REQUIREMENT OF VALUATION
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 following provision of Companies Act, 2013–
Section 62- Further issue of share capital
Section 192- Non-cash transactions involving directors.
Section 230- Power to compromise or make arrangements with creditors and members.
Section 232- Merger and amalgamation of companies
Section 236- Purchase of minority shareholding
Section 260- Powers and duties of company administrator
Section 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
|post-graduate degree or post-graduate diploma, in the specified discipline, from a University or Institute established, recognised 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, recognised 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|
|Plant and Machinery||(i) Graduate in Mechanical, Electrical, Electronic and Communication, Electronic and Instrumentation, Production, Chemical, Textiles, Leather, Metallurgy, or Aeronautical Engineering, or Graduate in Valuation of Plant and Machinery or equivalent;||(i) Five years|
|(ii) Post Graduate on above courses||(ii) Three years|
|Land and Building||(i) Graduate in Civil Engineering, Architecture, Town Planning or equivalent;||(i) Five years|
|(ii) Post Graduate on above courses and also in valuation of land and building or Real Estate Valuation (a two-year full time post-graduation course).||(ii) Three years|
|Securities or Financial Assets||(i) Member of institute of Chartered Accountants of India, Member of Institute of Company Secretaries of India, Member of the Institute of Cost Accountants of India, Master of Business Administration or Post Graduate Diploma in Business Management (specialisation in finance).
(ii) Post Graduate in Finance
MANNER OF APPOINTMENT
He/ She shall be appointed by the Audit Committee or by the Board
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 organisation
CONTENT OF REPORT
The valuer shall, in his report, state the following:-
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.