we estimated the wealth and earnings of billionaires
the promoters of listed companies, we use the accepted method
of estimating wealth based on the market value of their
holdings in listed companies. This is the category we have
been estimating for the last seven years. In line with international
practices, we have eliminated crossholdings in their stakes.
This results in wealth estimates based on the promoters
direct holding in listed companies. The definition of promoters
direct holdings also excludes holdings through trusts and
other such devices, whose beneficial wealth cannot be traced
directly to the promoters.
this reason, the 7.51 per cent stake in Reliance Industries,
owned by the Petroleum Trust, has been taken out of the
promoters direct holdings. In effect, therefore, the
value of Petroleum Trusts stake worth Rs 7,453 crore
has not been considered part of the promoters wealth.
The Ambani familys shareholding (and wealth) is smaller
to that extent.
in previous years, we estimated individual net worth by
taking the average market price of shares for the last one
months. So we estimated wealth for the current period on
the basis of the average price for August 2005 and similarly
for August 2004 for comparison purposes. Also, we estimated
the net worth of individual promoters (or even members of
the promoter family) only if a break up of the individual
share holdings is available.
year, 17 billionairs have unlocked their wealth through
the public issues floated during year. These new billionaires
could have made the entry had the public issues been done
in 2004. Dhingra of Berger Paints got into the list on account
of the promoters holding was known to us this year.
for the salaried wealthy, we look at big-buck salaries,
both of promoters who take a salary from the company and
of professional managers. Strictly speaking, professional
managers are a different genre. Unlike the previous two
categories which are based on the stock concept of wealth,
these are based on the flow concept of income. So obviously,
these earning billionaires cannot be compared with the other
the salaried lot, the biggest group is the professional
managers, or middle class millionaires. Their earnings are
reported in the annual reports of companies. By and large,
these are very accurate but because of innovative compensation
structuring the figures may tend to be a bit lower than
the actual sums.
is no systemic bias in the data. Data for promoters
net worth are sourced from information on shareholding patterns
published by the Bombay Stock Exchange. The data on the
salaried classes are sourced from the annual reports of
companies for the accounting years ending anywhere between
April 2004 and June 200.
here for Alphabetical Index