Section 247(1) of the Companies Act 2013 mandates valuation to be carried in respect of any property, stocks, shares , debentures , securities or goodwill or any other asset or net worth of a company or its liabilities under the provision of this act. Whenever a company proposed to make further issue of shares , debentures securities , Restructuring of companies ( includes mergers, demergers or amalgamations), scheme of Corporate Debt Restructuring and winding up of a company the law has mandated to conduct valuation as per the rules prescribed in this behalf and the companies are at onus to obtain Valuation Report from a personhaving such qualification and experience and registered as valuer .
Who is Valuer ?
“Valuer” means a person registered with the authority in accordance with the Companies (Registered Valuers and Valuation) Rules, 2017.
Mr. Tarun Jain is the first Company Secretary listed as a qualified valuer to do valuation of Financial and Securities Assets.
Responsibilitiesof Registered valuer
As per the Companies Act, 2013
A valuer is expected to assume the following responsibilities while carrying out a valuation engagement:
- Must exercise due diligence and care.
- must make an impartial, true and fair valuation of assets that are being valued.
- must make the valuation in accordance with the prescribed rules.
- is prohibited to undertake valuation of assets in which he has a direct or indirect interest or becomes interested at any time during or after the valuation of that asset.