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Plant & Machinery Valuation

Independent Valuation of Plant, Machinery & Equipment Assets

Valuation of plant and machinery is required across a wide range of situations — financial reporting under Ind AS, bank security and loan sanctioning, insurance, mergers and slump sales, income tax assessments, and insolvency proceedings under the IBC.

We help companies obtain a defensible, registered-valuer-certified valuation of their plant, machinery, and equipment, supported by physical verification, technical assessment, and market benchmarking, so the reported value withstands scrutiny from auditors, lenders, and regulators.

Our Plant & Machinery Valuation Services

Fair Value Assessment for Financial Reporting

Valuation of plant and machinery for Ind AS 16 and Ind AS 103 financial reporting purposes.

Insurance Valuation

Determining replacement and reinstatement values for insurance coverage of machinery and equipment.

Bank Security & Charge Valuation

Valuation reports for banks and NBFCs sanctioning loans against plant and machinery as collateral.

Valuation for Slump Sale & Mergers

Asset-wise valuation support for business transfers, mergers, and demergers.

Income Tax Valuation (Rule 11UA/11UAA)

Valuation of plant and machinery for income tax compliance and assessment proceedings.

Impairment Testing Support

Technical and financial input for impairment assessment of machinery under Ind AS 36.

Why Plant & Machinery Valuation Matters

  • Registered valuer certification recognised by regulators, banks, and courts
  • Supports statutory audit and Ind AS compliance
  • Required for related-party transaction valuations
  • Relevant in IBC resolution and liquidation valuations
  • Provides a defensible basis for insurance claim settlement
  • Supports accurate price allocation in M&A and slump sale transactions

Frequently Asked Questions

Who is a registered valuer for plant & machinery under the Companies Act, 2013?
A registered valuer for plant and machinery is a professional registered with the Insolvency and Bankruptcy Board of India (IBBI) under the Companies (Registered Valuers and Valuation) Rules, 2017, authorised to issue valuation reports for statutory and regulatory purposes.
When is plant & machinery valuation mandatory?
It is typically required for Ind AS-based financial reporting, bank loan security, insurance, mergers or slump sales, income tax assessments, and valuations under the Insolvency and Bankruptcy Code.
What is the difference between book value and fair value of plant & machinery?
Book value reflects historical cost less accumulated depreciation as recorded in the accounts, while fair value reflects the current market-based worth of the asset considering condition, technology, and market demand.
Is plant & machinery valuation required for income tax purposes?
Yes, valuation may be required under specific income tax rules such as Rule 11UA or 11UAA, particularly in transactions involving transfer of shares or assets at other than book value.
How often should plant & machinery be revalued?
There is no single fixed frequency; it depends on the purpose — financial reporting policies, loan renewal cycles, or specific transaction triggers typically determine when a fresh valuation is needed.

Talk to Our Plant & Machinery Valuation Team

From assessment to execution, we help you navigate plant & machinery valuation with clarity and compliance.

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