Share Valuation Report (Rule 11UA / DCF)

Rule 11UA uses the book value or net asset value method - it looks at the company's balance sheet on the valuation date. DCF projects future cash flows for 5 years and discounts them to today's value. Rule 11UA suits asset-heavy and steady businesses. DCF suits startups and growth companies with strong future expectations.

Yes. Our reports follow Rule 11UA of the Income Tax Rules and are signed by Chartered Accountants or merchant bankers as required. Reports issued by us have been accepted in Section 56 assessments and during regular Income Tax scrutiny. We share the legal basis in the report itself.

Yes. We always share a draft after the valuation modeling. You can review the assumptions, ask questions, or share more financial data. The CA signs the final version only after you approve the draft.

Each valuation report includes the full working, method used, and legal basis. If the assessing officer raises a query, we provide a clarification letter at no extra cost. The professional who signed the report can also attend hearings on your behalf for an additional fee.

It is mandatory when you issue fresh shares above face value, transfer shares between parties, allot shares to non-residents under FEMA, issue ESOPs to employees, or buy back shares. Section 56(2) and Section 50CA of the Income Tax Act apply most often.

Yes. DCF works best for startups since their value lies in future cash flows, not current assets. We build a 5-year projection model based on your business plan and pick a discount rate that reflects startup risk. The report is accepted by VCs, AD banks, and Income Tax for Section 56 purposes.

Depends on the purpose. For Section 56 (Income Tax), a Chartered Accountant can sign. For FEMA filings, a SEBI-registered merchant banker or CA. For ESOP, a Category I merchant banker or registered valuer under Companies Act 2013. We assign the right signatory based on your case.

Most regulators accept the report for transactions done within 90 days of the valuation date. For FEMA, the rule is 90 days. For Section 56, the issue of shares should happen close to the valuation date. If too much time passes, you may need a fresh report.

Not always. One report covers all transactions happening around the same valuation date - say multiple share transfers in the same month. For ESOP, the same report covers the entire grant. If transactions are spread across the year, you may need 1-2 fresh reports.

WACC stands for Weighted Average Cost of Capital. It is the discount rate used in DCF to bring future cash flows to present value. It combines the cost of equity (what shareholders expect) and cost of debt (interest on loans), weighted by their share in the capital structure. We calculate it for each company based on its actual debt-equity mix.

Sometimes yes, sometimes no. FEMA accepts DCF or any internationally accepted method, signed by a merchant banker or CA. Income Tax Section 56 accepts Rule 11UA or DCF. If you need the same report for both, DCF signed by a CA usually works. We confirm before starting.

Our reports are 15-25 pages long. They include the purpose, method chosen, financial statements summary, full working, assumptions, sensitivity analysis (for DCF), the final FMV per share, and the signatory details. Not just a one-line certificate.

Yes. After valuation, we can help with the share allotment paperwork, MGT-14, PAS-3 filings with MCA, and FCGPR filing for FEMA cases. That work is billed separately based on the filings needed.

Combined fee is ₹6,999 for both methods in one report. Some FEMA cases need both methods for cross-verification. We use the higher of the two FMVs for the actual transaction.

Yes. Share your last 2 years' financials on WhatsApp or email. We give a rough ballpark FMV per share in 2-3 days, no fee. You decide whether to go ahead with the formal report.