Preliminary analysis by COE

RVO Estate Managers & Appraisers Foundation | IBBI RECOGNISED RVO

02-Jul-2020


Checking Report of XXXXXXXXXXXXX

 

Corporate Debtor : XXXXXXXXXXXXXXX  (assets  - vehicle Eicher 11.10 – 2 Nos.)

 

Resolution Professional : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

 

Sl.

Report Content (requirement set out in IVS)

Compliance

Remarks

1

Identification of the Valuer

Partial

Mentioned name of firm only, without its constituent, IBBI Registration No., category

 

2

Identification of the Client & any intended users

Yes

Mentioned

3

Purpose of Valuation

 

Yes

Mentioned under Purpose of Valuation

4

Identification of the assets or liabilities valued

Yes

Mentioned under Particulars of Vehicle

 

5

Basis(es) of value used

Yes

Mentioned in point 3 

 

6

Valuation date/Inspection date

Partial

Mentioned Inspection date 19/12/2019 and again Inspection on 20/12/2019 contradicts.

Further, not mentioned the resolution commencement date vis-à-vis valuation date

 

7

Extent of investigation

Yes

Mentioned under Particulars of Vehicle

8

Nature & sources of inspection relied upon

 

Yes

Mentioned under Particulars of Vehicle

9

Assumptions and special assumptions 

Yes

Mentioned in point No. 4d

 

10

Restrictions on use, distribution and publication of the report

No

 

 

Not mentioned

11

Confirmation that the Valuation has been undertaken in accordance with the IVS

No

 

Not Mentioned

12

Valuation approach and reasoning

Partial

 

 

Mentioned in Point No. 2 and 3   

 

13

Amount of the valuation

Yes

 

Mentioned Fair Market Value and Liquidation Value

 

14

Date of valuation Report

No

 

Not mentioned

15

Commentary on material uncertainty in relation to the valuation

No

 

Not mentioned

16

A statement setting out any limitations on liability that have been agreed

No

 

Not mentioned

 

 

 

 

 

 

Checking Report of Mr. XXXXXXXXXXXXXXXXXXXXXXXX

 

Corporate Debtor : XXXXXXXXXXX (mfr. of parts for pollution control equipments, railway coaches etc. ) 

 

Resolution Professional : XXXXXXXXXXXXX – IBBI/IPA-001/IP-P00446/2017-18/10789

 

Sl.

Report Content (requirement set out in VPS 1)

Compliance

Remarks

1

Identification of the Valuer

Yes

Mentioned under Executive Summary

2

Identification of the Client & any intended users

Yes

Mentioned under Executive Summary

 

3

Purpose of Valuation

 

Yes

Mentioned under Purpose of the Engagement

4

Identification of the assets or liabilities valued

Partial

Mentioned under Description (item wise in tabular form) but around 50% assets termed   ‘Plant and machinery’, ‘Asset’ (not classified)

 

5

Basis(es) of value used

Yes

Mentioned under Basis of Valuation

6

Valuation date/Inspection date

Yes

Mentioned under Resolution commencement date and Inspection date

 

7

Extent of investigation

Yes

Mentioned under Basis of Valuation

8

Nature & sources of inspection relied upon

 

Partial

Apparent from Fixed Asset Registrar (FAR). Further all relied upon their original cost and arriving Fair value without Price Indexation

 

9

Assumptions and special assumptions 

Yes

Mentioned under Assumptions, Limiting Conditions & Important Notice cum Disclaimer

 

10

Restrictions on use, distribution and publication of the report

Yes

 

 

Mentioned under Assumptions, Limiting Conditions & Important Notice cum Disclaimer

11

Confirmation that the Valuation has been undertaken in accordance with the IVS

Yes

 

Mentioned under para Compliance

12

Valuation approach and reasoning

Yes

 

 

Mentioned under Approach of Valuation

13

Amount of the valuation

Yes

 

Mentioned Fair Value and Liquidation Value

 

14

Date of valuation Report

Yes

 

Mentioned Report date

15

Commentary on material uncertainty in relation to the valuation

Yes

 

Mentioned under Assumptions, Limiting Conditions & Important Notice cum Disclaimer

16

A statement setting out any limitations on liability that have been agreed

Yes

 

Mentioned under Assumptions, Limiting Conditions & Important Notice cum Disclaimer

 

General

 

Requires finish stock (railway coaches’ parts) grouped/valued separately.

Further, how finish stock condition of the assets specified ‘old and used’ as of other machinery assets?    

 

 

 

 

 

 

17-Aug-2021


Checking Report of Mr. XXXXXXXXXXXXXXXXXXX XXXXXXXXX

 

Corporate Debtor : XXXXXXXXXXX  (mfr. of steel bars and rods of construction grade)

 

Resolution Professional : Mr. XXXXXXXXXXXXXXXXXX XXXXXX

 

Sl.

Report Content (requirement set out in IVS)

Compliance

Remarks

1

Identification of the Valuer

Yes

Mentioned under Executive Summary

2

Identification of the Client & any intended users

Yes

Mentioned under Executive Summary

 

3

Purpose of Valuation

 

Yes

Mentioned under Purpose of the Engagement

4

Identification of the assets or liabilities valued

Yes

Mentioned under Premise of Value

5

Basis(es) of value used

Yes

Mentioned under Basis of Valuation

6

Valuation date/Inspection date

Yes

Mentioned under Resolution commencement date and Inspection date

 

7

Extent of investigation

Yes

Mentioned under Basis of Valuation

8

Nature & sources of inspection relied upon

 

Partial

Sources Not mentioned in arriving current replacement cost / scrap value of the assets

 

9

Assumptions and special assumptions 

Yes

Mentioned in Annexure under Assumptions, Limiting Conditions

 

10

Restrictions on use, distribution and publication of the report

Yes

 

 

Mentioned under Assumptions, Limiting Conditions & Important Notice cum Disclaimer

11

Confirmation that the Valuation has been undertaken in accordance with the IVS

Yes

 

Mentioned under Compliance

12

Valuation approach and reasoning

Yes

 

 

Mentioned under Approach of Valuation

13

Amount of the valuation

Yes

 

Mentioned Fair Value and Liquidation Value

 

14

Date of valuation Report

Yes

 

Mentioned Report date

15

Commentary on material uncertainty in relation to the valuation

Yes

 

Mentioned under Assumptions, Limiting Conditions & Important Notice cum Disclaimer

16

A statement setting out any limitations on liability that have been agreed

Yes

 

Mentioned under Assumptions, Limiting Conditions & Important Notice cum Disclaimer

 

General

 

- Scrap value on weight basis or otherwise

   not defined

- Scrap value of asset Lathe machine without

  motor taken more than Lathe machine with

  motor and reason not defined.

- Depreciation over current replacement cost

  of assets Structural rolling mill, Reheat

  Furnace, Cranes taken flat at 10% without

  taken care of their prescribed legal life

 

21-Jan-2022


OBSERVATION OF COMMITTEE OF EXPERTS

on

a report on Plant & Machinery generated by a Registered Valuer Member of RVO ESMA Foundation

These comments, here in after, are made by the Committee of Experts without prejudice.

Comments made on the basis of the documents produced by the Registered Valuer Member. This is to be noted that those comments have been made only where the COE feels to suggest.

 

The RVM has submitted chapters

Chapter contains

  1. Assumptions and limiting condition
  2. Plant Inspection Report
  3. Valuation work sheet
  4. Summary Report

 

In the page “SUMMARY”

CIRP commencement date is 1.1.19 and date of valuation given as 17.09.19.

Nowhere the definition of “Value” or premise of value is seen.

 

•      Comments: Date of valuation should be insolvency commencement date as per IBC.

•      Comments : Definition of value as per IBC to be given in the report. The RVM has arrived at Fair value and Liquidation Value of the asset without definition, so the value arrived at is bit confusing.

Inference :

  1. Clear distinction of dates to be given. Valuation date and inspection date.
  2. Definition as per the standards to be given in the reports.

 

 

The RVM has declared the Methodology/approach of valuation : As “Cost method”

•      Comments: We assume that this “Cost method” comes from IVS, as IBC does not have “Methodology/approach “

•      Comments: So, IVS requires more clarity, as “Methods” are the subsets of “Approach”. “Cost Approach” may have more than one “Method”.

 

No IVS relevance is given in the report

•      Comments: The RVM must declare the relevant IVS no.

•      Comments: Though the fair and liquidation value as per IBC are not falling under IVS, so, the RVM should declare the overall valuation has been done as per IVS.

Inference

The IVS have requirements that apply from the outset and throughout the valuation process. So, in the report, a valuer should mention the relevance from IVS.

 

In the page “STATEMENTS

The statement contains

 

Assumptions and Limiting Conditions

Disclaimers

•      Comments: Assumptions should have more clarity. List of documents, on which the valuer relied and produced by the client should be there in the report.

•      Comments:  Only excerpts of disclaimer is given.

  •  

The relevant portion of Caveat, Disclaimers and Limitation as per the IBBI guideline is missing. Actually a RVM has to write the entire relevant portion from the guideline not the excerpts.

 

In the page “Plant Inspection Report and Valuation worksheet”

•      Comments: More details are required, like an asset register in excel format.

 

Valuation worksheet

•      Comment: The RVM has considered DRC method of valuation.

•      Inference: If depreciated replacement cost method is considered, an explanation should be given why other methods are unsuitable here.

•      Explanation should be given that how the RVM has arrived at Gross Replacement Cost ( The RVM has written “Estimated Current replacement cost “).

•      The same DRC method of valuation to determine Fair Value and Liquidation Value considered for all categories of asset. Machines, b) Utilities, c) Electrical and d) vehicles.. Then it is assumed!! that no comparison in the market was available for all those categories of asset.

 

On “Liquidation Value”

•     Comment: It is observed that the liquidation values of all the assets are more or less flat 70% of the corresponding fair values of each asset.

•     Inference: IBC says Liquidation Value” means the estimated realizable value of the assets of the corporate debtor, if the corporate debtor were to be liquidated on the insolvency commencement date.

•     IVS says An orderly liquidation describes the value of a group of assets that could be realised in a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis.

•     So, it is prudent to show the process of arriving at the Liquidation Value

 

 

 

 

11-Apr-2022


General Opinion of COE on Valuation opinions/reports generated  by a particular member on asset class Plant & Machinery

 

 
   
   

Points to be covered

Sl. No.

Information required

Commentary

Remarks by COE

   

Preconditions of accepting an assignment on Valuation for a Registered Valuer

   

STAGE1 (Competence)

1

Competence of a valuer

A valuer Member must possess the appropriate academic /professional qualification and experience. The Valuation report and terms of engagement must confirm that the valuer possesses the necessary skills to undertake the task properly.

Comptetent. Generally, doesn't require expert's opinion, exceptions are there.

   

2

A valuer should have adequate knowledge and experience  which are necessary and sufficient.

A Valuer shall not accept order in a matter where, based on a reasonable objective standard, the Valuer does not have the competence, skill and/or experience to complete the assignment. However, it is expected that the Valuer Members are active across a wide range of specialist field and corresponding market.

In line experience is 25 years and started Valuation job from his registration.

   

3

In case lack of competence , which was identified before the acceptance of the assignment, how a valuer tries to over come the situation.

Example:  Disclose the lack of knowledge and taking an expert's opinion etc. with sufficient disclosures or personal study by the Valuer Member, association with a valuer who, reasonably believed to have sufficient knowledge in the matter.                                                                                                                                                                  

Only membership of a professional body does not imply that the member has the necessary skills and competence to undertake a Valuation job, it needs proper knowledge, qualification, rationality and intelligence.

After a long discussion it was revealed that some situations have been arisen so far. Yes, the RVM admits that in case of lack of knowledge, the RVM takes help from a competent expert in the field.

   

4

In case, a Member Valuer employs another valuer/expert or a firm. What does the valuer do in such case?

Client’s approval is necessary before accepting the assignment.

The RVM has taken permission from client and employed other RVE for inspection.

   

5

What does a valuer do if any lack of knowledge or experience emerges which were not identified, unknowingly and eventually not notified initially.

 the Valuer Member is obligated to inform its client at the point of discovery and inform the client about the probable solution.

after a discussion, it was revealed that no such situation so far has emerged. The RVM agrees that in such case the client will be informed & continue the job if the client agrees.

   

STAGE2 (Standard)

6

Which Valuation Standard is being followed by the Valuer Member.

The valuer member has to achieve and maintain the defined standard adopted by the RVO ESMA.  The IVS have requirements that apply from the outset and throughout the valuation process.

The RVM follows IVS. Inspection team feels this as alright

   

7

Does the  Valuer Member understand about departure from IVS

 eg. Computing a value under any state regulation like Capital Gain Tax , Rating etc. are also departure. Such a valuation has still been performed in overall compliance with IVS.  Generally other standards do not contradict IVS, a valuer may continue with IVS considering the requirement as additional.

COE appraised the RVM about the departure.

   

8

Compliance with the state/ Govt. regulations.

Separate regulations maybe available for different states , knowledge on the state regulation is required

The RVM knows about the different relevant regulations may be applicable in different states. The RVM had to know about this where it is applicable before opine on the value.

   

9

Any pending proceeding against the RVM

No proceedings are pending or any action has been initiated against the Member

No proceedings are pending or any action has been initiated against the Member

   

STAGE3 (Scope of work,  Confilct of Interest, Assignment letter)

10

Does the scope of works determined in the assignment letter?

A valuer has to satisfy the client by addressing all the agreed points  of Scope of work determined in assignment letter.

Generally, the RVM satisfies it's client by addressing all the agreed points  of Scope of work determined in assignment letter.

   

11

What does a valuer do if any scope of work emerges which were not identified, unknowingly and eventually not notified initially

 the Valuer Member is obligated to inform its client at the point of discovery and inform the client about the probable solution.

after a discussion, it was revealed that no such situation so far has emerged. The RVM agrees that in such case the client will be informed & continue the job if the client agrees.

   

12

Does the valuer charge Success fee in case the scope of work increases?

The determination of scope of work is an on going process. But, success fee can not be charged as per the IBBI Rule

The RVM says that No, in such cases fresh amended order/ separate order usualy is negotiated.

   

13

Does the Valuer Member identify the Conflict of Interest or probable confilict before accepting the assignment ?

The valuer has to take adequate steps to address the problem, if it is yes.

The RVM tries to identify the conflict of interest or probable conflict of interest before the assignment starts.

   

14

What does a valuer do if any Conflict of Interest emerges which were not identified, unknowingly and eventually not notified initially

 the Valuer Member is obligated to inform its client at the point of discovery and inform the client about the probable solution.

No such case

   

15

Does the assignment letter covers the typical points as prescribed by the RVO ESMA?

1. INSOLVENCY PROFESSIONAL NAME & REGISTRATION NO :
2. REGISTERED VALUER NAME & REGISTRATION NO :
3. CORPORATE DEBTOR’S &CREDITOR’S NAME, ADDRESS & OTHER DETAILS :
4. ASSIGNMENT DATE & NUMBER :
5. DATE OF VALUATION (As the date of insolvency commencement to be given by RP/IF)  6. COPY OF THE ORDER OF THE ADJUDICATING AUTHORITY

7. ASSET CLASS :

8. PURPOSE OF VALUATION :
9. SCOPE OF WORK WITH DETAILS : .
10. IDENTIFICATION OF INTENDED USER
11. IDENTIFICATION OF THE PROPERTY :
12. FEE FOR VALUER :
13. LIST OF DOCUMENTS SUBMITTED (As necessary)
14. SPECIFIC TERMS & CONDITION OF THE ASSIGNMENTS i.e TIMELINE ETC. (After negotiation):
15. NON-DISCLOSURE OF CONFIDENTIAL INFORMATION :
16. ACCEPTANCE OF ASSIGNMENT WITH DATE / IN CASE OF REFUSAL REASON BE GIVEN : 
17. SPECIFIC INFORMATION to be sourced from the relevant authorities (e.g. relevant seismic registered information) if any.
18. SAFETY AND ACCESS ISSUE which may affect the nature of the inspection.                                                                                               

19 . Any spacial information like relevant seismic registered information.

The RVM covers almost all the points in all cases.

   

STAGE4                  (Commencement of work)

16

Number of meetings with the clients before the commencement of the job

Stages: Meetings with the client before the commencement of the job are necessary to understand the client and its real need.

Yes , at least one meeting or more as necessary.

   

17

Does the valuer member confirm the order

The valuer should ensure that a clear scope of works is established and that a contract exists before each Technical Due Diligence process even starts. Misunderstandings can be eliminated or at least minimised by establishing clear terms of engagement at the outset and confirming all of the client’s instructions in writing. Once the terms are agreed, it can not be changed without mutual consent.

Yes in writing. The RVM also had been apprised about the technical Due Diligence.

   

18

How does the valuer collect data

Valuer has to procure documents in hard copy and soft copy

Mainly soft copy and also in hard copies.

   

19

Whether the Registered Valuer Member has maintained all the reports, records and documents relating to valuation assignments for the prescribed period of three years from the completion of each such assignment as required under Rule 7(f) of the Companies (Registered Valuers and Valuation) Rules, 2017

A Valuer shall maintain proper working papers alongwith the working file three years or such longer period as required in its contract for a specific valuation, for production before a regulatory authority or for a peer review. In the event of a pending case before the Tribunal or Appellate Tribunal, the record shall be maintained till the disposal of the case.

The RVM is just crossing 3 years after passing the IBBI exam. The RVM knows and agrees on this. The RVM maintains all relevant documents and report as per  the requirement.

   

20

Does the Report has a reference unique code

The Report must has a unique code for future all reference.

Code has been used in a few cases. Regularization of the same is under process. The COE opines to insist the RVM to regularise the same ASAP.

   

STAGE5.         (VALUATION PROCESS)

21

Does the valuer make assumptions considering the purpose of valuation.

Purpose wise the valuation of an asset gets change. In doing valuation, it is sometimes seen that the confusion in addressing the issue. The purpose cognition, linked with the assumption or valuation process (ie adopting appropriate basis, approach/methodology ) are lacking.

The RVM says in some case he does so. But, it is a strict requirement as the purpose wise the valuation of same asset changes. The purpose cognition, linked with the assumption or valuation process (ie adopting appropriate basis, approach/methodology ) are lacking in the report.

   

22

Does the valuer visit the site ? If not, why and how a valuer overcome the problem.

Site visit is a must for the valuers of L&B and P&M. Unless a very spacial situation, which prevents the site visit even in that case number of  steps a valuer has to take to confron the very spacial situation

Site visit has been done in ieven during covid situation with RTPCR certificates. In a very few cases regional competent inspectors were appointed.Virtual and inspection had been done and micro and macro survaying of the plant and machinery has been done thorougly

   

23

Does the valuer declare on the extent of investigation

Detailed extent of investigation to be declared in the generated report.

Detailed extent of investigation  declared in the generated report.

   

24

Does the valuer wriite the definitions of Basis, Approaches  and Methodologies and does the report shows theadherence of any standard ?

The Value/Values, which are used in the report must have reference from IBC or any other international standard. The approaches, methods etc. all must must have reference from any International standard. However, the IVS have requirements that apply from the outset and throughout the valuation process.

As this requirement is not provided, being dissatisfiede, COE insists to provide the relevant IVS in the report where it is appropriate.

   

25

Does the RVM understand that for using Depreciated Replacement Cost method a proper statement to be given with the report.

Depreciated Replacement Cost  : The current cost of replacing an asset with its modern equivalent asset less deductions for physical deterioration. A DRC  valuation is deterioration and all relevant forms of obsolescence and optimisation is used when useful /relevant comparison is NOT available. So, before adopting the DRC method (includes indexation)the valuer will need to be satisfied that there are no transactions involving similar asset in similar use or location that could provide sufficient evidence to do valuation.

The RVM has given reason for using DRC method whenever the method is used.

   

TECHNICAL DUE DILIGENCE

   

STAGE6  (Technical Due diligence)

26

How the valuer has taken steps to consider the"Technical Due diligence"

Due diligence : reasonable steps taken by a person to avoid committing a tort or offence. a comprehensive appraisal of a business undertaken by a prospective buyer, especially to establish its assets and liabilities and evaluate its commercial potential.

Taken Proper care

   

27

There shouldn’t be any deficiency like estimating the remaining life of the asset.

Remaining useful life of an asset is the main point for computing Value of that perticular asset.

Taken Proper care

   

28

Whether the site or surrounding area have any adverse effect on the technical aspects of the asset.

Checking some points for Advising HABU falls under technical due diligence

Taken Proper care

   

29

Whether the property is suitable for the client’s intended use

Suitability of the use of the intended users- is a must consideration for the valuer

Taken Proper care

   

30

Understanding on Wrong doing 1

Intentional biased report generated by a valuer

Taken Proper care

   

31

Understanding on Wrong doing 2

Inadvertent wrong done by a valuer.A Revised report with permision may be accepted.

A Revised report with permision is submited.

   

32

Understanding on Wrong doing 3

Negligence by a valuer. Ignoring data or information

The reply is satisfactory

   

33

Understanding on Wrong doing 4

Without authority signing a valuation report.

The reply is satisfactory

   

34

Does the RVM know about the ambiguous area in  a generated report. Or the grey area of a report.

A report must avoid unnecessary jargons. A robust format on quality assurance for report writing must be used
A report should be Complete, Adequate, Reasonable, Relevant and Appropriate.
Grey report, leads the clients to an uncertainty, ambiguous decision..

The RVM knows about the best practice also knows about grey area in a generated report. The RVM tries to to generate a suitable report without ambiguity. The RVM tries to generate in overall more suitable, protective value opinion.

   

35

Does the RVM advise on any restrictions or problems likely to be encountered in adapting the property for the intended user.

if occupation by the client is for long time or contemplated, the Technical Due Diligence process would advise on any restrictions or problems likely to be encountered in adapting the property for the intended use.

The situation did not arise.

   

36

Does the RVM indicate significant physical defects or any statutory non- compliance in the report, if any?

Identification of significant physical defects or any statutory non- compliance which might affect the value of the property in the market. If it is not done  or a new avenue for a purchaser to extend negotiations may open regarding certain technical issues.

The situation did not arise.

   

STAGE7 Report

37

Minimum contents of Report writing

Apart from the above, does the valuer also follow the points  set forth by RVO-ESMA.                                                                                  

1. Identity of the valuer
2. Identity of the client(s)
3. Identity of other intended users
4. Asset(s) being valued
5. Purpose of the valuation
6. Basis/bases of value used
7. Valuation date This may be insolvency commencement date as per IBC
8. The nature and extent of the valuer’s work and any limitations thereon
9. The nature and sources of information
10. Significant assumptions and/or special assumptions
11. The type of report being prepared
12. Restrictions on use, distribution and publication
13. The valuation report will be prepared in compliance with the standard and that the valuer will assess the appropriateness of all significant inputs
14. Declaration by the valuer, who takes the responsibility of the valuation report.  Declarations on Caveat, Disclaimers and Limitations must accompany the report.

Yes, Complying with this

   

38

Does the report contains the name of third party consultants and their appointment? if any

A Technical Due Diligence investigation to be undertaken when  particularly a large commercial, industrial or residential property are involved and there may be  need for a number of different consultants and experts covering their specific area of expertise and requirement.

No third party help has been taken in the case of plant and machinery assets valuation so far.

   

39

Does the valuer send the Draft Report to the client

A draft report should be forwarded to the client before the issuance of final report

The RVM produces draft report to the client before the original

   

40

Does the valuer take any help of any technical tools or machine. If yes, why and how?

Help of any technical tools or machine like Drone, GPS, Google map, Total station etc.

RVM takes the help of any technical help if necessary

   

STAGE8           (Safety and health)

41

How does the RVM consider the health and safety issue in entire process.

Areas to consider include caution when:
1. Entering premises that have been vacant for a long time
2. working close to plant or machinery
3. working high up or in confined places
4. There are traffic movements
5. There is excessive noise, excessive heat or cold, or vibration
6. In the presence of microwaves, radiation and electromagnetic fields
7. chemical emission
8. increased hygiene needs (e.g. food preparation areas)
9. biohazards
10. time restrictions
11. unoccupied areas, one-way opening doors
12. entering security areas.

The situation did not arise.

   

STAGE9           (The client should understand)

42

The RVM also should tell the client about the uncertainty.                                                                                                                              

Market uncertainty,
Model uncertainty and
Input uncertainty.
If appropriate, the valuer should draw attention to, and comment on, any issues affecting the degree of certainty, or uncertainty, of the valuation . Commentary on any material uncertainty in relation to the valuation where it is essential to ensure clarity on the part of the valuation user. For this purpose, ‘material’ means where the degree of uncertainty in a valuation falls outside any parameters that might normally be expected and accepted.. RICS.
A valuation report is a professional opinion on a stated basis of value, coupled with any appropriate assumptions or special assumptions.
A valuation opinion is not a fact. Like all opinions, the certainty, involvement  will definitely vary from case to case, as in the degree of ‘certainty’ – for example, for all the probability that the valuer’s opinion on the Market Value as per IVS or Fair Value asper IBC  would exactly coincide with the price achieved on an actual sale at the valuation date or inspection date , even if all the circumstances envisaged or covered by the definition of market value as per IVS or Fair Value asper IBC   and the valuation assumptions were identical to the circumstances. On an actual sale, most valuations are subject to a degree of variations (that is, a difference in professional opinion). This is principle  probably well-recognised by the various jurisdictions.

YES, that is why IP/RP appoints 2 valuers for each asset class. It is obvious that 1)valuation is an opinion, even in the same situation, with the same documents, on the same date and same time, the opinions of 2 valuers  on value of the same asset  differ. The RVM  knows about this and try to make the client  understand.

   

STAGE10          (The client should understand)

43

Some requests are unacceptable. How does the valuer tackle the situation

Specifically, an assignment condition is unacceptable when it:
Destroys a valuer’s impartiality, because such a condition breaks the objectivity and independence required for the development and resulting in to a wrong value;
Limits the scope of work. It may lead to a wrong if the scope of work is limited to such a degree that the assignment results are not credible.;
Limits the content of a final report in such a manner that results in the report be misleading.”

Valuer tries to understand the real  need and tries to educate the client

   

44

Any certificate that shows the satisfaction on the service of the valuer.     

Client’s certificates on satisfaction are necessary to grow the "Faith in" or "trust in" on the valuer as well as on the reputation of the profession

The RVM produces the certificate of satisfaction from a client

   

 

NOTICE

3RD NATIONAL ONLINE QUIZ ON INSOLVENCY AND BANKRUPTCY CODE, 2016 : https://ibbi.gov.in/uploads/quiz/brochure.pdf (copy the link)

16th Apr 2022 - 15th May 2022