Valuation Services

The valuation, revaluation, and evaluation are separate exercises undertaken by a corporate in a given span of time. A valuation can be in respect of the shares and the property and all assets, tangible and intangible, movable and immovable while revaluation is reassessing the value of those assets. Evaluation is generally for the human resource including Board members in terms of their performance & effectiveness. A valuation can be required during the fundraising activity (a requirement of the banker of a financial institution) or it can be at the time of doing any corporate action.

The concept of registered valuer has been introduced under section 247 of the Companies Act, 2013 which says that:

“Where a valuation is required to be made in respect of any property, 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, it shall be valued by a person having such qualifications and experience and registered as a valuer in such manner, on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company.”

“Where a valuation is required to be made in respect of any property, 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, it shall be valued by a person having such qualifications and experience and registered as a valuer in such manner, on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company.”

The said section also fixes certain obligations on registered valuer while performing his duties:

(a) make an impartial, true, and fair valuation of any assets which may be required to be valued;
(b) exercise due diligence while performing the functions as a valuer;
(c) make the valuation in accordance with such rules as may be prescribed; and
(d) not undertake valuation of any assets in which he has a direct or indirect interest or becomes so interested at any time during or after the valuation of assets.

A valuation can be at the time of further issue of capital under section 62 of the companies act, 2013 where the allotment of shares is done in lieu of consideration other than cash than the price of such shares is to be determined by the valuation report of a registered valuer subject to such conditions as may be prescribed. Also at the time of Merger and amalgamation, the purchase of a minority shareholder by the acquirer of declaration of solvency may require the valuation report from a registered valuer.
We assist in doing the valuations and revaluations by following the procedures provided under law in a fair, impartial, and true and fair manner.