10-02-2009, 01:38 PM
Dear KamranACA,
You have wrote following in the third last para of your post;
"For such revaluation independent valuer will be used whose report will also be required to be certified by a firm of CAs (Capital Issue Rules, 1996)."
Actually, valuation report is not required to be certified by CAs, they are required to ensure that no intangibel asset has been included in assets valued and if valuation has been made at some earlier date then depreciation has been charged on the revalued amount upto the date of issuance of shares for consideration other than cash.
Certification of valuation report and certificate of CAs to ensure that four conditions have been fulfilled are two separate things.
Cetification of valuation report may include but not limited to ensure that market value has been correctly calculated according to the assumptions actually exist and assumption taken by valuer.
In practical, if valuation has been done by approved valuer, then CAs may not object / change it because they are not required to undertake the audit of market value at the time of certification.
Hope this discussion would be mutually beneficial as well as other members.
Regards,
*
You have wrote following in the third last para of your post;
"For such revaluation independent valuer will be used whose report will also be required to be certified by a firm of CAs (Capital Issue Rules, 1996)."
Actually, valuation report is not required to be certified by CAs, they are required to ensure that no intangibel asset has been included in assets valued and if valuation has been made at some earlier date then depreciation has been charged on the revalued amount upto the date of issuance of shares for consideration other than cash.
Certification of valuation report and certificate of CAs to ensure that four conditions have been fulfilled are two separate things.
Cetification of valuation report may include but not limited to ensure that market value has been correctly calculated according to the assumptions actually exist and assumption taken by valuer.
In practical, if valuation has been done by approved valuer, then CAs may not object / change it because they are not required to undertake the audit of market value at the time of certification.
Hope this discussion would be mutually beneficial as well as other members.
Regards,
*
