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Valuation Under the Companies Act 2013

When a company issues shares, merges, or moves assets between related parties, the law wants an independent valuer to say what things are worth. This is that report.

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Why the law requires it

Left alone, a company could issue shares to a friendly party at a fraction of their worth, or sell a factory to a sister company for a rupee. Minority shareholders and the tax department would both suffer.

So company law requires an independent registered valuer to put a defensible number on the transaction. Your auditor will not sign off without it.

When you need it

What we cover and what we do not

We are property and machinery valuers. We value the land, the buildings, the plant and the equipment, which in most manufacturing and property holding companies is the large part of the balance sheet.

Valuing a whole business, including goodwill and future earnings, is a financial exercise. We work alongside your accountant on those. We tell you plainly which parts we can sign and which we cannot, rather than taking the whole job and improvising.

Questions people ask us

Can our own auditor do the valuation?

No. The valuer has to be independent of the company, which is the entire point of the requirement.

How long is the report valid?

Valuations are tied to a specific date. For a transaction, a report a few months old is usually accepted. For anything older, expect to be asked for a fresh one.

A foreign investor is involved. Does that change things?

Yes. Exchange control rules bring their own pricing requirements on top of company law. Tell us at the start so the report is prepared to satisfy both.

Do you inspect the factory?

Yes. Land, buildings and machinery are all inspected. It is the only way to assess condition and remaining life honestly.

Checked by Parish Rao, Chartered Engineer and Government Approved Valuer.

Page last checked on 23 August 2026.

Related: registered valuer reports. Delhi page.

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