Revaluation of Assets by a Company

Resolutions 2324 views 7 replies

Hi Evrybody.. Can any one tell me the compliance required under Companies Act 1956 before a company can revalue its Assets? In Other words whether any resolution or explanation is required before a company can go for revaluation of its assets? FURTHER Please tell me that whether a company can adopt the figure which is revalued by the bank for granting loan against such property??? Thanking you in advance... Please help

Replies (7)

As per my understanding no spefic resolution is required for the same.

 

However if revaluation is connected with some specific purpose than when you pass the desired rsolution for that specific purpose you may cover the process of revaluation in the resolution as an incidental activity to the main purpose.

 

Wait for other members opinion.

Thanks Ankur

But i just wana know whether any statutory compliance is required before a company can revalue its assets. As in a kind of checklist to be performed or any kind of information or forms to be filed with ROC or discussions in the board meetings etc required????


Thanks in advance

In my opinion, the board resolution must be passed for approval of Revaluation of Assets (because it is not the routine business event) & to COMPLY wid the provision of  Sec211(3C) i.e. compliance of Accounting Standards. The checklist for revalution of assets can be prepared according to the requirements of relevant AS.

as much as i know, there is no need to file any form or document to ROC.

Hi Evry Body.. In addition to my above query, Please tell me that whether a company can adopt the figure which is revalued by the bank for granting loan against such property???

that value can be adopted but the valuation report by registered valuer must be kept by company as evidence/base. Also consider the points that are required by Accounting Standards for revalution of assets.

Thanks Adarsh

That means the report of the valuer which is appointed by the bank is to be kept ?????

Yes, that valuation report is sufficient to prove the appropriate valuation because that valuer is independent from bank, he is just empanelled)


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