CS Professional Valuations and Business Modelling Notes Study Material Important Questions
- Chapter 1 Overview of Business Valuation
- Chapter 2 Purpose of Valuation
- Chapter 3 International Valuation Standards Overview
- Chapter 4 Valuation Guidance Resources in India
- Chapter 5 Business Valuation Methods
- Chapter 6 Steps to Establish the Business Worth
- Chapter 7 Valuation of Tangibles
- Chapter 8 Valuation of Intangibles
- Chapter 9 Accounting for Share based Payment (IND AS 102)
- Chapter 10 Valuation during Mergers & Acquisitions
- Chapter 11 Valuation of Various Magnitudes of Business Organizations
- Chapter 12 Valuation of Business during Distressed Sale
- Chapter 13 Introduction to Business Modelling
- Chapter 14 Business Model Analysis
CS Professional Valuations and Business Modelling Syllabus
CS Professional Valuations and Business Modelling Chapter Wise Weightage
Professional Programme Module 3
Elective Paper 9.7
Valuations & Business Modelling (Max. Marks 100)
Part I: To develop a reservoir of knowledge on valuation which can assist the Company Secretaries in undertaking valuation assignments as a Registered Valuer under the Companies Act, 2013 including for Mergers and Acquisitions, Issue of Shares, Winding up of Business, and during Distressed Sales.
Part II: To assist the student in comprehending the concept of Business Modelling, its vital components, and the steps involved in preparing a Business Model, and Business Models for the varied magnitude of business organizations.
Part I: Valuations (70 Marks)
1. Overview of Business Valuation: Genesis of Valuation; Need for Valuation; Hindrances/Bottlenecks in Valuation; Business Valuation Approaches; Principles of Valuation (Cost, Price, and Value).
2. Purpose of Valuation: M&A, Sale of Business, Fund Raising, Voluntary Assessment; Taxation; Finance; Accounting; Industry perspective; Statutory Dimension; Society Angle.
3. International Valuation Standards Overview.
4. Valuation guidance resources in India.
5. Business Valuation Methods: Discounted Cash Flow Analysis (DCF); Comparable transactions method; Comparable Market Multiples method; Market Valuation; Economic Value Added Approach; Free Cash Flow to Equity; Dividend Discount Model; Net Asset Valuation; Relative Valuation; Overview of Option Pricing Valuations.
6. Steps to establish the Business Worth: Planning and Data Collection; Data Analysis and Valuation including review and analysis of Financial Statements; Industry Analysis; Selecting the Business Valuation Methods; Applying the selected Valuation Methods; Reaching the Business Value Conclusion.
7. Valuation of Tangibles: Overview of Immovable Properties; Plant & Machinery; Equipment; Vehicles; Capital Workin-Progress; Industrial Plots; Land and Buildings; Vessels, Ships, Barges, etc.
8. Valuation of Intangibles: Definition of Intangible Assets; Categorization of Intangibles- Marketing Related (Trademarks, Trade names, Certification marks, Internet domains, etc.), Customer or Supplier Related (Advertising Agreements, Licensing, Royalty Agreements, Servicing Contracts, Franchise Agreements), Technology Related (Contractual or non-contractual rights to use: Patented or Unpatented Technologies, Data Bases, Formulae, Designs, Softwares, Process), Artistic Related (Royalties from artistic works: Plays, Books, Films, Music).
9. Accounting for share based payment (Ind AS 102).
10. Valuation during Mergers & Acquisitions.
11. Valuation of various magnitudes of Business Organizations: Large Companies, Small Companies, Start-Ups, Micro Small, and Medium Enterprises.
12. Valuation of Business during Distressed Sale.
Part II: Business Modelling (30 Marks)
13. Introduction to Business Modelling: Genesis, Meaning; Features; Significance; Usage; Spreadsheet Techniques (Effective use of spreadsheets for modeling, Review of key Excel Functions like building Macros, Decisions involving Time Value of Money); Report and analysis historical data, Prepare future projections and present integrated financial statements, Key financial ratios and Outputs in a logical, summarized and effective manner.
14. Business Model Analysis: Facets of Analysis: Revenues: Cash flows and their timing and Revenue drivers, Expenses; Cash flows and their timing, Investment required through cash flow breakeven; Working Capital, Maximum financing required and cash flow breakeven timing, Sensitivity Analysis; Key success factors, Structuring and designing models.