Related Party Transactions

March 29, 2018 Leave a comment

wealthymatters

Here are the details of this corporate-banker nexus outed by ICICI Bank and Videocon investor Arvind Gupta.

Gupta’s curiosity was aroused by a 10 per cent coincidence he noticed in ICICI’s loans to Videocon group companies and foreign fund inflows into husband Deepak Kochhar’s firm NuPower Renewables.

NuPower Renewables was originally founded as a 50-50 JV between the Dhoot family and the Kochhar and Advani families .Chanda Kochhar’s brother is Mahesh Advani. Read more of this post

Filed under Theory, Tool Kit Tagged with activist investor, Arvind Gupta, Bank NPAs, banking scam, bribe, Cayman Islands, Chanda Kochhar, corporate-banking nexus, Deepak Kochhar, DH Renewables Holding Limited, Firstland Holdings, ICICI Bank, Mahesh Advani, Managing Trustee, Mauritus, NPA, NuPower Renewables, payoff, Pinnacle Energy, postaday, quid pro quo, related party transactions, scam, Supreme Energy, trust, Tuskar Overseas, Venugopal Dhoot, Videocon, videocon case, Videocon Group, videocon scam

Protecting The Family Businesses And Wealth

January 28, 2013 Leave a comment

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For business families succession planning is important to ensure the continuity and growth of business and protection of the economic interests of all family members.Family business owners are concerned about the interests of their spouses post their demise, disputes among siblings over the wealth and the leakage of the family’s wealth as a result of litigious divorces or family fights.Then there are concerns about ring fencing assets from litigation and confiscation.Sheltering from taxes is another common concern.

Both the objectives of ensuring the continuity and growth of business and protecting the economic interests of all family members could be conflicting at times.Protection of the economic interests of all the family members often results in the distribution of wealth because it may involve each family member directly holding shares of the company.This may prove detrimental to the interests of the business for various reasons.One of them is that all the family members may not be inclined to run the business.Another reason is that one of the family members owning a significant stake may dispose off his/her holding to an external party,thus leading to loss of control over the company.Since all the family members are not inclined to run the business on a day-to-day basis,it would be essential to split the management and operating roles from the ownership,which entails a fresh challenge.The business owner might want to give exactly equal number of shares to everyone,but those who work in the business may feel they are entitled to more.Likewise,those who don;t work in the business may feel the same way about their own shares.After all,they may reason, they’re not drawing salaries,so they should get a bigger share of dividends and profit-sharing. Read more of this post

Filed under Entrepreneurship Tagged with business family, d General Anti Avoidance Rules, differenciation of ownership and management, family business, family business owner, loss of control, offshore assets, pass through entity, postaday, settler, stamp duty, succession planning, trust, trust benificiary, trustee

Building Trust, Earning A Good Name

December 21, 2012 Leave a comment

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Filed under Entrepreneurship, Theory, Tool Kit Tagged with faithfulness, Goodwill, loyalty, Mother Theresa Quote, postaday, reputation, trust

Patience And Wealth

October 30, 2012 10 Comments

wealthymatters.com

Walter Mischel’s marshmallow test is one of the best-known studies in the history of psychology. In the 1960s, Mischel, then a professor at Stanford, took nursery-school students, put them in a room one-by-one, and gave them a treat (they could choose a cookie, a pretzel stick, or a marshmallow) and the following deal: They could eat the treat right away, or wait 15 minutes until the experimenter returned. If they waited, they would get an extra treat. Tracking the kids over time, Mischel found that the ability to hold out in this seemingly trivial exercise had real and profound consequences. As they matured and became adults, the kids who had shown the ability to wait got better grades, were healthier, enjoyed greater professional success, and proved better at staying in relationships—even decades after they took the test. They were, in short, better at life. Read more of this post

Filed under Theory Tagged with delayed gratification, integrity, patience, postaday, psychology of wealth, trust, Walter Mischel’s marshmallow test, Warren Buffet

Alok Kejriwal On Marwari Business Traits

July 30, 2012 4 Comments

The Marwaris are so successful at business,so it makes sense to learn from them.In the article below Alok Kejriwal of contests2win.com writes about what he learnt from his family business.

The Seven Subjects I learnt at Marwari Business School (MBS)

On the last day of my ICSE exam (10^th standard finals), my Nani (Grand mother) offered me a free seat into the Marwari Business School. I was 16 and I had the opportunity to go and sit in my Nana’s (Grand father) office.

I took up the offer.

These are the seven subjects I learnt:

M = Monetization Mentality

Monetization above everything else!

For Marwari’s, money pretty much means everything. It’s the ‘currency’ of success – pun intended. People are sized and measured not by their waist sizes but by the width of their balance sheet. A Marwari’s religion is making money and they meditate on it.

What Monetization and its terms means is also unique for Marwari’s.

For instance, I learnt that Revenue was not what you ‘bill’ or ‘pass-thru’ or ‘recognize’. Revenue was always what you ‘net-net’ earned that came in your coffers.

Revenue is bottom line for a Marwari – not top line. Read more of this post