Investing in Shares of Unlisted companies: Angel investors

Investing in Shares of Unlisted companies: Angel investors

INTRODUCTION:
Let’s go step by step.

  1. You ask agent to send company details by email. Don’t give appointment to meet.
    Don’t tell which documents to send.

If he sent documents by email then next step.
If he doesn’t send documents — FULL STOP

  1. Ask more details about company. Year of incorporation , Balance sheet, PL
    statement, Cash Flow statement. Website and office address. Management team.
    Company products.

If he doesn’t sell these details — Fullstop.
If he send then next step.

  1. Verify all details online.
    Company name , CIN on ministry of corporate government India.
    Verify company address, website and all documents.

You would detect Fraud company at this stage only.
Simple observation : Website in recently developed within 2-3 years. U can check at
bottom of websites.
There won’t be personal details of management team. This is contrary to private limited
company, who wants to promote company.
You can’t make out what company make.
You should NEVER meet in person in all these 3 stages.

  1. Personal meeting.
    You should keep meeting at company registered office only..
    Never meet at Coffee shop, hotel or your Clinic.
    Never discuss about return on investment during meeting. It’s the bait to trap fish..
    Logo ke Hosh Kho jaate hai.
    Let them talk about anything except Return ..
    They can’t speak more than 5 minutes also.
    If you want to invest, ask them GST return statement.
    If they don’t show then its fraud.
    All GST documents have to be kept at Office only… It’s mandatory by law..
    If company is doing business it has GST.
    GST statement can expose.
    If you do all this.
    Probably they would shove you away..
    You saved your 25 Lacs

Lets talk about Financial aspects.
Ask them whether they would give you shares or what?
If they say YES
Ask them how many shareholders are in company.
Possibly they would say thousands of shareholders.
And You Found the Fraud.�
Private Company cannot have more than 200 shareholders as per company act
2013.
If they says that they would not give shares but they would accept as DEPOSITS.
You detected fraud again.
Private Company cannot take deposits without RBI permission. .
If they say that they would show as loan then ask them loan agreements of other investors
And You detected fraud
LESSONS LEARNT:
DON’T invest in Any company which has market capitalization < 10000 cr.
When it comes to Investment of Rs 25 lac. भगवान पेभी भरासा नही करनेका…… � �
NEVER EVER give your hard Earned money to Fraud people.
Never look at Return.
Return is cataract and make investors blind to see the risk.
Once you take out Return from discussion, fraud people are disarmed…. Its very simple.
They have nothing else to discuss
Wealthcon CTLR Algorithm to asses investment.
COST
Tax
Liquidity
Risk.
Return is not in Algorithm