Industrial Valuation


Ace Consulting Engineers render the professional services in association with qualified team for appraisal of PLANT, MACHINERY & EQUIPMENTS for a wide spectrum of valuation assignments having variable purposes , like : -

 

For the purpose of Fair Market Value

 

As per the International Valuation Standards, 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.

 

Valuation for Orderly Liquidation

 

An orderly liquidation describes the value of a group of assets that could be realized in a liquidation sale, given a reasonable period of time to find a purchaser , with the seller being compelled to sell on an as-is, where-is basis. Liquidation Value should take into account the costs of getting the assets into saleable condition , as well as those of the disposal activity

 

Valuation for Forced Sale Liquidation

 

Where a seller is under compulsion to sell and that, as a consequence, a proper marketing period is not possible and buyers may not be able to undertake adequate due diligence. The price that could be obtained in these circumstances will depend upon the nature of the pressure on the seller and the reasons why proper marketing cannot be undertaken.

 

Valuation for Impairment Loss

 

An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. An impaired asset is a company's asset that has a market price less than the value listed on the company's balance sheet.

 

For Revaluation of Assets

 

In Revaluation model, the fair value of plant , machinery and equipment is measured and reliably carried , being its fair value at the date of the revaluation deducting any subsequent accumulated depreciation and impairment losses. Revaluations are usually made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. 

 

Valuation for Transfer Pricing Audit Purpose

 

Transfer pricing refers to the methods for pricing transactions within the  enterprises under common ownership or control. Because of the potential for cross-border controlled transactions to distort taxable income, tax authorities in many countries can adjust intragroup transfer prices that differ from what would have been charged by unrelated enterprises dealing at arm’s length.

 

Valuation of Capital Goods viz machines and equipments are sought by the Tax Auditors to know the anticipated value of assets for the Transfer Pricing audit purpose.

 

Valuation for Insurance

 

Valuation of assets is required for fixing of sum insured under fire and engineering class of business insurance policy . The valuation is generally provided on either of the  two methods: Indemnity basis or Reinstatement value basis as per the conditions of insurance policy.

 

Valuation for Disposal of Plant and Machines

 

Asset disposal is the act of selling an asset usually a long term asset that has been depreciated over its useful life like production equipment. When companies dispose their equipments, it gains a salvage value or residual value which can be a gain or a loss per the books.


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