Movable Assets (Plant & Machinery)
Valuation of Industrial Assets and Plant & Machinery
Plant and machinery are mostly utilized by large-scale organizations that rely largely on assets used in manufacturing, production, or leasing to a third party and are used for a longer period of time, typically more than a year.
Plant, machinery, and industrial assets must be valued for a variety of purposes, including strategic sales, initial public offerings, NBFC financing, secured loans, mergers and acquisitions, and financial reporting.
Valuation of Infrastructure Assets & Specialized Assets
Infrastructure assets are primarily owned by the government or business conglomerates as these are created to serve the public at large and may have complex legal ownership structures to have financial viability. These assets seldom have any established markets and thus poses a challenge to a professional to ascribe value with reasonable backings. Mass Transit System, Expressways – Highways, Airports, Hydro – Dams, Railways are few infrastructure assets that not only bring about the socio-economic impact to the state but also accelerates cultural and economic development.
Our deep understanding of the assets, their ownership patterns, financial structure, and in-house expertise in finance and engineering gives an edge to serve our client in best professional interests.
Fairness Opinion, Purchase Price Allocation for M&A
Merger and Acquisition are an integral part of any economy. The opening of the economy has resulted in an increase in cross-border transactions. Fairness Opinion and Purchase Price Allocation are required in any exercise involving mergers or acquisitions. The importance of the exercise arises from the statutory compliance of taxation and depreciation stipulated and modified from time to time.
We have advised auditing firms, corporate houses, and business conglomerates on purchase price allocation and fairness opinions.
Impairment Studies for Financial Reporting, Cash Generating Units
Impairment studies are crucial for management, stakeholders, and investors. It is a crucial adjustment to correct the value of the assets as per the prevailing market conditions to show the acceptable value. The studies have evolved as a statutory requirement to be part of financial reporting.
We have advised our clients on numerous occasions to identify and isolate cash-generating units, understand the impact of obsolescence, and arrive at the correct value by reporting Impairment.
Valuation under Insolvency & Bankruptcy Code (IBC)
We are a Registered Valuer Entity with Insolvency and Bankruptcy Board of India as an authority, under section 247 of Companies Act 2013. Under IBC-2016, we have handled more than 100 cases to date with an accuracy of valuation estimates reaching 90% of the open market price at which resolution was accepted.
Insolvency & Bankruptcy Code – 2016, is an innovative step envisioned by the government to reorganize businesses and comes to the rescue of failing entrepreneurs. The prime objective being the value maximization of assets and promote entrepreneurship.