With the notification of Section 247 of the Companies Act, 2013 and the Companies (Registered Valuers and Valuation) Rules, 2017, the valuation profession in India is also being regulated and disciplined like other professions through a Regulatory framework.
This profession got statutory status in October, 2017 for the valuations related to the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016. Before this regulatory framework put in place, Valuation practices were not uniform and there were varied perspectives of the valuers, regulators and other stakeholders with regard to valuation. Nevertheless, the important aspects of valuation i.e. trust and confidence of people on valuation remains the same.
Valuation is the most fundamental term during a financing round but is crucial to understand while deriving the value. In this direction, it becomes important to understand the various viewpoints on valuation to make a considered view.
Accordingly, the ‘Valuation Standards Board of ICAI’ and ‘ICAI Registered Valuers Organisation (ICAIRVO)’ have taken joint initiative to bring out the Series 1, 2 & 3 of the publication titled “Valuation: Professionals’ Insight” containing the views/ opinion/ in the form of Articles from various valuation professionals, for guidance of the Members.
Basically, this publication is a compilation of diverse valuation topics authored by leaders in the profession. Its purpose is to advance knowledge and understanding of the professional practices. Views expressed in this publication are the views of the authors and are not the views of the ICAI. The purpose of this publication is to provide an overview of the valuation involved in mergers, amalgamation, options, business, case studies by compiling articles.
It may be noted that the ‘ICAI Valuation Standards’ have been made applicable by ICAI for all valuation engagements on mandatory basis under the Companies Act 2013 for members. In respect of Valuation engagements under other Statutes like Income Tax, SEBI, FEMA etc, it will be on recommendatory basis for the members of the ICAI. These Valuation Standards are effective for the valuation reports issued on or after 01/07/2018.