CS Professional Valuations and Business Modelling Study Material

CS Professional Valuations and Business Modelling Study Material Important Questions Notes Pdf

CS Professional Valuations and Business Modelling Notes Study Material Important Questions

CS Professional Valuations and Business Modelling Study Material Notes

CS Professional Valuations and Business Modelling Syllabus

CS Professional Valuations and Business Modelling Syllabus

CS Professional Valuations and Business Modelling Chapter Wise Weightage

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)
Detailed Contents
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.

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