Financial aspect of business represents a basis for successful business. Harmonization of deadlines, timely reaction,
analysis and structuring of property and projects, represent a cornerstone for successful growth and development of all business entities. The above-mentioned
services enable you to have a precise insight into availability of financial sources, possibilities of investment, successful observation of company’s financial
position, successful planning of business, restructuring of financial liabilities and similar.
Thanks to our services, financial part of your business will be secure and oriented toward development, which will enable you to achieve your business goals.
Financial consulting includes a series of services in the field of finance. It enables you to successfully acquire, invest and use the available sources of financing in order to increase company’s business performances.
We offer the following services within financial consulting to our clients:
1. Value assessment of property and capital
2. Value assessment of shares
3. Creation of investment studies
4. Creation of business plans
5. Financial analysis of business
6. Assessment of creditworthiness
7. Creation of studies on transfer pricing
8. Creation of program for financial restructuring and consolidation
9. Analysis and reports performed on client’s request
Value assessment of property i.e. capital, represents a necessary step in legal entity management’s enacting most major
decisions. Identification of carrying amount, after financial audit and analysis of balance sheet and income statement have been completed, represents a starting
point for each value assessment. Legal entities are observed as investment projects which should have positive business results in the future period. By
implementing developed economic and analytical models, the management can be pointed out to advantages and disadvantages, as well as possibility for short-term
and long-term increase of value of property and capital.
The price of shares does not represent just a simple level of price on financial market, but it also represents assessment
of business and efficiency in managing the legal entity which issued the shares. Generally, shares represent financial instruments which are usually issued in a
larger number, in proportion to the issuer’s capital. The price of shares practically reflects the quality, effectiveness and efficiency of Company management and
operation and represents a complex parameter. The Law on Capital Market and the Law on Business Companies have brought significant novelties into the existing
legal frame which regulated domestic capital market. In case of a joint-stock company which has shares that are not included in trade on a regulated market or
shares that are rarely traded, they are considered shares with low liquidity, and the minimum price for which they are offered for sale (i.e. minimum offered
price) is introduced as the highest value among market value, carrying amount or assessed value of shares. Value assessment is performed pursuant to provisions
of the above-mentioned laws.
Investment studies represent a certain evaluation of projects from the standpoint of financial feasibility, return deadline,
technical feasibility, human resources, scope of investment and other critical parameters, regardless whether it is enlargement of current business or entry into
a completely new investment. Investment study points out to market potentials of the planned activities and evaluates feasibility of the investment. It defines a
break-even point at which the planned activity makes financial sense, it tests whether the scope of activity is feasible from the standpoint of planned capacities
and whether there is a required demand on the market. Besides the above-mentioned, we get an answer to the question related to return on investment, as well as
whether it is justified to take the risk or there are safer placements which bring identical or better return on the invested capital. Identification of deadline
for return on investment is also highly significant for the purpose of identifying maturity of borrowed sources and evaluating sustainability of the project during
Business plans are made for the period from one to five years and they analyze the forthcoming venture. Business plan is a
type of elaborate which presents a certain business venture to potential funding entities.
Business plans are made when:
• a legal entity is looking for external partners (investors) for capital increase – attainment of financial means;
• in case of investment into a new plant or reconstruction of the old one;
• on the occasion of starting a new business, i.e. start of work;
• when a legal entity approaches reorganization and similar;
• when the Company is not able to independently finance a certain job (one-time export job, conquering a new market).
Business plans test feasibility of desired strategies for growth and development, i.e. it establishes critical points on the path to the required goal. A high-quality business plan also points out to the possibility of reaction in case that one of the unwanted scenarios really happens. In practice, projections answer the question regarding the level of additional funds which is necessary to achieve the desired goal. More precisely, they answer whether an additional unit of realization at the same time also means a certain amount of funds trapped in inventories, receivables and identify the potential sources of financing for the above-mentioned. Business plans simultaneously elaborate several scenarios in case that future operation deviates from actual or expected trends and signalize the final financial effect of the planned activity.
Financial analysis represents a detailed examination of the financial status and results of company’s operations through
analysis of return, property and financial position of the company and it is used for assessment of company’s position and enactment of appropriate decisions.
Financial analysis is performed based on financial statements: balance sheet, income statement, cash flow statement, statement of changes in equity, trial
balances, excerpts from business books and other documents.
Financial analysis presents efficiency and efficacy of financial policy as one of the basic elements in company financial management. On the other hand, results of financial analysis are significant for definition of adequate financial policy, which, as the constituent part of the company’s general business policy, represents a basis for company financial management. The information obtained from financial analysis represents a starting point for taking measures and actions directed towards improvement of creditworthiness and trends in company’s operations and development. Proposal of measures for improvement of operation may be created based on results of financial analysis.
Creditworthiness represents a qualitative and quantitative expression of a legal entity’s business capacity and safety of
its operations. Creditworthiness of a legal entity is a synthetized evaluation of financial stability, liquidity and solvency, equity structure, profitability,
risk regarding achievement of financial result, organization and rentability. Creditworthiness of a legal entity includes a set of material and formal
characteristics of the legal entity which make it a favorable and safe debtor, as well as its material safety, solvency, good reputation in business world,
good position on the market and the ability to adapt to changed business conditions.
Transactions between related parties are often called controlled transactions because they can be controlled, i.e.
influenced, as opposed to uncontrolled transactions which occur between mutually unconnected entities on the market. Transfer prices are prices of production
or sale of services to related parties or prices per which services between related parties are performed. Transfer prices (TP), beside sale of goods and services,
also include provision of mutual loans and credits. The basic presumption for occurrence of transfer prices is the existence of mutually related parties and
transactions between those parties. Thereat, the related parties may be residents in the same tax jurisdiction or belong to different tax jurisdictions
(two or more), natural persons or legal entities.
A significant characteristic of transfer prices is that they are in most cases immune to influence of market factors. They influence the financial position and the result, and, through that, influence the basis for taxation of legal entities. This is particularly emphasized in cross-border transactions between related entities which are residents of different tax jurisdictions.
Creation of the Study on Transfer Pricing is performed pursuant to:
• OECS’s Guidance on the Implementation of Transfer Pricing Rules for companies which work with domestic and international related parties,
• Transfer Pricing Rulebook and methods which are implemented in identification of prices of transactions between related parties based on the "at arm’s length" principle,
• and the Law on Corporate Income Tax in Republic of Serbia
Transfer Pricing Report is delivered with tax balance within the same deadline which is stipulated for submission of tax return (within 180 days from the expiry of tax period for legal entities and until March 15th of the following year for the entrepreneurs).
Financial restructuring and consolidation represent significant services, especially in times of instability and financial
crisis and they are usually demanded from a company which finds itself in financial problems as a consequence of decrease of economic activity, decrease of income
and earnings or excessive reliance of financial and other debts.
Financial restructuring and consolidation include significant changes in structure and amount of engaged assets in a company. It changes the grasp and scope of company’s operations, the amount and structure of costs, and can also influence the organizational structure of the company. There are different strategies for business restructuring of a company, but they are all grouped into two large groups: expansion strategies and disinvestment strategies.
Financial restructuring and consolidation are often necessary activities for company’s development or survival on the market. Restructuring and consolidation program is often a condition in loan restructuring with business banks and funds due to problems in repayment. For that purpose, the creditor requires the client to perform financial restructuring and consolidation in order to regularly fulfill its obligations. Under conditions of crisis and instability in the environment, the need for financial consolidation and business restructuring increases due to objective problems which the business entities encounter.