Valuation

• Capital Gain tax
• Mortgage Security
• Sale & Purchase
• Litigation
• Visa
• Financial Reporting
• Wealth tax
• Lease/rental
• Insurance
• Land Acquisition
• Arbitration
• Statutory purposes
• Rental review
• Consultancy

Companies seek business valuations for corporate governance or regulatory reasons, or management review for critical input for decision making process. In these instances the company is at a critical moment in its life. It may be planning a major acquisition, resolving a shareholder, or joint venture dispute, seeking to reduce the gap between intrinsic and market value.

Our team of business valuation experts recognizes that a valuation is not a simple exercise of numbers. We spend time working to understand the business dynamics and its key value drivers. We draw on extensive experience and apply relevant valuation methodologies. We combine this with our deep sector knowledge and benchmarking analysis to offer value-added advice.

Valuation of plant and machinery is highly complex in nature as our practice caters to a wide spectrum of industries each having plant and machinery with its own inherent characteristics. Among the issues to be considered in the valuation of plant and machinery are the specific utility or usefulness of industrial property, its contribution to the production of goods and services for which it is designed and deployed.

It also covers estimation in monetary terms the worth of the plant and machinery in existing use or their contribution to the profitability of the business after considering the market situation or standard of maintenance.

Neotech holds a leadership position in Valuation of plant & machinery and industrial assets. We have worked across various industries including Automobile & Auto Ancillary, Chemicals & Fertilizers, Cement & Construction, Consumer Goods, Hospitality, Infrastructure, Iron & Steel, Logistics, Metals & Mining, Manufacturing & Engineering, Petroleum, Petrochemicals, Oil & Gas, Pharmaceuticals, Power, Real Estate, Telecom, Information Technology & Electronics, Textile & Leather and Cables etc.

We have undertaken large number of valuation assignments to estimate the market valuation of fixed assets of various private and public sector companies for different purposes by adopting internationally recognized and respected valuation approach and techniques.

Valuation of Plant & Machinery, Valuation of Industrial Property may generally be required for following purposes:

• Mergers & Acquisitions – Pre Merger and Post Merger
• Financial Reporting under Indian GAAP, IFRS and US GAAP
• Banking( Lending against Assets)
• Impairment Studies
• Purchase Price Allocation
• Distress Assets / Non Performing Asset
• Court & Litigation support
• Management information & Strategic Planning
• Initial Public offerings
• Cost Investigations

Brands and Intangible Assets are widely accepted to be the key drivers and contributors to the value and growth of businesses. However, despite their widespread acceptance that intangible assets and brands are critical to the future prospects of any business, they are traditionally considered to be complicated to measure in terms of ‘value’ and its ongoing management and communication.

Bankers, Investors, analysts and other stakeholders are getting increasingly alert to the importance and Valuation of Intangible Assets and are keen to bridge the information gap that has existed until recently. More and more bankers and financial institutions are now agreeing to securitize and fund against reputed brands and strong intangibles offered as collateral security.

Hence the financial role of intangibles has increasingly been recognized and their growing importance is reflected in the Valuation of Brands, Valuation of Intellectual Property and other intangibles adding to the bottom line.

Not only is there a compelling financial reason for more rigorous intangible asset management processes, the tax and accounting regimes are also demanding that numbers are allocated to intangible assets as part of accounting for acquisitions. And it doesn’t end there; the valuation of these Intangible assets and Valuation of Intellectual Property are required to be monitored on an ongoing basis.

Categories of Intangible Assets

• Marketing related: Trademarks (Brands), trade names, service marks, newspaper, mastheads, internet domain names, non-competition agreements.
• Contract-based intangible assets: Licensing and royalty agreements, advertising, construction, service or supply agreements, lease agreements, franchise agreements, employment contracts.
• Technology-based intangible assets: Patented technology, computer software, unpatented technology (know-how), databases, trade secrets such as secret formulas, processes and recipes.
• Customer-related intangible assets: Customer lists, order or production backlogs, customer contracts and customer relationships including non contractual relationships.
• Artistic-related intangible assets: Plays, operas, ballets, books, magazines, newspapers, pictures, photographs.

Financial accounting and reporting requires an analysis of impairment review of Tangible assets as and when circumstances indicates that there is a diminution in the valuation of tangible asset.

IAS 36/Indian GAAP – AS 28: Impairment of Assets requires the testing of long-lived tangible fixed assets valuation as and when required with other assets tested where there is an indication that the asset may be impaired. An individual tangible asset may be tested for impairment at a cash generating unit (“CGU”) level where independent cash flows cannot be attributed to a single asset. The Carrying value of the tangible asset/CGU is compared to its recoverable amount – Fair Value less Cost of Disposal to determine whether the asset or CGU is impaired or not.

A due diligence is an essential part of the review and assessment of any investment opportunity, disposal, reorganization, listing, and especially required for Merger and Acquisition purposes. The scope of the due diligence will depend on the size and scale of the transaction and the surrounding risks.

The key findings of the due diligence review would include factors that will impact the pricing of the transaction, possible warranties that should be sought by the buyer/seller and potential post acquisition integration issues.

Securities Valuation means determining the market value of equity instruments (viz. common stock and preferred stock), debt instruments (viz. bonds and bills of exchange), and derivatives (viz. options and futures) issued by government agencies, financial institutions and corporate organizations.

The main factors driving the securities market value include liquidity, demand and supply of similar instruments, stock market rates of similar securities, present value of future cash flows etc.

We have provided Valuation services for various Financial Instruments and Derivatives including:

• Listed & Unlisted stock valuation
• Thinly traded stocks of public listed companies
• Bond valuation
• Options, Warrants, Grants and Rights and other derivative valuation
• Futures & Options and Forward Contracts
• Liability Valuation

Valuation of Real Estate really concerns with all species of legal interests arising out of Land and Building which are exchanged for money and therefore entails the phenomena of exchange, scarcity and choice that characterizes a ‘market’ in the economic sense of the term. Property is purchased both for use and investment; but in both the cases the purchaser measures the expected return or benefits to be received from the property against cost outlay.

Neotech provides a wide range of Real Estate Valuation and Consulting services to developers, investors, advisors and lenders seeking assistance with existing assets, potential acquisitions, new development projects and properties slated for disposition.

Neotech has a vast experience in Valuation of Real Estate like

• Residential and Commercial Property
• Retail Spaces, Shopping Malls and Multiplexes
• IT Parks
• Hotel, Resort, Service Apartment and Hospitality Property
• Industrial Units
• Special Economic Zones (SEZs)
• Special-use property such as golf resorts, health spas, etc