Requirement of Valuation under Companies Act, 2013
Section 247 of the Companies Act, 2013 states that any property, stocks, shares, debentures, securities, goodwill, or any other assets or net worth of a company or its liabilities, shall be valued by a person having such qualifications and experience, registered as a valuer, and being a member of an organization recognized, in such manner, on such terms and conditions. According to the 2013 Act, all valuations must be performed by a Registered Valuer, and the Registered Valuer for a company's valuation needs must be selected by the Audit Committee or, in its absence, by the Board of Directors. What is the definition of valuation? Valuation is the process of determining the market value of a firm or the worth of an asset. Business Valuations consultants analyze a company's growth rate, predicted future earnings, the value of its tangible and intangible assets, and the company's management when determining its worth. The value of shares and other securities, as well