Business Advisory

Business Valuation & Due Diligence

An effective valuation is the result of in-depth analysis, experience and professional judgment that meets the objective of the stakeholders. We provide assistance for valuations in all transactions such as business transfers or acquisitions, joint ventures, divestitures, financial and strategic investments etc. We also provide support in valuations for statutory compliance.

At D N V, we use robust methodologies in arriving at a business valuation including financial modeling and application of appropriate valuation methods with an aim to assist the business decisions of our clients.

With globalization and the rapid growth in the Indian economy mergers, takeovers, and acquisitions have become common phenomena. It is imperative to have reliable, timely and qualitative information in any potential transaction to enable informed decision making.

At D N V, We have significant experience in undertaking diligence in wide variety of industries and transaction sizes. Our due diligence services are like ‘shock absorbers’ that assist our clients to manage their risks by identifying and quantifying potential exposures.

The objective of due diligence is to provide the potential investor with information to enable him make an informed decision regarding the proposed investment or acquisition.

We undertake the following types of due diligences:

  • Financial
  • Commercial
  • Technical (production and quality)
  • Human Resources

We would also assist the management with negotiations, identifying key risk factors, review agreements / licenses and other documents from commercial and regulatory perspective.

Business Reporting

With the growth of Business and globalization, the need to communicate across the borders has correspondingly increased. A company in one country is borrowing in the capital market of another country. The financial statements prepared in one country are used in other country more and more frequently. This has raised the issue of harmonization of financial statements, accounting policies, their presentation and disclosures etc.

Investors would like to direct their capital to the most efficient and productive companies globally provided they are in position to understand their accounting/financial reports. Every investor requires reporting of financial, technical and other information in their own format based on the accounting principles followed and accepted in their country.

As an extension of statutory audit services, we also provide services of reporting to the foreign holding company for the purpose of consolidation. The foreign reporting group has an in-depth understanding of the Indian GAAP and the IAS, US GAAP and IFRS. We provide support, advice and assurance that will help companies identify, manage and control regulatory risks and meet regulatory standards and expectations.

Transfer Pricing Regulations

A large share of world trade consists of goods, intangibles and services within multinational enterprises. To determine tax liability in each jurisdiction, the right price (arm’s length price) has to be applied.

Transfer pricing is a term used to describe all aspects of pricing arrangements between a company and a related party or between two business segments of a company.

Rise in international transactions calls for stricter compliance requirements, maintenance of adequate documentation, free exchange of information and increased emphasis on audit and inspection.

In this opened arena of the Indian economy, each and every company entering into an international transaction is required to do adequate planning and documentation so as to limit its tax exposure.

Further to that transfer pricing provisions are also applicable to specified local transactions between two related entities with in India

We at D N V offer the following advisory services to the clients within India and overseas:

  • Services limiting the overall tax exposure of the client in India and other countries including compliance with the Indian and the overseas Tax laws.
  • Selection and application of appropriate methods to justify the international transactions at Arm’s Length Principle.
  • Advising and guiding the client to maintain adequate and contemporaneous documentation and review compliance thereby avoiding heavy penalties for lack of documentation.
  • Responding to enquires made by tax authorities or transfer pricing audit team.

This requires an immense study of the organization, its structure, nature of transactions and different statutes.

Our Transfer Price team comprises of experts who understand the clients business and plays an integral role right from the conception of an idea of a business deal to its implementation with proper documentation and provides guidance throughout the transaction cycle.

India Entry Strategy

India is one of the fastest growing economies in the world. It has taken several measures that provide liberalised policies; investor friendly investment climate, simplification of procedures to attract foreign investments. With availability of skilled manpower in abundance, the global corporations are showing keen interest to invest and set up their business operations in India. With our effective understanding and appreciation of accounting, tax, economic and managerial considerations, we offer our expertise and pragmatic solutions to the companies. We leverage our comprehensive understanding of Indian business environment and regulatory structure to deal with complex cross border business issues.

Our range of services includes:

  • Advising on ownership structure including appropriate investment jurisdiction.
  • Advising on entry structuring including choice of entry vehicle such as branch, subsidiary, joint venture etc.
  • Processing regulatory approvals from Foreign Investment Promotional Board (FIPB), Reserve Bank of India (RBI) and other organization.
  • Obtaining registrations required under various statutes.
  • Tax structuring.

In addition to advising on the Inbound Investments, we believe in implementing comprehensive set of transaction support, tax issues, business setup, recruitment, and assurance services, all under one roof.

Ind AS | IFRS convergence

As it stands today, India will adopt Indian Accounting Standard (Ind AS) as converged with International Financial Reporting Standards (IFRS) in phased manners beginning on or after April 1, 2016, with Comparatives for the year ending 31st March 2016 or thereafter.

At D N V, we are having a good team of In house professionals who are well equipped with knowledge of Ind AS/IFRSs/IASs in addition to tie-ups with other leading professional for expert opinions and fair valuations etc. Further the concerned team is aware about first time adoption scenario with respect to various industries.

As per our past experience, we can term our role in the entire convergence as:

  • Design a Road map of convergence from Indian GAAP to Ind AS/IFRSs keeping in mind sector in which company operates;
  • Observe convergence process on continuous basis and provide required guidance on real time basis;
  • Providing training to company professionals to create awareness about Ind AS/IFRSs, issue involved in implementations etc.;

Provide various other related services using our professional tie-ups ie Fair valuation/ valuation models etc.

We offer Industry specific interpretations and inputs that facilitate smooth transition from Indian GAAP to Ind AS/ IFRS in a timely and cost effective manner.