Investment proposal

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2011 HI
RESPECTED MEMBERS

CAN ANY ONE TELL ME ,IF ANY ONE WANT TO INVEST IN PVT LTD COMPANY FOR BECOME DIRECTOR, SHARE HOLDING 49%. , THEN WHAT POINT SHOULD BE SEE IN FINANCIAL STATEMENT FOR THE POINT OF VIEW OF GETTING RETURN ON INVESMENT, TO DECIDE WHETHER INVESTMENT SHOULD BE MADE OR NOT?

PLEASE EXPLAIN

URGENT

THANKS IN ADVANCE TO MEMBERS

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 November 2011 First see the Profitability of the Company. See its financial statements and have a look at the assets and liability position of the company. The line of activity, in which the company deals is also an important factor to be considered.
The return from the PVT Ltd Company may be in the form of Remuneration and Perks to directors or through dividends which is seldom declared by the PVt Ltd Co.

So it is wise to consider all the risk factors before hand. After investing in shares, it may happen that you can't sell them as these can not be trasferred freely like shares in listed companies.

Decide your desired Rate of Return and take risk accordingly.

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