Business valuation approaches and methods

If you are interested in selling your company or even planning to buy another company you need to know the exact business value of that particular company. Here comes the need of a thorough business valuation. A business valuation is the process of determining the economic value of a whole business or company unit. It can be used to determine the fair value of the business to help in determining the sale value, establishing partner ownership, tax matters and many more.

The business owners hire professional business valuation services in India for an objective estimate of the business value. A through and in depth valuation of the business provides the business owner the multiple facts and figures pertaining the actual worth or value of the company after considering the competition, value of the assets and income values.

If you are still skeptical about what benefits a professional business valuation services offers to the Company, here are some of the points to be taken into account:

1. Better knowledge of the company’s assets: It is very important to obtain an accurate business valuation assessment. Here estimates are not accepted and specific figures will help in making proper business decisions. The professional valuators work on specific numbers so that the owners of the business can obtain proper insurance coverage and know about the amount needed to reinvest in the company and also know the sale value price of the company so that they can reap profits.
2. Understanding of the resale value of the company: If you are planning to sell your company, it is important that you know the true value. The leading business valuation services in India work on various aspects and arrive at the exact resale value of your company and help the seller to negotiate the selling price.
3. Obtain a true value of the company: Based on the simple data including value of the stock market, total assets value and company bank account balances, the owner will have a fair idea of what their business is worth. However, by hiring a reputed business valuation company you can make sure that you have the correct numbers to help you make informed decisions. It is very important to know the true value of the company as it showcases the income of the company and valuation growth over the course of past years. Potential buyers prefer to invest in company that has witnessed regular and continuous growth as it ages.
4. Best for mergers and acquisitions: Business valuations help in showcasing the details including asset withholdings, how the company has grown and its continuous growth parameter if major company is interested about purchasing your company. Most of the big companies work to acquire your business or merge with it by paying less money as possible. A good business valuation report will help you have exact value of your business and help you in making good negotiations.

Access to more investors: If are looking for investors to fund growth or save you from financial loss, the investor will be interested in seeing the full company valuation report and valuation project. They will like to see where their money is going and how it will provide them good return on investment.

Here is the Checklist for due diligence audit

‘It is better to be careful than to be sorry’, this acronym if followed in every aspect of life helps an individual from probable losses or damage. Same is required in business transactions and is called due diligence audit.

Due diligence is the all round appraisal of a business undertaken by the prospective buyer, especially to establish its assets and liabilities and to evaluate its commercial potential. It is in fact, an investigation, audit or review performed to confirm facts or details of a specific matter under consideration.  

Conducting due diligence is an arduous task and is not a cup of tea of a common man. It requires comprehensive assessment of various aspects of the company including financial matters, enquiry about assets, legal issues, and many more so that a more informed decision is reached. 

It is therefore advisable to hire the professional due diligence services in India to conduct the entire procedure so that you get true and fair picture of the scenario at large.
The process of due diligence is performed before any sale of the business, private equity investment. It is the process of analysis and research carried out by the professional experts before an investment, acquisition, business partnership, Bank loan, joint venture, for determining the value of the subject of the due diligence and to see whether there are any major issues involved.
 

Here is the checklist of due diligence audit carried out by a leading due diligence services in India:

1. Documents that are required and to be kept ready: Usually important documents pertaining private limited or limited company are required for performing due diligence:

• Articles and Memorandum of Association
• Certificate of incorporation
• Financial statements
• Income tax returns
• Tax payment receipts
• Property documents
• Utility bills
• Operational and employee records
• Statements of bank 
• Operational records and statutory registers

2. Review of Ministry of Corporate affair documents: Most of the investigation starts with reviewing master data about the company in the MCA website. Information gathered here includes company information, information of the director, charges registered, and important documents. The review of MCA documents provides clear picture of the company to the due diligence officers and person who is performing due diligence.

3. Review of Articles of Association: It is very important to review articles of association during the process. This helps to ascertain varied classes of equity shares and their voting rights. Also, the procedure of transfer of shares can be ascertained.

4. Review of statutory Registrar of Company: Under the Company’s Act 2013, a private limited company is required to maintain various statutory registers pertaining to share allotment, share transfer, board of directors, board meetings etc.

5. Review of financial statements and books of accounts: Assessing accounts books and financial statement detailed financial transaction information is audited by the due diligence officers. The officers; audit- bank statements, cash flow information, valuation of assets and liabilities and financial statements in detail.

6. Review of tax matters: The officers thoroughly check the tax matters of the company to make sure that there are no unforeseen tax liabilities on future date. Various tax related documents like IT returns filed, IT paid, TDS payments, GST payments etc are checked.
 
7. Review of legal aspects: Legal audit is conducted by lawyer to ascertain if there are any pending legal actions, suits or against the company and liability in each.

8. Review of operational aspects: Here the due diligence team audits the business operations, business model and information of the employees by verifying the customers, employees, machinery used, utilities, and production and vendor information.
 

Best CA firms in Delhi NCR for articleship

If you are planning to pursue the lucrative course of chartered accountant then you ought to join articleship with a good CA firm. Articleship is a 3 year practical training phase that enables the CA student to gain real and practical experience by working on real assignments for real employers.

It is important that students should enroll in the best CA firm in Delhi, so that they get good practical work experience and understand all the ins and outs of accounting, its principles and applications.

Articleship training period is the golden period in the life of a CA student. During this period the student has to face umpteen numbers of challenges, get infinite opportunities and turn into a true professional. It is the practical exposure to the things one has learned in their course. It is therefore important to have the right mentor who can guide one in the right direction and help you in transpiring into a true professional without disturbing your CA final studies.

Here are the certain points that you should consider while choosing the best CA firm in Delhi for articleship training:

1. Working hours: One of the most important points that should be taken into account while joining a firm for articleship is its working hours. It is important that you choose the firm whose working hours are feasible to you so that you can strike a perfect balance with your CA study and articleship. Yes it is good to have great exposure but end of the day your goal is to be a chartered accountant for which you need time to study. Accordingly choose a CA firm with normal working hours and where you do not waste time in travelling unless there is no such good firm near you. At times during peak season you will be required to work for extra hours but this should not be followed for the entire year.
2. Exposure during article ship: After you have been short listed in the CA firm for articleship, you must discuss the exposure aspect in detail with the HR or the concerned person so that you are aware of what kind of work would be allotted to you during these tenure. There are lot if firms who keep articles and delegate work that certainly do not add any value for them so make sure about the work you get.
3. Leave policy: The policy of leave should be discussed in detail and should be written in writing as most students must be doing graduation along with CA course and thus require leaves in between to prepare for their exams. Also, one has to prepare for CA finals and need at least 3 to 4 months leave. Few professional CA firms in Delhi NCR are good when it comes to allowing leaves but there are few others who are strict when it comes to the leave part. So prior discussion is required so that you get leaves for exam preparations and practice.
4. Never focus on stipend: There is the trend these days when it comes to choosing a CA firm for articleship on the basis of stipend offered. It is advisable to not to be in a hurry to make money. It is suggested to choose the firm that gives you a good exposure and practical training even if it pays minimum stipend as per ICAI norms.
5. Talk to seniors: A person who is already working in the firm will be best to guide you about the work culture and the kind of exposure the firm provides. Enquire about the number of clients the firm is dealing with, services offered, leave policy, nature of tasks allotted for articles etc.

Now start your trading company easily

In India, the vast natural resources and a vast supply of skilled labor are rapidly becoming a global trading dynamo. In India, regulators realize that strong exports are crucial to overall economic growth and poverty reduction by undertaking considerable industrial deregulation and other structural reforms.

 

Ambac Consultants, with offices in Gururgram, India, and office branches in Singapore, Dubai, and the US, are:

A leading financial and legal consultancy company covering virtual CFO services:

• Global tax services for start-ups in these fields.
• Operations in several countries.

Our services include compliance with legal and auditing legislation, advisory services on taxes and ITR reporting, international tax and legal structuring, register a company in India.

The steps to create a stock trader company:

1. The first step is for setting up a company in India under the ministry of corporate affairs, Govt. of India. Then you have to join the stock exchange as a member.

2. If you want to start a brokerage company to trade your own capital. You should share anything called alpha affiliation.

3. If your money wants to be sold without being a brokerage. Open a brokerage account like ours and begin trading. Do not believe that today's enforcement and regulatory difficulties warrant you to join, especially when brokers such as us offer at a cost almost nil.

4. If you want to manage others' money through PMS (Portfolio Management Services), then maintain a proper way. All other capital collection routes are illegal. The above rolling is not easy to achieve as regulatory barriers are rather enormous. To start with, you cannot shorten PMS and must have at least 25lks per client. AIF 2, you can do whatever you want, but you can make a minimum fund of Rs 20 crores per person investing in the fund and a minimum of Rs 1 crore.

Check the status of your tax:

The qualification for traders' tax status is not subject to objective checking. To decide if you have trader tax status, the IRS established the following requirements.

1. Trading of the taxpayer should be considerable, routine, periodic, and ongoing.

2. Instead of profiting from long-term investment ownership, the taxpayer wants to take advantage of the shifts taking place in the everyday market fluctuations.

As you can see, the conditions are very vague. Still, you are eligible without a doubt if you traded for the futures market, for example. You are a full-time trader and have no other significant income. The IRS will check your trader tax status qualifications. 

Follow the deduction costs correctly:

• Your current job has to be part of - the IRS enables educational costs to be deducted that retain or enhance the current work. A dental hygienist may, for example, take training to learn new medical procedures or how to operate more specialized equipment. Or security workers should attend up-to-date information courses on new safety laws or train them in new confrontational techniques.
• Don't concern your current business: your current business or business should include deductible educational expenses. You cannot subtract educational costs that qualify for a new company or trade.

Importance of business advisors

Every business owner needs expert and professional advice to carry out their business activities smoothly and successfully. Today’s business scenario is complex and it is important that the businessman has to have a good foresight and should be capable of doing SWAT analysis, to foresee the probable opportunities and watch out for threats.

Similarly a startup business owner also requires good advice to carry out the business operations smoothly. Startup owner being new to the acumen, it is important that they make every business move with caution and after proper analysis.

Here comes the need of an experienced and professional Startup advisor in India, to help the startup business owners to carry out their business successfully. A skilled business advisor for startups is a strategist who works with the company to help with planning, finances, marketing and even development affairs.

Here is the importance of having a good startup advisor in India for your startup venture:

1. Finance: Startups needs to make arrangement of finance to start their business. A good advisor helps the startup owners to make arrangement of finance by providing them leads about various banking and non banking financial institutions. Experienced advisors have good nexus of investors who will be willing to invest in your startup business. The advisor will refer you business proposal to the investor so that they provide you with required finance for your business.
2. Man power: Your business requires a good human force to carry out the functions smoothly. The startup mentor can help you in recruiting the qualified and professional workforce for your startup business.
3. Loans from banks: The mentor helps your business to get loans from bank and other financial institution. To avail loan a proper business project and proposal has to be provided to the lending institutions. The startup advisor will help prepare an alluring business project showcasing your goals, expected turnover and expansion plans and help your business get bank loans for successful carrying out the venture.
4. Check unwanted expenses: A skilled startup mentor helps to provide a check on the unwanted expenses for your business. The advisor provides the owner the details of such expenses which can be done away with. This will help in smooth functioning of your startup venture.
5. Detecting issues: A good startup advisor helps to detect issues in your venture and investigate ways to resolve them. Issues regarding accounts, tax related matters, work force issues, competitors move and many more affect the smooth functioning of your business. The advisor analyzes the issue and advises the owner about the steps to resolve those.
6. Assess the pros and cons of the strategies: It so happens at times when new strategies are implemented they may or may not have good effects on your business. It is important therefore to assess the pros and cons of the strategies. A skilled business advisor assesses the pros and cons on the business strategies and analyses the impact of those on your business.

Great business advisors provide clear look out into the matter and never leave any suggestions or thoughts vague or unclear.

Company setting process in India for startups

If you are planning to bring your dream startup venture into reality then there is a process for Setting up a company in India; that has to be followed. A lot of millennial in India are obsessed with startups. Many of them have an idea in mind already to begin their startup venture.

If you are passionate about your startup business, ready to toil hard day in and day out and prepared to accept the failure and not giving up when one see things are not working then you can take the next step of planning and following the process of setting up a company in India.

Here are some of the key steps that one needs to follow to kick- start your startup venture: 

1. Check the feasibility of your idea: It is important to check the feasibility of your idea before it is put into practice. For that you need to make market surveys, take expert advice and rely on the previous market research on similar idea.  Also, you and your team need to chalk out how much revenue is being expected in the beginning. 
2. Have a business plan ready: Before you begin the operations of your startup venture you should have your business plan ready. It should contain things like description of the company, strategy, marketing plan, operational plan, financial plan; description of marketing and key aspects that help in carrying out the business operations smoothly. Having a business plan will enable you to look at the whole business process in a holistic manner and also will help to present the business idea in front of lenders or other finance institutions.
3. Choose right business structure: Based on how the startup owner wants their business to scale, they should choose the right business structure. It can be proprietorship, partnership or a private limited company. To get things right on the track you can avail help from consultants of professional chartered accountants.
4. Arrange finance: Any business to start off and run successfully requires funds. The startup owner has to explore multiple options to make the arrangement of funds. The most important fund raising options that many startup owners try are bank loans, angel investors and venture capital.
5. Get company registration: Next step is to get the company registered as per the business structures. This can be done with the help of a chartered accountant in India for they will guide you with the required steps and processes that have to be adhered to. 
6. Register in startup India program: You can register your startup on the startup India website and get benefitted from various programs run by the Indian government. Being a part of this program will help you in securing funds easily and also will help you in getting tax benefits for your venture. 
7. Intellectual properties: Ensure you are protecting your intellectual properties that include unique name, logo and other creative assets; that are part of your startup venture by getting required intellectual property rights.
8. Build great online presence: In this era of internet, the startup owner cannot miss out building a robust digital presence. Brands are built and nurtured in digital platforms and with an impressive website; that epitomizes your brand you rope in mammoth target audience towards your start up venture. Also, it is important for you to tap and make use of social media, email, search engines, written content etc for great online presence.

How to find best CA firms around you

 One of the key factors of any successful business venture is the well managed and maintained books of accounts. Accounting not only helps in getting an idea of incomes and expenses but also it enables the organization to get a true and fair picture of the financial status of their business.

Professional and the best CA firms in Delhi, help the business organizations to maintain the accurate books of accounts and provide various other services that help the business owners to make an accurate and productive business decisions.

Good CA firms provide expert guidance and help the business to understand their market conditions in the best way and make it easier for them to come up with the ways to improve their profits.

When choosing the best CA firms in Delhi, certain things have to be considered like the experience of the firm, the number of years the firm is rendering service and the charges of the firm for different services. Leading CA firms make use of the best talent and the deep insights of their knowledge to help their customers in catapulting their profit margins.

Here are certain benefits of choosing a good CA agency near you for your business:
 

1. CA experts help you in preparing the apt blueprint for your company’s accounts that helps you to carry out your business plans in an effective manner. Chartered accountants can also assist in managing all the kinds of financial matters of your business and guide you in your vital business and finance decisions.
2. The success of the business is based on many things including making financial predictions as well as estimating the results of financial actions. However, most of the business organizations are not well versed enough to carry out the financial prediction in an accurate manner. Also, most of them might face difficulties in coming up with the business strategies that can help in tapping the current business opportunities. However, a good CAs are proficient enough to understand the market conditions in the best way and guide the business owner to come up with the ways to improve profits.
3. Professional CA firms help the business entities to handle the tax returns of the company. Tax requires umpteen numbers of documents to manage which many business owners find it difficult to handle. However, an experienced CA can manage and file tax returns for the business owner and also resolve their taxes so that your business is compliant with such laws. Also, the CAs guide and inform you about any matters pertaining to the tax and its laws that is related to your business affairs.     
4. Finance management: Finance is the lifeline of any business venture. It is therefore important to not only have an accurate prediction of finance but also one should be able to manage it for the smooth and seamless running of the business. Good CA agency helps the business to have a robust finance management by maintaining accurate and fair books of accounts and cash details.

Any business owner would want their firm to operate in the best possible manner and make the most of the earning opportunities. Also, they would want to make use optimum use of their available resources in prudent manner so as to achieve desired results. In order to achieve these objectives, it is imperative to have support and guidance of a good CA firm who has already rendered services for numerous clients.