IIE's commitment to Micro Small and Medium Size Entrepreneurs. IIE Complete analogy with its establishment, objectives, functions, programs or services

Indian Institute of Entrepreneurship,Complete Note on IIE with its objectives and Functions

Explain in detail the ways through which the various institutions set up to provide financial assistance to an existing and new entrepreneur?

Answer: The Government of India is committed to aid and guide the aspiring entrepreneurs of India and has initiated many programs to benefit them. The Ministry of Industry (now called Ministry of Micro Small and Medium Enterprises) is specially responsible for this entrepreneurship genre. The government has tried to provide a roof to the existing and new entrepreneurs by setting up an institutional corridor to train them and assist them financially.


The government of India under the Ministry of MSME established the Indian Institute of Entrepreneurship (IIE) in 1993 which started functioning from April 1994 after it took over the North East Centre of NISIET (National Institute of Small Industries Extension Training), Hyderabad. Later in the year 2015, on 22nd May, IIE has been transferred to the Ministry of Skill Development and Entrepreneurship.

Training, Research, Consultancy, Seminars & Workshops and Consultancy led by IIE

Organizational STRUCTURE

The IIE is an autonomous organization that runs under the Ministry of Skill Development and Entrepreneurship presently. The IIE was registered under Societies Registration Act, 1860 and was founded in Guwahati by the former Ministry of Industry (now called Ministry of Micro Small and Medium Enterprises). The policy direction and guidance to the institute are provided by its board of Management whose chairman is the secretary to the Government of India, Ministry of MSME. The government Council of the institute is headed by the Chairman, NEC and the Executive Council is headed by the Secretary, Ministry of MSME, Government of India. 

OBJECTIVES

The main objective is to undertake training, research, and consultancy activities in the field of small industry and entrepreneurship. 
1. To promote and develop entrepreneurship.
2. To coordinate and collaborate with other organizations in undertaking training, research, and other activities to increase the outreach of the institute.
3. To promote greater use of information technology in the activities or functions of the IIE.
4. To comply with statutory responsibilities. 

FUNCTIONS OF IIE

Towards the attainment of its objectives, the IIE performs the following functions:-

1. To organize and conduct training for entrepreneurship development.
2. To identify, design, and conduct training programs for existing entrepreneurs. 
3. To research generating knowledge to accelerate the process of entrepreneurship development.
4. To organize seminars, workshops, and conferences for providing a forum for interaction and exchange of views by various agencies and entrepreneurs.
5. To identify the training needs and offer a training program to the government as well as the Non-Government Organization engaged in promoting and supporting entrepreneurship. 

Programs OR SERVICES PROVIDED

    
    The IIE is guided by its set goals and is a promising institute to provide all possible help to the entrepreneurs. The organization provides its service through five sets of programs:-
i. Training
ii. Research
iii. Consultancy
iv. Seminars and Workshops
v. Projects

i.Training

The IIE provides training schemes under two broad categories namely Non-ATI(Administrative Training Institute) Scheme, and ATI Scheme (ESDP-European Security and Defence Policy). The training schemes are specially designed for new entrepreneurs as well as for the existing entrepreneurs. The schemes cover a wide range of packages for training and also ensures quality training. 
     Some of such training programs are enlisted below:-
Jewelry Designing and Making and Gems and Stone Processing
Entrepreneurship Development Program
REDP on mobile repairing
Incubation Training for ready-made Garments
Incubation Training on Handicrafts
EDP under PMEGP
Awareness technical Infusion program
Entrepreneurship AwarnessProgramme
Modern office management and Secretariat Practice(KCVT)

  ii. Research

The Institute undertakes research and studies either on its own or on a sponsored basis and provides consultancy in the field of growth and development of micro, small and medium enterprises across North East India and beyond. The Institute also acts as a catalyst and a resource center for providing various inputs on policy formulation for promoting entrepreneurship and development of micro, small, medium enterprises to the Central and State governments. Another major focus area is the evaluation of various Central and State government organizations and schemes.

iii. Consultancy

The IIE provides following types of consultancy services:
Enterprise Planning
Enterprise Management
Enterprise Expansion, Diversification & Growth
Management Consultancy
Marketing Consultancy with specialization on export and border trade
Technology Sourcing
Technology Propagation
Project Reports


iv. Seminars and Workshops 

IIE conducts seminars and workshops regularly to help out the entrepreneurs:-
For sharing experiences on the implementation of programs of self-employment and entrepreneurship.
On current topics such as WTO and its impact on the SME sector, promoting first generation entrepreneurs through PMEGP, promoting women entrepreneurship, etc.
On creating awareness about the prospects of developing entrepreneurship in a certain line of activity such as on Handmade Paper Industry, Food Processing Industry, etc.
Besides, the institute organization
Entrepreneurs Meet to understand and appreciate their problems in launching projects and managing them successfully.
Interactive Meet on Entrepreneurship Education to discuss the need and importance of entrepreneurship elements in an academic curriculum.


iv. Projects
The IIE has undertaken the following projects:-
India Infrastructure Finance Company Ltd. & National Scheduled Tribes Finance and Development Corporation IIFCL-NSTFDC
Centre for Sustainable Livelihood Promotion (CSLP)
Regional Resource Center (RRC) for Cluster Development
Science and Technology Entrepreneurship Development (STED)
Rural Industries Programme(RIP)


Read also
THEORY OF COPRORATE GOVERNANCE

Conclusion
     
    The IIE is a new backbone to the North-Eastern region which is an industrially backward region for ages. Now the government is resolute to transform this backward area into a newly developed region. The IIE is serving the young aspirants and also trying to train the existing entrepreneurs by injecting new business skills and zeal amongst them.

CORPORATE GOVERNANCE THEORY, STRUCTURE, MECHANISM IN INDIA NOTES |COMPANY LAW

• CORPORATE GOVERNANCE THEORY
• STRUCTURE OF CORPORATE GOVERNANCE IN INDIA
• CORPORATE GOVERNANCE MECHANISM IN INDIA

Corporate Governance Theory notes

 Corporate Governance Theory

Corporate Governance is a new way of conducting business affairs. Corporate Governance has become a new dimension to Business management and it presents a new outlook of the corporate houses and also becomes a desirous part of annual reports. It has laid a new trust-building among the stake-holders. Ever since India’s biggest ever corporate fraud and Governance failures in Satyam Computer service limited, the concern about good corporate governance has increased significantly.


Internationally, the implementation of corporate Governance was exercised phenomenally.

The organization for Economic co-operation and Development (OECD) in 1999 published a paper titled “Principle of Corporate Governance” which defined Corporate Governance very comprehensively as follows-

“A set of relationships between a company’s management, board, its shareholders, and its other Stakeholders".


Corporate Governance is the structural basis of an organization through which the objectives of a company are marked and the means of obtaining those objectives and monitoring performance are ascertained. Good Corporate Governance should provide proper incentives for the board and the management to pursue objectives that are in the interests of the company and the shareholders and should facilitate effective monitoring, thereby encouraging firms to use resources mere efficiently.

STRUCTURE OF CORPORATE GOVERNANCE

In the Indian Scenario, the term Corporate Governance was first coined by the Confederation of Indian Industry in 1998 in its paper titled  “ Desirable Corporate Governance: A code" as a voluntary code. Later in 2000 SEBI made it mandatory by introducing clause 49 to listing agreement following the recommendation of Kumar Mangalam Birla Committee. At present, the structure of Corporate Governance is prescribed by the New Companies Act, ICAI accounting standards which are converged with IFRS, SEBI guidelines.

Every company must adhere to the necessary disclosure requirement as required by the various Statutes/regulations or regulatory bodies. The structure of good Corporate Governance must incorporate information as follows:-


     1)      Right of the Shareholders

                 Corporate Governance must specify the rights of the shareholders


           (a) To attend and participate in the annual general meetings, to elect the board members and to receive dividends, to avail timely regular and accurate information.
          (b) Right to transfer shares
          (c) To know the capital structure
          (d) Capital control mechanism
          (e) Adherence to one share, one vote standard. International investors and institutional investors have proxy rights.

  

     2)      Equitable treatment of the shareholders:-


         All shareholders including the minority shareholders must receive equitable treatment.
         Effective redressal for rights violations.
         Prohibition of insider trading and self-dealing.

      3)      Role of Stakeholders-


          (a) Recognition of their rights as prescribed by law.
          (b) Access to information.
          (c) Building good and produced a relationship with them by the directors or the management.
          (d)Establishment of effective and enforceable accountability standards.
       4)      Disclosure and Transparency:

Accurate and timely disclosure of the company’s objective, majority share ownership, and voting rights; financial and operating results; directors key executives and their remuneration; significant, foreseeable risk factors; governance structure and practices; material issues regarding employees and other stakeholders. Annual audits by internal statutory auditors must be adhered to.


       5)      Responsibility of the Board of Directors:

Must specify key responsibilities of the board of directors overseeing the process of disclosure and communication, monitoring the effectiveness of governance practices, and changing them if necessary. The judgment of directors, independent of management operation, formation of the board, and their remuneration, etc must be disclosed.

The structure of Corporate Governance in India is a result of many statutory and non-statutory bodies' joint efforts. Some of the Contributory to it is named as below :


(i)                 Working Group or the Companies act, 1996.

(ii)               The confederation of Indian Industry (CII) initiative

(iii)             Naresh Chandra Committee Report (2002)

(iv)              Kumar Mangalam Birla Committee Report (1999)

(v)                The SEBI’s follow up on Birla Committee Report.

(vi)              Taskforce on corporate excellence (NOV,2000)

(vii)            Narayan Murthy Committee Report (2003)

(ix)              A convergence of Accounting Standard Of India with IFRS which was initiated by ICAI in April 2011.

(x)                The new Companies act called Companies Act,2013.


MECHANISM OF CORPORATE GOVERNANCE IN INDIA

 Broadly speaking, the corporate governance mechanism for companies in India is enumerated in the following enactments/regulations/guidelines/listing agreements:


1.       The Companies Act ,2013 inter alia contains ,provisions relating board constitution ,board meetings ,board processes ,independent directors,general meetings,audit committees ,related party transactions,disclosure requirements in financial statements etc.The new companies cover the concept of corporate governance in the following way:

(i)                 The new act introduces significant changes to the composition of the board of directors.

(ii)               Every company must appoint at least one resident director.

(iii)             Nominee director shall not be considered as an independent director anymore.

(iv)              The listed companies must appoint independent and women directors.

(v)                The duties of the directors are codified.

(vi)              The board must constitute its committees as

·         Audit committee

·         Nomination and remuneration committee

·         Stakeholders Relationship committee

·         Corporate Social Responsibility committee.


2.       Listing Agreement as prescribed by SEBI:- SEBI introduced clause 49 to its listing agreement in 2000 to give a true and fair view of GCR for the listing companies. Further SEBI has amended the listing agreement w.e.f. October 1,2014 to align the New Companies Act,2013.


                                                                    I.            Board of Directors:- The B.O.D. shall comprise of such a number of minimum independent directors, as may be prescribed.

                                                                  II.            Audit Committee: The audit committee to be set up shall comprise of a minimum of three directors as members,two-third being independent.


                                                                III.            Disclosure Requirement: Periodical disclosure relating to the financial and commercial transactions, remuneration of directors etc.to ensure transparency.


                                                                IV.            Report and compliance: A separate section in the annual report on compliance with the GCR, quarterly compliance report to the stock exchange to be signed by CEO/CFO.


                                                                  V.            CEO/CFO Certification: To certify to the board that they have reviewed the financial statement and the same are fare and comply with the laws/regulations and accept responsibility for the internal control system.


3.       Accounting Standard issued  by the Institute of Chartered Accountant of India (ICAI):

      ICAI is an autonomous body, which issues accounting standards providing guidelines for disclosure of financial information. Section 129 of the New Companies Act,2013 inter alia provides that the financial statements shall give a true and fair view of the state of affairs of the companies comply with the accounting standard notified under section 133 of the companies Act,2013.


4.       Secretarial Standards issued by the Institute of Company Secretaries of India(ICSI):

ICSI is an autonomous body, which issues secretarial standards in terms of the provisions of the Companies Act,2013. So far, the ICSI has issued Secretarial Standards in terms of the “Meetings of the Board of Directors” (ss-1) and Secretarial Standards on “General Meetings” (ss-2), these Secretarial Standards have come into force w.e.f. ,1st of July,2015. Section 118 (10)of the companies act,2013 provide that every company(other than a one-person company-OPC) shall observe Secretarial Standards specified as such by the ICSI.

Portfolio management meaning and approaches

What is Portfolio Management?
      The term Portfolio is a group of financial assets such as shares, stocks, bonds, debt instruments, mutual funds, cash equivalents, etc. A portfolio is planned in such a way that it stabilizes the risk of non-performance of various pools of investment.

The term Management is the organization and coordination of the activities of an enterprise in accordance with well-defined policies and in the achievement of its pre-defined objectives.

Thus, Portfolio Management guides the investor in a method of selecting the best available securities that will provide the expected rate of return for any given degree of risk and also to reduce the risks. It is a tactful skill of making decisions regarding investment mix and policy which must match the objective of the investors requiring asset allocation to balance the risk.



     
 Approaches to Portfolio Management:

Commonly there are two approaches for portfolio management:-

      i.            Traditional approach.

        ii.            Modern approach (Markowitz efficient frontier approach).

The above two approaches are explained below:

  i.             Traditional Approach:


                                It basically deals with two major decisions viz., determining the objectives of the portfolio and selection of securities. The need of a rational investor is concerned all about income generation and capital appreciation. The traditional approach describes the appropriate level of which is to be selected to meet the investors’ needs. The traditional approach is carried out in the following steps:
a)      Analysis of constraints

b)      Determination of objectives

c)      Selection of portfolio

d)      Assessment of risk and return

e)      Diversification


 The above steps are explained below:a)      Analysis of constraints:

     Before investing in any portfolio the investor must first analyze the problems that may be faced by any investor. The constraints may be Income of the investor, Liquidity concern, stability, and tax savings, etc.
b)      Determination of objectives:
      The investor must determine their objectives before investing in any portfolio. Their objectives may be Profit motive, Capital appreciation, Asset creation, Life safeguard etc.
c)      Selection of the portfolio:

    The selection of the portfolio depends upon the objectives set by the investors. The investors may be moderate, aggressive and their selection of portfolios will depend upon them.
d)      Risk and return analysis:

      In the traditional approach to portfolio, the individuals prefer larger to smaller returns from securities. To achieve these goals the investors have to take more risk.  The ability to achieve higher returns is dependent upon his ability to judge risk and his ability to take a specific risk. The risk may be interest rate risk, purchasing power risk, financial risk, and market risk.
e)      Diversification:

     Once the asset mix is determined and risk and return are analyzed, the final step is the diversification of the portfolio. Instead of investing in only one portfolio, an investor must invest in different portfolios. So that the risk differs from one another. In case if the investor faces loss in any portfolio then due to the diversification of investment the investor may be profitable from the other portfolios.

   ii.            Modern approach (Markowitz efficient frontier approach):  The modern approach was pioneered by Harry Markowitz. It is a theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.

UNDERSTANDING THE STEPS WITH AN EXAMPLE

 Mr. A is assertive investors whose annual saving is Rs.2,00,000. He wants to invest his saving in different financial instruments, his main investment motive is regular income i.e. dividend as well as capital appreciation in the medium to long term. Mr. A set some objectives before the investment these are capital appreciation in the medium term, earning dividend i.e. regular income. He also set the objective of safety at a given level of risk, liquidity of the investors is one of the another objective of Mr. A because many investors fail to take into account or understand the liquidity factor and as a result, their financial plans fail

 Mr. A invests his saving in such a way that all objectives he set should be fulfilled. His portfolio consists of equity shares, short term money market instruments, bonds, foreign investment, and property. He invests 50% of his saving in equity shares i.e. 1,00,000 of his total saving. 30% investment in the money market this is commercial paper, certificate of deposit, etc. 30% of his saving in bonds, 30% in foreign capital, and 10% in property consisting gold.

He invests half of his saving in equity because its return is not constant it gives higher return as well as also the risk of getting loss of money generally equity shares gives higher rate of return as compared to fixed interest-bearing securities. The money market and bonds give him a fixed rate of return that helps him to maintain liquidity. Foreign investment helps in tax incentives but it is also carries high risk and property helps in capital appreciation because its price goes higher with time.

If Mr. A faces any loss from equity then fixed interest bearing securities and property helps him recover those losses and if equity gives a higher rate of return then Mr. A gets a good amount of return. And also equity and property helped him in getting capital appreciation.

For analyzing risk and return we have considered only one type of Investment i.e. Equity
With the help of the above Risk and Return table, it can be concluded that Mr. A should select either P Company shares or R company shares or both of them because for the same level of risk P gives higher return and for the same level of return Equity R has lower risk.

Mr. A should never be static and sit cool after investing. He should consider shares of different companies belonging to a different sectors. Similarly, the same diversification applies to all categories of investment. If his present portfolio does not seem to combat his set objective, diversification is the only answer to meet his dream.


ConclusionThe Investment market is variably affected. It’s never the same. An aggressive and assertive investor has high potentiality of making money from the market if he/she is the keen observer of the market. The volatile movement of the market hides earning potentiality in it. So, the traditional method systematically prescribes advices to tackle the market potentiality.

HOW TO PRESENT A SEMINAR PAPER ON STOCK MARKET

What is stock market

Chapter 1
STUDY OF STOCK MARKET

Introduction

India is a booming economy in the world scenario and it has been developing gradually cutting through many challenges which even caused stagnation to the world economy. India’s developing economy is now trying to walk at the pace of the world’s developed economies. When it comes to indexing the speed of the economy, the study of the stock markets becomes essential. The stock markets of India are more or less the indicator of the economy. It is mostly believed that the indices of the stock markets highlight the economy. Whether it is moving up or crashing down, shows the economic trend.

                 However, the study of the stock markets is never so easy. Its affairs, trends are a sum-up of all the affairs the country irrespective of the fact that such activity may be a political one, economic, social, or from any other genre. The markets perform through regular ups and downs every time such movement acquiring effect from countless factors. The zigzag path of the market is often treated as the path of our economy too.



                 Broadly, the capital market is a mouth to two-stream of channels viz. Primary and Secondary markets. The primary market is the platform for new issues whereas the Secondary markets deal in the old securities. The new companies, as well as companies with a new lot of shares, offer their shares in the Primary markets. There are distinctly several methods of raising capital from Capital markets like IPO, private placement, book building process, etc.

               The SEBI has set different guidelines for both of the listed companies as well as unlisted companies regarding public issues. The unlisted companies will be eligible for the public issue if it satisfies the guidelines set by SEBI. If it fails to meet the criterion, the unlisted companies have to go for public issues through the book-building process. A listed company is eligible if its issue size is less than five times its pre-issue net-worth, and if its issue size is equal to or more than five times its pre-issue net-worth then they have to take book building route and allot 60% of the issue size to the Qualified Institutional Buyers.

The objective of the study

             The study aims at highlighting five IPO came into the capital markets during the year 2016 prior to demonetization. The study focuses to bring out the features of those issues with their post-issue market trends. It also includes a brief background of the issuing company.

Importance of the Study

           This project features a comprehensive study of new IPOs in the markets in the year 2016. The year 2016 was historical as it experienced demonetization in November and post demonetization the markets met shivering effects from the policy. Was the Indian market so cushioned enough that it could absorb the effects of the policy? So, post demonetization the markets were not a favorable one. So the study of the IPOs prior to that not only helps us to understand the then markets but also post behavior of securities depicts implied meaning to the economic trend in large.

Methodology

           The project work has been undertaken completely on the basis of secondary information which is collected from the internet. The collected information has been presented with the help of appropriate tables. The tabulated data have been then analyzed on the basis of observation of the data set.


Limitations

          The study is completely based on secondary information as the primary access to the information is rather an impossible job. So the project may coincide with any such limitations which are inherent with the secondary source of information. The study covers only five IPOs whereas during the period there were more than thirty new IPOs came.  The analysis is based on mere observation without any statistical tool or prescribed research models. The capital market of India is an ocean of thing that is affected by many factors and the study does not consider such factors which may cause inaccurate findings and the conclusion hence is not implicit.

Chapter 2     Quess Corp IPO

           Quess Corp Limited is basically a business management service company that was incorporated in the year 2007 with its registered office in Bengaluru. It provides a wide range of services that include temporary staffing services, executive search, recruitment services, housekeeping, and facility management services, engineering services, food services, and skill development. The Company has diversified segments which may be identified as:-

    People & Services (P&S): Its P&S segment is focused on specialized service offerings in search, recruitment and recruitment process outsourcing, general staffing, training and skill development, payroll and compliance, and retail solutions.

   Global Technology Services (GTS) The GTS segment is scattered in three areas, including information technology (IT) staff augmentation, solution, and products.

   Integrated Facilities Management (IFM):  IFM segment deals in facility management services, including soft services, hard services, food and hospitality, and pest control.

    Industrial Asset Management (IAM): The IAM segment encompasses business areas like plant asset management and it offers solutions in industrial operations and maintenance and managed services.

Thus the company is a package to business management solutions and its allied areas.


Quess Corp IPO in 2016

           The company which is a worth 12,378 million company (as on 31st Mar 2016) with a share capital of 1133.4 million (as on 31st March 2016), the Share Capital being comprised of only Equity shares announced a new issue of shares from June 2016 till July 2016. The company which is listed both in the BSE and NSE offered through both of the giant stock markets a total of 125,953,353 Equity Shares.

 The Company is promoted by-

1. Ajit Isaac
2. Thomas Cook (India) Ltd ('TCIL')

 The New IPO of the company was backed by the following objectives-

1. Repayment of debt availed by the Company; (its Total Debt as on 31st March 2016 is 2629.1 million)
3. Funding incremental working capital requirement;
4. Acquisitions and other strategic initiatives; and
5. General corporate purposes

  The IPO Details

Date of Opening: 29th June 2016
Type of Issue: Book Built Process

Size: 125,953,353 Equity Shares of Rs 10 total worth of which is Rs 400.00 Cr

At a face value: Rs. 10 per share
At an Issue Price: Rs. 317 per share.
In a lot of 45 share
For a Minimum Order Quantity: 45 Shares
Listed in: BSE and NSE
Date of Closure: 1st July 2016

   Company Quess Corp has a good name and fame in the market as the company’s Balance Sheet highlights a lucrative position that attracts the investors. The 610.55 crore company is though not a giant company, yet its past performance is enormously eye-catching.


Issue Subscription Detail / Current Bidding Status

Number of Times Subscribed (BSE + NSE)
As on Date & Time
Qualified Institutional Buyers
Non-Institutional Investors
Retail Individual Investors
Total
Shares Offered / Reserved
3,903,023
1,916,251
1,277,500
7,096,774

Day 1 - Jun 29, 2016, 17:00 IST
0.0000
0.0500
2.1900
0.4100
   
Day 2 - Jun 30, 2016, 17:00 IST
2.8000
0.3200
9.8100
3.4000

Day 3 - Jul 1, 2016, 17:00 IST
59.0234
392.2087
31.2298
143.9902
   
 Post issue the Company has a phase-wise allotment and listing in the stock exchanges. After the issue had closed on 1st July 2016 the Company called for allotment on 7th July 2016 and later was listed on 12th July 2016. The following table shows the listing day performance of the shares.

The Listing Day Story

BSE
Issue Price:
Rs 317.00
Open:
Rs 499.00
Low:
Rs 480.05
High:
Rs 508.60
Last Trade:
Rs 503.00
Volume:
3,222,979
NSE
Rs 317.00
Rs 500.00
Rs 480.00
Rs 509.30
Rs 503.10
16,364,151


    The IPO of Quess Corp was lead by the following lead managers-

1. Axis Capital Limited 

2. ICICI Securities Limited 

3. IIFL Holdings Limited 

4. YES Bank Limited,

     In their report, the performance of the IPO is highlighted. The reports say, the company had a total issue of value Rs. 400 crore and the shares were oversubscribed by Rs. 143.9902 crores. On the opening date, the shares gained a hike by 58.68% in its price. So the company’s shares were winning horses in the race.

The Quess Corp Graph





Chapter 3 Advanced Enzyme IPO


              The Advanced Enzyme Technologies Ltd was incorporated as a private limited company on March 15, 1989, under the provisions, of the Companies Act, 1956 as Advanced Biochemical Private Limited in Maharashtra. Pursuant to a special resolution passed by the shareholders, of the Company at the extra-ordinary general meeting held on April 21, 1992, the Company was converted into a public limited company. Advanced Enzyme Technologies Ltd is an Indian based company engaged in research, development, manufacturing, and marketing of Healthcare, Nutrition and Bio-Processing products.

The company produces over 400 proprietary products developed from 60 enzymes. Advanced Enzyme operates in two primary business verticals namely Healthcare & Nutrition (human and animal) and Bio-Processing (food and non-food).

The company has 13 patents registered in its name and applications for registration of 4 patents are pending.

Advanced Enzyme is among the top 15 companies in enzyme sales in the world and 2nd largest in India. The company has over 20 years of fermentation experience in the production of enzymes. The company offer these products to more than 700 global customers across 50 countries around the world.

Competitive strengths of the company:

1.      Integrated Company with presence across the Enzyme Value Chain.

2.      Strong R&D, enzyme development, and manufacturing capabilities.

3.       Specialized Business Model with high entry barriers.

4.       Diversified Product Portfolio and Wide Customer Base, served by a Strong     Sales, Marketing, and Distribution network.

5.      Experienced Promoters and Strong Management Team.

6.      Financial stability and stable cash flows.

Company Promoters:

The promoters of the company are:

1.      Mr. Chandrakant Laxminarayan Rathi

2.       Mr. Vasant Laxminarayan Rathi

Objects of the Issue:

The Offer consists of a Fresh Issue by the company and an Offer for Sale by the Selling Shareholders.

1.      Offer for Sale

The company will not receive any proceeds from the Offer for Sale.

2.      The Fresh Issue

The object of the fresh issue is to invest in Advanced Enzymes USA, the wholly-owned subsidiary for repayment / pre-payment of certain loans availed by Advanced Enzymes USA; and general corporate purposes.

Issue Detail:

Issue Open: Jul 20, 2016 - Jul 22, 2016
Issue Type: Book Built Issue IPO
Issue Size:
        Fresh Issue of [.] Equity Shares of Rs 10.
        Offer for Sale of 4,034,470 Equity Shares of  Rs 10.
 Face Value: Rs 10 Per Equity Share
 Issue Price: Rs 880 - Rs 896 Per Equity Share
 Market Lot: 16 Shares
 Minimum Order Quantity: 16 Shares
 Listing At: BSE, NSE

Basis of Allotment:

     Initial public offer of 4,594,875 equity shares of the face value of Rs 10 each ("equity shares") of advanced enzyme technologies limited ("company" or the "issuer") for cash at a price of Rs 896 per equity share (including a share premium of Rs 886 per equity share). An offered discount of Rs 86 per equity share (equivalent to 9.60%) on the offer price to eligible employees ("employee discount"). The face value of the equity shares is Rs 10 each.

Risks to Investors:

i.                     Out of Rs, 50 crores proposed to be raised as Fresh Issue, around Rs 40 crores i.e 80 % of the proceeds of the Fresh Issue shall be used to repay/ prepay certain loans availed by the Company from the promoter and group company through the Wholly-owned Subsidiary, Advanced Enzymes USA. The Company has decided to retain loans from other banks at a higher rate of interest and repay/prepay certain loans from promoters and group company which is a lower rate of interest.

ii.                  The 2 (two) Merchant Bankers associated with the Offer have handled 22 (twenty-two) public issues in the past three years out of which 7 (seven) issues closed below the issue price on listing date.

iii.                The price/earnings ratio based on annualized consolidated diluted EPS for the year ended March 31,2016 for the Issuer at the upper end of the Price band is as high as 24.37 on a consolidated basis and 91.80 on an unconsolidated basis, as compared to the NIFTY 50 Index Price / Earnings ratio of 20.89 (as on March 31,2016).

iv.                The average cost of acquisition of Equity Shares for Promoter Group Selling Shareholders is Rs 20.46 per share, the average cost of acquisition of Equity Shares for Investor Selling Shareholders is Rs  290.00 per share, the average cost of acquisition of Equity Shares for Other Selling Shareholders-II is Rs 4.24 per share and the Public Offer at the upper end of the Price Band is as high as Rs 896 per share.

v.                  The Weighted Average Return on Net Worth as per the Company's Unconsolidated Financial Information, as restated, and Consolidated Financial Information, as restated for the last three financial years (viz. FY 16, FV15, and FY 14) is 11.47% and 24.03% respectively.


 
Chapter 4   Spicy Entertainment IPO

           Spicy Entertainment & Media Ltd is a media and entertainment company with a specific focus on event management. It also engaged in the business of distribution of films and provides event management services to leading Indian Insurance companies for their customer awareness programs, brand promotional activities, signboard management, marketing campaigns amongst others. It offers the most comprehensive range of solutions for corporate as well as private event management and media production needs. It also offers fully customized solutions that give shape to its clients’ special preferences, needs, and vision for the program.

            The company has established mainly operations in media and entertainment operations, SAML plan and stage events to suit the needs of clients and thus provide services for all event management and media production requirements.

RISK FACTORS:

Risk factors

            The risk factors are classified as under for the sake of better clarity and increased understanding:-

Internal  Risk Factors

External  Risk Factors


Issue Related Risk

Business Risk

INTERNAL RISK FACTORS:

A.    Business Risk:

1.      The registered office of the Company is not owned by the company:

            The company operates from the registered office situated at 4, Fairlie Place, HMP House, 4th Floor, Room No – 408, Kolkata  –  700  001,  West  Bengal,  which is a  rented premise.  Any discontinuance of rent agreement/facility will lead to shifting to any other premises. This might hamper the company’s operations hurting the profitability of the Company.


2. The entertainment industry is subject to shifts in tastes and preferences of audiences.

            The entertainment industry is prone to unforeseen shifts in tastes and preferences of audiences, which could have an impact on the operations of the Company. The success of the company will depend on the ability to understand the business environment and adapt/change the business strategy accordingly.


3. This Company does not have any long term supply contracts with the customers, which may adversely affect our results of operations.

            This Company does not have any long term commitments with their customers for the existing business services. Major selling is done through verbal and orders through email hence there is no assurance that the Company will continue to serve with existing customers and any change in customers’ tastes and preferences may affect the company’s profitability in the future.


4. This Company has not taken any insurance cover at present. Hence it will not be able to protect the company from all losses and may adversely affect the financial condition.

            As there is no insurance coverage, to the extent that the company suffers loss or damage that is not covered by insurance the results of operations or cash flow may be affected.


B: Risk related to this Issue on Equity Shares:

1.      The company ability  to  pay  dividends  will  depend  upon  future  earnings,  financial  condition,  cash  flows, working capital requirements, capital expenditure and other factors:

      This Company has not yet paid any dividends. There can be no assurance that the company shall have distributable funds or that it will declare dividends. The company cannot assure that it will be able to secure adequate financing in the future on acceptable terms, in time, or at all.

2.      Any future issue of Equity Shares may dilute shareholding and sales of the Equity Shares by their Promoters or other major shareholders may adversely affect the trading price of the Equity Shares.

     Any future equity issues by the company,  including in a  primary offering,  may lead to the  dilution of investors' shareholdings. Any future equity issuances by the company or sales of its Equity Shares by the Promoter may adversely affect the trading price of the Equity Shares. In addition, any perception by investors that such issuances or sales might occur could also affect the trading price of our Equity Shares.

3.      There is no guarantee that the Equity Shares issued pursuant to this Issue will be listed on the BSE-SME in a timely manner:

                  In terms of Chapter XB of the SEBI (ICDR) Regulations, 2009 they are not required to obtain any in-principle approval for listing of shares issued. The company has only applied to BSE-SME to use its name as the  Stock  Exchange in this offer document for listing their shares on the  BSE-SME.  Approval for listing and trading will require all relevant documents authorizing the issuing of  Equity Shares to be submitted. There could be a delay in listing the Equity Shares on the BSE-SME. Any delay in obtaining the approval would restrict shareholders' ability to dispose of their Equity Shares.

B.     External Risk Factors:

1. Natural calamities and force events may have an adverse impact on their business:

Natural disasters may cause significant interruption to the operations and damage to the environment that could have a material adverse impact on us. The deficient or abnormal rainfall and other natural calamities could have an adverse impact on the Indian economy, which could adversely affect the business and results of operations.


3.      Political instability, financial instability, or changes in the  Government could adversely affect economic conditions in India generally and our business in particular.

The business, and the market price and liquidity of their Equity Shares, may be affected by interest rates, changes in Government policy, taxation, social and civil unrest and other political, economic or other developments in or affecting India. Elimination or substantial change of policies or the introduction of policies that negatively affect the Company’s business could cause its results of operations to suffer.  

OBJECTIVES OF THE ISSUE:

            There are mainly three objectives of the issue. They are-

1.      To set up a recording studio in Kolkata and infrastructure development.

2.      To Produce regional feature film.

3.      To meet the expense of the issue.

DESCRIPTION:

      The Company was originally incorporated as “Lahoti Entertainment & Media Limited” in Kolkata, West Bengal. Subsequently, the name of the Company was changed to “Spicy Entertainment and Media Limited" and a fresh certificate of Incorporation dated 7th November 2014 issued by the Registrar of Companies, West Bengal, Kolkata. This media and entertainment company with a specific focus on event Management. This Company also engaged in the business of distribution of films. Spicy is an efficiently run self-sufficient organization with its own facilities,  equipment, and connections with talented,  inspired and loyal writers,  directors,  production,  post-production, and marketing personnel who are responsible for guiding every Spicy production from ideation to telecast, in a cost-effective yet quality-conscious manner.

Further, they have also planned to venture into the production of Bengali feature films. We aim to get real concepts to the audience. Our strategy is designed to address predictability, scalability, and sustainability, ultimately resulting in profitability.

The IPO Details

  The IPO details of the Company has been presented in the following table:

Spicy Entertainment and Media Ltd Offer Details
Issue Open Date
01/09/2016
Issue Close Date
07/09/2016
Listing Date
15/09/2016
Face Value(Rs.)
10.00
Offer Price/Range(Rs.)
10.00
Issued at (Value)
PAR(0.00)
Issue Size (Retail)
4560000 Shares @10.00/Share
Issue Type
Public Issue (Fixed Portion)
Table no.1: Shows the SEML offer details
Spicy Entertainment and Media Ltd Listing Day Data:
Issue Price
10
Open
9.99
High
10.95
Close
9.70
Low
9.63
Volume
Rs. 22,88,200.00
Table no.2: Shows the SEML Listing Data
Return
Offer Price
Listing Price
*Holding Price Return
 0.00%
 9.90%
Holding Period(Days)
207
199
Annual Returns
17.63%
18.16%

*NOTE: Holding Period Return calculation on basis of 365 Days

Table No.3: Shows the SEML’s Return, Offer Price and Listing Price
Minimum Application for shares in Nos :10000   Further Multiples of :10000
Project Cost
4.5
Project Financed through Current Offer
4.82
Post Issue Equity Share Capital
16.51
Issue Price
10
Table no.4: Shows the Minimum application for shares  (Figures in Rs. Crore)
Spicy Entertainment IPO Subscription Figures are as below:
Spicy Entertainment and Media Ltd (SEML) IPO Subscription Figures
Price (Rs.)
Quantity
Total Shares for Subscription
 No. of Times Subscribed
10
57,60,000
Cut Off
11,80,000
Total
69,40,000
48,20,000
 1.44

Table No.5: Shows the IPO Subscription

So against the total value of Rs 4.82 crore, Spicy Entertainment IPO Subscribed and received bids for 6.94 crores.In Total, 4820000 shares were there at the fixed price of Rs 10 per equity share forbidding of Spicy Entertainment and Media Ltd (SEML) IPO. Now this IPO stands closed at BSE SME IPO Platform.

Lead Managers to the Issue
First Overseas Capital Ltd.
Promoted by
Pink Lady Merchandise LLP, Anindya Bikas Datta
Listing At
BSE, SME
Registrar to the Issue
Maheshwari Datamatic Pvt. Ltd.

Table No.6: Table shows in details relating to SEML

ANALYSIS:

            Public issue of 48,20,000 equity shares of Rs. 10 each (equity shares) of Spicy Entertainment and Media Limited (SEML or the company or the issuer) for cash at a price of Rs. 10 per share (the issue price), aggregating to Rs. 4.82 crores (the issue), of which, 2,60,000 equity shares of Rs. 10 each will be reserved for subscription by market makers to the issue (the market maker reservation portion). The issue less the market maker reservation portion i.e. Issue of 45,60,000 equity shares of Rs. 10 each is hereinafter referred to as the net issue. The issue and the net issue will constitute 29.19% and 27.62%, respectively of the post issue paid-up equity share capital of the company. The face value of the equity share is Rs. 10 each and the issue price of Rs. 10/- i.e. 1 time or at par of the face value.

            Table no. 2 depicts the opening issued price at Rs. 9.99, the company's highest issue price is Rs. 10.95 (i.e. Rs. 0.96 more than the opening price) and its lowest issue price are Rs. 9.63 (i.e. Rs. 0.63 less than the opening issue price) whereas, the closing price of the company is Rs. 9.70 (i.e. Rs. 0.29 less than the opening price).

CONCLUSION:

       From the above analysis, we found that Spicy Entertainment and Media Ltd hit capital markets to raise Rs 4.82 crore and increased price to Rs. 10.95 per share. On the other hand, there are comparatively fewer shares are issued and earnings also go down. So, their investors will not be willing to buy shares from the company if the share price trend is the same as at present. This Company should increase the issue of shares and also minimize their risk factors by using the optimum utilization of resources and proper management techniques.