Investment Appraisal for Investment in small company

Hi John Sir,

My Name is Usman Haider. I am your F9 student on opentution. I am working in a public accountants firm in Dubai. I want your great guidance for one of my client related issue. I will be very thankful to you if you can suggest me any procedure.

Problem:
One of my client has asked me to go to a limited liability company where he want to invest some money. There are already two or three partners there. They want him to induce some capital. He wants me to go over there and see the situation whether he should become a investor in that company.

My Plan:
I will go there and see the financial statements and apply ratios like liquidity and profitability and other ratio like working capital period and suggest my client on the basis of those. I will also see their future sales forecasts and ask them basis for that + Future years expected annual dividends and pay back period.

I will really appreciate if you give your opinion on my approach and any other suggestions.

Regards,
Usman Haider