CA Valuation Report

Expert Business Valuation for Funding, Tax & Compliance

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What is CA Valuation Report?

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route Process

How We Work

1

Requirement Understanding

We begin by understanding your purpose for valuation, whether it is funding, FEMA compliance, Angel Tax (Clause 23(2)(c), IT Act 2025), Companies Act, IBC or business restructuring. This determines the applicable method and the correct certifying professional, whether a CA, IBBI Registered Valuer or SEBI-registered Merchant Banker.

2

Document Collection & Coordination

Our team handles the collection of all necessary financial statements, business records and supporting documents, ensuring nothing is missed or delayed.

3

Financial Data Analysis

We carefully analyse your financials, including assets, liabilities, revenue and market position, to form the basis of the valuation.

4

Valuation Method Selection & Calculation

We apply the appropriate prescribed method, NAV (M1), CCM (M3), RCM (M7) by a CA; DCF (M2), PWERM (M4), OPM (M5) or Milestone (M6) by a SEBI-registered Merchant Banker based on your purpose and applicable regulation. The method selection determines the certifying professional.

5

Draft Report Preparation & Review

A detailed draft report is prepared and internally reviewed by our experts to ensure accuracy, compliance and clarity before finalisation.

6

Final Valuation Report Delivery

We deliver a professionally prepared, certified valuation report signed by the appropriate authority (CA, IBBI Registered Valuer or SEBI Merchant Banker), ready for use in legal, financial, investment or regulatory processes.

checklist Prerequisites

Information Required

Audited or unaudited financial statements including Profit & Loss Account, Balance Sheet and Cash Flow Statements to assess overall financial performance.
Previous years’ ITR filings to verify declared income and ensure consistency with financial records.
Incorporation certificate, partnership deed, LLP agreement or proprietorship documents to confirm legal business structure.
Bank statements and outstanding loan details to understand cash flow, liabilities and financial obligations.
Information on fixed assets, investments and liabilities for accurate valuation of net business worth.

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Key Benefits

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What You Receive

description Certified Valuation Report — A professionally prepared valuation report certified by the appropriate authority (CA, IBBI Registered Valuer or SEBI Merchant Banker) that clearly states the fair value of your business, shares, assets or financial instruments using recognised valuation methodologies and applicable professional standards.
analytics Detailed Financial Analysis Summary — Clear breakdown of financial performance, asset evaluation and key valuation assumptions used in the process.
verified Compliance-Ready Documentation — Final deliverable structured to meet legal, regulatory, tax and investor requirements, ready for immediate use with FEMA, ROC, Income Tax Department or investors.
print Digital & Printable Report Format — Final report provided in both PDF and print-ready formats for easy submission to banks, investors or authorities. Note: FEMA valuation reports are valid for 90 days from the date of issuance.
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Frequently Asked Questions

A valuation report is a professional document prepared to determine the fair market value of a business, shares, assets or financial instruments. Depending on the purpose and method used, it may be certified by a Chartered Accountant, IBBI Registered Valuer or SEBI-registered Merchant Banker. The term “CA Valuation Report” refers to reports where a CA is the appropriate certifying authority under applicable law.
It is required for startup funding, investor negotiations, taxation, including Angel Tax under Clause 23(2)(c) of the Income Tax Act 2025, FEMA compliance, preferential allotments, mergers, acquisitions and business restructuring to present an accurate and legally defensible business value.
This depends on the purpose and valuation method selected. A Chartered Accountant can certify NAV (M1), CCM (M3) and RCM (M7) reports under Rule 11UA. A SEBI-registered Category I Merchant Banker must certify DCF (M2), PWERM (M4), OPM (M5) and Milestone (M6) reports. An IBBI Registered Valuer is mandatory for Companies Act, IBC and slump sale valuations.
Financial statements (3–5 years), income tax returns, bank statements, asset details, business registration documents, cap table, ESOP details and supporting agreements such as shareholder and client contracts.
Typically, 3 to 10 business days after receiving all required documents, depending on business complexity and the method applied. For FEMA transactions, the report is valid for 90 days from the date of issuance, so plan the timeline of your transaction accordingly.
Under the updated Rule 11UA, seven prescribed methods are available: (M1) Net Asset Value, (M2) Discounted Cash Flow, (M3) Comparable Company Multiple, (M4) Probability Weighted Expected Return, (M5) Option Pricing Method, (M6) Milestone Analysis and (M7) Replacement Cost Method. The appropriate method is selected based on business type, purpose and applicable regulation.
Yes, provided it is prepared using the correct method and signed by the legally prescribed professional for that specific purpose. A report prepared by an ineligible professional (for example, a CA signing a DCF report under Rule 11UA) may be rejected by tax authorities or FEMA regulators and could expose the client to significant penalties.
No, not for Income Tax or FEMA purposes. Under Rule 11UA, the DCF method (M2) can only be certified by a SEBI-registered Category I Merchant Banker. A CA may prepare the underlying financial model, but the final signed report must come from a Merchant Banker. Novam Legal coordinates directly with registered Merchant Bankers for all DCF assignments.
Yes. A properly certified valuation report strengthens your funding position by providing a credible, method-backed FMV. It also provides the ±10% safe harbour under Rule 11UA; if shares are issued within ±10% of the certified FMV, the Income Tax Department cannot make an Angel Tax adjustment, protecting the transaction from scrutiny.
Novam Legal provides end-to-end valuation coordination, identifying the correct method and certifying professional for your specific transaction, managing all documentation and delivering a compliant report. We handle both CA-certified and Merchant Banker-certified assignments, ensuring you are never exposed to a compliance risk from using the wrong professional.
A valuation report for preferential allotment determines the fair value of shares issued to selected investors, ensuring compliance with pricing guidelines under company law.
Yes. For ROC filings related to preferential allotment under the Companies Act, valuation must be conducted by an IBBI-registered valuer under Section 247 of the Companies Act, 2013. A CA who is not also an IBBI Registered Valuer cannot certify this report.
A business is valued using financial statement analysis, future cash flow projections, market comparisons and asset evaluation. The final value is derived using one of the seven prescribed methods under Rule 11UA, selected based on the purpose of valuation and the type of business. The method chosen also determines which professional must sign the report.
The Discounted Cash Flow (DCF) method estimates the present value of a business based on its projected future cash flows, discounted to today using an appropriate rate. It is widely used for startups and high-growth businesses. Under Rule 11UA of the Income Tax Rules, DCF valuation must be certified by a SEBI-registered Category I Merchant Banker; a CA cannot certify this method for income tax or FEMA purposes.
A Rule 11UA compliant valuation report determines the FMV of shares and provides the legal safe harbour against Angel Tax under Clause 23(2)(c) of the Income Tax Act 2025. It also helps establish capital gains positions, transfer pricing benchmarks and fair value for gift or inheritance tax purposes, ensuring compliance with income tax laws and avoiding disputes.
The timeline usually ranges from 3 to 10 days, depending on the complexity of assets, the availability of documents and the scope of valuation.
Supporting business documents such as contracts, shareholder agreements, client agreements, intellectual property records, cap table details, ESOP information and operational reports helps the valuation professional understand the complete business structure and performance. These documents ensure the valuation is accurate, comprehensive and based on reliable information.
A valuation report reduces financial uncertainty by providing a clear assessment of a company's assets, liabilities, financial performance and overall business value. This helps business owners, investors and stakeholders make informed decisions regarding funding, investments, transactions and strategic planning with greater confidence.
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