Valuation of

SLV Tunga Industries Private Limited

ASIR RAJA SELVAN

Registered Valuer
Contents
A. Valuation of shares of SLV Tunga Industries Pvt Ltd ................................................ 2
B. Preamble, Scope and Limitations ................................................................................. 3
SCOPE OF ENGAGEMENT ............................................................................................. 3
SCOPE LIMITATION & DISCLAIMERS ........................................................................... 3
C. Applicable Law................................................................................................................. 5
D. Executive summary......................................................................................................... 6
VALUATION SUMMARY ................................................................................................... 6
MATTERS OF EMPHASIS ................................................................................................ 6
E. Profile of the Company ................................................................................................... 7
BRIEF BACKGROUND OF THE COMPANY ................................................................. 7
HISTORICAL AND PROSPECTIVE FINANCIAL INFORMATION: ............................ 7
F. SOURCES OF INFORMATION .................................................................................... 8
G. VALUATION METHODOLOGIES ................................................................................ 9
METHODS OF VALUATION: ............................................................................................ 9
Market approach: ............................................................................................................ 9
Income approach: ........................................................................................................... 9
Asset approach:............................................................................................................... 9
H. METHOD OF VALUATION ADOPTED ....................................................................... 9
DISCOUNTED CASH FLOWS METHOD: .................................................................... 10
DCF Methodology: ........................................................................................................ 10
NET ASSET VALUE METHOD....................................................................................... 15
EBITDA multiple Method ................................................................................................... 16
I. SUMMARY ..................................................................................................................... 16
J. Abbreviations used: ...................................................................................................... 17

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 A. Valuation of shares of SLV Tunga Industries Pvt Ltd
(for the purpose of arriving fair value of the business unit of the company as on
31.1.2024)

To
The Board of Directors
SLV Tunga Industries Private Limited
Chennai.

Dear Sir,

Sub: Valuation of SLV Tunga Industries Private Limited (the “Company”) for the purpose of
arriving fair value of the company as on 31.1.2024)

Ref: Engagement Letter dated 9th February 2024 requested the undersigned to value the
business unit of the company

I hereby enclose the report on valuation of the company and the sole purpose of this report is
to assist the company in determining “fair value” of the company in accordance with
appropriate valuation methods.

Based on the scope and limitations of the work, sources of information and valuation
methodologies of this report and the explanations therein, the fair value of the Company
amounts to Rs.86.18 Lakhs as on 31st January 2024.

Thanking you,
Yours sincerely,

Asir Raja Selvan

Registered Valuer
IBBI/ RV/06 / 2019 /11681

Page 2 of 17
 B. Preamble, Scope and Limitations

SCOPE OF ENGAGEMENT
I, Asir Raja Selvan, a Registered Valuer with IBBI (IBBI/ RV/06 / 2019 /11681) have been engaged by SLV
Tunga Industries Private Limited (“Company”) to carry out a valuation of the Company as on
31st January 2024 (“Valuation Date”) .

My scope of work as per the terms of my Engagement Agreement is as follows:

“The scope of my services is to perform a valuation of the business unit of the Company based
on the audited financial as on 31.3.2023 and provisional financials of the Company for the
period ended 31st January 2024 and forecast, information provided by the Management of the
Company and the projected financial statements of the Company as certified by the
management of the Company.”

This valuation report (“Report”) is our deliverable to the above engagement.

SCOPE LIMITATION & DISCLAIMERS

The valuation exercise was carried out under the following limitations:
1. This valuation report has been based entirely on the information provided by the Management
of the Company, discussion held with them and publicly available industry information.
2. I have been given to understand by the Management that it has made sure that no relevant
and material factors have been omitted or concealed or given inaccurately by people assigned
to provide information and clarifications to me for this exercise and that it has checked out
relevance or materiality of any specific information to the present exercise with me in case of
any doubt. I have assumed that the information provided to me presents a fair image of the
Company's activities and the assets being valued at the Valuation Date. Therefore, I will accept
no responsibility for any error or omission in the Report arising from incorrect information
provided by Management. Also, I assume no responsibility for technical information furnished
by the Management and believed to be reliable.
3. For arriving at a valuation, an examination and analysis is required in respect of several aspects
of the company’s activities, such as its historical performance, its competitive positioning in the
industry, inherent strengths/ weaknesses of the business and the opportunities/ threats
presented by the environment, forecasts of the operating performance, estimates of the cost
of capital, estimates of the continuing value, calculation and interpretation of results, the
impact of prevailing regulatory work, the global industry outlook, impact of technology and
several other environmental factors.
4. The Report assumes that the Company complies fully with relevant laws and regulations

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 applicable in all its areas of operations unless otherwise stated, and that it will be managed in
a competent and responsible manner. Further, except as specifically stated to the contrary, this
valuation report has given no consideration to the following matters –
5. Matters of a legal nature, including issues of legal title and compliance with local laws, and
6. Litigation and other contingent liabilities that are not recorded in the audited/unaudited
balance sheet of the Company.
7. No enquiry into the Company’s claim to title of assets or property has been made for the
purpose of this valuation. About Company’s claim to title of assets or property, we have relied
solely on representations, whether verbal or otherwise, made by the Management to me for
the purpose of this report. We have not verified such representations against any title
documents or any agreements evidencing right or interest in or over such assets or property,
and have assumed Company’s claim to such rights, title or interest as valid for the purpose of
this report. No information has been given to me about liens or encumbrances against the
assets, if any, beyond the loans disclosed in the accounts. Accordingly, no due diligence into
any right, title or interest in property or assets was undertaken and no responsibility is assumed
in this respect or in relation to legal validity of any such claims.
8. The estimates of value contained herein are not intended to represent value of the entity at
any time other than Valuation Date, as per the agreed scope of my engagement. Changes in
market/industry conditions could result in opinions of value substantially different than those
presented.
9. The valuation of the business is based on various assumptions made by the respective
companies relating to the operations of their businesses. Any change in these assumptions
could have an impact on their valuation.
10. The valuation report was prepared for the purpose of arriving at the fair value of the company
for a potential issue of shares for other than cash consideration.
11. This Report is prepared exclusively for the above stated purpose and must not be copied,
disclosed or circulated or referred to in correspondence or discussion with any other party.
Neither this report nor its content may be used for any other purpose without prior written
consent of Asir Raja Selvan, the Registered Valuer.
12. I have not made an appraisal or independent valuation of any of the assets or liabilities of the
Company and have not conducted an audit or due diligence or reviewed/ validated the financial
data provided by the management.
13. The assumptions contained herein, which are expressly adopted for the purpose of this Report,
are based on the information made available to me at the time of making this report. All data
in this report is as provided to us and updated till the date of preparation of this report.

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 14. Provision of valuation opinions and consideration of the issues described herein are areas of
regular valuation practice. The services do not represent accounting, assurance, accounting /
tax due diligence, consulting or tax related services that may otherwise be provided by me or
my affiliates. The valuation has relied on the Provisional financial statements of the Company
for period ended 28th February 2023. In accordance with my Engagement Agreement and in
accordance with the customary approach adopted in valuation exercises, I have not audited,
reviewed or otherwise investigated the historical financial information provided to me.
Accordingly, I do not express an opinion or offer any form of assurance regarding the truth and
fairness of the financial position as indicated in the financial statements / projections.
15. The opinion(s) rendered in the Report only represent the opinion(s) based upon information
furnished by and on behalf of the Management and other sources and the said opinion(s) shall
be considered advisory in nature. However not for advising anybody to take buy or sell decision,
for which specific opinion needs to be taken from expert advisors.
16. The financial forecasts used in the preparation of the Report reflects Management's judgment,
based on present circumstances, as to the most likely set of conditions and the course of action
it is most likely to take. It is usually the case that some events and circumstances do not occur
as expected or are not anticipated. Therefore, actual results during the forecast period will
almost always differ from the forecasts and as such differences may be material. To the extent
that my conclusions are based on forecasts, I express no opinion on the achievability of those
forecasts.
17. I am not responsible for arithmetical accuracy / logical consistency of any financial model or
business plan provided by the Management and used in my valuation analysis. The terms of my
engagement were such that I was entitled to rely upon the information provided by the
Management without detailed inquiry.
18. The fee for the Report is not contingent upon the results reported.
19. I have already issued a valuation report during March 23.
20. I owe responsibility to only to the Company that has retained me and nobody else.
21. I do not accept any liability to any third party in relation to the issue of this valuation report.

C. Applicable Law

These terms of business shall be governed by and construed in accordance with the laws of India and
any dispute arising out of this engagement or these terms shall be subject to the exclusive jurisdiction
of courts in Chennai.

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 D. Executive summary

VALUATION SUMMARY

The Equity value of the Company is summarized in the table hereunder. Accordingly, based on the
information available, the value of the Company as at 31st January 2024 is estimated at Rs. 86.18 Lakhs.

Value of Weighted
Method of Valuation Weights
Equity Share Value
Discounted Cashflow Method -8412.16 0 0.00
Net Asset Value Method 62.98 0.4 25.19
EBITDA Multiple Method 101.64 0.6 60.99
Total Value of Equity 86.18
No of Shares 1,39,000
Value attributable to Equity Share 62.00

Note: As informed, no warrants/options/ are outstanding on the valuation date.

SLV Tunga Industries Private Limited (CIN – U28994TN2021PTC148874) hereinafter referred to as

“Company” incorporated on 28th December 2021, is a Private Limited Company based in Chennai,
Tamilnadu. The Company is into the business of manufacture of scrubber assembly, breather assembly,
ventilation system for main battle tank engines, dust collector, test bay / workshop ventilation systems
with ducting and deals with Piping fabrication, Structural steel fabrication, sheet metal fabrication,
modular fabrication, CNC Automated metal processing, Tank fabrication, container modification
fabrication, on-site Industrial fabrication services, customized metal workstation / table fabrication.

Given the above context, I have used the Discounted Cash Flow (“DCF”) method only for arriving the
valuation of the business unit of the Company. A discussion on the appropriateness of use of valuation
methods is carried out in Valuation Methodology section.

This report should be read in its entirety but especially in conjunction with Matters of Emphasis and
Statement of limiting conditions.

MATTERS OF EMPHASIS

1. The valuation is based on the Audited financials of the Company for the FY 2022-23,
Provisionals as on 31.1.2024 and projections as provided by the Management. In accordance
with the customary approach adopted in valuation exercises, I have not reviewed or otherwise
investigated the historical financial information provided to me.
2. The Company owns fixed assets mainly equipments, computers and furniture and the
Management has informed me that the carrying cost reflects it’s written down value and there
is no material change in the value of the fixed assets. Accordingly, I have not considered any
adjustment to the book value of the fixed assets
3. As explained to me by the Management, there are no contingent liabilities with the company

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 which are expected to devolve. Similarly, there are no surplus/non-operating assets in the
Company, except as mentioned above, as at the Valuation Date.
4. The Management has informed me that the technology they are using to develop in the
company is well advanced and a niche product and so there is a good demand from investors
which I have not reviewed.

E. Profile of the Company

BRIEF BACKGROUND OF THE COMPANY

SLV Tunga Industries Private Limited, started its business in the field scrubber assembly, breather
assembly, ventilation system for main battle tank engines, dust collector, test bay/work shop ventilation
systems with ducting and deals with Piping fabrication for various customers.
The company has gained more business confidence in the fabrication business due to the potential
takeover of fabrication business unit from Tunga Aerospace Industries Private Limited.
Headquartered in Chennai, SLV Tunga Industries Private Limited leverages the wide reach in fabrication
business through their quality product and timely delivery.

Backed by reliable team of experts, SLV Tunga Industries, with its par excellence service, is the preferred
choice amongst its competitors.
As per the provisional financials for the period ended 31st January 2024, the company has achieved a
turnover of Rs. 121.88 Lakhs and expecting rapid growth in the forecasted period. The Company’s Share
capital is divided into 1,39,000 Equity Shares of Rs. 10/- each with a Net worth of Rs. 62.99 Lakhs as on
31st January 2024.

HISTORICAL AND PROSPECTIVE FINANCIAL INFORMATION:

The historical and projected financial indicators of Company as provided to me by Management is

given below:
Rs. In Lakhs
Particulars
Audited Projections Forecast Forecast Forecast Forecast Forecast
Financial Year/s 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
Turnover 127.65 146.26 182.82 228.53 285.66 414.20 600.59
Other Income 0.17 - - - - - -

Personnel Costs 32.27 38.11 45.71 57.13 71.41 103.55 150.15

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Other Cost of
93.77 102.24 109.74 137.12 171.39 252.66 366.36
Operations
Operating EBITA 1.78 5.91 27.37 34.28 42.85 57.99 84.08
Depreciation and
15.59
Amortization 0.43 26.62 27.02 27.42 27.82 28.42
PBT 1.35 -9.68 0.75 7.26 15.43 30.17 55.66
Tax 1.18 -2.59 0.20 1.94 4.13 8.07 14.89
PAT 0.17 -7.09 0.55 5.32 11.30 22.10 40.77
Equities and Liabilities
Equity 11.00 13.90 13.90 13.90 13.90 13.90 13.90
Reserves 0.05 40.81 41.36 46.67 57.98 80.07 120.85
Long Term Liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Current Liabilities 365.82 515.02 480.47 456.67 691.47 681.76 701.04
Total 376.87 569.73 535.72 517.24 763.35 775.74 835.79
Assets
Non Current Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Fixed Assets 319.17 314.22 292.60 270.58 248.16 225.34 206.92
Current Assets 57.70 255.51 243.12 246.66 515.18 550.39 628.87
Total 376.87 569.73 535.72 517.24 763.35 775.74 835.79

F. SOURCES OF INFORMATION

The Management of the Company has furnished the required financial and other relevant information,
explanations and data for the respective companies, to facilitate us in drawing up my opinion. The
following Company specific information, as provided by the Management, verbally or in written form
have been inter-alia used in the valuation:
✓ Audited financial statements for years ended 31 March 23 and provisional for 28th February
2023
✓ Financial projections starting from 1 April 2024 to 31 March 2029. These include forecasts of
balance sheet, profit & loss account along with underlying assumptions.
✓ Key operational parameters (historical and forecast) for the Company
✓ In addition to the above, I have also obtained such other information and explanations from
the Management as were considered relevant for the purpose of the valuation.
✓ It may be mentioned that the Management has been provided opportunity to review
information in my report as part of our standard practice to make sure that factual
inaccuracies/omissions/etc. are avoided in my report.
✓ Industry and economy information – The following sources were utilized for analyzing the
industry and the competitors:

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 i. Discussion with the Management
ii. Publicly available information
iii. Proprietary data bases subscribed to by me

G. VALUATION METHODOLOGIES

METHODS OF VALUATION:
To determine the value of enterprises, three traditional approaches can be considered:

Market approach:
The Market approach measures value based on what other purchasers in the market have paid for
assets that can be considered reasonably like those being valued.

Income approach:
The income approach determines the value of a business based on its ability to generate desired
economic benefit for the owners. The key objective of the income-based methods is to determine the
business value as a function of the economic benefit.

Asset approach:
The asset approach seeks to determine the business value based on the value of its assets.

S.No Methodology of Valuation Used Weight Remarks

Given
I. METHODS UNDER MARKET APPROACH:
1. Market Price Method No - Not listed on any recognized exchange
2. Price of Recent Investment No - I have not considered these for my
Method valuation since there were no recent
price movement(closely held)
3. Comparable Companies’ No There are no Companies available to
Multiples Method –Quoted provide comparable multiples
Multiples
4 Comparable Companies’ No - No transactions available in the industry
Multiples Method – in public domain
Transaction Multiples
II. METHODS UNDER INCOME APPROACH:
1. Discounted Cash Flows Yes 0 Based on the financial projections
Method provided to me
2 EBITDA Multiple Method Yes 0.6 Considered in the process of valuation
III. METHODS UNDER ASSET Approach
Net Assets Value Method Yes 0.4 Considered in the valuation working

H. METHOD OF VALUATION ADOPTED

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DISCOUNTED CASH FLOWS METHOD:

DCF Methodology:

Income-based approach:

a. Taking into consideration the specifics of the Company and the business environment, we
have used the discounted cash flow (DCF) method (Free Cash Flow to Equity approach) to
determine the Equity value of the Company.
b. The profit and loss account forecast cover the period from 1 April 2024 to 31 March 2029. It
does not cover the entire period of a company’s existence. The providers of capital benefits
subsequent to the period covered by the operating plan are expressed via what is known as
the perpetuity value
c. The perpetuity phase usually assumes the ongoing development of virtually all parameters of
the valued company, including the operating efficiency and profitability parameters. In order
for the growth of the company to be balanced and for its value to be maximized from the
shareholder perspective, it is necessary to:
i. maintain an appropriate capital structure; and
ii. re-invest an adequate amount of earnings into assets (fixed assets, net working
capital) so that ongoing growth of the company’s operating indicators is feasible.
Beyond 31 March 2028, the capitalization of future projected cash flows is modeled
(”the perpetuity effect”).

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 b. Discount Rate:
WACC calculation

Cost of equity calculation

Purpose of a discount rate:

✓ The application of the income approach requires the determination of an appropriate

discount rate at which future cash flows are discounted to their present value as of valuation
date.
✓ The discount rate reflects the time value of money and the risk associated with projected
future cash flows. It is derived on the basis of the expected return on capital and the price of
the best alternative investment. Therefore, the discount rate indicates the minimum required
return from the asset being valued if the investor is not to be worse off than he would be if
he had invested his money in the next best alternative. The return on this alternative
investment must be comparable in terms of dimensions, timing and certainty, with the net
cash flows expected to be derived from the subject asset.
✓ To derive the discount rate, the weighted average cost of capital (WACC), which refers to the
total capital invested (equity and debt), is used and adjusted for risk premiums or discounts,
depending on the asset’s specific risk compared to the risk of the overall enterprise. To
determine the appropriate WACC it is adequate to consider cost of equity and cost of debt
separately.
✓ The formula for the calculation of the WACC is shown in table “WACC calculation”.
✓ The derivation of the WACC is based on a group of guideline companies (peer group) which
are operating in the same industry/sector. To calculate the WACC, cost of equity, cost of debt
and the capital structure have to be determined based on market data of the group of
“guideline Companies”.

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(d) Determination of WACC
Cost of equity:

✓ For the estimation of the cost of equity, the capital asset pricing model (“CAPM”) is applied.
According to the CAPM, cost of equity consists of a risk-free interest rate and a risk premium.
The risk premium is calculated by multiplying the market risk premium by the beta-factor, a
company-specific measure of the systematic risk of an equity investment in a company.

✓ Cost of equity can be expressed as shown in the table “Cost of equity calculation”.

✓ To determine cost of equity, its components risk-free rate and risk premium must be analyzed.

Particulars Value
Risk free Rate 7.07%
Beta 0.09
Equity Risk Premium 0.83%
Additional Risk Premium 8.33%
Cost of equity 7.90%
Cost of Debt 10.26%
Weighted Average Cost of Capital 7.90%

Notes:
a) Risk free rate is the last 12 months average of 10 year G-Sec yield
b) Beta – Since no Comparable companies for arriving at Market Beta in India, I have assumed
the average beta of the Corporate listed in India (Zen Technologies Limited, Paras Defence
and Space Technologies Limited, Astra Microwave Products Limited, Bharat Dynamics Limited
)
c) Equity market risk premium is the difference of Sensex Multiple since inception ( 01-04-79 to
31-01-2024) over the risk free rate

Risk-free rate

The starting point for the calculation of an appropriate equity rate of return is the calculation of the
risk-free rate, which corresponds to the minimum return that an investor can expect from an
investment “without” risk. This risk- free rate of return is therefore generally derived from the rate of
return on a high-quality long-term government bond. The risk-free rate is last 12 months average of
10-year G-Sec yield.

Risk premium
Market risk premium
According to the CAPM, long-term capital market studies have shown that historically investments in
shares have yielded higher returns than investments in low-risk bonds. Market Risk Premium (‘MRP’)
levels of 15.79% p.a. has been considered based on my understanding of the expected MRP in India.

Beta coefficient
According to the CAPM in arriving at the appropriate risk premium, non-systematic risk, which
attaches to the specific enterprise and can therefore generally be eliminated by diversifying, is
distinguished from systematic risk. A risk premium will only be required to compensate for systematic

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 risk, which cannot be eliminated by diversification. In practice, systematic risk is measured in terms of
the beta coefficient and the market risk premium. The market risk premium is defined as the
difference between the expected return on a market portfolio and the risk-free rate. The beta
coefficient indicates the risk of the equity of the enterprise that is being valued relative to the average
market risk (for stocks), which is represented by the market risk premium. A beta higher than one
implies that the systematic risk of the company’s stock is higher than the market risk. The risk premium
is calculated by multiplying the market risk premium by the enterprise’s beta coefficient. We have
used the lowest equity beta amongst the comparable companies as shown in the table above.

DCF Result

(i) Based on financial projections for existing business provided to me, I have computed the
free cash flows to the equity shareholders, which have then been discounted using cost
of equity.

(ii) The valuation of Company as per DCF method is shown in the table below: ( figures in INR
in Lakhs)

31st 31st 31st 31st 31st 31st

Year ending
March March March March March March
2024 2025 2026 2027 2028 2029
Particulars
Projected Forecast Forecast Forecast Forecast Forecast
SOURCES
Net Profit (Before Taxes and
-9.68 0.75 7.26 15.43 30.17 55.66
Interest)
Depreciation 15.59 26.62 27.02 27.42 27.82 28.42
Increase in Capital 2.90 0.00 0.00 0.00 0.00 0.00
Increase in Term Loan
Increase in other terms liabilities
Decrease in Other Non Current
0.00 0.00 0.00 0.00 0.00 0.00
Assets
Increase in Share Premium 47.85 - - - - -
Increase in unsecured loans
TOTAL 56.66 27.37 34.28 42.85 57.99 84.08
USES
Net Loss
Adjustment in Profits (Tax ) -2.59 0.20 1.94 4.13 8.07 14.89
Repayment of Term Loan
Increase in Fixed Assets 10.65 5.00 5.00 5.00 5.00 10.00
Increase in Other Non Current
254.23 22.75 33.50 46.42 120.00 179.72
Assets
Decrease in Share Application
Money
Decrease in other Term Liabilities 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL 262.28 27.96 40.44 55.55 133.07 204.61

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Long term Surplus/ Deficit -205.63 -0.58 -6.17 -12.70 -75.08 -120.53
(Increase)/Decrease in Current
Assets
Increase/(Decrease) In Current
149.20 -34.56 -23.80 234.80 -9.71 19.28
Liabilities
Net Cash flows to Enterprise -56.42 -35.14 -29.96 222.10 -84.79 -101.25
Discount Factor
0.86 0.74 0.64 0.55 0.47 0.41
Discounted Cash flow for 5 years
(48.54) (26.01) (19.08) 121.70 (39.97) (41.06)

Calculation of Terminal Value

(in INR Lakhs)
Particulars Amount

Terminal year Free Cash Flow (41.06)

Growth Rate Percentage 16.00%

Terminal Value for the perpetuity (20,711.01)

Discounted factor at the end of the period 0.41

Present Value of the terminal Value (8,400.24)

Calculation of Total Value

(in INR Lakhs)

Particulars Amount
Present Value of the terminal Value (8,400.24)

Add: Present value of free cash flow (11.91)

Less: Debt outstanding -

Value attributable to the Equity share holders (8,412.16)

Number of Shares 1.39

Value Per share (6,051.91)

Accordingly, the value of Company as at 31st January 2024 as per DCF method is
Rs. (6051.91) Lakhs.

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NET ASSET VALUE METHOD

The table below presents the Net Asset Value of Company as at 31st January 2024:

In Rs.
I. ASSETS In Rs. Lakhs
Lakhs
A. Non - Current Assets
Property, Plant and equipment 314.22

Long Term Loans & Advance

-
Goodwill -
Other Intangible Assets
Financial Assets
i. Investments 0.00
ii. Others
Other Non current Assets 0
Asset – Employee benefit obligations - 314.22
B. B. Current Assets

Inventories
24.00
Financial assets
i. Trade receivables 124.32
ii. Cash and cash equivalents 5.60
iii. Other financial assets
Current Tax assets (net)
Other current assets 166.37 320.29
C. Total Assets (A)+(B) 634.51
II. LIABILITIES
D Non-current Liabilities
Financial Liabilities 0

Borrowings
-
Long term provisions

Deferred Tax Liability (net)

0.95 0.95
E Current Liabilities
Financial Liabilities
i. Borrowings 169.50
ii. Trade payables 57.82
iii. Other financial liabilities
Other current liabilities 343.26
Provision – Short term 0.00
F. Total Liabilities (D)+(E) 570.58
G. Net Asset Value of the Company (C)-(F) 62.98

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Accordingly, the equity value of Company as at 31st January 2024 based on provisional
financials as per NAV method is Rs. 62.98 Lakhs and the same is considered for the valuation
process.

EBITDA multiple Method

There are multitudes of ways to value a company, as well as specific equity and debt claims on a
company’s assets. One is the EBITDA valuation method, which relies on a multiple of EBITDA to arrive
at a company’s enterprise value.
The definition of enterprise value is the total value of a firm’s equity and debt. It can also be thought of
as the total market value of a company’s expected cash flow stream. A company’s EBITDA is a measure
of that stream. Furthermore, EBITDA is a company’s net income with tax, interest, depreciation,
and amortization expenses added back
Use the following enterprise valuation formula:

Enterprise Value = Multiple * EBITDA

Use the following formula to value equity using the EBITDA valuation method:
Equity Value = Enterprise Value – Total Debt – Cash and Cash Equivalents

In the case of valuation of the Equity value of the company, I have assumed multiple at 10 and
average EBITDA of forecasted FY 2023,2024 & 2025 and the results are as follows
2023 2024 2025
EBIDTA 1.78 5.91 27.37

Valuation at an 10 Multiple 17.80 59.09 273.73

Enterprise Value (3 yr avg) 116.87

Less : Debts 0
Cash and Equivalents 15.23
Equity Value 101.64

I. SUMMARY

Considering the above methodology and various information provided by the Management the
total enterprise value stands at Rs.86.18 Lakhs. Such value divided by the number of Equity
shares 1,39,000 (Face Value Rs. 10), the value of equity share is Rs.62/- ( Rupees Sixty Two
only) as on the date of Valuation.

Asir Raja Selvan

Registered Valuer
IBBI/ RV/06 / 2019 /11681
Date : 14th February 2024
Place : Chennai
UDIN : -----

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J. Abbreviations used:

BSE Bombay Stock Exchange Limited

CAPM Capital Asset Pricing Model
CCM Comparable Companies’ Multiple
DCF Discounted Cash Flows
FY Financial Year
Management References to “Management” will include the Management
of SLV Tunga Industries Private Limited unless otherwise
specified
M Million
Na Not Available
NAV Net Assets Value
NPA Non-Performing Asset
NSE National Stock Exchange
P/B Price to Book Multiple
PAT Profit After Tax
PBT Profit Before Tax
Promoter
RBI Reserve Bank of India
‘the Client’ or ‘the Company’ SLV Tunga Industries Private Limited

Valuation Date 31st January 2024

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