REGISTERED VALUER UNDER SEC.247 OF COMPANIES ACT,2013 -------------------------------------------------------------------------- 1. The valuation of any property, stock, shares, debentures, securities or goodwill or any other assets or net worth or liabilities shall be made by Registered valuer. 2. The appointment of valuer shall be made by audit committee or in its absence by the board of directors. 3. The valuer shall: 1) exercise due diligence while performing valuation. 2) Make impartial, true and fair valuation 3) Valuation shall be in accordance with rules 4) Be prohibited to undertake valuation in which he has interest 4. On commiting default under this Act or rules, he shall be fined and if his intention was to defraud the company he shall face imprisonment with fine. 5. If he is convicted under this Act, he shall refund the entire remuneration received by him and pay for damages to the company or to any other person for loss arising out of his incorrect or misleading valuation report. REGISTERED VALUER AS PER RULES UNDER CHAPTER XVII OF COMPANIES ACT,2013 --------------------------------------------------------------------------------------------- 1. By the rules, Rule 17.1 defines Registered Valuer means valuer registered as valuer under Chapter XVII. 2. The Central Govt. shall maintain register of valuers. 3. Following shall be eligible to apply for RV: 1) CA/CS/cost accountant in whole time practice or holding equivalent qualification as recognized by MCA (for financial valuation). 2) Merchant Bankers who has in his employment the above professional to carry out valuation(for financial valuation). 3) Members in whole time practice of Institute of Engineers or Institute of Architect(for technical valuation). 4) Such other persons as may be notified by CG. 4. CA/CS/cost accountant/member of IOE or IOA should have atleast 5 years post qualification experience. 5. Application shall be in Form 17.1 for individual and firms and in Form 17.2 for others. 6. The valuer shall cease to be the valuer: 1) On sentenced to a term under any offence 2) Found guilty of misconduct in his professional capacity 3) SEBI removes the registeration of Merchant Banker 7. METHOD OF VALUATION: 1) Valuer has to decide the approach before valuation based upon the purpose: a. Income approach, b. Assets approach, c. Market approach 2) Valuer may adopt any one or more of the following method based on his approach: a. Net Asset Value Method(represents the value of assets less liabilities) b. Market Price Method (current price in the market between unrelated parties) c. Yield Method/Profit Earning Capacity Value(by capitalizing the average of the after tax profits for preceeding 3 years) d. Discounted Cash Flow Method (represents the present value of business) e. Comparable Companies Multiple Methodology(using the valuation ratios of publically traded company and applying that ratio to the company being valued) f. Comparable Transaction Multiple Method(on the basis of similar transactions among unrelated parties) g. Price of Recent Investment Method (based on recent investment received by the company) h. Sum of the Parts Valuation(where each part of business is separately valued and then summed up) i. Liquidation Value (for liquidation scenario) j. Weighted Average Method (weights are assigned to the valuation under different approach) k. Any other method as notified by RBI, SEBI or Income Tax authorities. l. Any other method as deem fit by the valuer but with justification 8. The valuation report shall be in the Form no. 17.3
Posted on: Tue, 15 Oct 2013 04:12:50 +0000
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