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IBBI Registered Valuer
SEBI Category-I Merchant Banker
Chartered Accountants
Corporate Guarantee

Determine the Fair Value of Corporate Guarantees for Regulatory Compliance and Financial Reporting

Corporate guarantees are commonly provided by parent companies, promoters, or group entities to support the borrowings and financial obligations of related parties. Determining the fair value of such guarantees is essential for transfer pricing, financial reporting, taxation, regulatory compliance, and inter-company transactions. Our experts provide independent and reliable corporate guarantee valuation services in accordance with the Income-tax Act, applicable accounting standards, OECD Transfer Pricing Guidelines, and other relevant regulatory requirements. Our comprehensive valuation reports help businesses establish arm’s length guarantee fees, support regulatory compliance, and make informed financial and strategic decisions.

What is Corporate Guarantee Valuation?

Corporate Guarantee Valuation is the process of determining the economic value of a guarantee provided by one entity on behalf of another entity. The valuation assesses the financial benefit received by the borrower, the credit risk assumed by the guarantor, and the arm's length guarantee fee applicable to the transaction. A professionally prepared valuation helps organizations comply with transfer pricing regulations, accounting standards, FEMA requirements, and other applicable regulatory frameworks while supporting fair and defensible inter-company arrangements.
  • Transfer Pricing Compliance
  • International Transactions Between Related Parties
  • Inter-Company Financing Arrangements
  • Cross-Border Transactions
  • FEMA and Regulatory Compliance

What Decision are you making?

01

Transfer Pricing Compliance

Supports compliance with transfer pricing regulations by determining arm's length values for transactions between related parties.

02

International Transactions Between Related Parties

Assists in valuing cross-border transactions between associated enterprises to ensure they are conducted on arm's length terms.

03

Inter-Company Financing Arrangements

Helps determine arm's length pricing for loans, guarantees, and other financial arrangements between group entities.

04

Cross-Border Transactions

Provides independent valuation support for international transactions involving tangible, intangible, or financial assets.

05

FEMA and Regulatory Compliance

Supports compliance with FEMA, RBI, and other regulatory requirements where valuation is required for cross-border transactions.

06

Financial Reporting Requirements

Provides valuation inputs for financial reporting, audit, and disclosure requirements in accordance with applicable accounting standards.

Our Valuation Methods, Simplified

Yield Approach

Determines the value of the guarantee by measuring the reduction in borrowing cost resulting from the credit enhancement provided by the guarantor.

Comparable Uncontrolled Price (CUP) Method

Determines the arm's length guarantee commission by comparing similar guarantee transactions between unrelated parties.

Credit Rating Approach

Estimates the value of the guarantee by comparing the borrower's credit profile with and without the corporate guarantee.

Expected Loss Approach

Determines the guarantee value by assessing the expected credit risk assumed by the guarantor and the potential financial exposure arising from the guarantee.

Ready to establish the
defensible, precise value
of your business?

India's most trusted SEBI Cat-I Merchant Banker & IBBI Registered Valuer Entity. 3000+ valuations delivered. Certified reports in 7 business days.

SEBI Cat-I IBBI Registered 20+ Years 50+ Industries