A PROJECT

Duties of Registered Valuer Under the Act

[Submitted as a partial fulfilment of the requirements for B.A. LL. B (HONS) 5 Year
Integrated Course]
Session: 2023-2024

Submitted On: 30 September 2023

Submitted By: Submitted to:

Rudra Pratap Singh Palawat Mr. Balkesh Yadav
Roll no- 119 Company Law - I
Class: V Semester (B)

University of Five-Year law College,

University of Rajasthan
Jaipur

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 Declaration

I, Rudra Pratap Singh Palawat, hereby declare that this project titled “Duties of Registered
Valuer Under the Act” is based on the original research work carried out by me under the
guidance and supervision of Mr. Balkesh Yadav.

The interpretations put forth are based on my reading and understanding of the original texts. The
books, articles and websites etc. which have been relied upon by me have been duly
acknowledged at the respective places in the text.
For the present project which I am submitting to the university, no degree or diploma has been
conferred on me before, either in this or in any other university.

Date: 30 October 2023 Rudra Pratap Singh Palawat

Roll No. 119
Semester V-B

Acknowledgment

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In the accomplishment of this project successfully, many people have best owned upon me their
blessings and heart pledged support, this time I am utilising to thank all people concerned with
this project.

First of all I would like to thank our Director Dr. Akhil Kumar for giving me an opportunity. I
would like to thank our Deputy Director Mr. Ghanshyam Bera and Mr. Sandeep Singh whose
valuable guidance and suggestions helped me complete this project within time.

I would like to thank librarian and library staff that have been great support throughout.

Last but not the least, I would like to thank my parents and friends for their valuable suggestions
which helped me in completing this project successfully.

Rudra Pratap Singh Palawat

CERTIFICATE

Mr. Balkesh Yadav Date: 30.09.2023

Faculty

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University of Five Year Law College

This is to certify that Rudra Pratap Singh Palawat of Semester V section B of University Five
Year Law College, University of Rajasthan has carried out the project entitled “Duties of
Registered Valuer Under the Act” under my supervision and guidance. It is an investigation
report of a minor project. The student has completed research work in my stipulated time and
according to the norms prescribed for the purpose.

Supervisor

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 TABLE OF CONTENTS

SERIAL NO. PARTICULARS PAGE NUMBER

1. Declaration 2

2. Acknowledgment 3

3. Certificate 4

4. Introduction 6

5. Duties of Registered Valuer 8-7

6. Challenges in Valuation 9

7. Conclusion 10

8. Bibliography 11

Introduction

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In the complex and dynamic landscape of finance, taxation, and asset valuation, the role of
registered valuers holds paramount significance. Under the purview of legislation such as the
Income Tax Act and the Companies (Registered Valuers and Valuation) Rules, 2017, registered
valuers are entrusted with the vital task of determining the fair market value of a diverse array of
assets, ranging from real estate and securities to intangible assets. Their duties extend far beyond
mere valuation; they play a pivotal role in upholding the integrity and legality of financial
transactions. This project delves into the multifaceted responsibilities and ethical obligations of
registered valuers, elucidating their crucial function in the ever-evolving realms of financial
compliance and transparency. By exploring their roles in asset valuation, compliance with the law,
the selection of appropriate methodologies, and their ethical commitment to impartiality, we shed
light on the intricate web of obligations these professionals navigate daily. Through this
exploration, we endeavor to underscore the instrumental nature of registered valuers in the
financial and legal spheres, and the challenges they face in providing accurate valuations.
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1
https://www.incometaxact1961examplecom/

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 Duties of Registered Valuer

1. Asset Valuation:
Registered valuers are entrusted with the primary duty of ascertaining the fair market value of a
wide array of assets, including real estate, securities, and intangible assets. This duty is
fundamental to their role and encompasses various tasks, such as conducting thorough research,
gathering relevant data, and employing appropriate valuation methods. By accurately determining
the value of assets, registered valuers facilitate crucial financial and legal processes. Their
valuations serve as the basis for taxation, financial reporting, mergers and acquisitions, and other
significant transactions. Accurate valuations are essential to ensure fair and transparent financial
dealings and to prevent tax evasion or financial irregularities.

2.Compliance with Laws and Regulations:

Registered valuers are responsible for ensuring that their valuations comply with the laws and
regulations that govern financial and tax matters. One of the primary regulations they must adhere
to is the Income Tax Act. This act prescribes specific requirements for valuations, especially in the
context of tax-related matters. Compliance is not only essential for maintaining the legal integrity
of financial transactions but also for guaranteeing the accuracy and validity of valuations. It is
crucial for registered valuers to stay up-to-date with changes in tax laws and regulations to ensure
their valuations align with the current legal framework. Failure to comply can lead to legal
complications, financial penalties, and reputational damage.

3.Selection of Valuation Methodologies:

Registered valuers are responsible for selecting appropriate valuation methodologies and
approaches tailored to the specific characteristics of the assets under evaluation. Different asset
types require different valuation methods, and it's crucial for valuers to have a deep understanding
of these methods. For example, real estate may be valued using methods like the income
approach, cost approach, or sales comparison approach, while securities may require techniques
like discounted cash flow analysis. The selection of the correct method ensures the accuracy and
reliability of valuations, which is essential for making informed financial decisions and complying
with legal requirements.

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4.Impartiality and Ethics:
A core duty of registered valuers is maintaining impartiality and adhering to a strict code of
professional ethics. They must operate without any bias or conflicts of interest that could
compromise the integrity of their valuations. This ethical commitment is crucial to ensure that
valuations are independent, reliable, and objective. Registered valuers must conduct themselves
with the utmost integrity and transparency, acting in the best interests of their clients and the
financial system as a whole. Ethical violations can not only harm the reputation of valuers but also
have legal consequences.

5.Documentation and Reporting:

Comprehensive and transparent documentation is a critical part of a registered valuer's duties.
They are responsible for maintaining detailed records of the valuation process, including the data,
methodologies, and assumptions used in their assessments. Furthermore, they must prepare
valuation reports that clearly and comprehensively present their findings to clients and relevant
authorities. Well-documented reports are not only essential for accountability and transparency
but also serve as crucial evidence in legal and financial proceedings. Accurate and organized
documentation ensures that valuations can withstand scrutiny and verification.

6.Adherence to Valuation Standards:

Registered valuers are required to follow established valuation standards and guidelines, both at
the national and international levels. These standards, such as the International Valuation
Standards (IVS), provide a framework for conducting valuations consistently and with high
quality. Adhering to these standards ensures that valuations are reliable, comparable, and meet
accepted industry practices. Compliance with valuation standards is vital for maintaining trust in
the valuation profession and ensuring that valuations are recognized and accepted in various
financial and legal contexts.2

2
https://cleartax.in/s/opression-mismanagement

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 Challenges in Valuation

This section delves into the common challenges faced by registered valuers when performing their
duties. Valuation, although a critical and precise endeavor, is not without its complexities and
obstacles. Registered valuers encounter a range of challenges throughout the valuation process,
which can impact the accuracy and reliability of their assessments.

Data Accuracy and Availability: One of the primary challenges is the accuracy and availability of
data. Accurate and up-to-date data is crucial for valuations, but it's not always readily accessible.
For instance, in the case of real estate valuation, accessing recent sales data for comparable
properties can be challenging, especially in rapidly changing markets.

Market Volatility: Valuation often occurs in dynamic markets, and asset values can fluctuate
significantly over time. Market volatility presents challenges in accurately assessing the fair
market value of assets, especially in sectors like stocks and securities, which can experience rapid
price fluctuations.

Complex Asset Types: Some assets are inherently complex, and valuing them can be a formidable
task. For instance, valuing intellectual property, such as patents or trademarks, requires
specialized knowledge and understanding of the intangible asset's worth.

Subjectivity: Valuation often involves a degree of subjectivity, particularly when selecting

valuation parameters, making assumptions, or estimating future cash flows. This subjectivity can
lead to differences of opinion among valuers, resulting in varied valuations.

Regulatory Changes: The financial and legal landscape is subject to regulatory changes, which can
impact the valuation process. Valuers must stay updated with these changes to ensure that their
valuations remain in compliance with the current legal framework.

Legal and Ethical Challenges: Registered valuers must adhere to strict ethical standards and legal
requirements. Ensuring compliance with these standards while delivering an impartial and
unbiased valuation can be challenging.

Overcoming Challenges: Overcoming these challenges requires a combination of expertise,

experience, and resourcefulness. Registered valuers often employ a blend of data analytics,
financial modeling, market research, and professional judgment to address these challenges and
provide accurate valuations.

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 Conclusion

In conclusion, the duties of registered valuers not only make them linchpins of financial integrity but
also guardians of the transparency that underpins sound financial decisions. As they navigate the
intricacies of valuation, compliance, ethics, and challenges, their unwavering commitment to these
duties reinforces their indispensable role in the ever-evolving worlds of finance and law. It is within
this professional framework that registered valuers contribute to the certainty and reliability that
underpin financial markets and legal compliance. Their work, guided by expertise, ethical rigor, and
adaptability, stands as an essential pillar of our modern financial and legal systems.
In the realm of finance, taxation, and asset valuation, registered valuers are the custodians of
transparency and reliability. Their multifaceted duties encompass every aspect of the valuation
process, safeguarding the integrity of financial transactions. They determine fair market values,
ensuring compliance with legal requirements, and meticulously select appropriate valuation
methods. Their commitment to impartiality and ethics bolsters trust, and their rigorous
documentation, adherence to industry standards, and resilience in the face of valuation challenges
underscore their indispensable role. Registered valuers not only uphold the highest standards of
financial integrity but also play a vital part in the reliability of financial systems and legal
compliance, contributing to a transparent and trustworthy financial landscape.

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BIBLIOGRAPHY

Web sources

1. https://cleartax.in/s/opression-mismanagement
2. https://taxguru.in/company-law/oppression-mismanagement- companies act
3. https://www.incometaxact1961examplecom/
4. https://www.valuationrules2017example.com/

other source
Companies (Registered Valuers and Valuation) Rules, 2017.

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