economic

2331 Words Oct 18th, 2013 10 Pages
Case 1-1: E-Centives, Inc, - Raising Capital in Switzerland
On October 3, 2000, E-Centives, incorporated in the United States, made an initial public offering on the Swiss Stock Exchange’s New Market. The company raised approximately US $ 40 million. The E-Centives offering circular stated that no offers or sales of the company’s common stock would be made in the United States, and that there would be no public market for the common stock in the United States after the offering.
THE SWISS EXCHANGES’S NEW MARKET
The Swiss Exchange launched the New Market in 1999. The New Market is designed to meet the financing needs of rapidly growing companies from Switzerland and abroad. It provides firms with a Simplified means of entry to Swiss
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What types of information are not provided that one would expect to find in financial statements of companies from the investor’s home country? How would one compensate for limited disclosure? What does the audit report reveal about the level of audit quality? What auditing standards were used? Are they acceptable? Does the audit report mean the same thing as it does in the reader’s home country? Appendix 1-3 refers you to the financial statements (including selected notes) and auditor’s report for Infosys Technologies Limited. Infosys was incorporate in 1981 as Infosys Consultants Private Limited, a private company under the Indian Companies Act. Its name eventually evolved into Infosys Technologies Limited in 1992, when the company went public. Its mission is to provide high-quality and cost-competitive technology solutions for companies around the world. It has grown into a $ 2 billion company with a market capitalization in excess of $ 21 billion. In examining the information referred to in Appendix 1-3, comment on how the statements of Infosys stack up to other companies in the industry in meeting the information needs of a non-domestic investor such as you. Specifically: What reporting practices raise issue for you? What reporting practices do you find helpful? In preparing your critique, compare the reporting practices of Infosys to a service provider in your country that maintains a corporate Web site on the Internet.

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