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Our Bureau

Bangalore , Sept. 3

CONSULTING company Bizworth India has partnered with Intellectual Capital Sweden AB to launch intellectual capital assessment service. IC Rating measures intellectual capital, which is an intangible asset of a company.

Current valuation methods attribute about 75 per cent of the value of the company to intangible assets, while financial assets get 25 per cent of the value.

Compared this to heritage accounting, which credited about 80 per cent of the value to financial assets.

Measurement of intellectual capital is critical for companies on the threshold of an IPO or planning inorganic growth through M&A activities or embarking on self-improvement and so on.

IC Rating is arrived at after the assessment is done along three dimensions — efficiency, risk and renewal — in the areas of organisational structural capital (the company's processes and IP), human capital and relational structural capital (branding, customer relationship, and so on).

This is done through a series of interviews with the CEO and 20 to 25 top managers of the organisation.

According to Mr S.R. Gopalan, Founder-Chairman, Bizworth, IC Rating has already been used in 250 companies across the globe and is already working with two clients (e4e Labs and MindTree Consulting) in the country.

The company is being selective about its clientele, targeting companies in IT services, electronics manufacturing and pharma industries.

"Initially, we do not spread ourselves too thin. We are looking at companies in these sectors mainly in the southern region and Mumbai," Mr Gopalan said.

Though international prices for IC Rating ranges between $50,000 and $100,000, the company plans to price it substantially lower in the country, he added.

Mr Ashok Soota, Chairman, MindTree Consulting, who was present at the occasion, said that IC Rating will provide companies with a road map for action.

"The old systems of measurement of financial assets are no longer valid," he said.

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