Business Valuation Services in Delhi Ncr|Brand valuation consult

Whether it is in the infamous Satyam fraud case of 2009 or in the recent case of the Zee Group, ICICI or Infosys, it has been a tip from a whistle blower that has precipitated the crisis. The Association of Certified Fraud Examiners in its 2018 Report to the Nations on Occupational Fraud and Abuse estimated that a typical organization loses 5% of its annual revenues to fraud. The report concluded that collectively these caused more than $7 billion in actual damages.

Served from India Scheme (‘SFIS’) has been replaced with Service Exports from India Scheme (SEIS). SEIS shall apply to `Service Providers’ located in India’ instead of ‘Indian Service Providers’. Thus SEIS provides for rewards to all Service providers of notified services, who are providing services from India, regardless of the constitution or profile of the service provider. By the introduction of the SEIS a long drawn debate relating to Indian Brands vs Foreign Brands as held in Yum Restaurants (I) Pvt. Ltd. - W.P.(C) 7011/2012 has been resolved. Now all the service exports from India shall be eligible for the SEIS under the scheme.

To achieve business objective, it is important to have a structured operational process. Investors, Board Members and Management are recognizing that trouble must never be the only trigger for change, and that need for performance improvement is another trigger for turnaround. One such tool of improving performance is by making the current process more robust and efficient by carrying out a Business Process Reengineering (‘BPR’) exercise. BPR is the act of recreating a core business process with the goal of improving product output, quality, or reducing costs. Typically, it involves the analysis of company workflows, finding processes that are sub-par or inefficient, and figuring out ways to get rid of them or change them.

To achieve business objective, it is important to have a structured operational process. Investors, Board Members and Management are recognizing that trouble must never be the only trigger for change, and that need for performance improvement is another trigger for turnaround. One such tool of improving performance is by making the current process more robust and efficient by carrying out a Business Process Reengineering (‘BPR’) exercise. BPR is the act of recreating a core business process with the goal of improving product output, quality, or reducing costs. Typically, it involves the analysis of company workflows, finding processes that are sub-par or inefficient, and figuring out ways to get rid of them or change them.

Indian corporate are in the process of transitioning to a new set of 39 accounting standards called the Indian Accounting Standards (Ind AS) which closely converges with the International Financial Reporting Standards (IFRS). Initially, adoption of Ind AS will be challenging but over a period of time, this will bring more transparency, improved quality of financial statements and enhanced comparability of the financial statements at a global level.

Tax Audit is applicable to various businesses & professions under Section 44AB of Income Tax Act, 1961. In order to reduce the compliance burden on small retailers, traders who comprise the Medium, small and Micro Enterprises (MSME), Finance Minister has increased the turnover limit from Rs. 1 Crore to 5 Crore in the finance act, 2020 subject to certain conditions.

India is among the quickest-developing economies in the world with immense human potential and a huge market containing over 1.2 billion people. Opportunities in India has attracted a lot of Foreign Direct Investment into the country and each year the measure of FDI inflow keeps increasing due to a number of foreign businesses starting their activities in India.

Ind AS helps to establish a single framework for measuring fair value for financial reporting. It provides guidance on - valuation techniques, inputs to valuation techniques (i.e. fair value hierarchy).

The Section 409A regulation of the United States Internal Revenue Code mandates that a privately held company cannot issue stock options to employees below the Fair Market Value. Stock options or Equity-based compensation needs to be issued at or above fair value in order to avoid significant tax penalties, including federal and varying state tax penalties. Furthermore, such Fair Market Value should ideally be determined by an independent third party Appraiser in order to qualify for safe harbor under IRC Section 409A.

As per Section 56(2)(viib), where a private company receives, in any previous year, from any person being a resident, any consideration for issue of shares that exceeds the face value of such shares, the aggregate consideration received for such shares as exceeds the fair market value (FMV) of the shares shall be chargeable to income tax under income from other sources.

MV as on the valuation date (VD) for issuance of shares shall be the value — as may be determined in accordance with Rule 11UA(2) of Income Tax Rules, 1962; or or as may be substantiated by the company to the satisfaction of the Assessing Officer, whichever is higher. 

Recently, India is developing at a rapid pace which has inspired foreign entities to establish their connections in India. India is one of the largest and fastest growing markets with some of the best human resources in the world which makes a hot choice for foreign entities. The best way to enter into this developing market is through physical presence. 

Branch Office: Foreign companies are allowed to conduct full-fledged business in India by setting up a branch office. The branch office can carry out the same or substantially same trading activities as of its parent company. Though, there are certain conditions which need to be fulfilled for setting up a branch office. 

The capital structure of the company presents the combination of company’s existing debt and equity capital raised in order to finance or run the business operations of the company. The capital structure varies whenever there is change in invested equity and/or debt of the company. The nature of Debt in the capital structure varies from plain vanilla bond to complex convertible debts. Equity capital can be categorized under common and preferred equity in a broader sense.

Understanding Incremental Borrowing Rate