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Valuation Advisory Services

Valuation of Plant & Machinery

Valuation of Plant & Machinery is highly technical in nature since it caters to a wide range of industries which have industry specific as well as the common utilities installed in their respective premises. The process of valuation of such assets takes into account the their present market worth in terms of their contribution towards profitability of the business as well as the technological advancements being done in the respective industry and the compatibility of the assets with the current / forthcoming technology.

Sapient has a team of industry experts, having a large knowledge base in various industries they have served and had been into sale / purchase of the industrial assets.

Our team has an enriched experience in servicing the Indian / International Corporations which are into the following industries namely Agro Based Industry, Cement, Construction Equipment, Cotton Industry, FMCG, FMEG, Food Processing, Fertilizer, Footwear, Glass, Home Furnishings, Hospitality, Information Technology, Infrastructure, Metal, Pharmaceutical, Power Plants, Chemicals, Pulp & Paper, Semi-Conductors, and Stationery & Printing Industry etc

Valuation of such assets is done mainly for Lending against Assets, Mergers & Acquisition, Impairment Studies, Financial Reporting under US GAAP, IFRS, Indian GAAP, Ind – AS.

 

Valuation of Immovable Property / Real Estate

Sapient offers deep technical expertise as well as knowhow of the local / regional market while doing the Valuation of the Real Estate / Land & Building / Immovable Property.

We at Sapient provide a wide range of Real Estate Valuation Services to Banks / Financial Institutions / Investors / Corporates seeking assistance in getting the valuations of the properties.

Our vast experience in valuation of such assets include:-

  • Commercial Properties
  • Factory Sheds / Industrial Buildings
  • Business Parks
  • Residential Farm Houses
  • Banquet Halls
  • Multiplexes / Shopping Malls
  • Special Economic Zones
  • Hotels, Resorts

Impairment Testing of Fixed Assets

According to Accounting standard 28 (AS 28), when companies have to write off the difference between the fair value and the recorded cost, to the extent that the asset or group is not recoverable an impairment loss is determined based on the difference between the carrying amount and fair value of the asset or group. Sapient determines the fair value of the asset or group based on appropriate methodologies. We have the required skills and expertise to perform unbiased and fair impairment analysis that will bring clarity to auditors, valuation professionals, and regulators by explaining the valuation aspects.

Valuation of Goodwill

Goodwill refers to a measure of the capacity of a business to earn excess profit which is an intangible asset of the business. Goodwill can be described as the extra saleable value attached to a prosperous business beyond the intrinsic value of net assets. The need for valuation of goodwill arises in various circumstances i.e.

  • In the case of sole trading concern,goodwill is valued at the time of selling of business, to take any person as a partner, to convert sole trading concern into a company.
  • In the case of partnership, when there is an admission, retirement and death of partner, amalgamation, conversion into a company and change in profit sharing ratio.
  • In the case of company,goodwill is valued at the time of amalgamation of two or more companies, absorption of company, reconstruction and holding company. The valuation of goodwill also becomes necessary, if the shares have to be valued on the basis of intrinsic value, market value or fair value and if the stock exchange quotation of the value of shares of a company is not available.
  • For taxation purpose such as wealth tax also, the valuation ofgoodwill is necessary.

We have broad expertise in the initial recognition of values and subsequent requirements.

Business Valuation

Sapient valuation report provides an overview of the company, industry, economy; discusses value drivers; outlines the analysis performed, along with the inputs and assumptions; and incorporates detailed exhibits that support valuation conclusion. The valuation analysis is sound and the report is defensible, if challenged, Sapient provide clients with additional support, including serving as an expert witness at trials.

Valuation for Financial Reporting

Valuation for Financial Reporting: Intangible Assets, Goodwill, and Impairment Analysis provides guidance and insight in the identification and measurement of intangible assets and goodwill pursuant to the Financial Accounting Standards Board Statements of Financial Accounting Standards. Valuation for Financial Reporting will bring clarity to CFOs, auditors, valuation professionals, and CPAs by explaining the valuation aspects of the new financial reporting requirements, including how to identify the characteristics of goodwill and intangible assets, determine if impairment has occurred, and employ specific methods to assess the financial impact of such impairment.

Valuation of Stressed Assets

Non-Performing Assets is defined as a loan or an advance in respect of which the interest &/or installment of principal remains “overdue” for a period of more than 90 days in respect of a term loan or remains “out of order” for a period of more than 90 days in respect of an Overdraft /Cash Credit.

Any amount due to the Bank under any credit facility, if not paid by the due date fixed by the bank, becomes ‘overdue’. An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.

Sapient has an extensive team assisting Private Equity Lenders / Banks / Financial Institutions in evaluating fixed assets of running / closed NPA accounts