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Why Does The Hutch and Vodafone merger have problems -with respect to FEMA and tax? ,[object Object],[object Object],Vodafone(Briton) A Foreign company HTIL( Whampoa group  of Li-Ka Shing. Hong Kong A foreign company 67% Takes over Asim Ghosh-12% A.Singh and other companies (Minority) Essor group
Mergers and Acquisitions-Tax impact By Prof. Augustin Amaladas M.Com.,AICWA.,PGDFM., DIM., B.Ed For  TASMAC 25/07/08
Provision of income tax act ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]
[object Object],[object Object]
TYPES OF MERGERS ,[object Object],[object Object],[object Object]
The First wave ,[object Object],[object Object],[object Object],[object Object]
Standard Oil(SO) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Who plays an important role in merger? ,[object Object],[object Object],[object Object]
When did Management principles used  in merger in USA? ,[object Object],[object Object],[object Object],[object Object],[object Object]
M&A IN INDIA ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object]
HCL ,[object Object]
Basic concept behind  capital gain tax? ,[object Object],[object Object],[object Object],[object Object],[object Object]
INCOME TAX  RELATED ISSUES FOR AMALGAMATION ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
EXAMPLE ,[object Object],NO CAPITAL GAIN TAX & ACCUMULATED LOSSES & UNABSORBED DEPERICIATION CAN BE CARRIED FORWARD DOES NOT ATTRACT CAPITAL GAIN FOR A BUT NO GAIN FOR B NO BENEFIT TO A & B  A MERGES WITH B (A GOES OUT) SATISFIES BOTH 2(1B) & 72 A SATISFIES 2(1B) BUT DOES NOT SATISFY 72 A DOES NOT SATISFY SEC 2(1B) & 72 A PARTICULARS
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Tax Concession To Share Holders Of Amalgamating Co. ,[object Object]
EXERCISE 40 70 MARKET PRICE 8 10 P/E RATIO  5 7 EPS 7,500 20,000 NO. OF SHARES 37,500 1,40,000 EAT CO. B CO. A PARTICULARS
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conclusion ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]

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Why Does The Hutch and Vodafone merger

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  • 2. Mergers and Acquisitions-Tax impact By Prof. Augustin Amaladas M.Com.,AICWA.,PGDFM., DIM., B.Ed For TASMAC 25/07/08
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  • 19. EXERCISE 40 70 MARKET PRICE 8 10 P/E RATIO 5 7 EPS 7,500 20,000 NO. OF SHARES 37,500 1,40,000 EAT CO. B CO. A PARTICULARS
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