A Registered Valuer Report is a strict legal mandate under Section 247 of the Companies Act, 2013. Whether you are issuing shares to a new investor or restructuring your company, the law requires an impartial and fair valuation from a professional registered with the Insolvency and Bankruptcy Board of India (IBBI).
At KRPR, our internal team of specialists ensures your valuation is not only legally compliant but also technically sound to withstand future audits or investor due diligence.
Why do you need an IBBI Registered Valuer?
Since February 2019, all valuations required under the Companies Act must be performed by a Registered Valuer. Relying on an unauthorized report can lead to the rejection of your filings by the ROC and heavy penalties.
| Feature | Chartered Accountant (Traditional) | IBBI Registered Valuer (Current Law) |
| Legal Validity | Accepted for certain tax matters. | Mandatory for all Companies Act transactions. |
| Regulatory Body | ICAI. | IBBI (Insolvency & Bankruptcy Board of India). |
| Accountability | Professional ethics guidelines. | Legally bound to provide Impartial and Fair valuation. |
| Usage | General financial advisory. | Specific Transactions like share issues, mergers, or buybacks. |
Adherence to Professional Valuation Standards
A report is only as strong as its methodology. Our experts prepare every report in accordance with ICAI Valuation Standards (IVS) and, where applicable, International Valuation Standards (IVS).
Standardized Framework: We follow IVS 103 (Reporting) and IVS 301 (Business Valuation) to ensure audit-readiness.
Method Selection: We utilize internationally accepted approaches, including:
Discounted Cash Flow (DCF): For growth-stage startups.
Market Multiple Method (CCM): For established companies in active industries.
Net Asset Value (NAV): For asset-heavy or liquidation-based scenarios.
Validity of the Report
How long does a Registered Valuer Report last? Generally, a valuation report is valid for 6 months from the “Valuation Date.” However, if a material change occurs in the company’s financial health or market conditions before the transaction is executed, a supplementary or fresh valuation may be required to ensure the price remains “Fair and Impartial.”
When is this report mandatory?
You will need a Registered Valuer Report for several key business events:
Issuing New Shares: For preferential allotments or private placements (Section 62).
Non-Cash Transactions: When you issue shares in exchange for intellectual property, assets, or services.
Mergers & Acquisitions: To determine the fair “Swap Ratio” for shares between companies.
Sweat Equity: When issuing shares to core team members for their specialized know-how.
Corporate Restructuring: For debt restructuring or compromise arrangements with creditors.
What is required to start?
To prepare a precise valuation, our team will need:
Audited Financials: Your balance sheets and P&L statements for the last 3 years.
Business Projections: Detailed financial forecasts for the next 5 years, including the assumptions used.
Capitalization Table: Current list of shareholders and their holdings.
Nature of Business: A brief on your revenue model and industry outlook.
Our 5-Step Valuation Process
We bridge the gap between financial theory and legal compliance:
Initial Consultation: We understand the purpose of your valuation (e.g., fundraising vs. merger) to select the right approach.
Data Analysis (CA Team): Our team reviews your 5-year projections and historical data to ensure they are realistic and audit-ready.
Choosing the Method: We select from internationally accepted methods like Discounted Cash Flow (DCF), Market Multiple, or Net Asset Value (NAV).
Drafting the Report: We prepare a detailed report outlining the methodology, assumptions, and the final fair value.
Final Issuance: After your review, the IBBI Registered Valuer signs and issues the formal report for your ROC filings.
How long does it take?
Data Collection & Review: 3–5 days.
Analysis & Drafting: 4–7 days.
Total Time: Usually 1.5 to 2 weeks, depending on the complexity of your business model.