- RBI valuation
According to the FEMA guidelines, obtaining valuation of shares is mandatory for share allotment to foreign entities/foreign residents as part of Foreign Direct Investment inflow The FEMA guidelines also state that FDI as the minimum price and ODI as the maximum price for any exchange control perspective. It is essential to properly plan for FDI and ODI value assessments to prevent any disparity in contractual understanding and fair value.
- Insolvency/ Bankruptcy valuations
Obtaining professional valuation of the assets of an entity is quintessential for taking “informed decisions” for any acquisitions under the Insolvency and Bankruptcy Code (IBC).
The key objective is to be independent and transparent and have fair determination of value of the assets to facilitate comparison and informed decision making by the committee of creditors.
However, under the applicable provisions of the Companies Act, 2013, The Insolvency and Bankruptcy Code and SEBI ICDR Regulations, 2018 it is mandatory to get the Valuations done from a Registered Valuer only.
- Valuation for income tax purposes
Regulatory environment is becoming increasingly complicated and specially M&A Transactions are rigorously scrutinized by Tax and other regulatory authorities in India and worldwide. Many Regulations now stipulate that a valuation is required before implementation of Transaction.
- Financial Reporting Valuation (IND AS)
Preparing and documenting valuations of businesses and related assets in conformity with financial reporting requirements to help mitigate the risk. We have an appreciation for the risks involved and take an attentive approach to our valuation obligations in order to provide deliverables that meet clients’ financial reporting requirements
- Brand valuation
The past 20 years have testified a striking shift in the sources of value creation from tangible assets (such as property, plant, equipment and inventory) to intangible assets (such as skilled employees, patents, business systems and brands). This is reflected in the growing disparity between the net asset value of companies and their market capitalization. Brand Valuation is the process used to calculate the value of a brand or the amount of money another party is willing to pay for it or the financial value of the brand.
- Intangible asset valuation
Every organization is building an asset with the innovation, technical know how and advisory in building some niche products, services, web/mobile applications, usage of technology etc. An in-depth understanding of the nature of intangible valuation asset and the value creation that it can do is key in valuing the asset, as well as the key areas of concern to satisfy the auditors by explaining the key valuation aspects. Our deep expertise enables us to assist management in identifying areas of impairment risk, while navigating complex corporate structures and their underlying legal entities and/or business divisions.
In recent times, ESOPs have gained lots of significance with more and more companies coming out with ESOP Schemes as a tool for retention, employee motivation and creating a sense of belongingness amongst employees.
Employees would like to know the value of the option that is being offered to them and also the management would like to know the value of the share that it is offering and the accounting, tax treatment needed to be made in the books of account the provision to be made.
There is a scientific methodology adopted to arrive at the value of the options offered to the employees and the value of share as well.
- Sweat Equity Valuation
Sweat equity shares are such shares that are issued by a company to its employees at a discount or for consideration other than cash, for providing their know-how or making available rights in intellectual property rights or ‘value additions’.
Offering Sweat equity shares is much needed when there is a lot of effort that is being put by employees, advisors etc in the initial stages of the business by foregoing the opportunity available and spending the time and sharing valuable inputs for the development of an entity.
- M&A Valuation and Swap Ratio
To remain competitive in market, companies need to look at inorganic growth that can take them to the next level. Mergers and Acquisitions (M&A) play a crucial role in this aspect.
Our professionals have an in-depth understanding of Business Combinations and the valuations required for it as per the requirements of the Companies Act, SEBI Regulations and FEMA enabling us to offer practical insights into key issues of concerns of the clients, auditors and regulators.
In case of valuation for amalgamation, the emphasis is on arriving at the “relative” values of the shares of the transferor and transferee companies to facilitate determination of the “Equity Share Swap ratio”.
As per the applicable provision, merger/demerger Valuations are to be carried and reports to be issued by Registered Valuer only.
- Convertible instruments valuation
Convertible instruments combine characteristics of stocks and traditional fixed-income securities, providing investors with unique opportunities for administering risk and enhancing returns. Due to structural complexities, convertible securities demand active management within asset allocations. It is not simply the convertibles that make a strategy work, but how convertibles are managed to achieve a particular investment objective.
Numbro Valuation Advisors help companies to navigate this environment of changing laws and regulations by offering skilled expertise for forming strategy and defending valuation positions by working closely with Companies’ Board and Management and their tax and legal advisors to provide valuations services required under various laws and regulations.