START-ALLIANCE LLC. PROVIDES BILLS VALUATION SERVICES IN MOSCOW AND OTHER RUSSIAN REGIONS.

Legal circulation of bills and promissory notes in Russia is based on the old Decree of the USSR Central Executive Committee and Soviet of People's Commissars No. 104/1341 dated August 7, 1937 "On Enactment of Bill of Exchange and Promissory Note Regulations ". All bills and promissory notes issued in this country must comply with the requirements stated in the above document.

To determining fair market value of a bill is to estimate the most probable price at which the bill will change hands in the competitive market, with both parties to the transaction acting reasonably and having knowledge of all relevant facts and with no extraordinary circumstances affecting the price of transaction. In Russia, valuation can be conducted to in order to value promissory notes or bills of exchange issued either by legal entities or individuals.

Bill is a financial instrument generating income for its holder. The principal methods of deriving income are earning interest or purchasing a bill at a price below its nominal value. Therefore, in the process of valuation the valuer analyses the earning capacity of the bill, situation in the financial market and assesses reliability of the issuer, payer and other persons liable on the bill. The major difficulty in bill valuation is to estimate the discount for the risk of default or delay in payment. To do so, the valuer should analyze the issuer’s financial situation and determines the final value with allowance for all risks on the basis of this analysis. Depending on the maturity date and reliability of the issuer, the discount may amount to 90 per cent of the nominal value of liability.

DOCUMENTS AND INFORMATION REQUIRED FOR BILL VALUATION:

• A copy of the bill and purchase agreement or other documents evidencing legal ownership of the bill.
• Copies of the issuer’s constituent documents (Memorandum and Articles of Association, Certificate of Registration).
• Issuer’s accounts for the last 3-5 years (or for a feasible number of prior periods): balance sheet and P&L.
• Fixed assets schedule.
• Property inventory lists.
• Information about all assets (real estate, inventories, shares of unrelated companies, bills, intangible assets, etc.).
• Analysis of accounts payable.
• Most recent auditor’s report (if audited).
• Analysis of accounts payable.
• Analysis of accounts receivable:
  • aging analysis;
  • by categories of receivables;
  • proportion of doubtful debts.
• Information about affiliated companies (if any) and their financial documents.

This list of documents is preliminary and may be reduced or expanded after the valuer’s detailed review of the valuation assignment, depending on the purpose of valuation.