Valuation is the most fundamental term in finance but is extremely crucial to understand while deriving the value. Also, several events in recent past have transpired to provide an indication of the public concern on valuation and the impact on shareholders and other stakeholders. Fund Providers, both equity and debt, have been active in asking for enquiries into valuations submitted by companies for mobilizing funds and restructuring. Regulators have also been concerned on the valuations submitted in the context of transactions entailing purchase/sale, income tax, fund mobilization and corporate restructurings.

The Companies (Registered Valuers and Valuation) Rules, 2017 aims to ensure that a valuation report does not carry a disclaimer, which has the potential to dilute the responsibility of the Registered Valuer or make the valuation unsuitable for the purpose for which the valuation was conducted. Therefore, with a view to provide guidance to the Registered Valuers, the Insolvency and Bankruptcy Board of India has issued Guidelines on Use of Caveats, Limitations and Disclaimers by the Registered Valuers in Valuation Reports in September, 2020.

The Registered Valuers are having different practices/ views in the preparation of valuation reports. Accordingly, in this direction, it becomes imperative to understand the various viewpoints on valuation to make a considered view. The interpretations of experts in the field of valuation prove to be immensely beneficial in understanding the intricacies involved in valuation.

In this regard, Valuation Standards Board of ICAI and ICAI Registered Valuers Organisation in their joint endeavour are publishing this fifth series of the publication titled ‘Valuation: Professionals’ Insight’ containing various articles from Professional Valuers including Intangible Valuations, Valuation in Corporate Social Responsibility and other articles with focus on pertinent valuation topics and emerging issues.

I extend my sincere appreciation to the entire Valuation Standards Board and specially appreciate the efforts put in by CA. Pramod Jain, Chairman Valuation Standards Board and CA. Dheeraj Kumar Khandelwal Vice- Chairman, Valuation Standards Board for bringing out this publication for the benefit of members and other stakeholders.

I am sure that this publication would be of great help to the members and other stakeholders.

CA. Atul Kumar Gupta
President ICAI
Director ICAI RVO

Date: 4th February 2021
Place: New Delhi

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February 2021