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Valuation
Value is the monetary, material, or assessed worth of an asset, good, or service. The process of calculating and assigning a value to an asset, good, or service is called Valuation. In other words, Valuation is a quantitative process of “Determining the Fair Value of an asset or a firm” carried out by a professional called Valuer. It is an opinion of an expert (Valuer) who on the basis of his experience, skill, expertise and judgement arrives at an assessment of Value of an asset/ good/ service.
As a team of Registered and Approved valuers, we undertake valuations for the following purposes: –
Market Value is the estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where each party had acted knowledgeably, prudently and without compulsion.
It is the value arrived at when the seller may or may not have sufficient time to find a purchaser and being forced to sell the assets on as-is where-is basis.
Assets are revalued by taking into account any accumulating losses in terms of depreciation and impairment. These are carried out by an enterprise at regular intervals.
Valuation of assets is required to fix-up the Sum-insured for Fire, Engineering and Miscellaneous class of Insurance policies
For Purpose of Disposal
Asset disposal is the removal of a long-term asset from the company’s accounting records. It is an important concept because capital assets are essential to successful business operations. Moreover, proper accounting of the disposal of an asset is critical to maintaining updated and clean accounting records.
The asset disposal may be a result of several events:-
- An asset is fully depreciated and must be disposed of
- An asset is sold because it is no longer useful or needed
- An asset must be removed from the books due to unforeseen circumstances
For the Purpose of Loan/Mortgage
Valuation of Assets of a Company
Valuation as per Companies Act 2013