Business Valuation Services is usually carried out by a Registered Values in India , in line with Income Tax Act, 1961 and Company Act 2013 . For companies which are resident in India, the valuation of securities have to comply with the rule of arm’s length in the Foreign Exchange Management Act (FEMA) and as per Valuation standards prescribed by ICAI
The chartered accountants or registered values registered with IBBI who are appointed for the purpose of business valuation services in India are liable to follow standard accounting principles and guidelines, irrespective of the source of funds for such services. They ensure compliance with the requirements of applicable laws, regulations, and internal policies of the company.
The main function of business valuation services in India is to provide advisory support to various business organizations of Indian origin, both small and large. The advisory service providers also work as financial consultants in assisting various business enterprises of India. The value of the business is primarily based on two things; cash and market value of the business. The certified public accountants providing services in this regard basically evaluate the worth of business.
The Registered Valuer – Chartered Accountants who offer business valuation services in India use a wide variety of techniques to arrive at the values of the business. These include using market data, information provided by management teams, analyzing information regarding growth trends, financial reports of the company etc. Business valuation services India provides for international standard services at international levels.
Virtual auditor is emerging as one of the leading companies that are offering services in business valuation services. The Indian Indian-Chartered Accountants / Registered Values have achieved a very good reputation in the field of business valuation in India. The CAs have specialization in certain fields like accounts receivable or collection, income taxes, financing, business valuation, business liens, business mortgages, business valuations etc. These CAs perform independent functions and have to satisfy the clients of India. They are also eligible for license examinations by the Chambers of Commerce and Finance of India and the Department of Revenue and Customs of India.
Business valuation is carried out in a systematic manner for preparing the necessary documents for obtaining approval for grants and loans from various levels of government. For obtaining these loans and grants, it is essential to carry out accurate tax and financial reports. To meet these objectives, India has its own set of professional and experienced registered values known as structured finance experts who provide business valuation services India.
For obtaining business valuation services in India, it is essential to choose reputed financial firms like virtual auditor that provide quality service. There are numerous firms that provide such services in India.
However, it is important to ensure that the financial firms are registered with SEBI or IBBI . This registration is important because only registered firms are allowed to operate in the financial markets of India.
Most importantly, financial firms that provide business valuation services in India should be able to provide complete detail about the assets on which they are conducting the evaluation. For instance, apart from the business valuation services, the firm should also provide a detailed report about the working capital. Most often, companies utilize loans from different sources, for meeting their various business expenses. Most often, loans taken from banks are termed working capital of the company.
Finally, when choosing business valuation services or the firms that provide such services in India, it is important to look into the complete range of services that they offer. Such include but not limited to estate planning guidance, asset advisory services, cash management, asset and stock-market valuation, corporate finance, insolvency advice, creditor’s advice and purchase price allocation valuation.
Although the entire list of services provided may appear to be endless, one should always remember that it is only a rough estimate of what a particular company may be worth, as no two businesses are ever identical. It is always better to take opinions from a reliable financial expert than rely on a valuation report which may be flawed and provides incorrect value!