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ICAI Vision

R ecognize the changes in Econom y/Business E nvironm ent such as focus on value, dynamic business and organization stru ctu res, developm ents in Inform ation Technology and Telecom m unication , new G overnm ent policies, g lo b a liz a t io n o f b u s in e s s a n d c o m p e t it iv e pressures. R ecognize the path to success by adapting to the changes, know ledge m anagem ent and acquiring skills to w ork w ith future environm ent influenced by technological and other changes. R eco gn ize th e o p p o rtu n ities fo r C h artered A ccountants in the emerging areas such as new au d it an d assu ran ce n eed s, p erfo rm an ce m e a su rem en t serv ic es, m an a g em e n t services, strategy m anagem ent, general practice specialization and servicing global organizations. innovative and flexible organization, in equipping C hartered A ccountants w ith top quality education and values.

R ecognize the Institute's role as a proactive,

R ecognize the need to be know n as World C lass

Advisor

Course O bjective
T h e com plexities in business are rising in th e fast chang ing finan cial w o r l d t o d a y. I t i s b e c o m i n g increasingly difficult to predict th e futu re, yet fin ancial decisions ou ght to be taken . T h e soundness of finan cial decisions is critical to th e success of co rpo ration s. T h erefo re, every fin ancial decision is tested in term s o f valu e crea tion . T h e valuation is th e epicenter of fin ancial decision -m aking. T h e overall goal of this course is to build skills and im prove quality & c o n fid e n c e o f th e m e m b e r s in carrying o u t valu ation assign m ent relevant to today's business. G iven th e cu rren t global scen ario , it has becom e extrem ely im p o rtan t for us to understand w hat value means, m o re so as value becom es per vasive even in

acco un ting w ith the possibility of IF R S im p le m en ta tio n in t h e foreseeable futu re. T his course provides a fram ew ork for business valu ation and gives practical advice o n using th e fram ew ork to value a business. T h e course is balan ced betw een lectu res, presentations, cases, a n d d is se rt a tio n s. T h e fo c u s is o n in te g ra tin g k e y a p p ro a c h e s a n d

acumen, expertise and in-depth know ledge in process of v aluation of all kinds includ in g:

B usiness Valu atio n S hare Valu atio n A sset Valu atio n B ran d Valu ation G oodw ill Valu ation IP R Valu atio n V alu ation of oth er intangibles Valu atio n of mark to market losses/profits D erivatives

m etho ds fro m each area and applying th em to real w orld proble m s. S ta rtin g w ith th e b a sic u n d e rstanding about th e term Value, th e course run s through the key approaches of valuation discovering t h e u n d e rly in g a s s u m p t io n s o f various m odels, as w ell as best practices, and th eir app lications in live cases. O n ce th e operational know ledge is gaine d, in th e w ide rang e of valuatio ns to ols, th e sam e is applied to case studies. T his is an intensive and com prehensive package of face-to -face sessions facilitated by experienced and renow ned faculties. T h is course seeks to em pow er o ur m em bers as leaders in global ser vice market. T h e objective of th e C ou rse is

To enable th e m em bers to gain

S e c u r i t i z e d

i n s t r u m en t s in c lu d in g m o rtg a g e b a se d securities

L iabilities Evaluation E S O P /O p tio n Va l u ation

Valuatio n

for finan cial reporting in terms of Indian Accounting Standards , International Financial Reporting Standards and US GAAP including assessment of fair value, Basel II

re q u ire m en ts for B a n k in g S ecto r. A ll oth er k in d of specialized Valuations To em pow er th e m em bers w ith th e t e c h n i c a l s k i ll sa s w e ll a s analytical and decision -m akin g d is c r e t io n in t h e v a lu a t io n assign m ent; To provide tho ro u gh know ledge of th e global best practices as w ell as procedural and do cu m entation aspects of the valu ation assign m ent; To enable m em bers to carry o u t valu ation assign m ents using a variety of tech niques and express an opinion o n th e valu ation ;

To

provide expertise o n the legal and regulatory fram ew ork of th e valuation in th e cross-border/ dom estic transactio ns; enable m em bers to act as reg istere d a p p ro ved v a lu e rs p ro v id in g a d viso ry, fin a n c ia l, consultan cy ser vices in terms of valu ation .

Apart from giving a comprehensive theoretical grounding, this course is designed to strengthen the expertise and excellence of our members through multiple case studies across the industry and service sectors like pharmaceuticals, retail, manufacturing, banking, insurance, mining, infrastructure, private equity valuation, real estate and cross-border transactions.

To

Particulars
R egistering for the Course Course C ontents Frequently A sked Q uestions R egistration Form C ontact D etails

Page N o.
1-2 3-10 11-16 17-19 21-42

Registering for the Course


W ho is E ligible? M e m bers of th e IC A I and stu d ents w ho have cleared th eir C A final examination. H ow to Register? C a n d id a tes h a ve to fill in th e Registratio n Form available h erein o r at th e w ebsite of th e In stitute and submit the com pleted fo rm b y m ail for the purp ose of registration w ith out an y fee. Fees will be paid on the spot on the commencement of the course at the venue itself.

W hen to Register? Please refer to our W ebsite : http://w w w .icai-org/post.htm l? p o st_ id = 3 4 2 8 & c_ id = 2 6 6 ) Fee Structure At present, the fee payable is: (a) R egistration Fee

R s. 2 5 0 0 0 /- (Rupees Tw enty five tho usan d only) in cluding th e fees/price for bo ok s and first evaluatio n fee. F or D elhi, M um bai, C hennai and K olkata. R s. 2 0 0 0 0 /- (Rupees Tw enty tho usan d only) in cluding th e fees/price for bo ok s and first evaluatio n fee. F or other cities.

(b)

E xam ination Fee N il for th e First Evaluation and thereafter R s. 1 0 0 0 /each tim e if a candidate is required to re- a p p e a r fo r a n y su b se q u e n t Evaluation Test.
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1 1 1

Pay m en t for th e C ourse can be m ade in favour of T h e S ecretary, In stitu te of C h artered Accountants of India on the spot by cheque payable at par or demand draft. A ddress for Correspondence Corporate Laws & Corporate Governance Committee Secretariat 4th, Floor, Administrative Block, The Institute of Chartered Accountants of India ICAI Bhawan, Plot A-29, Sector 62, NOIDA 201309, Dist: Gautam Budh Nagar UTTAR PRADESH

N ote: P lease n ote th a t Reg istration fee once paid is no n -refu nd ab le under any circum stances and the Institute w ill not en tertain any correspon denc e in th is regard.

Course Contents
Module 1 Overview of Valuation Part-1 Introducing valuation W h at is value D ifferen tiate price and value Who values businesses Purpose and role of a valuation Principles of valuation D efinition of S tan dard of value (basis of valuatio n) Fair M arket value Fair value In v estm ent value In trin sic value Prem ise of value Going con cern Liquidation Valu atio n m yths Valu atio n process

T h e C ou rse o n Valu atio n shall be com prised of th e follow ing fo u r m od ules Module 1 - O v er view of Valu atio n Module 2 - Valu ation Techniq ues Module 3 - C o rp o rate L aw s & Income Tax Im p lication s Module 4 - A pplication of Valu atio n Techniq ues & Project Presentatio n. D etailed C ourse C o ntents

Valu atio n S tan d ard s E thical Issues Term s of Engagement (T O E ) Valu atio n S er vices D o cu m en tatio n Valu atio n R ep o rt A ssu m p tion s & L im itin g Conditions Reporting G uidelines Using w ork of Expert D raftin g th e Valu ation Repo rt S ubsequ ent Events

Part 2 Valuation Analysis Research techniques and planning E con o m y and in du stry research Historical analysis U n d erstan din g th e business U n d erstan din g th e Regulatory fram ew ork for th e in du stry U n d erstan din g th e value drivers A ccou ntin g analysis A ccou ntin g policy review L en gth of finan cial history A djustm en ts to finan cial statem ents A ssets and liability analysis including co ntin gent assets and liabilities Income and expenses analysis Finan cial analysis

Ratio analysis Cash flow analysis S trateg y analysis M ic hael Po rter's Five Forces SW OT PEST B C G matrix G E /M c K insey matrix ADL matrix C ore com pete ncies C om pany risk analysis Prospective analysis forecasting Techniq ues and elem ents of forecasting D u Po nt m odel and lim itatio n S en sitivity analysis S cen ario analysis S im u latio n Regression analysis

Tim e series m odel S tress testing O th ers Fin an cial projection m od eling Types of D u e diligence Effect of due diligence o n valuation Module 2 Valuation Techniques Part-1 Valuation Approaches D iscou nted cash flow (D C F ) approach E nterp rise value Equity value A djusted p resen t value (A P V ) Relative valuation approa ch

Price to eq uity (P E R ) and PEG Price to book Price to sales Price to cash flow E nterp rise value to E B IT D A Income approac h E arn in g cap italization

E VA (E co no m ic Value added) A sset A p proach Real option approach o r co ntin gent claim approac h Selection of valuation ap pro ach A ssigning Weight to A pproaches T heo ry and Practice Mathematical versus S ubjective Weighting Valu ation of O p tions G en eral Principles of O ption Valu atio n S pecific method for Valuing O ptio ns Binomial tree method BSOPM B lack & S cho les valu atio n M ethodology

Part-2 Cost of capital Characteristics of cost of capital R isk and cost of capital M etho ds of D evelo pm e nt of cost of capital C A P M (C apital A sset Pricing M odel) A P T (A rbitrage Pricing T heory) D D M (D ividend D isco un t M odel) D e velop m ent of W ACC Facto rs affecting cost of capital T heo ry of M odigliani-M iller Im p act of Fin an cial L everage o n C o st of C ap ital Forecasting of interest rates and theories of in terest rates A djusting value th ro u gh discoun ts and p rem iu m s

C o ntro l prem iu m LO C D (lack of control discount) LO M D (lack of marketability discount) O ther p rem iu m s and discounts B usiness dam ages vs. B usiness valuation Valu atio n in special situ ations; 1 . Valu atio n of unlisted shares 2 . Valu atio n of distressed com pa ny 3 . Valu atio n of early stage com pa ny 4 . Valu atio n in M & A 5 . Valu atio n in buy-sell agreem ent 6 . Valu atio n of In vestm ent C om pany 7 . Valu atio n of In tan gibles 8 . Valu atio n for finan cial rep o rtin g under IF R S

9 . Valu atio n of real assets and real estate 1 0 . Valu atio n for cross border m ergers 1 1 . Valu atio n of bonds, w arrants and convertibles Module 3 C orporate L aw s & Incom e Tax im plications Part-1 Corporate Laws Aspects M ergers and A m algam ations D e-M ergers A c quisitio ns / disposal of business / slum p sale Liquidation Intern al & E x tern al Restructuring Legal aspects including litigation and contingencies VAT and oth er ind irect taxes

Fin an cial in stru m en ts Equity in vestm ents Preferential shares C ross B ord er Tax ation Issues Implication of S tam p D u ty Regulatory over view Regulating Valuers/Valu ation Professionals S E B I regulations including Takeover C ode C ap ital M arket Controls Reser ve B an k Regu lation s Part-2 Income Tax implications C ap ital gains / losses under tax treatm en t Tax ation o n transfer of business/ securities Treatm en t of business losses S tatuto ry Valu ation Wealth Tax C arry fo r w ard of losses

L L osses of closely c held com pan ies Transfer pricing E issues ESOP

Module 4 Application of valuation techniques & Project Presentation M ultiple case studies across industries/secto rs like P harm aceutical, R etail, M an ufactu rin g, B ankin g, In su ran ce, A viation, M in in g, In frastru ctu re, private equity valu ation , real estate etc. Evaluation of Project th ro u gh Dissertation and/or vivavoice/p resentation

Frequently Asked Q uestions (FA Q s)


C ertificate Course on Valuation 1. W ho is eligible to join this Course? A ll the m em bers w ould be eligible to join th e C ou rse. T h e stud ents w ho have cleared th eir C A . final ex am in atio n can also join the course. T h e C om m ittee reser ves th e right to pe rm it o thers in clud in g Government officials to join th is course o n the terms & co nd itio ns th at it m ay decide. W here this C ourse w ill be launched? T his course w ill be launched at N ew D elh i Mumbai, K olkata, C h en n ai, H yd erabad , P un e, A h m ad ab ad and in oth er cities as m ay be decided by th e C om m ittee. 3. W h e n w ill t h e C la s s e s C om m en ce? The C o m m ittee reserves th e right to fix dates for commencement, keeping in m in d t h e n u m b e r o f Registration s an d oth er factors. W here w ill the classes be conducted? T h e C o m m ittee w ill an n oun ce th e venue at the tim e of confirmation of Registratio n or at least 7 days before the co m m en cem ent of the cou rse. W hat w ill be the duration of the classes? C lasses will generally be held fro m 10:00 A.M. to 0 5 :0 0 P . M . on w ee ken dsS atu rd a ys/S u nd a ys. H ow ever, the C o m m ittee reser ves the r i g h t to res c h e d u l e t h e prog ram m e as well as timings for any cen tre or all th e centers.

4.

2.

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6.

Whether the participants, w ho are registered at one centre, w ill be allowed to jo in c la ss es a t a n o th e r centre? T h e p articipants registered at on e cen tre w ill be allow ed to atten d th e classes at an oth er cen tre if th e correspo ndin g classes are going o n at th a t oth er centre. W hat w ill be the duration of the Course? T h e d u ratio n of the course w ill be 3 0 0 H o urs com prising of: Self S tu d y- 2 0 0 hours C lass roo m teaching - 5 0 hours C ase S tud y in Groups and project p rep aratio n 5 0 hours W hat w ill be the Overall Schem e for the C ertificate Course on Valuation? T h e candidates registered for th e C ou rse w ill have to a tten d th e classes on S aturd a ys/ S un d a ys.

A cand idate w ill have to atten d a m inim u m of 4 5 hours of classes failing w hich, he w ill not b e e n t i t le d t o a p p e a r in evaluatio n test. H ow ever, th e C o m m i t t e e m a y, a t i t s discretion , allow th e can didate to appear in th e n ex t session, (n ot as a right), bu t subject to such terms & co nd itio ns as it m ay deem fit to enforce T h e candidates w ill be required to devote tim e to the self-study and case study given to th em . Participants w ill be grouped (w ith n ot m o re tha n 5 course particip ants in o n e group) for preparing the case stu d y and project report. T h ey w ill be required to devote specified nu m b er of hours (see C ourse du ratio n at 7 above) to Selfstu dy an d case stu dy for appearing at th e Evaluation Test. T hey w ill be expected to prepare c o m p re h e n siv e p ro je c t c a se studies and submit th em to o ur evaluatio n team for appro priate m ark s allocation to b e considered as p art of th e overall evaluatio n process.

7.

8.

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9.

W hat w ill be the C ourse fee for this C ertificate Course on Valuation? To tal am o un t to be paid for th is C ertificate C ourse o n Valu atio n is R s. 2 5 0 0 0 /( R u p e e s Tw e n t y f i v e t h o u s a n d o n l y ) fo r D elh i, M u m b ai, C h en n ai an d K o lk a ta T h i s a m o u n t is in c lu s iv e o f f e e /p r ic e o f reference book and first evaluatio n fee payable at th e tim e of Registration. To tal am o un t to be paid for th is C ertificate C ourse o n Valu atio n is R s. 2 0 0 0 0 /( R u p e e s Tw e n t y t h o u s a n d o n l y ) forothercities.T h i s a m o u n t is in c lu s iv e o f f e e /p r ic e o freference book and first evaluatio n fee payable at th e tim e of Registration.

Repo rt of th e C ase study allotted to the grou p of participants. E ach participa n t of th e group w ill also be evaluated i n d i v i d u a l l y. A d e q u a t e co nsid eratio n in individual evaluatio n w ill be given to

10. W h a t w i l l b e t h e E valuation process? Pa r t i c i p a n t s w h o h a v e s u c cessfu lly c o m p l e t e d C ourse m o dules are eligible to appear at the Evaluation Test. A Board of E v alu ato rs w ill exam ine and evaluate the presentatio n, dissertatio n and

th e performance, conduct and th e quality of the o utco m e of the group task. A ctu al marks secured w ill no t be disclosed to th e p a r tic ip a n ts and O n ly S uccessful candidates' name w ill be declared. In case a candid ate h as to re-appe ar for evaluation, assessm e n t shall be done on individual basis only and such a participant m ay n ot be allow ed to join an oth e r group for case stud y purpose. 11. W hat w ill be the Periodicity of

E xam inations? T h e C om m i t t e e r es e rv es t h e right to decide periodicity of


examinations.

12. W hat w ill be the E ligibility to qualify for the evaluation test? T h e C om m ittee reser ves th e righ t to fo rm ulate th e criterion for th e assessm ent of qu ality, level of know ledge and expertise of th e particip ants and its e v a l u ation by B o a r d o f E v aluato rs. T h e project reports prepared as case stud y w ill b e h a v in g m a x i m u m evaluatio n level of 1 0 0 and th e

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W ritten objective cum w rite up test will also have evaluation level o f 1 0 0 . E x istin g experien ce w ill also b e considered as an im p o rtan t param eter. Participants are e n c o u ra g e d to sh a re th e ir actu al real tim e v aluatio n case studies after obtaining consent of th eir clients, w here needed. C ase S tu d ies o n n o name basis w ill also be acceptable. T h e database of case studies w ill be available to th e Valuers G uild th ro ug h w e b-ac ce ss in du e course of tim e. 13. Is t h e r e a n y l i mi t on t h e number of attem pts for the evaluation test? There w ill be n o lim it o n th e nu m b er of attem pts for th e evaluation test. T h e re a p p e a r a n c e fe e fo r e a c h attem p t w ill be R s. 1 0 0 0 /-. T h e candid ate w ill be allow ed to reappear for the evaluation test only after six months of the previous attem p t. T h e case study marks will be carried fo r w ard for calculating pass marks.

14. H ow many participants w ill be adm itted at each Centre? A batch w ill have a m in im u m 4 0 particip ants and a m ax im u m of 1 0 0 participants. 15. W h e t h e r B a c k g r o u n d M aterial w ould be provided to the participants? A list of Reference books w ould be provided to th e participants, w hich the p articip ants w ill be expected to study for deeper understanding of th e con cepts. A ll these books are available in th e C entral C ou n cil L ib rary, Institute Head Quarter, and New D elhi and at th e Regional C o un cil L ibrary at Mumbai, C h en n ai, K olkata and Pune. Participants are expected to do extensive self study for which, either before and/or du ring th e s e s s i o n s , B ooks w ould be provided to th e candidates to sup po rt th e learning process. It m ay be c l e a r l y u n d e r s t ood t h a t valuation is a hig h ended and p r a c tic a l a re a o f te c h n ic a l expertise and is con tin uou sly evolving in the ever ch anging econ o m ic scen ario. N o

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reference book o r back g ro un d m a te ria l c a n p ro v id e su c h co m preh en sive p ra c tic al k n o w led ge w h ic h w o u ld be inculcated in th e p articip an ts th rou g h th e ex p ert fac u lty, group based learn in g, interaction am on gst participants, live case stud y. 16. Whether a C ertificate w ill be given on completion of the Course? O n successful completion of th e C ou rse, a certifica te w ill be aw arded to th e participants. 17. W ho w ill be the faculty for this course? E m inent C hartered A ccountants and o th er professionals in practice and in d u stry, e m in e n t a c a d e m i c i a n s f r o m I I T, U niversities and t o p m an agem ent in stitu tion s including IIM s w ill be invited to lecture and in teract w ith th e participants.

18. Is a senior m em ber of the profession having expertise in valuation, exem pted from the Classes? Very s e n i o r m e m b e r s o f t h e profession w ho hav e already established their excellence in v aluation exercise m ay send copies of at least 1 0 valuatio ns (W ithou t disclosing th e id en tity of clien ts/e n tities) of g o o d q u a lit y to t h e E v a lu a t io n Directorate, who may, at its discretion , fully o r partially exem pt th em fro m classroom s t u d y. T h e d e c i s i o n o f Evaluation Directorate shall be final in th is regard. 19. H ow this course w ill help the candidates? Me m b e r s c o m p l e t i n g t h e c o u r s e w ill im m e n s e ly b e benefited out of the c o u r s e , w hile implementing fair value concept in fo rm ing an opinion on fin ancial acco un ts under IF R S . T his course w ill provide an in-depth and com prehensive know ledge of th eoretical as w ell as practical aspects of valuation at nation al and in tern atio n al level.

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20. K ey areas of V aluation Mentioned herein are certain key areas w here v aluation plays a key role and qualified valuers w ho undergo this course are expected to act as experts for issu in g an in d e p e n d e n t valuation report. M em be rs in th e ind ustry can utilize th ese techn iq u e for in tern al decision making. i) S ell-side and buy-side mandate ii) Going p ub lic-IP O iii) Going private- L B O and M BO iv) C o rpo rate restru ctu rin g and turn aro un d v) S ecured lending including project fin ance vi) S ecu ritiz atio n vii) I m p l e m e n t a t i o n o f B asel II viii) Fin an cial D erivatives ix) Portfo lio m anag em entMu t u a l fu n d , H e d g e fu nd s and professional investors x) L on g term and m ed iu m term investm ent decisions- M& A , takeovers, strategic in v e s t m e n t s , f in a n c i a l in v e s t m e n t including exit
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xi) xii) xiii) xiv) xv) xvi) xvii) xviii)

(disinvestm ent) valuation, capital budgeting, private equity in v estm en t, v e n t u r e cap ital in v e s tm e n ts, buyback of shares and others Pr o f i t a n d d i v i d e n d distribution decision. B orrow ing decisions Fin a n c ia l risk management decisions C ourt case related valuation Tax related valu ation D e v e lo p m e n t p r o je c t s valuation In tang ib les Fin an cial repo rting valuation

xix) Equity research area xx) I n s u r a n c e p r o d u c t valuation xxi) E s t a t e a n d p e r s o n a l finan cial planning xxii) C o rpo rate planning xxiii) Property v alu ation xxiv) Value based perfo rm ance measurement xxv) Credit ratin g

THE INSTITUTE O F CHA RTERED ACCO UN TANTS O F IN D IA CERTIFIC ATE CO UR SE O N VALUATIO N

R e gistra tio n F orm

Affix recent passport sized photograph

1) Full N a m e in b lock lette rs (as p er Institu te record s) First Name Middle Name Surname

Fathers/Husbands Name:
2) G e nd er (put mark) Male 3) M e m b er D e tails: a) Membership Number b) Membership status (put mark) ACA FCA Female

c) Practice/Industry/others d) Any other Qualifications 4) Pro fessional D etails: a) D esig nation

b ) O rg anization c) A d d re ss d ) N ature of D uties e) E xp erien ce in V alua tion

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5 ) A d d re s s fo r C o rre s p o n d e n ce a) House Number b) Street / Road c) Area d) City / Town e) PIN code f) State

6 ) C e n tre o p te d : N e w D e lh i/ M u m b a i/ C h e n n a i/ K o lk a ta / K a n p u r/ H y d e r a b a d / p u n e / B a n g a lo r e / C o im b a to re / A h m e d a b a d (Please give the Option) 7) Phone N o. w ith S T D co d e 8 ) e -m a il a d d re s s --- O fficia l P e rs o n a l M o b ile n o .

D a te : P la ce : ( S ig n a tu re o f th e a p p lica n t)

Note :

1. 2. 3. 4.

Fees Structure : Rs. 25000 for Delhi, Mumbai Chennai and Kolkata. Rs 20,000 for other cities (Including the fees/price for reference book first evaluation fee, lunch, tea, snacks etc.) for the complete course. Enclose One Passport Sized Photograph. Enclose self attested photocopy of the Institute I-card or Membership letter or Membership Certificate. Fees to be paid on the spot in the name of The Secretary, The Institute of Chartered Accountants of India payable by cheque payable at par or by demand draft on the starting of the course at the venue.

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A ck n o w le d g m e n t
(for office use only)

We acknowledge the receipt of the Registration Form for the Certificate Course on Valuation from Mr. / Ms........................................................................... o n . . .. . . / . . . . . . . / 2 0 --- l o n g w i t h t h e D e m a n d D r a f t / P a y O r d e r no..for Rupees.................................

Date: Place: Nodal Officer Certificate Course on Valuation

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