Valuation Services
Company valuation procedures involve determining the fair value of financial assets. Business valuation practitioners typically engage in valuations encompassing tangible assets, intangible assets, intellectual property, financial assets, interests, common and preferred stock, and various securities like employee stock option plans (ESOPs), partnership interests, warrants, private debt instruments, and other derivative products. Business valuation serves as a comprehensive overview, aiding clients in dispositions, mergers and acquisitions, restructuring, taxation planning and compliance, insolvency and bankruptcy, financial reporting, litigation, strategic growth planning, dispute resolution, and more. In India, registered valuers evaluate assets falling into three main categories.
The primary asset classes include:
- Land and Building
- Plant and Machinery
- Securities or Financial Assets
Valuation of securities or financial assets within the business valuation process encompasses recognizing the market equity value of instruments, debt instruments, and derivatives issued by government agencies, financial institutions, and corporate organizations. It involves estimating and determining the appropriate interest rate or rates based on expected cash flows. This process is driven by various factors influencing the market equity value, including liquidity, demand and supply of similar instruments, stock market rates of comparable securities, and other relevant considerations.
Mr. Rakesh Tayal, being a chartered accountant and Registered Valuer - SFA authorised to carry valuation of financial assets under different regulations. Under Valuation Service Portfolio, he mainly engaged in valuation of Financial Assets as required under
- Income Tax Act, 1961
- Companies Act 2013
- Insolvency and Bankruptcy code,2016
- Valuation required as per Indian Accounting Standards (IndAS).
- Foreign Exchange Management Act, 1999
- Securities and Exchange Board of India (SEBI) Regulations
In addition to preparing valuation reports as mandated by various acts and regulations, which encompass the assessment of preference shares, debentures, ESOPs, and equity valuation for mergers and acquisitions, Mr. Tayal also provides valuation assistance through collaboration with merchant bankers and registered valuers for other asset classes such as land and building, as well as plant and machinery.