Valuation Examination mandated by law in India

Valuation is mandated by Law

1. VALUATION EXAMINATION
MANDATED UNDER LAW
•CA. Manmohan Jindal
•Registered Valuer in Security and Financial Assets
•Ex-Canara Bank -Mumbai
•[email protected]
•8850385224
•https://taxguru.in/author/manmohanjindal21_5224/
•https://www.linkedin.com/in/manmohanjindal/
•https://twitter.com/MANMOHANJINDAL2
•https://www.youtube.com/@camanmohanjindal

2. Valuation Examination is conducted in three streams
01 . Security and Financial Assets
02. Land and Building
03. Plant and Machinery

3. Mandated under any law
•TheCompanies(RegisteredValuersandValuation)Rules,2017was
notifiedonOctober18,2017.
•TheMinistryofCorporateAffairs(MCA)hasdelegatedthepowers
andfunctionstotheIBBI,videnotificationdatedOctober23,2017,
pertainingtoRegisteredValuers,asmentionedinSection247ofthe
CompaniesAct,2013.
•TheValuationExaminationismandatedunderSection247readwith
sections458and469oftheCompaniesAct,2013(18of2013).

4. Section 247 of Companies Act 2013
•(1)Whereavaluationisrequiredfor
•Anyproperty,stocks,shares,debenture,securitiesorgoodwillorany
otherassets(hereinreferredtoastheassets)ornetworthofa
companyoritsliabilitiesundertheprovisionofthisAct,
•Itshallbevaluedbyapersonhavingsuchqualificationsand
experienceandregisteredasavaluerandbeingamemberofan
organisationrecognised,
•Insuchmanner,onsuchtermsandconditionsasmaybeprescribed
andappointedbytheauditcommitteeorinitsabsencebytheBoard
ofDirectorsofthatcompany.

5. Section 247 of Companies Act 2013
•(2)Thevaluerappointedundersub-section(1)shall,—
•(a)Makeanimpartial,trueandfairvaluationofanyassetswhichmay
berequiredtobevalued;
•(b)Exerciseduediligencewhileperformingthefunctionsasvaluer;
•(c)Makethevaluationinaccordancewithsuchrulesasmaybe
prescribed;and

6. Section 247 of Companies Act 2013
•(2)Thevaluerappointedundersub-section(1)shall,—
•(d)Notundertakevaluationofanyassetsinwhichhehasadirector
indirectinterestorbecomessointerestedatanytimeduringaperiod
ofthreeyearspriortohisappointmentasvaluerorthreeyearsafter
thevaluationofassetswasconductedbyhimduringorafterthe
valuationofassets.

7. •(3)Ifavaluercontravenestheprovisionsortherulesmade
thereunder,thevaluershallbeliabletoapenaltyoffiftythousand
rupeespunishablewithfinewhichshallnotbelessthantwenty-five
thousandrupeesbutwhichmayextendtoonelakhrupees:
•Providedthatifthevaluerhascontravenedsuchprovisionswiththe
intentiontodefraudthecompanyoritsmembers,heshallbe
punishablewithimprisonmentforatermwhichmayextendtoone
yearandwithfinewhichshallnotbelessthanonelakhrupeesbut
whichmayextendtofivelakhrupees.

8. •(4)Whereavaluerhasbeenconvictedundersub-section(3),heshall
beliableto—
•(i)Refundtheremunerationreceivedbyhimtothecompany;and
•(ii)Payfordamagestothecompanyortoanyotherpersonforloss
arisingoutofincorrectormisleadingstatementsofparticularsmade
inhisreport.

9. THANKS
•CA. Manmohan Jindal
•Registered Valuer in Security and Financial Assets
•Ex-Canara Bank -Mumbai
•[email protected]
•8850385224
•https://taxguru.in/author/manmohanjindal21_5224/
•https://www.linkedin.com/in/manmohanjindal/
•https://twitter.com/MANMOHANJINDAL2
•https://www.youtube.com/@camanmohanjindal