Edugild
Edugild is a Global Edtech Startup Accelerator with a vision to create world class organizations in the field of education, learning and development, skill development and knowledge management.

Based in Pune, Edugild offers an intensive mentorship and product realization program to any EdTech start-up in the world. It concentrates on Edtech, as there is a continuous increase in investment in Education and Knowledge management sector, which is expected to grow by leaps and bounds propelled by technological advancements and demand for additional skills.

Notable Cohorts from Edugild are Ahhaa, Musein, Classboat, Simulanis, Readrush and Edvantics, backed up by a wide-range of scale up partners.

In the Global economic summit, Team Simulanis was awarded with the National Entrepreneurship Award 2017.

Offerings & Unique propositions from Edugild sets them above from other accelerators, since they are backed up by,
• Strong Knowledge & Experience in education and education management
• Canny Venture Partners
• Brawny Mentor and Subject experts
• Strong Institutional partners
• Wide base of Investors
For more details, visit: http://www.edugild.com

Topic: Nitty – gritty of issuance of shares

Introduction

• In a case where shares are issued by the company and consideration is with premium for such shares then is such a scenario there are certain provision which need to be complied with from Income Tax Act perspective.

1. Premium on issue of shares by a closely held company:

Scenario:

• Shares are issued by whom?

In any case a closely held company (a company not being a company in which public is substantially interested) has issued shares.

• Share are issued to whom?

Shares should be issued toresident assessed at a premium.

• Then the consideration in excess of fair market value (Computation given below)of such shares shall be taxable.
• Taxability

Such consideration received shall be taxable in the hands of the company.

Computation:

The Fairmarket value shall either be as following:

• The fair market value of the unquoted equity shares determined by a merchant banker or an accountant as per the Discounted Free Cash Flow method.

(OR)

• The fair market value of unquoted equity shares = (A – L)× (PV);

Where,

A   = Book value of the assets in the balance-sheet as reduced by any amount of tax paid as deduction or collection at source or as advance tax payment as reduced by the amount of tax claimed as refund under the Income-tax Act and any amount shown in the balance-sheet as asset including the unamortized amount of deferred expenditure which does not represent the value of any asset;

L   = Book value of liabilities shown in the balance-sheet, but not including the following amounts;

PE  = Total amount of paid up equity share capital as shown in the balance-sheet;

PV  = the paid up value of such equity shares.

However there are certain exclusions given in certain cases wherein such transaction are not treated as transfers like in case of amalgamation, demerger, etc

The above provisions shall not be applicable to a case when shares are issued to a Non -resident investor. Also, Startup should be kept in mind that whenever there is an issue of shares then it shall be issued to the resident investor at Fair Market Value in order to avoid any additional tax burdens.

Subject: Brick and Mortar – A description of an Incubator / Accelerator

AIM Smart City Accelerator-

AIM Smart City Accelerator is India’s first dedicated SmartCity accelerator. They exclusively work with startups that are trying to make a difference by improving living spaces and conditions of people. They have some of the best mentors and experts who understand Smart Cities and can provide valuable insight for your organisation to grow.

In line with PM Narendra Modi’s Smart City Mission, the accelerator aims to identify, invest in, and support the best startups focused on making cities a better place. It is a four-month programmer, wherein beyond funding and mentoring, the accelerator will also liaise with the Government to consider the solutions proposed by selected startups. The programmer is also supported by Microsoft’s BizSpark programmer, under which selected startups can individually apply for up to $120K (INR 80 Lakhs) worth of Azure cloud computing.

Funding Structure/Selection Criteria:

Startups are judged on financial viability, technology feasibility, desirability to its target audience, sustainability of the solution and track record of the team. Startups who are between piloting or in the initial launch to pre-expansion phase can apply for the programmer. The accelerator will be providing investments in the form of workshops, technology support, knowledge support, and financial investment. The net investment will be to the tune of $15K-12K (INR 10 Lakhs-INR 8 Lakhs) that includes an INR 8 Lakhs cash component. The accelerator may own nominal equity against the investment made during the cohort time duration.

Focus Area(s):

Startups working on smart city solutions in the areas of education, healthcare, transport & logistics, and infrastructure.

Some Startup Graduates:

The first cohort was concluded in August 2016. It listed eight startups viz. Exchange4Solar, Ajeevi, Gudgudee, Pump Charge, Smarter Clinics, Khetify, KONTEXT, and TRUCKERRS.

To know more: http://aimsmartcity.com/

Startup Name	Website	Sector	Investment Type	Amount (In USD)
Strata Enviro	https://www.stratagroup.in/strata-enviro	IoT based air pollution controller	Private Equity	N/A
Dunzo	https://www.stratagroup.in/strata-enviro	Daily Task Management Mobile App	Private Equity	12,300,000
Tata Housing	http://www.tatahousing.in/	Residential Project	Private Equity	23,000,000
HandyTrain	https://handytrain.com	Mobile Learning Management Platform	Private Equity	1,000,000
Mobycy	http://www.mobycy.com	Bicycle sharing Platform	Seed/Angel Funding	500,000
Greenlight Planet	https://www.greenlightplanet.com	Off-grid solar products platform	Private Equity	60,000,000
Fintobox	https://flintobox.com	Child Learning & Development Platform	Private Equity	7,000,000
Mswipe	http://www.mswipe.com	Mobile point of sale services provider	Private Equity	10,000,000
The Label Life	https://www.thelabellife.com	Home Decor and Online Fashion Portal	Private Equity	3,100,000
Cygnus Hospitals	http://cygnushospitals.com	Super speciality Hospitals	Seed/Angel Funding	750,000
eShakti	http://www.eshakti.com/	Women's Fashion Clothing Online Platform	Debt Funding	2,300,000
Inshorts	https://www.inshorts.com	Mobile News Curation App	Private Equity	5,000,000
Vahdam Tea	https://www.vahdamteas.com	Online Platform Selling Indian Tea Globally	Private Equity	1,500,000
Logic Roots	https://logicroots.com	Educational Platform to Learn Mathematics	Seed/Angel Funding	50,000
Project Mudra	https://www.projectmudra.com	Assisting Visually Impaired to learn through Braille	Seed/Angel Funding	50,000
Furlenco	https://www.furlenco.com/	Furniture Rental Platform	Debt Funding	1,200,000
I Can Stay	https://www.icanstay.com	Hotel Aggregator Platform	Private Equity	1,800,000
Fracktal Works	https://www.fracktal.in	Platform based on 3D printing and Digital Manufacturing	Seed/Angel Funding	N/A
Simility	https://simility.com	Adaptive Fraud Intelligence Platform	Private Equity	17,500,000
Shopholix	https://www.shopholix.com	Fashion and Lifestyle Coupon Platform	Seed/Angel Funding	233,000
MindTickle	https://www.mindtickle.com	Gamification Platform to train Sales People	Private Equity	27,000,000
Nazara Technologies	http://nazara.com	Mobile Games Development Firm	Private Equity	27,000,000
DocsApp	https://www.docsapp.in	Mobile Application for Doctor Consultation	Private Equity	7,200,000
Capita World	https://www.capitaworld.com	Artificial Intelligence Platform to Raise Funds	Private Equity	N/A
Tea Box	https://www.teabox.com	Fresh Indian Tea Selling Platform across 112 countries	Private Equity	7,000,000
Transversal Technologies	http://www.transervetechnologies.com/	Hyperlocal Video Information Sharing Platform	Private Equity	6,000,000
Curofy	https://curofy.com	Mobile App for Network of Doctors	Seed/Angel Funding	250,000
HomeLane	https://www.homelane.com	Online Furniture Marketplace	Private Equity	10,000,000
WeDoSky	http://wedosky.com	Provides Business Insights using Drone Imaginary	Private Equity	N/A
Purplle	https://www.purplle.com	Beauty Products Online Marketplace	Seed/Angel Funding	537,000
Cash Suvidha	https://www.cashsuvidha.com	Online Micro-Lending Platform	Debt Funding	2,700,000
Sky Met Weather	https://www.skymetweather.com	Weather Forecast Platform	Private Equity	N/A
Springboard	https://www.springboard.com	Online Courses and Mentoring from Experts	Private Equity	9,500,000
Peel Works	http://www.peel-works.com	SaaS based Big Data Analytics Platform	Private Equity	N/A
9Stacks	https://www.9stacks.com/	Online Poker Platform	Private Equity	1,500,000
Your Quote	https://www.yourquote.in/	Vernacular and Video Content Platform	Private Equity	1,000,000
Spandana Sphoorty	http://www.spandanaindia.com	Micro finance institution providing small ticket unsecured loans to women	Private Equity	19,500,000
Indus OS	http://www.indusos.com	Regional Operating System for Smartphones	Private Equity	4,000,000
EasyEcom	http://www.easyecom.in	Ecommerce enabler platform	Seed/Angel Funding	150,000
IGP.com	https://www.igp.com	Online Gifting Platform	Private Equity	N/A
Specsmakers	https://www.specsmakers.in	Online Spects Platform for Men and Women	Private Equity	10,000,000
Garage On Road	http://garageonroad.com	Online vehicle service booking platform	Private Equity	N/A
Foyr.com	https://foyr.com/	Realty Tech Startup solving real life Interior Designing problems	Private Equity	3,800,000

Jan 07	Jan 10	Jan 15	Jan 18	Jan 20	Jan 21	Jan 30	Jan 31
TDS/TCS Challan	PT Payment	PF Payment	GSTR 4 (Oct - Dec	GSTR- 3B (for Nov)	ESI Payment	TDS Certificate(Dec'17)	ITC - 01
	GSTR -1 (July to Sep) - for registered persons with aggrgate turnover upto INR 1.5 cr.	TCS Return(Oct- Dec'17)				TCS Certificate (Oct to Dec'17)	GSTR 5 - July to Dec'17
	GSTR-1 (July- Nov) - for registerd persons with aggregate turnover more than 1.5 crores						GSTR 5A -July to Dec'17
							Form GST CMP - 03 - Intimation of details of stock on date of opting for composition levy
							TDS Return (Oct to Dec'17) - TDS – Salary in Form 24Q, TDS – Others in Form 26Q, TDS – Non-residential in Form 27Q

Let’s catch up!

1. January 6^th, 2018: Dream Entrepreneurship

Dream Entrepreneurship is a national conference on fundamentals of startup and

Entrepreneurship.  Dream entrepreneurship aims to inspire economic sustainability through business ownership and aspires students and young entrepreneurs to bridge the gap between where they are now and where they need to be to build successful businesses.

Venue: KLN Prasad Auditorium, Lakdikapul, Red Hills, Hyderabad, Telangana, India

 

1. January 19^th-21^st, 2018: Startup Weekend Maker Guru gram

Startup Weekend Maker is oriented towards those who want to start their own startup, but don’t know from where to commence. Powered by Google for Entrepreneurs, it aims to teach how to create a real company, and introduce founders to best mentors, investors, co-founders and sponsors.

Venue:821 Basement, Sector 47, Gurugram, Haryana, India

 

1. January 28^th, 2018: The Ten Minute Challenge

E-cell IIT Bombay has launched the fourth edition of its on-the-spot funding event named The Ten Minute Million, which will be held on 27th and 28th January 2018 during the annual corporate E-summit of IIT Bombay.

The Ten Minute Million is an event, in which involves 10 shortlisted startups pitch for 10 minutes in front of an investor panel and get on-the-spot funding commitment of INR 16 Lakh.

Venue:E-cell Office, Student Activity Center, IIT Bombay, Mumbai, Maharastra, India

4. January 16^th, 2018:Co-founder Meet

Indian Startups, iLab Hub and ASSOCHAM is organizing this event ‘Co-founder meet’ to help Startup founding team find their co-founders.

“Startups address real world challenges and provide solutions to improve our lives directly or indirectly. But we all know how challenging it can be, without a proper team or without complimenting skills among the co-founders. Here, we try to bridge this gap by hosting a ‘Co-founder meet’ inviting all our community members to attend, share their expertise and team up to create startups or join existing startups.”

Time: 5:00 PM to 7:00 PM

Venue: Ashirwad Towers, 75/11, 2nd floor, 2nd Main Road, Vyalikaval, Bangalore

5. January 18^th, 2018 : Ways To Reach Greater Heights Building Channels And Partner

The session is being held with a specific focus on sales and business development. Given the challenges of multiple geographies, customer segments and domains, the width of the market is getting larger and farther and hence it would be wiser for organizations to work through a model of engaging with the right set of channels and partner networks to reach these markets. This also helps in taking advantage of the learnings of each of these partners instead of re-inventing the wheel in each geo and segment.

With a large number of growing SMEs and their unique offerings along with the aspiration to grow multi-fold, the session would delve deeper on how to reach overseas markets, identify and build channels, partners etc in various geographies, find synergies and reach these new markets and customers.

The session would also cover emerging thinking on challenger sales and solution selling so as to provide a flavor of the latest paradigm shift in Selling Strategies.

Venue: “A” wing, 5th Floor, Hall No. 4, MCCIA Trade Tower, Senapati Bapat Road, Pune.

6. January 26^th , 2018 : Business Success Networking

The session gives details on Art of Networking i.e. networking with right people at the right along with time- Secrets and Techniques to START, GROW or SUCCEED in Your BUSINESS FASTER.There will be games, group tasks and advanced experiential activities carefully designed to grow networking skills.

Session Learnings:

Connect with growth oriented people and learn the

• Art of Networking (The Secret Diamond Model) to create your Bright Future Faster.
• Create Friendship with SMART Business People
• Convert Your Wealth Creation Dreams to Reality FASTER

 

Venue: The Chancery 10/6, Lavelle Road Shanthala Nagar, Ashok Nagar Bengaluru, Karnataka 560001

7. January 13^th , 2018 : Business Success Networking

With the changes in social and political conditions, social entrepreneurship is now beginning to take shape in India very firmly. Individuals with innovative solutions to society’s most pressing social problems have stepped forward to make a CHANGE. Both youngsters and experienced folk are no more afraid to try it as genuine career opportunity.

No matter how good their idea is or how much support government or external factors provide, they struggle with a lot of issues – Funding, Skilled man power, Centralized focus and lack of structure. This is for new social entrepreneurs or have already ventured into social entrepreneurship or planning to do so.

Venue: The American Centre American Center, 24 Kasturba Gandhi Marg,Near Barakhamba Metro Station, New Delhi, Delhi 110001.

Country: Russia

Overview

The Russian startup ecosystem has been slowly building over the past ten years, however there was a noticeable increase in activity in the past 3-4 years. The government has been a key driver in many areas of activity, and as befits the tendencies of the Russian government, many of the schemes have been grand and ambitious. The most notable of these is the Skolkovo project, which aims to build an entirely new ‘Innovation City’ just outside of Moscow, complete with top tier university, accelerator labs, and all of the housing and infrastructure to sustain a sizeable community. The Skolkovo site also houses corporate innovation groups from Russian organisations like Sberbank and international groups like Boeing.

Funding

The volatility of the Russian economy has made it difficult for the startup economy to get a strong foothold, as it has reduced investment and weakened the local market. Not only was Russia hit by a recession in 2008-2009 following the financial crisis, it was hit again in 2014 by the sudden fall in oil prices and the imposition of sanctions following Russia’s actions in Crimea and Ukraine. As well as scaring away foreign investors, the fluctuating ruble also caused many Russian investors to turn their attentions to less volatile markets. While startups are not directly affected by the sanctions, they are suffering the knock-on effects. Getting initial investment can be a tough challenge, with a relatively low level of VCs active in the market and only a small community of angel investors. Government grants and tax breaks can fill this gap, although receiving a government grant requires a lot of effort and paperwork.

Support Programs

Part of the government approach has been to establish privately-run organizations to support startups. Skolkovo Foundation, at the heart of the Skolkovo project, is one of these. Other groups include фрии (pronounced ‘FREE’), who provide funding and educational support to startups. Also prominent are the Technoparks, set up by city governments, including the 12 business incubators established by Moscow city government containing 1300 projects across various industrial sectors. They offer space and structure for early stage startups and other small businesses. The incubation facility of Skolkovo is also run by Techno Park. Going a stage further, Moscow also has a ‘Technopolis’ which provides flexible and specialized industrial spaces for mid-sized businesses. Graduates of Technoparks sometimes move their production to Technopolis as they scale.

While Moscow and the Skolkovo project are the most prominent hubs of activity, centers of innovation are spread across the country. The Soviet era saw the establishment of a number of ‘science cities’ (or ‘Naukograds’), spread across the country as hubs for scientific research. Many of these were ‘secret’ or ‘closed’ cities at the time, although most have since opened up, and they were spread across even the more remote areas of the country like Siberia and the Urals (a good science location for its rich mineral resources). Siberia is still strong in the sciences, with cities like Novosibirsk – once the Soviet equivalent to Skolkovo and now the third most populous city in Russia – and Tomsk – a student city with six universities. The city of Kazan in the Republic of Tartastan has built up as a more organic science city, thanks to its impressive collection of science institutions and universities. Kazan is growing into an important startup hub and hosts Russia’s main venture industry event – the Venture Fair.

The roots of a strong ecosystem are also taking place in St Petersburg, with a lot of support from universities like ITMO, who offer a range of programs to help their students build successful startups. In future, the Skolkovo project may also establish satellite centers elsewhere in the country – at the moment startups are required to move to Moscow/Skolkovo for the accelerator program. The have already opened a regional office in Vladivostok to support the development of startups in the Far East, where entrepreneurs tend to build solutions related to the sea (such as fisheries and marine robotics).

Sectors

The main focal areas for the Russian startup market are in the hard sciences and IT. The Skolkovo project targets five specific strands of technology: Energy, IT, Nuclear, Biomedical and Space (Nuclear referring more generally to the study of things on an atomic and sub-atomic level rather than specifically energy or weaponry). The focus on specific areas is reflective of the government’s efforts to establish clear sectors of excellence in which it can diversify the economy away for its current over-dependence on oil, gas and other natural commodities. That said, oil and gas research within the Energy field also shows Russia trying to innovate within its key industries to raise their profitability once again.

Along with these sectors, there is also a trend (similar to that seen in South Korea) for Russian startups to replicate successful Western business models for the Russian market. The Russian Facebook equivalent, VK (VKontakte) is one of the country’s main startup success stories and has become the largest European social network.

Markets

The general level of technology aptitude and use in Russia is varied. While the larger metropolitan areas have good access to internet and mobile technology, there is a vast spread across the country in terms of quality of life and access to technology. Even large cities like St Petersburg have a lot of updating to do, with a metro system that still uses metal tokens and an icicle problem solved by sending men onto the roofs with crowbars and shovels. Russia is a vast country with a complex history and an exceptionally challenging climate, so it is unsurprising that certain parts of the country are substantially more technologically advanced than others.

Given the variability of the Russian market, key players in the Russian startup ecosystem recognizes the importance of the global market in breeding ‘unicorn’ status companies. Despite the vast size of the country, the economic slump and sparseness of the population mean that the Russian market is not large enough for a startup to achieve that level of valuation. Many of the acceleration projects aimed at startups have support for globalization as one of their core activities and multicultural events and foreign trips are part of this activity. The Skolkovo project is also intended as a multicultural enterprise and Skoltech University was founded in partnership with MIT.

Diversity

This history has also meant that diversity is not a key consideration within the ecosystem, as Soviet times ensured women were well represented in science education and Russians almost unanimously told me that they do not discriminate by gender or ethnicity. Of course, this does not mean that there is equal representation of women among startup founders, in fact they seem to make up only around 10 percent of most accelerator intakes (this is an estimate as most programs don’t track this metric). It will be hard to address this diversity issue as long as Russians don’t actively recognize that it exists.

Challenges and Opportunities

Alongside these cultural aspects, there are clear strengths and weaknesses in the typical skillsets of startup founders in the Federation. Russians have long been known for their scientific prowess, but they are now realizing that great inventions do not necessarily make marketable innovations. While there is a strong scientific community and the historic and environmental difficulties of living in Russia have made the people into consummate problem solvers, the scientists are often too attached to traditional methods and the problem solvers struggle to identify the right problems to solve. Russians have the advantage of being well-developed in several of the cornerstones for innovation, but now they need to build up their market understanding in order to turn great ideas into successful businesses. If they can jump these hurdles, then it is likely that we will see an increasing number of Russian startups making waves with their scientific solutions in the global markets in coming years.

Notable Startups in Russia

• com (St. Petersburg)

Not strictly a startup because it was founded in 2006, VK.com — formerly known as Vkontakte.ru — is the company that all Russian startups aspire to be. (Known as the Russian Facebook)

• Vizerra (Moscow)

Vizerra is a 3D visualization company that enables architects, engineers and designers to turn their CAD models into immersive 3D worlds. It uses gaming and social technology to create interactive 3D experiences of real-world buildings and environments. Clients include Russian gas giant Gazprom and National Geographic.

• JSC Mostkom (Ryazan)

JSC Mostkom develops and supplies equipment for wireless optical communications based on Free Space Optics (FSO) technology. It does so by providing wireless transmission of digital signals through the atmosphere in the unlicensed infrared part of the electromagnetic spectrum.

• Choister (Moscow)

Choister is a service that helps search, analyze and compare all available “smart” educational programs. The company finds the programs, structures the data, helps to make smart choices, and then sends the motivated students to the schools’ websites.

FDI Compliances

Meaning:

Foreign direct investment (FDI) is an investment made by a company or an individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.

Eligibility:

• A person resident outside India or an entity incorporated outside India, can invest in India
• Company/ Trust/Partnership firm controlled by NRI’s.
• Foreign venture capital investor.
• Overseas corporate bodies which are incorporated outside India and are not under adverse notice of the Reserve Bank can make fresh investments under the FDI Scheme as incorporated non-resident entities, with the prior approval.

Entry routes:Under the Foreign Direct Investments (FDI) Scheme, investments can be made in shares, fully convertible debentures and fully convertible preference shares of an Indian company by non-residents through two routes,

• Automatic Route: Under this route, the foreign investor or the Indian company does not require any approval from the Reserve Bank or Government of India for the investment.
• Government Route: Under the Government Route, the foreign investor or the Indian company should obtain prior approval of the Government of India, Foreign Investment Promotion Board (FIPB), Department of Economic Affairs (DEA), Ministry of Finance or Department of Industrial Policy & Promotion, as the case may be for the investment.

Reporting guidelines for foreign investments in India: When any FDI has been received with respect to the interest in the business in any manner, reporting of the same is to be done. Mentioned here are the compliances/reporting which are to be followed on a case to case basis.

1. Reporting of issue of shares:

• The Indian company receiving investment shall report the amount of consideration, not later than 30 days from the date of receipt in the Advance Reporting with the regional office of RBI for the allotment of UIN.
• The equity instruments should be allotted within 180 days from the date of receipt of the inward remittance. In case, the instruments are not issued within 180 days, the amount of consideration so received should be refunded immediately to the non-resident investor by outward remittance through normal banking channels or by credit to the NRE/FCNR/Escrow account.
• After the allotment of shares, the company has to file Form FC-GPR, enclosed in Annex – 8, through its AD bank, not later than 30 days from the date of issue of shares. The following documents have to be submitted along with Form FC-GPR:

1. A certificate from the Company Secretary of the company certifying that all the compliances have been met.

1. A certificate from SEBI registered Merchant Banker or Chartered Accountant indicating the manner of arriving at the price of the shares issued to the persons resident outside India.

(Issue of shares shall also include bonus or rights shares issued to persons resident outside India directly or on amalgamation / merger with an existing Indian company, as well as issue of shares on conversion of ECB / royalty / lump-sum technical know-how fee / import of capital goods by units in SEZs has to be reported in Form FC-GPR)

• All Indian companies which have received FDI and/or made FDI abroad in the previous year(s) including the current year, should also file the annual return on Foreign Liabilities and Assets (FLA) to the Reserve Bank by July 15 (Unaudited) every year.

2. Reporting of conversion of ECB into equity

Details of issue of shares against conversion of ECB have to be reported to the Regional Office concerned of the Reserve Bank, as indicated below:

• In case of full conversion of ECB into equity, the company shall report the conversion in Form FC-GPR to the Regional Office concerned of the Reserve Bank as well as in Form ECB-2 to the Department of Statistics and Information Management (DSIM) within seven working days from the close of month to which it relates. The words “ECB wholly converted to equity” shall be clearly indicated on top of the Form ECB-2. Once reported, filing of Form ECB-2 in the subsequent months is not necessary.
• In case of partial conversion of ECB, the company shall report the converted portion in Form FC-GPR to the Regional Office concerned as well as in Form ECB-2 clearly differentiating the converted portion from the non-converted portion. The words “ECB partially converted to equity” shall be indicated on top of the Form ECB-2. In the subsequent months, the outstanding balance of ECB shall be reported in Form ECB-2 to DSIM.

3. Reporting on Transfer of shares:

• Reporting of transfer of shares (convertible debentures, partly paid shares & warrants) is to be made in Form FC-TRS (enclosed in Annex 9). The Form FC-TRS should be submitted to the AD bank, within 60 days from the date of receipt of the amount of consideration.

• On receipt of statements from the AD bank , the Reserve Bank may call for such additional details or give such directions as required from the transferor/transferee or their agents, if need be.

 

4. Reporting of ESOPs for allotment of equity shares

• The issuing company is required to report the details of issuance of ESOPs to its employees to the Regional Office concerned of the Reserve Bank, in plain paper reporting, within 30 days from the date of issue of ESOPs.

 

• Further, at the time of conversion of options into shares the Indian company has to ensure reporting to the Regional Office concerned of the Reserve Bank in form FC-GPR, within 30 days of allotment of such shares.

 

5. Reporting of ADR/GDR Issues

• The domestic custodian shall report the issue/transfer of sponsored/unsponsored depository receipts as per DR Scheme in ‘Form DRR’ within 30 days of close of the issue/program.

6. Reporting of FII investments under Portfolio Investment Scheme (PIS)

 

• The AD banks have to ensure that the FIIs registered with SEBI who are purchasing various securities by the Special Non-Resident Rupee Account should report all such transactions details in the Form LEC (FII) to Foreign Exchange Department, Reserve Bank of India. It would be the bank’s responsibility to ensure that the data submitted to RBI is reconciled by periodically taking a FII holding report for their bank.

• The Indian company which has issued shares to FIIs under the FDI Scheme (for which the payment has been received directly into company’s account) and the Portfolio Investment Scheme (for which the payment has been received from FIIs’ account maintained with an AD Category – I bank in India) should report these figures separately under item no. 5 of Form FC-GPR (Annex – 8) (Post-issue pattern of shareholding) so that the details could be suitably reconciled for statistical / monitoring purposes.

7. Reporting of NRI investments under Portfolio Investment Scheme (PIS):

 

• The designated link office of the AD Category – I bank shall furnish to the Reserve Bank, a report on a daily basis on PIS transactions undertaken on behalf of NRIs for their entire bank. This report can be uploaded directly on the ORFS web site. It would be the banks responsibility to ensure that the data submitted to RBI is reconciled by periodically taking a NRI holding report for their bank.

8. Reporting of foreign investment by way of issue / transfer of ‘participating interest/right’ in oil fields:

 

• Foreign investment by way of issue / transfer of ‘participating interest/right’ in oil fields by Indian companies to a non-resident would be treated as an FDI transaction under the extant FDI policy and the FEMA regulations.

• Accordingly, transfer of ‘participating interest/ rights’ will be reported as ‘other’ category under Para 7 of revised Form FC-TRS as given in the Annex-8 and issuance of ‘participating interest/ rights’ will be reported as ‘other’ category of instruments under Para 4 of Form FC-GPR as given in the Annex-9.

Thus for any Foreign direct investment in a company the above regulations shall be complied with for a smooth investment process and result in  capital formation by bringing fresh capital and also facilitates transfer of new technologies, management skills, intellectual property etc.

To know more: https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=9006#p

Company – Lego

Lego Company was founded by ole Kirk Christiansen, a carpenter from Denmark in 1932 and started the business by making wooden toys.

In 1947, Lego changed the business of making wooden toys to making plastic toys and the company was an iconic name in the toy business. It was one of the best ideas that has made great sales in the history of toys mainly interlocking bricks.

Lego bricks became one of the favorite toys for children because of the nature of their innovation and friendliness.

In 2003 Lego toys started suffering losses and the company was virtually out of cash. Lego recorded loses of $300 million and the following year it was projected a loss of $ 400 million. Creativity combined with smart management brought in by Jorgen Vig Knudstorp the CEO of Lego, ultimately saved the company. He cut operation costs, introduced popular Lego lines like Ninjago and obtained franchises of ‘star wars.’ ‘Toy story’ and Lord of the Rings.

It was through these efforts of the CEO that saw Lego regain its status as one of the most favorite toys in the market.