IBBI order in the matter Mr. Ajay Kumar Chakrabarti, Registered Valuer

IBBI observed that The conduct of valuation is a professional exercise which relies heavily on the professional judgment of the valuer, based on the skills and expertise of the valuer. The valuation exercise is inherently subjective in nature. Therefore, it becomes important for the valuer to carry out his duty diligently which includes physically verifying the existence of the assets to be valued and following accepted norms and standards for valuation. In addition, for making the valuation exercise more objective, it is necessary that assumptions, criteria and analysis being used for drawing specific conclusions shall be elaborated in the valuation report. The valuation report prepared by  needs to be transparent for the sake of relevant stakeholders as economic outcomes hinges upon the value as contained in the valuation report. Accordingly, the report should contain needed clarity on the procedures adopted by the valuer and also all the factors considered by him to arrive at a specific valuation.