R K Doshi & Co LLP

Corporate Finance

Corporate Finance

What Is Your Strategic Initiative?

Indian companies are no longer confided within India. They want to enable exclusive international technology tie-ups, establish a dedicated international marketing presence, set-up manufacturing facilities overseas. It is our privilege to be based in a small city like Rajkot and cater to the most sophisticated subject of Corporate Finance. Our senior partner, Utsav R. Doshi, with a professional experience of 7 years in the world of Strategic Consulting within as well as outside India, is personally looking into clients needs for their strategic growth. Investment Banking is not only his profession but also his personal passion.

Our services include the following:

  • A full acquisition search, developing criteria, approaching targets and beginning negotiations
  • Approaching a target a client has already identified, sometimes on an anonymous basis
  • Assessing amongst other things:
    • Valuation
    • Growth prospects
    • Risks
    • Balance sheet dynamics and working capital needs
    • Synergy opportunities and value
  • Structuring a transaction and negotiating with the vendors including price
  • Managing the Income tax point of view of your acquisition. We are a firm of Chartered Accountants having special emphasis on International Taxation so we cater to your long-term IT needs while successfully completing the transaction
  • Drafting documents and conducting negotiations so as to legally secure interest of our own fellow entrepreneurs, from Rajkot, Ahmedabad, Morbi, and other places, from any disputes that may arise out of the transaction in the future
  • Closure of the Deal & Celebration

We have helped many Gujarat based businesses to form Joint-ventures with European, American & Chinese companies. Each of the transaction we conducted was unique in itself commanding tremendous experience from our own past transactions. The promoters of Gujarat based companies have a very distinctive mind-set and to bridge the gap between Gujarati mindset and Foreign Investors is a very difficult task which we have successfully managed in the past.

Foreign Companies looking to Partner or Invest in India - FDI

  • We have a dedicated team which caters to providing back to back services for foreign companies partnering with Indian companies. It includes everything right from the stage of inception of the thought to ensuring successful implementation of the idea. Our services include the following:
    • Choosing the right legal vehicle
    • Identifying a local strategic partner for your Company
    • Initiating discussions and formalising them on a MoU
    • Selecting optimum tax structures so that Foreign as well as Indian company has to bear minimum tax burden
    • Getting approvals from RBI apropos the Foreign Direct Investment guidelines
    • Valuation report which is mandatorily required by Law
    • Reporting compliances subsequent to closure of the transaction. This is a very important legal requisite failing which leads to harsh consequences.

Indian Companies looking to Partner Abroad

Indian companies are becoming increasingly global. Both imports as well as exports are multiplying exponentially. Many JV opportunities have already come up and will continue to come up for the next couple of years. The most attractive sectors for foreign collaborations include the Ceramic industry, Sanitary-ware, Speciality Chemicals, FMCG, Engineering, Capital Goods, Automobiles, & Packaging. A foreign transaction requires application of various provisions prevailing within as well as outside India. It is important for a Chartered Accountant to have a combined understanding of the provisions of Income Tax Act, FEMA, FDI Guidelines and other RBI norms in order to ensure that advice given to a client is thoroughly compliant with provisions under each of the different Acts prevailing in India.

  • Our services include the following:
    • Setting up branch office overseas
    • Selecting the right Jurisdiction after considering Double Tax Avoidance Agreement between India and the host country.
    • Provisions of Withholding tax (TDS) for making commission other payments like FTS, Interest & Royalty
    • International Transfer Pricing issues
    • Joint Ventures with International Organisation

We conduct comprehensive financial due-diligence on behalf of Foreign Companies who are willing to acquire companies in India or form a joint-venture with them, including but not limited to the following:

  • Gain an understanding of significant patterns in the target business’ historical performance
  • Evaluate the quality and sustainability of the target business’ reported earnings and free cash flow
  • Analyze the quality of net assets being acquired
  • Understand historical working capital patterns and identify opportunities to mitigate working capital levels after closing
  • Assess the achievability of the target business’ financial forecasts
  • Address key tax and financial reporting risks in purchase agreement negotiations
  • Evaluate post-closing purchase price adjustments
  • Consider the effects of purchase accounting and valuation requirements in post-transaction financial models for recently acquired businesses

SME Listing is in-vogue in Gujarat. High-growth companies based out of Rajkot, Morbi, Ahmedabad, Gandhidham, & Surat, are increasingly keen to get listed on the SME platform before migrating to the main board.

We help you achieve the following:

  1. Identify the Pros & Cons of getting listed
  2. Understand the responsibilities of a company after getting listed. This is very important because you don’t want to be in a fix subsequent to listing
  3. Structuring the transaction from Income tax point of view. We are a firm of Chartered Accountants having special emphasis on Tax Structuring so we cater to your long-term IT needs while helping you to successfully get listed
  4. Once the decision of getting listed is made, start the process by first explaining the entire process to the promoters. Schedule a strict time-line
  5. Appointment of various agencies – lawyers, publishers, certifying authorities, etc.
  6. Draft the prospectus
  7. Initiate marketing campaign
  8. Invite applications and make allotment
  9. Transaction Closure

The process of raising funds through Venture Capital investors or Private Equity Funds is very intricate and complex. We have dedicated contacts with these investors within as well as outside India. We help you to work-out the entire process right from the day the seeds of thought are sown till the time the monies get deposited in your bank account.

Our typical work in a fundraising includes:

  • Analysing a business to understand its funding needs both today and in the foreseeable future, including understanding the requirements of growth
  • Presenting to shareholders and management the options available, comparing the costs and advantages of different debt and equity funding as well as the likely success of a fundraising
  • Working with management to develop a business plan, integrated financial model and presentation to potential debt or equity funders
  • Preparing a short-list of potential funders who we believe would be interested and securing initial terms sheets from them
  • Conducting meetings with Investors, generally in Mumbai, Delhi or an overseas location
  • Assisting in the negotiations of detailed terms and documentation, including where relevant debt covenants and shareholder agreement terms