SCOPE OF VALUATION

The Ministry Corporate Affairs (MCA) has, since 2017, notified Section 247 of the Companies Act (CA), 2013 and introduced the Companies (Registered Valuers and Valuation) Rules, 2017. The Ministry Corporate Affairs has appointed  the Insolvency and Bankruptcy Board of India (IBBI) as the authority for apply the new rules of Registered Valuers apart from insolvency resolution professionals (IRP).

Transitional Provision

• Any person, who may be providing valuation services under  Act, on the date of onset of these rules, may continue to render valuation service without a certificate of registration under these rules upto 31^st Jan, 2019:
• Provided that if a company has arrange any valuer before such date and the valuation or any part of it has not been finished before 31^st January, 2019, the valuer shall finish such valuation or such parth with 3 months thereafter.

That means valuation assignment after 30^th April in Companies Act, 2013 is to be done by a register valuer only

Valuation required under CA, 2013 for unlisted companies

Particulars

1.     Allotment of securities for consideration other than cash

2.     Issue of sweat equity shares

3.     For valuation of undertaking or assets of company

4.     Private Placement of shares

5.     Further issue of shares- Preferential issue of shares

6.     Provision of Money by Company for Purchase of its Own Shares by Employees or by Trustees for the Benefit of Employees

7.     Payment [other than in cash] to directors by way of compensation.

8.     Non Cash transaction involving directors

9.     Valuing under a Scheme of Corporate Debt Restructuring

10.                        Offer of takeover of an unlisted co. as a result of Compromise or Arrangement

11.                        Under scheme of Compromise or Arrangement with creditors and members [including swap ratio]

12.                        For reconstruction of com involving Merger, Amalgamation or Demerger

13.                        Valuation may be required by the Tribunal to provide exist for dissenting shareholders of transferor co.

14.                        Purchase of minority shareholding [For Valuing Equity Shares held by Minority Shareholders]

15.                        Valuing assets for submission of report by Company liquidator to NCLT