

What is the difference between merger and amalgamation and acquition related to accounting point of view?
"Very often, the two expressions "merger" and "amalgamation" are taken as synonymous. But there is, in fact, a difference.
Merger is restricted to a case where the assets and liabilities of the companies get vested in another company, the company which is merged losing its identity and its shareholders becoming shareholders of the other company.
Co. A <--Co.B ==Co. A . ie., Co. B is swallowed by Co. A
On the other hand, amalgamation is an arrangement, whereby the assets and liabilities of two or more companies become vested in another company (which may or may not be one of the original companies) and which would have as its shareholders substantially, all the shareholders of the amalgamating companies."
Just like:
Co.A + Co.B == Co.C

When you are called for an interview, remember not to appear too focused on yourself, money or the TA/DA that you would need to be reimbursed. Honesty and frankness is appreciated, in the right dosage. Be prepared to ask your own set of questions during the interview to help decide whether you want to join or not.
What will my scope of work, roles and responsibilities be?
It's important to have an idea of the requirements as an employee. Nivedita Ghosh, consultant and client manager, ABC Consultants advises, "Seek clarity on the duties and responsibilities for that position so that it does not come as a surprise package to you."
What are the skill sets required for effective performance in the given role?
Understand what is required of you, if analytic ability or thinking out of the box are needed, you need to be able to deliver on the same count. According to Nishant Mohan, director, VentureBaron Technology, a Mumbai-based company, "This helps in understanding if the company is aligned similarly or if you will find it difficult aligning yourself to the organisation's goals and objectives."
What is the guidance offered in the initial stages in the organisation?
This will decide how smooth your transition will be into the company. If efforts are made to help you fit in, chances are the
effort will reflect in other aspects as well. The more willing the organisation is to train you during the initial period, the better your reults and the more the intention of the company to make the relationship work. It is like the company is investing in you.
Is there an acclimatising camp to get used to the systems, work culture of the organisation?
Many companies place high importance on this, reflecting the organisation's ability to deliver on its promises and investment
in human resources. Srinivasan, HR director, HCL Technologies, says, "It's important to know this so that you have a clearer idea about whether you will find the right fit, whether the atmosphere is formal or informal."
What are the KRAs on which I would be assessed?
All employees are evaluated based on key result areas. Know how your contributions will be rated, be prepared and be willing to deliver.
Is there an annual appraisal system where my deficiencies would be discussed for self improvement?
Be open to appraisal and always strive towards self improvement. Remember that this is not personal and a process,
be willing to change and mould yourself into your job.
What is the salary structure and other benefits?
Most employers will make an offer, so you rarely have to broach the topic. Be careful in your negotiation process, don't appear to be too money-minded. Mohan warns, "Try and understand the salary break-up because an unfavourable break-up may result in lower income and more taxes."
How much does the company invest in their employees through learning and development programmes?
Srinivasan feels that your career landscape is also determined by the kind of career development programmes that are offered. Know what you can expect, be aware of whether you will get it or not if you join.
What is the reporting structure?
It's important to understand this process early so that you avoid making any blunders as part of the company. Many companies state there is no hierarchy, but it is better to understand that it does exist in some manner. Openness should not be taken as a given, be sure to maintain a certain decorum and ethical approach at work.
What does the organisation think about work-life balance?
At a personal level this is important to be kept in mind. Srinivasan shared, "It will not be a question that puts to rest your doubt in terms of deliverables but it will give you a sense of how flexible the company is in terms of other needs."
An interview is a two-way process, be prepared to be able to respond to an opportunity to ask questions. Remember, each work space is a learning experience, be open to change and handling challenges as part of your work. Give it your best shot and don't be scared to accept your limitations, work hard to learn at work and achieve success.

Introduction
SENSEX, first compiled in 1986, was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks representing large, well-established and financially sound companies across key sectors. The base year of SENSEX was taken as 1978-79. SENSEX today is widely reported in both domestic and international markets through print as well as electronic media. It is scientifically designed and is based on globally accepted construction and review methodology. Since September 1, 2003, SENSEX is being calculated on a free-float market capitalization methodology. The "free-float market capitalization-weighted"methodology is a widely followed index construction methodology on which majority of global equity indices are based; all major index providers like MSCI, FTSE, STOXX, S&P and Dow Jones use the free-float methodology.
The growth of the equity market in India has been phenomenal in the present decade. Right from early nineties, the stock market witnessed heightened activity in terms of various bull and bear runs. In the late nineties, the Indian market witnessed a huge frenzy in the 'TMT' sectors. More recently, real estate caught the fancy of the investors. SENSEX has captured all these happenings in the most judicious manner. One can identify the booms and busts of the Indian equity market through SENSEX. As the oldest index in the country, it provides the time series data over a fairly long period of time (from 1979 onwards). Small wonder, the SENSEX has become one of the most prominent brands in the country.
SENSEX Calculation Methodology
SENSEX is calculated using the "Free-float Market Capitalization" methodology, wherein, the level of index at any point of time reflects the free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization.
The base period of SENSEX is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of SENSEX involves dividing the free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds. The value of SENSEX is disseminated in real time.
Dollex-30
BSE also calculates a dollar-linked version of SENSEX and historical values of this index are available since its inception. (For more details click 'Dollex series of BSE indices')
SENSEX - Scrip Selection Criteria
The general guidelines for selection of constituents in SENSEX are as follows:
1. Listed History:The scrip should have a listing history of at least 3 months at BSE. Exception may be considered if full market capitalization of a newly listed company ranks among top 10 in the list of BSE universe. In case, a company is listed on account of merger/ demerger/ amalgamation, minimum listing history would not be required.
2. Trading Frequency:The scrip should have been traded on each and every trading day in the last three months at BSE. Exceptions can be made for extreme reasons like scrip suspension etc.
3. Final Rank:The scrip should figure in the top 100 companies listed by final rank. The final rank is arrived at by assigning 75% weightage to the rank on the basis of three-month average full market capitalization and 25% weightage to the liquidity rank based on three-month average daily turnover & three-month average impact cost.
4. Market Capitalization Weightage:The weightage of each scrip in SENSEX based on three-month average free-float market capitalization should be at least 0.5% of the Index.
5. Industry/Sector Representation:Scrip selection would generally take into account a balanced representation of the listed companies in the universe of BSE.
6. Track Record:In the opinion of the BSE Index Committee, the company should have an acceptable track record.
Understanding Free-float Methodology
Concept
Free-float methodology refers to an index construction methodology that takes into consideration only the free-float market capitalization of a company for the purpose of index calculation and assigning weight to stocks in the index. Free-float market capitalization takes into consideration only those shares issued by the company that are readily available for trading in the market. It generally excludes promoters' holding, government holding, strategic holding and other locked-in shares that will not come to the market for trading in the normal course. In other words, the market capitalization of each company in a free-float index is reduced to the extent of its readily available shares in the market.
Subsequently all BSE indices with the exception of BSE-PSU index have adopted the free-float methodology.
Major advantages of Free-float Methodology
* A Free-float index reflects the market trends more rationally as it takes into consideration only those shares that are available for trading in the market.
* Free-float Methodology makes the index more broad-based by reducing the concentration of top few companies in Index.
* A Free-float index aids both active and passive investing styles. It aids active managers by enabling them to benchmark their fund returns vis-Ã -vis an investible index. This enables an apple-to-apple comparison thereby facilitating better evaluation of performance of active managers. Being a perfectly replicable portfolio of stocks, a Free-float adjusted index is best suited for the passive managers as it enables them to track the index with the least tracking error.
* Free-float Methodology improves index flexibility in terms of including any stock from the universe of listed stocks. This improves market coverage and sector coverage of the index. For example, under a Full-market capitalization methodology, companies with large market capitalization and low free-float cannot generally be included in the Index because they tend to distort the index by having an undue influence on the index movement. However, under the Free-float Methodology, since only the free-float market capitalization of each company is considered for index calculation, it becomes possible to include such closely-held companies in the index while at the same time preventing their undue influence on the index movement.
* Globally, the Free-float Methodology of index construction is considered to be an industry best practice and all major index providers like MSCI, FTSE, S&P and STOXX have adopted the same. MSCI, a leading global index provider, shifted all its indices to the Free-float Methodology in 2002. The MSCI India Standard Index, which is followed by Foreign Institutional Investors (FIIs) to track Indian equities, is also based on the Free-float Methodology. NASDAQ-100, the underlying index to the famous Exchange Traded Fund (ETF) - QQQ is based on the Free-float Methodology.
Definition of Free-float
Shareholding of investors that would not, in the normal course come into the open market for trading are treated as 'Controlling/ Strategic Holdings' and hence not included in free-float. Specifically, the following categories of holding are generally excluded from the definition of Free-float:
* Shares held by founders/directors/ acquirers which has control element
* Shares held by persons/ bodies with "Controlling Interest"
* Shares held by Government as promoter/acquirer
* Holdings through the FDI Route
* Strategic stakes by private corporate bodies/ individuals
* Equity held by associate/group companies (cross-holdings)
* Equity held by Employee Welfare Trusts
* Locked-in shares and shares which would not be sold in the open market in normal course.
Determining Free-float Factors of Companies
BSE has designed a Free-float format, which is filled and submitted by all index companies on a quarterly basis. (Format available on www.bseindia.com). BSE determines the Free-float factor for each company based on the detailed information submitted by the companies in the prescribed format. Free-float factor is a multiple with which the total market capitalization of a company is adjusted to arrive at the Free-float market capitalization. Once the Free-float of a company is determined, it is rounded-off to the higher multiple of 5 and each company is categorized into one of the 20 bands. A Free-float factor of say 0.55 means that only 55% of the market capitalization of the company will be considered for index calculation.
Index Closure Algorithm
The closing SENSEX on any trading day is computed taking the weighted average of all the trades on SENSEX constituents in the last 30 minutes of trading session. If a SENSEX constituent has not traded in the last 30 minutes, the last traded price is taken for computation of the Index closure. If a SENSEX constituent has not traded at all in a day, then its last day's closing price is taken for computation of Index closure. The use of Index Closure Algorithm prevents any intentional manipulation of the closing index value.
Maintenance of SENSEX
One of the important aspects of maintaining continuity with the past is to update the base year average. The base year value adjustment ensures that replacement of stocks in Index, additional issue of capital and other corporate announcements like 'rights issue' etc. do not destroy the historical value of the index. The beauty of maintenance lies in the fact that adjustments for corporate actions in the Index should not per se affect the index values.
The BSE Index Cell does the day-to-day maintenance of the index within the broad index policy framework set by the BSE Index Committee. The BSE Index Cell ensures that SENSEX and all the other BSE indices maintain their benchmark properties by striking a delicate balance between frequent replacements in index and maintaining its historical continuity. The BSE Index Committee comprises of capital market expert, fund managers, market participants and members of the BSE Governing Board.
On-Line Computation of the Index
During trading hours, value of the Index is calculated and disseminated every 15 seconds. This is done automatically on the basis of prices at which trades in Index constituents are executed.
Adjustment for Bonus, Rights and Newly Issued Capital
SENSEX calculation needs to be adjusted for issue of Bonus or Rights shares If no adjustments were made, a discontinuity would arise between the current value of the index and its previous value despite the non-occurrence of any economic activity of substance. At the BSE Index Cell , the base value is adjusted, which is used to alter market capitalization of the component stocks to arrive at the SENSEX value.
The BSE Index Cell keeps a close watch on the events that might affect the index on a regular basis and carries out daily maintenance of all the 19 Indices.
* Adjustments for Rights Issues
When a company, included in the compilation of the index, issues right shares, the free-float market capitalization of that company is increased by the number of additional shares issued based on the theoretical (ex-right) price. An offsetting or proportionate adjustment is then made to the Base Market capitalization (see 'Base Market capitalization Adjustment' below).
* Adjustments for Bonus Issue
When a company, included in the compilation of the index, issues bonus shares, the market capitalization of that company does not undergo any change. Therefore, there is no change in the Base Market capitalization, only the 'number of shares' in the formula is updated.
* Other Issues
Base Market capitalization adjustment is required when new shares are issued by way of conversion of debentures, mergers, spin-offs etc. or when equity is reduced by way of buy-back of shares, corporate restructuring etc.
* Base Market capitalization Adjustment:
New Market Based Capitalisation Method: Old Based Market Capitalisation*(new based market capitalisation/old market capitalisation)
To illustrate, suppose a company issues right shares which increases the market capitalization of the shares of that company by say, Rs.100 crores. The existing Base Market capitalization (Old Base Market capitalization), say, is Rs.2450 crores and the aggregate market capitalization of all the shares included in the index before the right issue is made is, say Rs.4781 crore. The "New Base Market capitalization " will then be:
2450*(4781+100)/4781=Rs.2501.24 crores
This figure of Rs. 2501.24 crore will be used as the Base Market capitalization for calculating the index number from then onwards till the next base change becomes necessary.
Index Review Frequency
The BSE Index Committee meets every quarter to discuss index related issues. In case of a revision in the Index constituents, the announcement of the incoming and outgoing scrips is made six weeks in advance of the actual implementation of the revision of the Index.