

 

 

Next Session on “Interface between the PE and Stakeholders”

 

 

This session had Mr KK Rathi, Mr Abhishek and Mr Vijay Mantri,

In Lighter vein, Mr Abhishek shared the biggest concern of the main promoters-

“ …..Just like a "Saas" gets threathened from the entry of the "Bahu"

Promoters, think the same for the PE fund …….”

And the proper education is the only solution.

 

Example : You were climbing one hill, Now you have reached the top. For further growth, yo have to now target climbing the next bigger hill. But for that, you have to first come down from the first.  And this is the reality in the real life too. The promoter has to change his way of working from the “Traditional” family concern to the “Professional” corporate.

 

 

 

Valedictory Session & Presidential Address by CA. Ved Jain, President ICAI

 

 

Our Honoured President was here at Mumbai, chairing the Valedictory Session.

He Shared his personal experiences, His vision for CA-profession.

He also gave a brief of his plans to make CA the spearhead of the Financial Revolution .

He shared his plans through which the CA’s can attack and  capture the major markets of the World, on the strength of their knowledge, fine-tuned communication skills, and the spirit of a Sportsman.

The August Conference Podium being decorated with the dignitaries,  From left, Mr Kedia – PE player and consultant, Mr Tekchandani – Promoter of a PE Fund, Mr Ved Jain – President , ICAI, Mr C S Nanda --  Central Council Member, and Chairman of the CMII and Mr B M Aggarwal – Chairman , WIRC

 

 

Sangeet Kumar Gupta

FCA, ICWA, PGDMM, B.Com(Hons)

Chartered Accountant

93126-08426

groupmlg@eth.net

Off : House no 63, Sector-15, Faridabad , Haryana, 121007

 

 

 

Our Mr Sangeet Kr Gupta, was also a participant in the seminar, though informally. But it was a Good learning experience for the MLG Team members

 

Mr Sangeet Kr Gupta, on the Dias

Mr B R Bhatia, Chairman, Maharani Paints India Pvt Ltd, and Mr V K Bountra, GM(Finance), MPIPL in the Front Rows at the seminar

 

 

Mumbai Page 1

Mumbai Page 2 Mumbai Page 3 Mumbai Page 4 Mumbai Page5(this one)
 

The Programme Organisers were

All participants Thanked them for their spendid preparations

 

Programme Chairmen

CA C S  Nanda , Chairman – CFM & IP

      (98111 30985 

* csnanda@gmail.com

 

CA. Sanjeev Maheshwari, Chairman CMII

(+9198211 19043

* casanjeevmaheshwari@gmail.com

 

 

Programme Director

CA.B M Agarwal, Chairman WIRC

Programme Coordinators

CA Prafulla Chhajed , CA Durgesh Kabra , CA Srinivas Joshi 

 

Official  Coordinators

 Dr. P.T. Giridharan, Secretary ,CFM&IP, New Delhi

Dr.. Surinder Pal ,Sr.  Deputy Director CMII  , New Delhi  

Mrs. S Kapoor , Sr. Faculty ,  

 

 Hosted By

 

Western India Regional Council of ICAI

 

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