REQUIREMENT OF VALUATION
Where a valuation is required to be made in respect of any
• stocks,
• shares,
• debentures,
• securities or goodwill
• or any other assets (herein referred to as the assets)
• or net worth of a company or its liabilities under the provision of this Act,
|
Section |
Subject Matter |
|
62 |
Further issue of share capital |
|
192 |
Non-cash transactions involving directors. |
|
230 |
Power to compromise or make arrangements with creditors and members. |
|
232 |
Merger and amalgamation of companies |
|
236 |
Purchase of minority shareholding |
|
260 |
Powers and duties of company administrator |
|
281 |
Submission of report by Company Liquidator |
QUALIFICATION & EXPERIENCE
It shall be valued by a person having such qualifications and experience and registered as a valuer.
|
Qualification |
Experience |
|
post-graduate degree or post-graduate diploma, in the specified discipline, from a University or Institute established, recognized or incorporated by law in India |
at least three years of experience in the specified discipline |
|
a Bachelor's degree or equivalent, in the specified discipline, from a University or Institute established, recognized or incorporated by law in India |
at least five years of experience in the specified discipline thereafter |
|
membership of a professional institute |
with at least three years' experience after such membership and having qualification mentioned at clause (a) or (b) |
Specified discipline shall mean the specific discipline which is relevant for valuation of an asset class for which the registration as a valuer or recognition as a registered valuers organisation is sought under these rules.
(Qualifying education and experience and examination or training for various asset classes, is given in an indicative manner in Annexure-IV of these rules.)
|
Asset Class |
Eligibility |
Experience in specified discipline |
|
|
Qualifications |
|
|
Plant and Machinery |
|
(i) Five years |
|
(ii) Post Graduate on above courses |
(ii) Three years |
|
|
Land and Building |
(i) Graduate in Civil Engineering, Architecture, |
(i) Five years |
|
(ii) Post Graduate on above courses and also in valuation of land and building or Real Estate |
(ii) Three years |
|
|
Securities or Financial Assets |
((i) Member of institute of Chartered Accountants of |
Three years |
MANNER OF APPOINTMENT
He/She shall be appointed by the Audit Committee or by the Board
RESTRICTIONS
Will not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during a period of three years prior to his appointment as valuer or three years after the valuation of assets was conducted by him.
MANNER OF VALUATION
The registered valuer shall, while conducting a valuation, comply with the valuation standards as notified or modified under rule 18:
Provided that until the valuation standards are notified or modified by the Central Government, a valuer shall make valuations as per:
a) internationally accepted valuation standards
b) valuation standards adopted by any registered valuers organization
CONTENT OF REPORT
The valuer shall, in his report, state the following:-
• background information of the asset being valued;
• purpose of valuation and appointing authority;
• identity of the valuer and any other experts involved in the valuation;
• disclosure of valuer interest or conflict, if any;
• date of appointment, valuation date and date of report;
• inspections and/or investigations undertaken;
• nature and sources of the information used or relied upon;
• procedures adopted in carrying out the valuation and valuation standards followed;
• restrictions on use of the report, if any;
• major factors that were taken into account during the valuation;
• conclusion; and
• caveats, limitations and disclaimers to the extent they explain or elucidate the limitations faced by
• valuer, which shall not be for the purpose of limiting his responsibility for the valuation report.
Involvement of another valuer
The registered valuer may obtain inputs for his valuation report or get a separate valuation for an asset class conducted from another registered valuer, in which case he shall fully disclose the details of the inputs and the particulars etc. of the other registered valuer in his report and the liabilities against the resultant valuation, irrespective of the nature of inputs or valuation by the other registered valuer, shall remain of the first mentioned registered valuer.
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