Valuation under Insolvency & Bankruptcy Code, 2016
5000+ Documents delivered
Trusted By 1000+ Businesses
Valuation under the Insolvency & Bankruptcy Code, 2016 (IBC) pertains to determining the fair market value of assets and liabilities of a compa ...
Determine Fair market value of assets and liabilities of a company undergoing insolvency proceedings
Financial Modeling of Company
Get Valuation Report in 7 days
2,000+ ezyLegal verified experts
Senior Corporate Lawyers with 15+ years of experience
Google Reviews
4 / 5 | 250+ Reviews
100% Satisfaction Guaranteed
Dedicated Lawyer Available
Fastest Delivery, Lowest Price
Consult with an Expert
If you have questions regarding our products, speak to our team of Legal Experts.
Valuation under Insolvency & Bankruptcy Code, 2016
![]()
Share financial information
Customer shares company’s financial data
![]()
Value is calculated
Valuer calculates enterprise valuation
![]()
Valuation Report is issued
Merchant Banker issues signed report
Share financial information
Customer shares company’s financial data
Value is calculated
Valuer calculates enterprise valuation
Valuation Report is issued
Merchant Banker issues signed report
Contents of Report
Overview
The name and registration number of the Merchant Banker and details of the company requesting for Valuation under Insolvency & Bankruptcy Code, 2016
Scope of Work
Outlines the specific shares being valued, along with any limitations or restrictions on the valuation process.
Methodology
Details about the approaches and methods used to determine the value of the share.
Market Analysis
Information about the relevant market conditions, trends, and factors that may impact the value of the share.
Valuation Results
The final estimated value of the asset, along with any supporting calculations or analyses.
Merchant Banker's Declaration
A statement by the Merchant Banker confirming that the report has been prepared in accordance with relevant laws and standards.
Signature and Stamp
The report is signed by the Merchant Banker, along with their official stamp or seal.
Benefits of Valuation under Insolvency & Bankruptcy Code, 2016
Credibility
The report is prepared by a Merchant Banker/Registered Valuer/CA which lends credibility to the valuation process and assurance to stakeholders.
Regulatory Compliance
Valuation under Insolvency & Bankruptcy Code, 2016 ensures compliance with the provisions of the Income Tax Act, SEBI regulations and RBI guidelines.
Objective and Unbiased Assessment
It provides an impartial and unbiased valuation, free from any conflicts of interest.
Risk Mitigation
Valuation under Insolvency & Bankruptcy Code, 2016 helps mitigate the risk of disputes or disagreements related to the value of the asset.
Financial Reporting and Accounting
Premium per share as mentioned in the Valuation Report is used for financial reporting purposes as per accounting standards compliance.
Professional Accountability and Ethics
The preparation of a Valuation under Insolvency & Bankruptcy Code, 2016 demonstrates adherence to these standards, which enhances trust and confidence in the valuation.
Documentation of Methodology and Assumptions
Transparency in method, approach, and assumptions helps stakeholders understand how the value was determined.
Documents Required for Valuation under Insolvency & Bankruptcy Code, 2016
Financial Statements
Latest audited financial statements, including balance sheets, income statements, and cash flow statements, to assess the financial condition of the company.
Asset Register
A complete and up-to-date register listing all the company's assets, including both tangible and intangible assets.
Liability Schedule
Detailed information on all liabilities, including secured and unsecured debts, contingent liabilities, and any statutory dues.
Legal Reports
Reports detailing any legal proceedings or disputes involving the company, which could impact the valuation of its assets and liabilities.
Valuation Histories
Previous valuation reports, if available, which can provide insights into past assessments and valuation methods used.
Asset Appraisal Reports
Professional appraisal reports for significant assets like real estate, machinery, and equipment to ascertain their current market values.
Inventory Lists and Valuations
Detailed inventories of all physical assets, including goods, raw materials, and finished products, along with their respective valuations.
Operational Data
Information on the company's operations, including production levels, supply chain details, and customer and vendor contracts.
Tax Records
Documentation related to tax filings and liabilities, which can affect the valuation of the company’s assets.
Insolvency Resolution Process Documents
Documents pertaining to the ongoing insolvency resolution process, including claims from creditors, resolution plans submitted, and decisions made by the committee of creditors.
Resolution Professional’s Reports
Reports prepared by the resolution professional overseeing the insolvency proceedings, which may include insights into the operational and financial restructuring plans.
Corporate Governance Documents
Minutes of board meetings and records of major corporate decisions made in the lead-up to the insolvency proceedings.
Compliance Certificates
Certificates and reports verifying compliance with various regulatory requirements, which might affect the valuation.
Intellectual Property Documentation
Details of any intellectual property owned by the company, including patents, trademarks, and copyrights.
Deliverables
Determine Enterprise Valuation
Issue of Valuation Report signed and stamped
Frequently asked Questions
What is the role of valuation under the Insolvency and Bankruptcy Code (IBC)?
Valuation plays a key role in the IBC process by determining the financial health of a debtor company and guiding decisions about revival or liquidation. Accurate valuations ensure fair outcomes for creditors, employees, and the company itself.
Why is maximizing value important in the IBC?
The IBC prioritizes maximizing the value of the debtor’s assets. Valuation helps assess their true worth and guides decisions to either revive the company or recover the most value through liquidation for the benefit of all stakeholders.
How do valuations impact decision-making in the IBC process?
Informed decisions depend on accurate valuations. They help assess revival plan feasibility, set fair reserve prices for asset sales during liquidation, and promote transparency and fairness throughout the process.
What are the two main types of valuations under the IBC?
Fair Value: Represents the estimated market value of assets assuming a normal sale with proper marketing. Liquidation Value: Represents the estimated value if assets are forced into sale on the insolvency commencement date, typically lower than fair value.
Who can conduct valuations under the IBC?
Only “Registered Valuers” can perform valuations. These professionals are certified by the Insolvency and Bankruptcy Board of India (IBBI) and possess expertise in valuing various asset classes.
Why are accurate valuations crucial in the IBC process?
Accurate valuations are vital for ensuring fairness and transparency. They protect stakeholder interests and foster trust in the entire insolvency resolution system.
What is Fair Value under IBC?
Fair value under the IBC represents the estimated price a willing buyer would pay a willing seller in an ordinary sale, reflecting the market value of the asset if the company were solvent (not facing insolvency).
What are the potential consequences of inaccurate valuations under the IBC?
Inaccurate valuations can lead to unfair outcomes for stakeholders, hindering the IBC’s goal of achieving a fair and efficient resolution.
How does the IBC promote reliable valuations?
The IBC mandates the use of Registered Valuers and adherence to international valuation standards, aiming to ensure objectivity and accuracy throughout the process.
Why Choose Us
Reliable & Trusted
Over 3,000 five star reviews from our customers
Fast & Easy
Get legal contracts drafted from expert corporate lawyers. Agreement drafts are delivered within a maximum of 2 days
Secure & Confidential
Documents and information are always kept private. Information shared with the lawyer are 100% confidential.
Reviews
4.8
Amit Dey
Dealing with insolvency can be challenging, but ezyLegal made the process surprisingly smooth and supportive. Their valuation under the Insolvency & Bankruptcy Code (IBC) report not only provided valuable insights into the financial condition of the distressed company but also offered practical guidance on restructuring and rehabilitation strategies. I appreciate ezyLegal's supportive approach and willingness to assist stakeholders throughout the insolvency resolution process. With their expertise by our side, I'm confident that distressed companies can navigate financial difficulties successfully and emerge stronger on the other side.Karan Patel
Transparency is crucial in insolvency proceedings, and ezyLegal's valuation under Insolvency & Bankruptcy Code (IBC) report was conducted with complete transparency and integrity. The valuation methodologies and assumptions were explained clearly, allowing creditors and stakeholders to understand the basis for the valuation conclusions. I appreciate ezyLegal's commitment to delivering reliable information that fosters trust and confidence among all parties involved in the insolvency resolution process. With their support, I'm confident that distressed companies can achieve fair and equitable outcomes that preserve value for stakeholders.Kayra Singh
Time is of the essence in insolvency proceedings, and ezyLegal understands this better than anyone. Their valuation under the Insolvency & Bankruptcy Code (IBC) report was not only thorough and insightful but also delivered promptly, ensuring timely resolution of the distressed company's financial issues. I appreciate ezyLegal's commitment to efficiency and professionalism, which has made the insolvency resolution process smoother and more manageable for all parties involved. With their support, I'm confident that distressed companies can overcome financial challenges and emerge stronger than ever.Priya Joshi
ezyLegal's valuation under the Insolvency & Bankruptcy Code (IBC) report provided valuable insights into the financial health and viability of the distressed company. The detailed analysis helped stakeholders understand the underlying value of the company's assets and liabilities, facilitating transparent and efficient resolution proceedings. I appreciate ezyLegal's expertise and dedication to providing objective and insightful valuation services that contribute to the effectiveness of the insolvency resolution process. With their support, I'm confident that distressed companies can achieve successful restructuring and rehabilitation.Alok Gupta
ezyLegal's valuation under the Insolvency & Bankruptcy Code (IBC) report was conducted with utmost professionalism and expertise. The detailed analysis provided a clear assessment of the assets and liabilities of the distressed company, enabling creditors and stakeholders to make informed decisions about the insolvency resolution process. I'm impressed by ezyLegal's deep understanding of the IBC framework and its commitment to delivering reliable valuation services that facilitate fair and equitable outcomes for all parties involved.
Still have Questions?
Ask ezyLegal Expert
If you have any questions related to the product, Chat with an EzyLegal expert
Call our Agent at +91-85 8888 7480
Monday - Saturday: 9AM - 9PM
Sunday: 9AM - 2PM
contact@ezylegal.in
+91-85 8888 7480