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report should contain the following information: |
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1.
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Fair
description and proper location of the assets which are the
subject of the valuation, giving clearly identification, comments
with reference to legal rights and restrictions in ownership,
if any.
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2.
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The
purpose of valuation should be clearly worded and stated preferably
at the beginning of such report.
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| 3. |
The
limiting conditions, such as (i) hypothetical valuation (ii)
fractional valuation (iii) initial opinion subject to revision
etc should be clearly stated.
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| 4. |
Terms
of valuation exercise under reference should be clearly defined
and explained.
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| 5.
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Method
used for valuation i.e. description and explanation etc. should
be stated.
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| 6. |
The
factors influencing the analysis, opinions and conclusion
(It should not be misleading) must be clearly, unambiguously
reported.
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| 7. |
Declaration
of disinterestedness of the concerned valuer, as per statutory
needs, must form a part of the report.
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| 8. |
Signatures
and the names of the valuer or valuers (when collectively
undertaken) must be a part of the valuation report without
which it is not valid.
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| 9. |
Original
documents available for inspection and perusal should be enlisted
properly. If these are or were not available for inspection,
it should be clearly recorded.
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| 10. |
Xerox
copies of the documents which are available for inspection
should be indicated separately and a qualifying statement
indicating that, you are relying on photo copies and not originals,
be recorded in valuation report.
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| 11. |
Assumptions
on the part of valuer or valuers, if any, should be recorded
in an annexure to the valuation certificate.
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| 12. |
Intended
user of the report should be clearly spelled out as the valuer
is accountable equally to them though the assignment may have
come from the clients.
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| 13. |
Clients’
name, who had engaged the valuer, should be clearly recorded.
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| 14. |
Certain
enactment and some institutions, prescribe certain format
in which the valuation report is to be submitted, then, one
has to follow that format. For example, under Wealth Tax Act,
valuation is to be submitted in the prescribed form for different
assets viz Form No. 0-1 to 0-10.
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| 15. |
Overall,
a valuer’s report should make it obvious as to what has
led him to his assessments. Bearing this in mind as the "aim
of the report" the sequence of elements (statutory and
supplementary) should be arranged.
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