Valuation Under Insolvency and Bankruptcy Code

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Valuation Under Insolvency and Bankruptcy Code

We are providing services as per the Insolvency and Bankruptcy Code, 2016 to the industry. We have a team of senior professionals of Govt. Approved and IBBI Registered Valuers who are specialized in asset classes i.e. Land & Building, Plant & Machinery and Financial Assets or Securities.

Obtaining professional Valuation of the assets of an entity is essential for taking an “informed decision making” for any acquisitions under the Insolvency and Bankruptcy Code (IBC). As per the Companies (Registered Valuers and Valuation) Rules, 2017, every valuation under the IBC is to be conducted by a Valuer registered with the IBBI .

The key objective is to be sovereign and transparent and have fair determination of value of the assets to facilitate comparison and informed decision making by the committee of creditors.

The assets of a company can be classified in three category of asset classes and a Valuer to enable to carry out valuation of specified asset class needs to be registered as value in the said asset class i.e. : –

  • Land and Building
  • Plant and Machinery,
  • Securities or Financial Assets

IBC, classifies valuation as “Fair value” or “Liquidation Value”. Fair Value is the estimated realizable value of the assets, if same were to be exchanged between a willing buyer and willing seller on an arm’s length basis, as on the insolvency commencement date. Whereas, Liquidation Value is the estimated realizable value of the assets of the corporate debtor, if the corporate debtor were to be liquidated on the insolvency commencement date”.

Kanassure  Valuation Advisors is a sector agnostic, Valuation firm and holds leadership position in Valuation of Securities or Financial Assets with extensive experience in valuation of assets under IBC. We get the valuation of Real estate and Plant & machinery (through our affiliated entity which is an experienced and renowned valuer in these asset categories).