Report Writing

Report
A written communication for a specific purpose and it includes a description of a

procedure followed, collection of data & information, analysis of data & information
with its significance, conclusion and recommendation, if any.
A report is a written presentation of factual information based on an investigation
or research and its conclusion.
Report
Oral Written
Informal Formal
Informational Interpretive Routine
Sanjay Patel : Page | 1

Report (quality)
Effective Report…
 Easy to understand
 Logical & systematic order
 Well organized with clear title, section, heading and subheading
 Concise (to the point) and accurate
 Continuity with supporting evidence
 Appropriate for the user
 Appropriate according to purpose
 Style and tone (use of indirect speech and present perfect tense)
 Presentation using graph, chart, table, picture, etc.

Report (structure)
A report must contain… A report may contain…
1 Title Page 1 Cover letter
2 Table of Contents 2 Charts & Photographs
3 Abstract or Executive Summary 3 Bibliography
4 Introduction 4 Glossary
5 Procedure 5 Appendices
6 Facts & Findings 6 Abbreviation
7 Conclusions 7 References
8 Recommendations

Report (Style and Tone)
Use of ‘Indirect Speech’ and ‘Present Perfect Tense’
Indirect Speech Present Perfect Tense

 Direct speech: “It’s been raining since this afternoon.”  I have never been to France.
Indirect speech: He said it’d been raining since that afternoon.  I have been to France three times.
Example for Report Writing
 The asset has been inspected as on xx March 20xx in presence of representative of the company and verbal discussion
related to the asset under valuation like history, rights in asset and usage has been made.
 As per document provided to us and verbal discuss with representative of the company, we have assumed that the said
asset is free from all legal encumbrances.
 During the site inspection, any physical encumbrances have not been observed and construction of industrial building
has been made within a boundary limits as per local building bye laws.

Valuation Report
The Valuation Report is the expressions of facts, analysis of the data or information
collected opinion on Value of the asset and recommendation, if any.
‘Valuation report is reflection of skill, experience and expertise of Valuer’
‘Poor report writing makes failure of all efforts of best methodological work’
 Clearly and accurately set out the conclusions of the valuation in a manner that
is neither ambiguous nor misleading, and which does not create a false
impression. If appropriate, the valuer should draw attention to, and comment
on, any issues affecting the degree of certainty or uncertainty of the valuation.
 Deal with all the matters agreed between the client and the valuer in the ‘terms
of engagement’ or say ‘scope of work’.
‘Format & Contents of Valuation Report is depends on asset under valuation &
purpose of valuation’
Valuation Report (Scope of work)
 Identity of the user/client,
 Identity of other intended users,
 Asset(s) being valued,
 The valuation currency,
 Purpose of the valuation,
 Basis of value used,
 Valuation date,
 The nature and extent of the valuer’s work and any limitations thereon,
 The nature and sources of information upon which the valuer relies,
 Significant assumptions and/or special assumptions,
 The type of report being prepared,
 Restrictions on use, distribution and publication of the report,
 The valuation will be prepared in compliance with (name of standard)
Contents of Valuation Report (Registered Valuers and Valuation Rules, 2017)
 Background information of the asset being valued
 Purpose of valuation and appointing authority
 Date of appointment, valuation date and date of report
 Inspections and/or investigations undertaken
 Nature and sources of the information used or relied upon
 Procedures adopted in carrying out the valuation & standards followed
 Major factors that were taken into account during the valuation
 Conclusion
 Identity of the valuer and any other experts involved in the valuation
 Caveats, limitations and disclaimers
 Disclosure of valuer interest or conflict, if any
 Restrictions on use of the report, if any

Contents of Valuation Report (as per IVS)
 Including the elements noted in Scope of Work, to the extent that
each is applicable to the assignment,
 The intended use
 The approach or approaches adopted
Valuation  The method or methods applied
Report  The key inputs used
 The assumptions made
 The conclusion(s) of value and principal reasons for any
conclusions reached
 The date of the report (which may differ from the valuation date)

Limited Contents of Ideal Valuation Report
• Instructions & terms of reference • Nature and source of the data/information
• Identification and status of the valuer • Valuation approaches and methods
• Identification of the client or user or other • Limitation of approaches and methods
• Documents demanded & provided • Reasoning for adopted approach and method
• Purpose of the valuation • Definition of terminology used
• Date of valuation, inspection, report issued • Factor affecting valuation
• Market behavior… • Calculation or sample calculation
• Commentary of economic condition • Amount of the valuation
• Commentary of market or industry segment • Evidence for amount of the valuation
• Commentary of surrounding developments • Assumptions and special assumptions
• Commentary of asset under valuation • Caveats and disclaimers
• Inspection or identification of the asset • Restrictions on use, distribution, publication
• Identification of the liability • Confirmation in accordance with the IVS
• Macro & Micro identification • Disclosure of conflict of interest, if any
• Fact and/or observation of identified asset • Confidentiality and Responsibility
• Basis of value with description ‘’Format & Contents of Report depends on
• Extent of investigation and market survey type of asset and purpose of valuation”

Contents of Report for Valuation
For Real Estate…
Economic Analysis, Market Analysis, Site Analysis, Improvement Analysis, Highest &
Best Use Analysis, Macro & Micro Market Analysis, Ownership & Property History,
Areas Analysis, Neighborhood Analysis, Location Analysis, Land Use Analysis,
Boundaries, Environmental Matters, Repair and Condition, Town Planning, Titles,
Tenures and Lettings, Capital Values, Rental Values, Legal Notice, Rental Comparable
Transactions, Sale Comparable Transaction, Investment Comparable Transactions,
etc…
For Plant & Machinery…
Economic Analysis, Industry Analysis, Macro & Micro Analysis of Asset, Utilization
Analysis, Product Analysis, Balance Utility Analysis, Financial Ratio Analysis,
Technology Up-gradation Analysis, Process Layout Analysis, Price Trend Analysis,
etc.
Formation of Report
Sr. Head Contents
1 Title Page Gives the title of the report
2 Covering Letter
3 Table of Contents Shows the sections of the report. Gives the
headings, subheadings and page numbers.
4 Executive Summary  Gives a summary of the whole report.
 Outlines the report’s purpose, methodology,
findings in very short
 Main conclusions
5 Terms of Reference Briefly states the purpose and scope of the report.
This includes who requested the report, the main
Sr. Head Contents
issues or problems to be identified, the reason for
undertaking the report and the due date of the
report
6 Introduction
7 Inspection or Procedure Outlines the methods used to collect information
8 Facts & Findings (Analysis)  What was found during the inspection or
investigation?
 Gives the facts only – no interpretation by the
writer of the report
 Tables, graphs or diagrams can be used.
 Must be relevant to the issues and problems

Sr. Head Contents
identified in the Terms of Reference
 The discussion draws together different parts
of the findings and may refer to findings of
other studies and/or theories.
9 Basis of Valuation Based on Purpose of Valuation & Terms of
Reference
10 Approach & Methodology Discussion about available and selection of
approach & methodology
11 Valuation Discussion and Calculation
12 Conclusion Brief statements of the key findings of the report
(full explanation is given in the Findings and/or
Discussion).
Sr. Head Contents
13 Assumption & Limiting Condition
14 References, Bibliography,
Appendices

Style and Tone
Use of indirect speech and present perfect tense…
 We have been instructed to inspect the asset located at Any Street, Any Town
Any State as on xx March 20xx.
 It has been observed that the said land parcels are combined and being used as
single land parcel. The same has been considered for this valuation exercise.
 As per the copy of sale deeds & NA permission letter provided to us, the
permissible usage of the subject property is residential and same has been
adopted for this valuation exercise.
 Based on our investigation and the procedures described in this report, it has
been concluded that as of July xx, 20xx the estimated value of the identified
tangible assets of the Company is reasonably represented in the summary below:
 No third party shall have the right of reliance on this report and neither receipt
nor possession of this report by any third party shall create any express or
implied third-party beneficiary rights.
 The subject assets have been observed in installed and working condition.

Purpose of Valuation
x
Mortgage / Sale / Purchase

(May be part of Introduction, Inspection, Fact & Finding, Analysis, Basis of Value, Approach & Method)
Identification, Inspection, Analysis of factors like Physical, Legal, Economic & Social,
Comments on Demand & Supply, Price Trend, Transferability, Utility, Marketability,
etc.
Basis of Value: Market Value with Highest & Best Analysis (realizable & distress sale value)
Approach: Market, Income or Cost Approach
Method: Sale Comparison, Direct Capitalization, Discounted Cash Flow, Investment
Method, Hypothetical Plotting Scheme, Residual Value, Profit Method, Depreciated
Replacement Cost, etc.
Insurance
Analysis of insurance policy and its perils with different clauses, inclusion and
exclusion in the policy, add-on covers, etc.
Identification, Inspection, Analysis of Physical factor & Price Trend
Basis of Value: Reinstatement Value or Market Value
Approach: Cost Approach
Method: Reproduction Cost New, Replacement Cost New, Depreciated Replacement
Cost

Liquidation
Analysis of economic condition, market behavior, industry segment, potential buyer,
marketing time, etc.
Identification, Inspection, Analysis of factors like Physical, Legal, Economic,
Comments on Demand & Supply, Price Trend, Transferability, Utility, Marketability,
etc.
Basis of Value: Liquidation or Realizable Value & Premise Value (as whole or piecemeal basis)
Approach: Market, Income or Cost Approach
Method: Sale Comparison, Direct Capitalization, Discounted Cash Flow, Hypothetical
Plotting Scheme, Residual Value, Depreciated Replacement Cost, etc.

Taxation / Compensation
Analysis of related provision under the specific Act

Identification & Inspection
Basis of Value: As per define under the specific Act (fair market value, market value or fair value)
Approach: Based on asset and its characteristic (Market or Cost Approach)
Method: Sale Comparison or Depreciated Replacement Cost

Sample (Cover Letter)
Date: xx March 20xx
Dear Sir,
We refer to the appointment letter, dated xx March 20xx issued by ABC Co. and accepted by DEF Co. (the Client) for
valuation of tangible assets of XYZ Co. (the ‘Company’). In accordance with the terms of appointment letter, we are
enclosing our valuation report along with this letter.
In the attached report, we have summarized our Valuation Analysis of the tangible assets as of January xx, 20xx with the
explanation of the methodologies used and limitations of the scope of work.
This Valuation Analysis is confidential and has been prepared exclusively for the ABC Co. However the Company may
disclose a complete copy of our report to its auditor or legal advisors. This report should not be used, reproduced or
circulated to any other person, in whole or in part, without the prior written consent of DEF Co. Such consent will only be
given after full consideration of the circumstances at the time.
This valuation report (‘Valuation Report’) is subject to scope of work, assumptions, exclusions, limitations, and
disclaimers detailed herewith. As such report is to be read in totality, and not in parts, in conjunction with the relevant
documents referred to therein.
We trust this report will meet your requirements. Please feel free to contact us in case you have any questions or if there
is anything else we can do for you, please contact me at +91 9x9x9 x9x9x.

Sample (Table of Contents)

Sample (Executive Summary)
Appointed by : ABC Co.
Date of appointment : Xx March 20xx
Purpose of valuation : For internal review by the company management
Name of asset : Industrial premises
Address : Any Street, Any Area, Any City, Any State
Report issued to : ABC Co.
Site : Xxx Square Meter(leveled & rectangle)
Site improvement : Xxx Square Meter (Ground & upper two floor)
Age : Xxx Years
Rights in asset : Freehold
Date of valuation : Xx, March 20xx
Highest & Best Use : Industrial
Value of site : Rs. xxx
Value by cost approach : Rs. xxx
Value by market approach : Rs. xxx
Value by income approach : Rs. xxx
Value of asset (conclusion) : Rs. xxx
Date of report issued : Xx March 20xx
Sample (Title, Heading, Subheading)
Date: xx March 20xx
1 Introduction
We have been appointed by ABC Co. (date of appointment) for the purpose of valuation of specified
tangible assets belongs to DEF Co. located at Any No., Any Street, Any Area, Any City, Any State.
Purpose of Valuation: For internal review by Company management
Date of Valuation: xx March 20xx
Scope of Work: Specified tangible asset (with inclusion & exclusion)
2 Inspection
An onsite visit has been conducted to inspect the subject asset as on xx March 20xx in presence of
company representative and verbal discussion like history, occupant and utility of subject property
has been made. The physical inspection of the asset under valuation has been carried out up to the
extent which is accessible with safety and from within the boundaries of the site and/or from
adjacent public/communal areas.
3 About the Company / Asset (History or Background)
The company was established in 19xx and engaged in manufacturing of petrol product. The company
was established in 19xx and engaged in manufacturing of petrol product.
4 Data Collection
4.1 Data Collection from the Company (Source of information)
The following data has been furnished by company to carrying out this valuation exercise.
1 xxx
2 xxx
4.2 Data Collection from the Market Survey (Source of information)
The following data has been collected during the market survey related to assets belongs to
company to carrying out this valuation exercise.
1 xxx
2 xxx
4.3 Extent of Market Survey

5 Brief Description of Asset
The asset under valuation is located on the Any No., Any Street, Any Area, Any City, Any State. It is
situated on the internal road of xxx which is leading towards xxx and xxx. It is about xx km away from
xxx city center.
As per documents / information furnished by the Company, area of land is xxx Sq. Mtr. It mainly
consists of buildings like xxx Shed, xxx Shed, xxx Building, xxx Room, xxx Shed and other Misc.
structure.
The subject property consists of various machineries for used manufacturing of xxx. At the time of
inspection, the asset has been observed in installed and maintained condition.
6 Fact, Finding or Analysis (with extent of investigation)

6.1 Fact / Observation of asset
6.2 Market Analysis
6.3 Areas Analysis
6.4 Etc…

7 Basis of Valuation
The definition of xxx Value as per xxx Standard adopted for this valuation is as follows:
Xxx Value is the xxx that would be xxx to xxx an asset or xxx to xxx a liability in an xxx between
market participants at the measurement date.
8 Approaches for Valuation

In valuing tangible assets, three different approaches may be employed to determine value: (i) the
xxx Approach, (ii) the xxx Approach, and (iii) the xxx Approach. While each of these approaches is
initially considered in the valuation of an asset, the nature and characteristics of the asset, availability
of required data for each of the approaches indicate which approach, or approaches, is most
applicable.
9 Selection of Approach & Method

Estimation of the value of xxx is made by using xxx method of ‘xxx Approach’.

10 Reason for Selection of Approach & Method
Based on type of asset, purpose of valuation, availability of data from company and market survey,
analysis, type of transaction, etc.
11 Assumptions and special assumptions (valuation depend on)

12 Valuation
12.1 Brief about the asset, facts, observation, finding and analysis
12.2 Brief about factor affecting valuation based on analysis
12.3 Calculation or sample calculation
12.4 Conclusion of value
13 Conclusion (with caveats and disclaimers)

14 Photos
15 Appendices
Sample (Statement of General Assumptions and Limiting Conditions and it must be within agreed limit)
 The conclusion of value arrived at herein is valid only for the stated purpose as of the date of the valuation.
 This report and the conclusion of value arrived at herein are for the exclusive use of our client for the sole and
specific purposes as noted herein. They may not be used for any other purpose or by any other party for any purpose.
 No responsibility is assumed for legal or title considerations. Title to the property is assumed to be good and
marketable unless stated otherwise in this report.
 Responsible ownership and competent asset management are assumed unless stated otherwise in this report.
 All facts and data set forth in this valuation report are based upon an estimate of value only, not a guarantee of value;
true and accurate to the best of the valuer’s knowledge and belief.
 The valuer has no (or the specified) present or prospective interest in the asset that is the subject of this report, and
has no personal interest or bias with respect to the parties involved.
 Public information and industry and statistical information have been obtained from sources, we believe to be
reliable. However, we make no representation as to the accuracy or completeness of such information and have
performed no procedures to corroborate the information.
 The valuer is not required to give testimony, be present in any court of law, or appear before any commission or
board by reason of this valuation, unless prior arrangements have been made.
 The valuer reserves the right to recall all copies of this report to correct any errors or omissions.

 We are unaware of any easements or encumbrances that substantially impact the subject property. However, we
have not been provided with a title report and if in the event such report detailed the existence of an otherwise
unknown easement or encumbrance, the value conclusion contained herein may be subject to change.

Terminology
Assumption
A supposition (belief) taken to be true. It involves facts, conditions or situations affecting the subject of,
or approach to, a valuation that, by agreement, do not need to be verified by the valuer as part of the
valuation process. Typically, an assumption is made where specific investigation by the valuer is not
required in order to prove that something is true.
Date of the report or report issued

The date on which the valuer signs the report.
Inspection
A visit to a property or inspection of an asset, to examine it and obtain relevant information, in order to
express a professional opinion of its value.
Date of the inspection

The date on which the valuer has made visit of an asset to inspect it.
Special Assumption
An assumption that either assumes facts that differ the actual facts existing at the valuation date or that
would not be made by a typical market participant in a transaction on the valuation date.
Date of valuation
The date on which the opinion of value applies. The valuation date should also include the time at which
it applies if the value of the type of asset can change materially in the course of a single day.

Report Writing

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Report Writing

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Report

A written communication for a specific purpose and it includes a description of a

Informational Interpretive Routine

Sanjay Patel : Page | 1

Sanjay Patel : Page | 2

Sanjay Patel : Page | 3

Indirect Speech Present Perfect Tense

Sanjay Patel : Page | 4

Sanjay Patel : Page | 8

Sanjay Patel : Page | 9

Sanjay Patel : Page | 11

Sanjay Patel : Page | 14

Sanjay Patel : Page | 16

Sanjay Patel : Page | 18

Mortgage / Sale / Purchase

Sanjay Patel : Page | 20

Sanjay Patel : Page | 21

Analysis of related provision under the specific Act

Sanjay Patel : Page | 22

Sanjay Patel : Page | 23

Sanjay Patel : Page | 24

Sanjay Patel : Page | 28

6 Fact, Finding or Analysis (with extent of investigation)

Sanjay Patel : Page | 29

8 Approaches for Valuation

9 Selection of Approach & Method

Sanjay Patel : Page | 30

11 Assumptions and special assumptions (valuation depend on)

13 Conclusion (with caveats and disclaimers)

Sanjay Patel : Page | 32

Sanjay Patel : Page | 33

Date of the report or report issued

Date of the inspection

Sanjay Patel : Page | 35

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