# Financial Model Assumptions Review Services Published: 02 Nov 2026 Author: Treelife Practice area: Finance Tags: assumptions register for financial model, business plan assumptions review for investors, evidence grading for forecast assumptions, financial model assumptions review services, financial projections assumptions review India, independent review of financial model assumptions, key assumptions in a financial model India, statutory assumptions in financial projections 2026 Source: https://treelife.in/finance/financial-model-assumptions-review-services/ --- Blog Content Overview - [0.1 What is a financial model assumptions review?](#What_is_a_financial_model_assumptions_review) - [1 What does an assumptions review cover that a model review does not?](#What_does_an_assumptions_review_cover_that_a_model_review_does_not) - [2 How does a reviewer grade the evidence behind each assumption in the assumptions register?](#How_does_a_reviewer_grade_the_evidence_behind_each_assumption_in_the_assumptions_register) [2.1 What grade profile is normal at each funding stage?](#What_grade_profile_is_normal_at_each_funding_stage) - [3 How does an independent review of financial model assumptions test each driver?](#How_does_an_independent_review_of_financial_model_assumptions_test_each_driver) [3.0.1 Assumptions feeding a valuation? See how valuation works in India. Let’s Talk](#Assumptions_feeding_a_valuation_See_how_valuation_works_in_India_Let8217s_Talk) - [3.1 Which documents does each assumption have to agree with?](#Which_documents_does_each_assumption_have_to_agree_with) - [3.2 Does your forecast history count as evidence?](#Does_your_forecast_history_count_as_evidence) - [3.3 How does the review change when a lender commissions it?](#How_does_the_review_change_when_a_lender_commissions_it) - [3.4 Which bias patterns make a forecast read as a target?](#Which_bias_patterns_make_a_forecast_read_as_a_target) - [4 Which Indian rules put an expiry date on financial projection assumptions?](#Which_Indian_rules_put_an_expiry_date_on_financial_projection_assumptions) - [5 How does an assumptions review run from scoping to close-out?](#How_does_an_assumptions_review_run_from_scoping_to_close-out) - [6 How long does a financial model assumptions review take, and what moves the fee?](#How_long_does_a_financial_model_assumptions_review_take_and_what_moves_the_fee) - [7 What should you ask before buying financial model assumptions review services?](#What_should_you_ask_before_buying_financial_model_assumptions_review_services) - [8 Common mistakes that cost founders time and money](#Common_mistakes_that_cost_founders_time_and_money) - [9 Where to start with financial model assumptions review services](#Where_to_start_with_financial_model_assumptions_review_services) - [10 FAQs on financial model assumptions review services](#FAQs_on_financial_model_assumptions_review_services) [10.0.0.1 Regulatory references](#Regulatory_references) A model can calculate cleanly and still rest on a churn rate nobody can source, a collection period the contracts contradict or a tax rate taken from the wrong Act. Financial model assumptions review services test those inputs, not the spreadsheet that carries them. Indian projections now hold more dated inputs than before: the GST slab reset of 22/09/2025, the labour codes of 21/11/2025, the Income-tax Act, 2025 from 01/04/2026 and a repo rate raised to 5.50% on 07/10/2026. This guide covers what the review tests, how evidence is graded, what it costs in time and how to buy one. ### What is a financial model assumptions review? A financial model assumptions review is an independent test of the inputs that drive a forecast. Each driver is traced to evidence, compared with a historical or external reference, checked against signed documents and the Indian rules in force, then graded. The output is an assumptions register with a rating and a recommended value for every driver that fails, not a formula audit. ## What does an assumptions review cover that a model review does not? An assumptions review asks whether the inputs deserve belief, while a model review asks whether the arithmetic and links hold. Validation prepares a model for investor diligence and a build creates the workbook. The four overlap in practice, so the engagement letter should name the question the reviewer answers and the questions it leaves out. **Table 1: Four services, four different questions** ServiceQuestion it answersWhat the reviewer touchesTypical outputRead nextAssumptions reviewDo the inputs deserve belief?Drivers, evidence, benchmarks, statutory inputsGraded assumptions registerThis guideModel reviewDo the arithmetic and logic hold?Formulas, links, integrity checks, scenariosIssue log and written conclusion[Financial model review services in India](https://treelife.in/finance/financial-model-review-services-in-india/)Pre-data-room validationWill the model survive investor diligence?Versions, reconciliation to actuals, deck coherenceFix list and reconciliation notes[Financial model validation before a data room](https://treelife.in/finance/financial-model-validation-before-a-data-room/)Model buildCan we produce a working forecast?Structure, schedules, scenariosWorkbook and assumptions book[Financial modelling for startups](https://treelife.in/finance/financial-modeling-for-startups/) The split matters because buyers mix the labels. A model review that finds no formula errors can still hand an investor a forecast built on a retention figure with no source. An assumptions review that grades every driver can still miss a broken link between the balance sheet and cash. Most Series A forecasts need both. Run the assumptions review first if the structure is sound and your investor’s first question is about the numbers. Run the model review first if the workbook is hard to audit. The review, retrofit or rebuild choice is set out in our model review guide. An assumptions review is also not an assurance report. Where a lender or regulator wants a signed view on projections, the engagement to ask for is one under Standard on Assurance Engagements (SAE) 3400, The Examination of Prospective Financial Information, issued by the Institute of Chartered Accountants of India (ICAI). That standard centres on whether the assumptions give a reasonable basis for the projections, and management stays responsible for them. State at the outset if the engagement must be structured and signed as one. ## How does a reviewer grade the evidence behind each assumption in the assumptions register? Each assumption receives one of five grades by the strength of its evidence: contract or statute, own actuals, external reference, management judgement or no support. The grade, not the value, drives the review. A forecast that rests mostly on grades four and five is a plan, however well the spreadsheet is built. The grades are a Treelife working convention, not a published standard. Their use is to decide where a reviewer spends time. **Table 2: Evidence grades and what the reviewer does with each** GradeEvidenceExampleReviewer action1Contract, statute or notificationGST rate on the service, notice period in a master services agreementConfirm the clause or rule, its date and whether it applies to the line2Own actuals, 12 months or moreTrailing collection days from the receivables ledgerRecompute from source, test for seasonality and one-offs3External referenceComparable company margin, published wage survey, lender term sheetCheck comparability, date and source quality4Management judgementWin rate for a channel launched last quarterAsk for the basis, set a range, test sensitivity5No supportRound number with no derivationReject, or replace with a recommended value Grading alone does not rank the work. Rank by value at risk, which is the change in [year-three EBITDA](https://treelife.in/finance/understanding-ebitda-definition-formula-calculation/), closing cash or equity value when an assumption moves from your figure to the reviewer’s recommended figure. A handful of drivers usually carry most of that movement, and they are rarely the ones that were debated longest in the pitch preparation. Add one summary figure: the share of year-three revenue that depends on grade four and five drivers. Investors rarely ask for it in those words, but an analyst who rebuilds revenue from your stated drivers is computing the same thing. A founder who has already computed it can say where the evidence stops before anyone asks. The ranking method is a tornado. Move one driver at a time from your figure to the reviewer’s figure, record the change in year-two EBITDA and sort by size. The table below uses a simple illustrative model for a D2C brand with ₹12.0 crore of year-two revenue, a 58% gross margin, marketing at 25% of revenue and ₹3.36 crore of other operating cost, which gives ₹60 lakh of EBITDA. **Table 3: Illustrative tornado on year-two EBITDA (₹ lakh)** DriverFounder figureReviewer figureEffect on EBITDAGross margin58%55%Lower by 36.0Marketing cost ratio25% of revenue28% of revenueLower by 36.0Revenue₹12.0 crore₹11.0 croreLower by 33.0Employer provident fund, 40 employees at the ceiling₹1,800 a month each₹3,000 a month eachLower by 5.8All four togetherEBITDA of ₹60.0 lakhEBITDA of minus ₹44.8 lakhLower by 104.8 Revenue growth, the driver most debated in pitch preparation, ranks third. Gross margin and the marketing ratio each cost more, and the statutory payroll item is small in rupees but certain. A reviewer who flexed only revenue would have missed the two largest swings. The four together cost less than the sum of the four, because their effects overlap. They turn ₹60 lakh of EBITDA into a loss of about ₹44.8 lakh, which is the downside case the investor will build unprompted. The figures are illustrative and follow the simple model stated above. A usable assumptions register carries, for every driver: - **Definition:** name, unit and period basis, such as monthly or annual, percentage or absolute - **Values:** the founder figure and the reviewer range - **Evidence:** grade, source document and its date - **Value at risk:** effect on EBITDA and closing cash if the value moves to the reviewer figure - **Ownership:** the named owner and the next review date The register doubles as the assumptions book that investors and valuers ask for, so the founder keeps one document, not two. ### What grade profile is normal at each funding stage? A normal grade profile moves from judgement towards documents as the company ages. Pre-seed forecasts rest almost entirely on grades four and five, which is acceptable if the forecast says so. By Series B, own actuals should carry most drivers, and a grade five assumption is a finding. The profile below is a Treelife working convention. **Table 4: Expected grade profile and review focus by stage (Treelife working convention)** StageTypical grade mixReview focusPre-seedMostly grades 4 and 5, few actualsRanges, the learning milestone, pilots weighted by stated probabilitySeedGrade 2 for first cohorts, grade 4 for scale-up driversDerivation of first-year revenue and runway to the next milestoneSeries AGrades 1 and 2 for cost and collections, grades 3 and 4 for growth and retention at scaleCohort retention, acquisition cost by channel, payroll loadingSeries B and laterGrade 2 dominates, grade 4 limited to new products or geographiesBack-test of past forecasts, segment margins, statutory dating, valuation inputs ## How does an independent review of financial model assumptions test each driver? The reviewer tests every material driver against three references: your own history, an external comparison and the signed documents. A driver passes when all three point the same way or the gap has a stated cause. Revenue, cost, [working capital](https://treelife.in/finance/working-capital-management-for-startups/), capex, macro, funding and valuation drivers each have a typical failure signature. **Table 5: Driver families, the test applied and the usual failure** Driver familyTest the reviewer runsReference usedFailure signatureRevenue growth and priceRebuild year-one revenue from drivers, then compare first-year growth with trailing monthly growthMIS, price list, signed contractsA growth step with no named hire, channel or launchRetention and churnCohort retention from billing data, not blended churnSubscription or order ledgerChurn held flat while customer mix shiftsCustomer acquisition costChannel spend divided by customers acquired, allowing for lagMarketing ledger, CRMBlended cost that falls as spend scalesGross marginUnit cost build against the margin pathVendor invoices, delivery cost recordsMargin improving with no cost event behind itHeadcount and payrollPositions, joining dates and statutory loading against the hiring planPayroll register, offer lettersCost per head built before the wage rules changedWorking capitalImplied collection and payable days against contract terms and ledger ageingReceivables ageing, contractsCash arriving in the month revenue is bookedAccounting treatmentRevenue timing and share-based payment cost against the framework the company reports underAudited accounts, Ind AS 115 and Ind AS 102 where Ind AS appliesRevenue booked on cash receipt, or no option cost despite live grantsCapex and depreciationCapex timing against capacity added, useful life against accounting policyVendor quotes, fixed asset registerCapacity grows with no capex lineFunding and interestRate, tenor and draw dates against the sanction letter or term sheetTerm sheet, sanction letterInterest at a rate that appears in no documentMacro inputsInflation, exchange rate and interest path against a dated published forecast and the company’s real exposure to eachRBI Monetary Policy Report, forward rates, supplier contractsOne flat inflation rate applied to wages, rent and price alikeValuation inputsDiscount rate build-up, terminal growth and diluted share count against the stated methodMarket data, cap tableTerminal value carrying most of the equity value Two tests sit outside the table. The first is range: the reviewer sets a low, central and high value for each material driver and checks that the central case sits inside the evidence, not at its edge. The second is correlation: drivers that move together are flexed together, which is how a credible downside case is built. The case mechanics are in our guide on [scenario and sensitivity model development](https://treelife.in/finance/scenario-and-sensitivity-model-development/). How each family is built sits in separate guides: [revenue forecast model development](https://treelife.in/finance/revenue-forecast-model-development/), [SaaS CAC LTV churn model development](https://treelife.in/finance/saas-cac-ltv-churn-model-development/), [hiring and payroll projection model in India](https://treelife.in/finance/hiring-and-payroll-projection-model-in-india/) and [working capital and cash flow model preparation](https://treelife.in/finance/working-capital-and-cash-flow-model-preparation/). This guide covers how those inputs are challenged once built. #### Assumptions feeding a valuation? See how valuation works in India. [Let’s Talk](javascript:void(0)) [ ](https://calendly.com/consulttreelife/20min?utm_source=blogbannertreelife) ### Which documents does each assumption have to agree with? Every assumption that a signed document governs must agree with that document, and the reviewer checks this line by line. A model can be internally consistent and still contradict the term sheet, the sanction letter or a customer contract. These are grade one evidence, so they settle a question faster than any benchmark. **Table 6: Documents, the assumptions they govern and the check** DocumentAssumptions it governsCheckTerm sheet and shareholders’ agreementRound size, pre-money value, ESOP pool top-up, liquidation preference, tranche conditionsCap table, dilution and use of funds reflect the signed or near-final termsBank sanction letter or debt term sheetInterest rate, tenor, moratorium, repayment profile, covenantsInterest and debt service follow the letter, not a rate typed into the modelCustomer contracts and rate cardsPrice, term, renewal, payment terms, discountsRevenue per unit, churn and collection days match the contracts in forceVendor and lease agreementsMinimum commitments, price escalators, lock-in periodsCost of goods and rent follow the escalation clausesEmployment letters and ESOP planNotice period, variable pay, pool size, vestingPayroll, gratuity and option cost follow the documents and the 2026 wage rules ### Does your forecast history count as evidence? Yes, as grade two evidence about the forecaster. Comparing [past budgets with actuals](https://treelife.in/finance/budget-vs-actual-variance-reporting-services/) shows whether the team over or under-estimates, by how much and on which lines. A company that missed its last four budgets on revenue by a consistent margin has told the reviewer how to adjust the next one, whatever the new plan says. The reviewer runs three measures: - **Error by line:** budget against actual for revenue, gross margin, marketing and payroll, by quarter. - **Direction of bias:** whether the misses lean the same way across periods. - **Error by horizon:** whether accuracy falls as the forecast period lengthens, which sets how far out a point estimate is accepted. Where no budget history exists, the reviewer says so and widens the ranges. ### How does the review change when a lender commissions it? A lender cares about debt service under stress, so the review shifts weight to funding, working capital and compound downside, and growth upside matters less. The reviewer checks interest, tenor and draw dates against the sanction letter and builds one scenario in which revenue, collections and cost miss together, because a lender is underwriting survival under stress, not the base case. Rules for project finance exposures are covered in the model review guide. ### Which bias patterns make a forecast read as a target? Five patterns recur in forecasts that read as targets rather than estimates. A reviewer looks for them before testing any single driver, because they show how the numbers were chosen. Finding one does not make the model wrong. It tells the reviewer where to ask for the derivation first. - **Round numbers:** a 30% growth rate, a ₹5 lakh deal size or a 12 month payback with no derivation behind it. - **One-way drift:** every driver sits at the favourable end of its range, so no assumption offsets another. - **Frozen drivers:** growth, margin and churn hold one value for five years in a business that is changing. - **Break-even inside the runway:** the model turns cash positive in month 22 of a 24 month runway, a placement that suggests the plan was fitted to the cash available. - **Steps at the round:** growth rates jump in the month new capital arrives, with no hire, channel or launch behind the jump. ## Which Indian rules put an expiry date on financial projection assumptions? Six inputs carry a statutory date: GST rates, payroll loading, the income tax rate, the startup tax holiday, borrowing cost and share valuation rules. Each changed between 22/09/2025 and 01/11/2026. A model locked before those dates and never refreshed holds at least one stale input, so the review records an as-of date for every statutory driver. **Table 7: Statutory assumptions with a date, as of 02/11/2026** InputRule and effective dateWhat the reviewer checksModel line affectedIndirect tax on priceNotification No. 9/2025-Central Tax (Rate) dated 17/09/2025, effective 22/09/2025: the 12% and 28% slabs were removed and specified items moved to 5%, 18% or 40%; the 57th GST Council meeting on 08/10/2026 left the slabs unchanged, and notifications dated 27/10/2026 changed a short list of items from 01/11/2026 ([CBIC](https://cbic.gov.in))Price is net of the rate in force on the supply date for the HSN or SAC in use, since special rates, exemptions and the November 2026 item changes apply by itemRevenue net of tax, input tax credit, margin on pass-through linesPayroll costFour labour codes in force from 21/11/2025, with a uniform wage definition and gratuity for fixed-term employees after one year, and Central Rules under the codes notified on 08/05/2026; EPF wage ceiling raised from ₹15,000 to ₹25,000 from 17/09/2026 by S.O. 5109(E) ([Ministry of Labour and Employment](https://labour.gov.in)); ESI ceiling unchanged at ₹21,000Cost per position rebuilt on the wage definition and the dated ceilingEmployer cost, gratuity provision, hiring plan cashIncome tax rateIncome-tax Act, 2025 from 01/04/2026 (tax year 2026-27): Section 200 concessional regime at a 22% base rate, which is 25.17% with 10% surcharge and 4% cess; the Finance Act, 2026 left company rates unchanged but cut MAT to 14% of book profit and made it a final tax in the regular regime ([Income Tax Department](https://www.incometaxindia.gov.in))Old section references are remapped, the company has actually opted for the regime used, and a regular-regime company carries MAT as a costTax expense and post-tax cashStartup tax holidaySection 140, Income-tax Act, 2025: 100% deduction on eligible profits for three consecutive tax years out of ten, for a company or LLP incorporated on or after 01/04/2016 and before 01/04/2030, with an Inter-Ministerial Board certificate and, after the Finance Act, 2026, turnover within ₹300 crore ([Startup India](https://www.startupindia.gov.in))Whether the certificate is held, and that the model does not pair the holiday with the Section 200 rate, which excludes it; if no certificate, the holiday sits in an upside caseTax expense in the first profit yearsBorrowing costRBI policy repo rate raised by 25 basis points to 5.50% on 07/10/2026, with the stance changed to calibrated tightening ([Reserve Bank of India](https://www.rbi.org.in))Floating-rate lines reprice, and any discount rate built before that date is refreshedInterest, cash, cost of debt in the discount rateShare valuationRule 57, Income-tax Rules, 2026, from 01/04/2026, successor to Rule 11UA of the 1962 Rules; Rule 21, FEM (Non-debt Instruments) Rules, 2019, for pricing to non-residents, which stay in force while the draft FEM (Foreign Investment) Rules, 2026 released on 21/07/2026 await notificationThe valuation purpose maps to a provision in force and the cash flows given to the valuer match the frozen registerValuation sheet, cap table, pricing certificate The payroll row usually carries the largest rupee effect. For an employee whose contribution is capped at the ceiling, the 12% provident fund contribution moves from ₹1,800 to ₹3,000 a month. The wage definition and gratuity changes are set out in our note on the [new labour law in India](https://treelife.in/legal/new-labour-law-in-india-2025/), and the cost build is in the hiring and payroll projection guide. The pricing rules behind the last row are covered in full in the model review guide, so this article does not repeat them. Treat each statutory input as perishable. Carry an as-of date and a review trigger beside it. Useful triggers are the Union Budget, GST Council meetings, labour notifications from the Ministry of Labour and Employment and each Monetary Policy Committee decision. A model without those dates cannot show an investor that it is current. ## How does an assumptions review run from scoping to close-out? An assumptions review runs in seven steps, from agreeing who will rely on the result to logging the final changes. Most delay sits in step two, because evidence arrives late or incomplete. Naming one point of contact for documents on day one saves more time than any other measure. - **Scope and reliance:** agree the audience, the decision, the model version and who may rely on the report. - **Document request:** send the pack listed after Table 8, with one named contact for queries. - **Evidence grading:** every material driver is traced to source and graded, and statutory inputs are dated against Table 7. - **Reference case:** the reviewer builds an independent view of the main drivers from history, benchmarks and documents, then measures the gap to your figures. A gap that leans one way across drivers is a bias finding. - **Challenge session:** the reviewer walks the model owner and the commercial, operations and finance leads through failed and low-grade drivers, and responses are logged. - **Report:** the register, value-at-risk ranking, recommended ranges, reference case gap, statutory dating, management response log and limitations. - **Iteration and close-out:** each revised model returns with a change log, the reviewer re-grades only changed rows and residual risk is recorded. Step four is where sector experience shows. A reviewer who has not seen your model type will benchmark against the wrong peers, so ask which similar models the team has reviewed. ## How long does a financial model assumptions review take, and what moves the fee? A register scan takes about two to four business days and an evidence-tested review six to ten, once documents are in hand (Treelife planning estimates, not quotes). Sessions with management add time, and missing documents add more. The fee follows the number of material drivers, the share needing outside benchmarks and the iterations agreed, not the number of sheets. **Table 8: Review depth, effort and deliverable (planning estimates)** DepthScopePlanning estimateDeliverableRegister scanAssumptions tab only, desk checks against documents supplied2 to 4 business daysGraded register and the ten largest risksEvidence-tested reviewEvery material driver traced to source, benchmark and statutory check6 to 10 business daysGraded register, recommended ranges, value-at-risk rankingReview with management sessionsEvidence-tested review plus working sessions with sales, product and finance leads10 to 14 business daysRegister, ranges and a log of management responsesAssurance engagementSigned report under SAE 3400, scope agreed with the party relying on itSet in the engagement letterSigned report in the agreed form Buy the register scan first if you are unsure. It costs least, and it shows whether a deeper review is justified. Most [Series A](https://treelife.in/startups/the-series-a-fundraising-playbook/) companies preparing a business plan for an institutional investor need the evidence-tested depth. The assurance engagement is worth its cost only when a lender or regulator asks for it in writing. Fee drivers are: - Number of material drivers, usually fewer than the number of rows on the assumptions tab - Share of drivers that need outside benchmarks - Age and completeness of the evidence supplied - Management sessions and the number of iterations - Whether a third party will rely on the report We have not published a rupee rate card, because fees move with scope. To get comparable quotes, send the same pack to each provider: the assumptions book, MIS for the last 12 to 24 months, receivables and payables ageing, the payroll register and hiring plan, signed contracts and rate cards, the pipeline report, the term sheet or sanction letter, the cap table and ESOP register, and any valuation report. ## What should you ask before buying financial model assumptions review services? Ask whether the reviewer grades evidence, sources benchmarks in writing, recommends values or only flags them, and has had any hand in building the model. A provider that cannot answer these in the engagement letter is selling a model review under another name. - Do you grade each assumption by evidence, and can I see a sample register with client details removed? - Which benchmark sources will you use, and will each be dated and cited in the report? - Do you recommend a value or range for failed assumptions, or only flag them? - Who tests the statutory inputs (GST, payroll, income tax, FEMA and valuation rules), and is that in scope? - Did anyone on your team build the model, advise on the valuation or sit on the deal? - Is the output an advisory register or an assurance report under SAE 3400, and who may rely on it? - Which models in my sector have you reviewed, and who on your team would lead this one? Independence decides the value of the answers. If one firm built the forecast, a different team should grade it. That holds for the valuer too: a valuation firm that prepared the DCF is poorly placed to certify the assumptions underneath it. ## Common mistakes that cost founders time and money Five mistakes account for most wasted assumptions reviews. Each has a cheaper route. - **Commissioning the review after the investor has anchored.** Teams wait for the [term sheet](https://treelife.in/services/investment-support/) before asking for independent comfort. Run the review once the base case is stable and before the pitch narrative is final. A corrected number before the first meeting costs a conversation, while the same correction after signing can reopen price. - **Sending the model without the evidence.** The assumptions tab looks complete, so the source documents stay in a drive. Without documents every driver defaults to grade four, whatever the truth. Index grade one and two evidence to the register row before the review starts. - **Flexing one driver at a time.** Single-variable sensitivity is quick to run. Churn, expansion revenue and referral-led acquisition tend to move together, so flex them as a set. A downside case that cuts revenue and leaves every cost at base is a pessimistic forecast, not a stress test. - **Letting statutory inputs go stale.** A model locked at pitch date keeps the rules of that date. For a company that contributes on the [statutory wage ceiling](https://treelife.in/compliance/pf-compliance-in-india/) and employs 30 people at or above it, the change from ₹1,800 to ₹3,000 a month adds ₹4.32 lakh a year (30 employees at ₹1,200 more a month for 12 months). Date every statutory input against Table 7. - **Giving the valuer a different version from the reviewer.** The valuer builds a DCF on management’s assumptions, and pricing to a non-resident rests on that report under Rule 21 of the FEM (Non-debt Instruments) Rules, 2019. A contravention can attract a penalty of up to three times the sum involved where the amount is quantifiable (Section 13(1), Foreign Exchange Management Act, 1999). Freeze one numbered register and give the same version to both. ## Where to start with financial model assumptions review services The best financial model assumptions review services share three traits: independence from the builder, a written evidence grade for every driver and a statutory check dated to the transaction. Before you request a quote, do four things. - Export the assumptions tab as a register with one row per driver, showing unit, value and source. - Grade each row from one to five yourself, then compute the share of year-three revenue resting on grades four and five. - Date every statutory input against Table 7 and refresh any that predates its change. - Ask two providers to quote the same depth from Table 8, and put the seven questions above to both. For the surrounding work, read the model review guide for tiers and standards, the pre-data-room validation guide for investor readiness, and [investor pitch financial projections preparation](https://treelife.in/finance/investor-pitch-financial-projections-preparation/) for the pitch pack. ## FAQs on financial model assumptions review services **Q: What is the difference between an assumptions review and a sensitivity analysis?** A: A sensitivity analysis shows how outputs move when an input changes. An assumptions review tests whether the input deserves belief and sets the range the sensitivity should use. The two work together, and the range from the review is what makes the sensitivity table meaningful. **Q: Which tax rate should a startup model assume for tax year 2026-27?** A: A company that opts for the concessional regime under Section 200 of the Income-tax Act, 2025 models 25.17%, which is the 22% base rate with 10% surcharge and 4% cess. A company that has not opted uses the rate for its turnover band in the Finance Act, 2026, which the reviewer confirms on the Income Tax Department portal. A company in the regular regime also faces Minimum Alternate Tax at 14% of book profit from tax year 2026-27, now a final tax with no new credit (Finance Act, 2026). Loss carry-forward decides when any of these first applies. **Q: Can I assume the startup tax holiday in my base case?** A: Only if you hold the Inter-Ministerial Board certificate. Section 140 of the Income-tax Act, 2025 allows a 100% deduction on eligible profits for three consecutive tax years out of ten, for a company or LLP incorporated on or after 01/04/2016 and before 01/04/2030, with the turnover ceiling raised to ₹300 crore by the Finance Act, 2026. DPIIT recognition alone does not give the deduction, and the Section 200 concessional rate excludes it, so choose one and show the holiday as an upside case until the certificate arrives. **Q: How much do financial model assumptions review services cost?** A: Fees depend on scope, so no rate card applies. They follow the number of material drivers, the share needing external benchmarks, the evidence supplied, management sessions and the iterations agreed. Ask two providers to quote the same depth and compare the iteration count before the total. **Q: How long does an assumptions review take end to end?** A: A register scan takes about two to four business days and an evidence-tested review six to ten, plus time for management sessions (planning estimates, see Table 8). Document collection usually decides the date. Book the review before the pitch narrative is final, not in the week of the term sheet. **Q: What documents does a reviewer need?** A: Send the assumptions book, MIS for 12 to 24 months, receivables and payables ageing, the payroll register and hiring plan, signed contracts, the pipeline report, the term sheet or sanction letter, the cap table and ESOP register. Any driver without a source document drops to grade four. A short index linking each document to its register row saves the most time. **Q: Does a foreign investor change the review?** A: Yes, because pricing to a non-resident cannot fall below fair value under Rule 21 of the FEM (Non-debt Instruments) Rules, 2019, certified by a chartered accountant, a SEBI-registered merchant banker or a practising cost accountant. The growth, margin and discount rate assumptions in the model feed that valuation. The draft FEM (Foreign Investment) Rules, 2026 released on 21/07/2026 would replace these rules but are not in force, so the reviewer works to the rules applicable on the transaction date. The reviewer also checks the currency assumption and the date it was set. **Q: How do co-founders or a promoter group divide ownership of the assumptions?** A: Name one owner for each driver family and one owner for the register. The commercial lead owns price, conversion and pipeline, the operations lead owns delivery cost, and the finance lead owns the register and its version log. Where a holding company and an operating company both feed the model, give intercompany flows their own register rows. **Q: What happens if the review shows the forecast is too aggressive after the term sheet is signed?** A: Re-base the forecast before definitive documents are signed and share the change with the investor in writing. A corrected base case with a change log costs a conversation. An investor who finds the gap after signing can reopen price or tie tranches to the original numbers. **Q: Can an investor commission an assumptions review of my plan?** A: Yes, and it is common before closing. Agree scope, file access, who owns the report and who may rely on it before the work starts. A company-side review done earlier shortens the investor’s own issue list. **Q: How does a reviewer treat ESOP pool and NRI founder assumptions?** A: For ESOP, the reviewer reconciles pool size, grant timing and vesting to the plan and the cap table, since they drive both headcount cost and dilution. Where the company applies Ind AS 102, the share-based payment expense must also appear. For an NRI founder, funds from abroad and transfers between residents and non-residents fall under the pricing rules in Rule 21, so the model carries the conversion date used. **Q: Does a review certify that the forecast will be met?** A: No. The review tests the support for each input as of a stated date. Projections are opinions, but historical revenue, customer counts and signed contracts in a pitch are statements of fact, and a false statement made to induce an investment can make the contract voidable at the investor’s option (Sections 17, 18 and 19, Indian Contract Act, 1872). **Q: Can AI-drafted assumptions be reviewed the same way?** A: Yes, with the same grading. An assumption drafted by a tool and carrying no source is grade five until a source is attached. Keep a log of where each input came from, since the builder may not be able to explain what the tool produced. **Q: What is a reviewer’s reference case and why does it matter?** A: It is the reviewer’s own independent view of the main drivers, built from your history, outside benchmarks and signed documents. The gap between it and your figures measures bias. A gap that leans the same way on most drivers matters more than any single large difference. **Q: What does a review do for a company with no budget history?** A: It widens the ranges and leans on documents, benchmarks and short actuals instead of back-testing. Pre-seed forecasts are expected to sit mostly at grades four and five. The review value is in saying so plainly and setting a range for each driver, so no estimate is presented as data. --- ##### **Regulatory references** - Income-tax Act, 2025, in force from 01/04/2026: Section 140 (eligible start-up deduction) and Section 200 (concessional regime for domestic companies) - Finance Act, 2026 (MAT rate and credit under Section 206, Income-tax Act, 2025; Section 140 turnover ceiling) - Income-tax Rules, 2026, Rule 57 (fair market value), effective 01/04/2026, replacing Rule 11UA of the Income-tax Rules, 1962 - Notification No. 9/2025-Central Tax (Rate) dated 17/09/2025, effective 22/09/2025; 57th GST Council meeting of 08/10/2026 and rate notifications dated 27/10/2026, effective 01/11/2026 - Code on Wages, 2019 and Code on Social Security, 2020, in force from 21/11/2025; Code on Wages (Central) Rules, 2026 and Social Security (Central) Rules, 2026 notified on 08/05/2026 - Ministry of Labour and Employment Notification S.O. 5109(E) dated 17/09/2026, EPF wage ceiling of ₹25,000 per month - Reserve Bank of India, Monetary Policy Committee resolution dated 07/10/2026, policy repo rate 5.50% ### Related posts: - [What Is An Income Statement?](https://treelife.in/finance/what-is-an-income-statement/) - [The Rise & Fall Of Indian IPO’s](https://treelife.in/finance/the-rise-fall-of-indian-ipo/) - [Tyke’s CSOPs: Bridging Startups with Investors or Crossing Regulatory Boundaries?](https://treelife.in/finance/tykes-csops-bridging-startups-with-investors-or-crossing-regulatory-boundaries/) - [Revised Valuation Rules for Angel Tax](https://treelife.in/finance/revised-valuation-rules-for-angel-tax/) --- This is informational content from Treelife. 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