Page 24 - Quick Insights Book 2022

Registered Valuer 4

With the introduction and subsequent adoption of Ind AS
by many Indian Companies, the emphasis on valuation
has increased. Valuation field is gaining importance now
and is considered as one of the most critical areas in
finance. It plays a key role in many areas such as buy/
sell, solvency and merger and acquisition. It also plays an
important role in the Insolvency Resolution regime where
Liquidation Value has to be ascertained by Resolution
Professional through the Registered Valuers.

Further, the concept of registered valuers has been
institutionalised by including a separate chapter on
Registered Valuers leading to the formalisation and
regulation of the Registered Valuers under the Companies
Act, 2013. The Rules notified by Ministry of Corporate
Affairs (MCA) have also opened a new domain for
professionals called Registered Valuers.

As per the Companies (Registered Valuers and Valuation)
Rules, 2017 issued by the Ministry of Corporate Affairs
in October, 2017, the following are eligible to become
Registered Valuers for the Financial or Securities Asset
Class:

Chartered Accountant having at least three years’
experience after possessing required qualification as
mentioned above.

Need of valuation

• Under legislations
There are various sections in the Companies Act 2013, where
Registered the valuation is required to be conducted by a Registered
Valuer. Apart from above, there are many other Statutes like
Valuer the Insolvency and Bankruptcy Code, 2016, Securities and
Exchange Board of India (SEBI), The Foreign Exchange
Management Act (FEMA), Reserve Bank of India (RBI), Income
Tax Act 1961, wherein valuation is required.

• For transactions

There are transactions like mergers, acquisitions, investments,
fund raising, sale of business, dispute resolution, etc. where
valuation is required.

• For Financial reporting
After introduction of Ind AS, valuation is also required in
financial reporting such as fair value calculation. ESOPs,
Purchase price allocation, impairment etc. also requires
valuation.

Quick Insights on Professional Opportunities for Chartered Accountants 11