Over the past few years, Ranka & Associates (RA) has established one of the finest niche valuation advisory practice. Our expertise and approach in the field of valuation inspire confidence in the Finance heads, Management, Investors, Business Owners and Other Intermediaries (Audit, Tax and Legal service providers).
Our portfolio of valuation services encompasses a wide range of offerings tailored to meet our clients' needs. In today’s intricate business landscape, the demand for robust and independent valuation services is paramount. Drawing on our extensive expertise in valuation, technical accounting, corporate finance, tax, and strategy, we offer customized solutions tailored to meet the unique needs of each client.
Our integrated approach facilitates thorough analysis and reporting across a spectrum of valuation challenges, encompassing business valuations, purchase price allocations (including valuation of intangible assets), swap ratio determinations, valuation of complex financial instruments and impairment assessments. As trusted partners of leading audit, tax, and transaction advisory firms, as well as private equity and venture capital firms, we provide comprehensive valuation support services to a diverse clientele, ensuring their confidence and success in navigating today's complex business and environment.
Valuation Services at RA can be broadly categorised as below:
1. Financial Reporting Compliant Valuations
2. Regulatory and compliance valuations
3. Alternate investment valuations
4. Financial modelling and analysis
The complexity of fair value computation and valuation for financial reporting presents challenges due to evolving regulations and intricate financial instruments. As accounting standards evolve and regulatory scrutiny intensifies, there is a growing demand for more accurate and reliable fair value measurements. Our team is highly knowledgeable about the accounting standards that drive the necessity for financial valuations.
Here is a concise list of major valuations pursued for financial reporting purposes:
Purchase Price Allocation for Business Combinations: In accordance with standards such as Ind AS 103, IFRS 3, and ASC 805, we conduct detailed analyses to allocate the purchase price of acquired businesses. This ensures compliance and transparency in financial reporting post-acquisition.
Impairment Analysis of Goodwill and Intangible Assets: As per standards like Ind AS 38, we perform impairment tests on goodwill and intangible assets to assess their recoverable amounts. Our rigorous analyses help in identifying any impairment losses and maintaining accurate financial statements.
Grant Date Fair Valuation of Employee Stock Options and Other Share-Based Payments: In alignment with Ind AS 102, we determine the fair value of employee stock options and other share-based payments at their grant dates. Our valuations aid in accurately accounting for equity-based compensation expenses.
Valuation of Complex Securities and Financial Instruments: With expertise in standards like Ind AS 109 and Ind AS 32, we specialize in valuing complex securities and financial instruments. Our thorough analyses ensure precise reporting of financial instruments' fair values on balance sheets.
Valuation of Portfolio Companies and Investee Entities: As per Ind AS 113, we provide valuations for portfolio companies and investee entities to comply with financial reporting requirements. Our assessments offer insights into the fair value of investments and facilitate informed decision-making. These valuations are critical for providing accurate and transparent financial information to stakeholders and ensuring compliance with accounting standards and regulatory requirements.
At Ranka & Associates, we offer comprehensive solutions for all your regulatory needs across various transactions such as fund raises, mergers, demergers, secondary transactions, acquisitions, and capital reductions.
Our valuation reports deliver a comprehensive understanding and documentation of transactions that adhere to the highest professional standards and meet the expectations of regulatory authorities.
Issuance of new shares
Determining the fair value in accordance with Section 62(1)(c) of the Companies Act, 2013 (CA), and assessing the Fair Market Value (FMV) as per Section 56(2)(viib) of the Income Tax Act, 1961 (ITA). Ensuring compliance with Regulation 21(2)(a) of the Foreign Exchange Management (Non-debt Instruments) Rules, 2019 (FEMA) for shares issued to non-residents. Valuation to determine Floor Price of equity shares as per SEBI (ICDR) Regulations in case of listed company.
Share Transfer
Ensuring compliance under Regulation 21(2)(b)(iii) and 21(2)(c)(iii) of FEMA for the transfer of shares between residents and non-residents. Also, compliance under the provisions of section 56 of ITA.
Merger and Amalgamation
Determining the fair share exchange ratio pursuant to merger or amalgamation of companies, as per Sections 230 to 232 of the CA.
Employee Stock Option Plan (ESOP) Valuation
Computing the FMV on the exercise of employee stock options, as mandated by Section 17(2) of the ITA.
Valuation practices for fund investments have evolved significantly, driven by accounting fair value requirements and regulatory interventions like the SEBI. While valuing investments with publicly quoted prices is relatively simple, assessing unquoted positions without recent pricing poses substantial challenges.
With expertise spanning various asset classes, we assist fund managers in navigating these complexities effectively. We evaluate the crucial factors influencing value to provide an impartial assessment of your fund investments. Our valuations adhere to industry best practices, including the International Private Equity and Venture Capital Valuation Guidelines (IPEV Valuation Guidelines) and international valuation standards, as well as your organization's valuation policies and procedures.
Whether your valuation needs occur quarterly, biannually, or annually, we utilize our established processes to deliver consistent and thoroughly considered valuation assessments. Our goal is to enhance the transparency of your fund reporting effectively.
Periodic valuation of investee companies as part of reporting to investors and regulators
Assist in financial due diligence of investee companies in line with SEBI guidelines,
Compliance related to valuations under Income Tax, FEMA and Companies Act of investee entities.
As business decisions become more critical, they often rely on intricate, customized quantitative analysis. Models typically are at the core of such decisions. The necessity for expert financial modelling is particularly pronounced when financial risks are substantial, data sets are extensive or intricate, and multiple stakeholders are engaged.
Our Financial Modelling team aids clients in constructing resilient and apt financial models or scrutinizing models developed by client teams to bolster crucial business decisions.
Financial Model Preparation
We develop customized financial models that accurately reflect your business operations, financial projections, and strategic objectives. Our models incorporate key financial metrics, assumptions, and scenarios to provide a comprehensive analysis of your financial position and performance.
Independent Review of Financial Models
Our team conducts thorough reviews of existing financial models to assess their accuracy, reliability, and integrity. We identify potential errors, inconsistencies, and areas for improvement, providing valuable insights to enhance the quality and reliability of the models.
Impact Analysis
We perform impact analysis to evaluate the potential effects of various scenarios, decisions, or events on your financial performance. Whether it's changes in market conditions, strategic initiatives, or regulatory requirements, our analysis helps you understand the implications and make informed decisions.
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