Registered valuer

Respected Members,

As per Section 192(2) of Companies Act, 2013 (made applicable from Sept 2013), Valuation Report is to be taken for the value of asset acquired by Company in case of Non-cash transactioninvolving directors.

However, Section 247 (Valuation by Registered Valuers) of the Companies Act, 2013 is still not made applicable.

So, how shall the valuation be done by Registered Valuer registered as a Valuer under Chapter XVII of the Act ?

As per MCA in its circular No.8 dated 4.4.2014 (copy attached) has clarified that financial statements and documents required to be attached thereto, auditors report and Board's report in respect of financial years that commenced earlier than 1.4.2014 will be governed by Companies Act 1956 and not by Companies Act 2013.

Does it means that Valuation Report will not be required for transactions done upto 31-03-14 ?

This is the style of working of MCA. Sec.192 has been notified from 12.9.2013. MCA should have either not notified this Section till such time Sec.247 (registered valuers) is notified or should have issued Order u/s 470 for removal of difficulties. In case of Rule 12 of Companies (Prospectus and Allotment of Securities) Rules 2014 it has been specifically mentioned that till notification of Sec.247, valuation by a CA or SEBI registered merchant banker will be sufficient. However, no such provision has been made in case of Sec.192. Can MCA team not go through the Section before notifying the same?

I feel it will be better to get valuation done from some other valuer of property to be on safer side. MCA circular for applicability of CA 1956 for 2013-14 financials will not apply to Sec.192.

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Deepak Anand

P C Agrawal

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