Business Valuation Certificates
Statutory Business Valuation Certificates for share issuance at premium (Income Tax Rule 11UA / Sec 56(2)(xvi)), FEMA FDI foreign investment compliance, ESOP pricing, and Mergers & Acquisitions by B. Mallesh & Co., Chartered Accountants.
1. Statutory Valuation Purposes
Rule 11UA (Angel Tax Defense u/s 56(2)(xvi))
Valuation of unquoted equity shares issued at premium using Discounted Free Cash Flow (DCF) or Book Value method to justify share price before Income Tax authorities.
FEMA Guidelines (FDI Foreign Inward Remittance)
Mandatory CA valuation certificate under Foreign Exchange Management Act (FEMA) for issue or transfer of shares to non-resident investors.
2. Mandatory Document Checklist
Required Records for Valuation Certificate
- Audited Financial Statements (Last 3 Years)
- Management Certified 5-Year Financial Projections
- Cap Table & Shareholding Structure
- Term Sheet / Investment Agreement Copy
3. Step-by-Step Valuation Process
Step 1: Discount Rate (WACC) & Terminal Value Calculation
Determining Weighted Average Cost of Capital (WACC), Risk Free Rate, Beta coefficient, and cash flow projections.
Step 2: CA Certified Valuation Report & UDIN Issuance
Generating formal Valuation Report with ICAI UDIN for submission to Income Tax, RBI, or Registrar of Companies (ROC).
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Mancherial Office Contact
B. Mallesh & Co., Co. Laxmi Theater, Indra Nagar, Mancherial, Telangana - 504208