The Management Accountant - February 2024
The pioneering Journal of the Institute, “The Management Accountant” has been published since January 1966. It is being published regularly keeping in mind the needs of the Cost and Management Accountants (CMA) and provides wide knowledge on the recent developments and changes in the global, national, financial and economic scenario. The rich contents in the Journal keep informed the readers of sound professional ethics and keep them abreast of new developments.
6 The Management Accountant - February 2024
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Changing Landscape of Valuation Ecosystem in India
aluation is
an essential
pre-requisite
in choosing
investments for a portfolio, in
deciding on the appropriate
price to pay or receive in
a takeover and in making
investment, financing and
dividend choices while
running a business. Valuation
is required throughout the
life cycle of a business
entity. From the time a
company is incorporated
with infusion of funds to
the stage of its liquidation,
valuation is a critical
process at various stages
of running of the company.
Over the years, valuation
has witnessed momentous
changes and developments
and it continues to evolve.
Technology has played a
key role in changing the way
businesses and investors
approach valuation nowadays.
Advanced technologies like
machine learning, artificial
intelligence and data analytics
are increasingly being used
to analyse data and identify
trends that can impact the
valuation of businesses and
assets.
Moreover, with the
emergence and increased
adoption of digital assets
nowadays, we are entering a
new era of technology. Digital
assets are anything that can
be stored electronically and
typically that have value
such as currency, property
titles, securities, and patents.
Considering the unique
properties of digital assets
and the quickly evolving state
of technology, it is important
to value digital assets in
a standardized way. The
valuation of digital assets is
often done through the use of
financial models, estimations,
statistical analysis and other
metrics. Although valuation
of digital assets differs based
on the type of asset and
use, there are few common
methods used to determine
the value of a digital asset.
Environmental, Social and
Governance (ESG) factors
are becoming increasingly
important in valuation. In
India, ESG factors are gaining
acceptance and companies are
beginning to recognize their
importance.
This issue on the theme
Changing Landscape of
Valuation Ecosystem in India
carries a set of articles on
cover story.
Here’s a glimpse of the
articles featured in this issue:
Valuing Pre-Revenue
Startups: Methods Used
Globally seeks to analyze
several valuation methods
used globally in order to arrive
at the stand-alone value of a
pre-revenue startup.
Valuing Start Ups - A Brain
Teaser discusses several
methods to ascertain the future
earnings and profitability of
the startups.
Unveiling Valuation
Dynamics: A Comparative
Perspective on India and
the Global Arena presents a
comprehensive comparative
analysis of valuation practices
across India, USA, UK,
Germany, Brazil, South
Africa, and Australia.
Understanding Financial Realities:
Unmasking the Importance of Forensic
Audit in Valuation aims to provide a
deeper understanding of the ways in which
forensic audit functions as a powerful tool
for revealing the true financial worth of
companies.
Navigating the New Frontier: Valuing
Digital Assets in a Dynamic Era probes
the complexities of digital asset valuation,
contrasting it with traditional methods and
addressing challenges like volatility and
regulatory uncertainty.
Testing the Accuracy of Relative
Valuation Method: An Empirical Study
Based on Select Companies in Indian
Cement Industry examines empirically
the accuracy of relative valuation model
for Indian cement industry.
We are privileged to feature the
interview with CMA Rakesh Kumar Jain,
Director (Finance), GAIL (India) Limited.
Apart from these, this issue contains
articles on various other contemporary
topics including Budget 2024.
We are confident that the articles
featured in this issue will enrich you to a
great extent. We thank all the contributors
for making substantial value addition to
this issue.
Please share your thoughts with us at:
editor@icmai.in
Wish you a very happy reading!
From the Editor’s Desk
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