In estimating the market value / fair value for the assets, the valuer shall:

  1. The Valuer shall obtain necessary details, information, etc., that may be required to identify the assets. In all cases, company may consider issuing necessary directions/instructions to officials to extend necessary assistance to the Valuer in the process.
  2. Collect information and conduct due diligence of matters like market information, the physical condition of the assets, quotations and offers of similar assets sold or available in close proximity to the subject property with proper justification in support of the best possible value assessment of the company and process followed as per the government guidelines

iii. To arrive at fair market value as on date for immovable properties

  1. Prepare Equity Value (Business Valuation) under Asset Valuation Method of the property by anyone or a combination of the following methods.
  2. Comparison Method;
  3. Income Capitalisation;
  4. Discounted Cash Flow;
  5. Cost Approach method;
  6. Replacement valuation; or
  7. Any other generally accepted valuation methods
  8. Suitably provide the justification along with the underlying assumptions for adopting the particular method of valuation
  9. State clearly any special assumptions, caveats or limiting conditions with supporting empirical data that may alter opinions and conclusions or influence valuation. However, such special assumptions, caveats or limiting conditions shall be in accordance with the IBBI Guidelines dated 01.09.2020 as amended/modified from time to time.

vii. Valuation of land parcels of the comapny need to be done taking into account the total area including land of the respective premises.

viii. The Valuer shall obtain market value/ fair value and government guideline/ circle/ index/ ready reckoner value of the properties and advise the company on the valuation which would help the company in deciding the reserve price.

  1. Report to be made as per Valuation Standards followed by India or International Valuation Standards as applicable on date
  2. The Valuation Report should, inter alia, provide the following:
  3. Inception Report
  4. Adopted Approach and Methodology
  5. Analytic professional assessment including relevant considerations taken into account in valuation of assets and how these have been considered in arriving at the values.
  6. Provide sufficient information in the Report to enable the reader to fully understand it, place reliance on the supporting data, reasoning, analyses and conclusions underlying Asset Valuer(s)’s findings, opinions and conclusions indicating implication on final valuation in quality and quantity both.

xii. Completely and understandably set forth the valuation report in a manner, which will be comprehensive, accurate, and not in any manner misleading.

xiii. The Valuer shall provide such other assistance as may be required in connection to the above.

xiv. Any other Assets, which the Valuer in their own professional judgment consider worth indicating. Market value for the above assets must be shown separately. If in the opinion of the valuer, xiv) Certain Assets are likely to realize only scrap value, the same should be clearly indicated with suitable justifications for the same.

  1. The Valuer will be responsible for preparing a draft report (within —– days from the date of assignment) and making detailed presentations on the subject matter as may be required by the company. Post presentation, the Valuer, shall, if required, incorporate the suggestions, as may be requested by the comapny or provide for any other additional clarification that may be required. The final deliverable shall be the final Valuation Report (within ——– days from the date of assignment) by incorporating the changes/modifications as may be suggested. The valuer shall submit two copies of valuation report.
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