Earlier, a Chartered Accountant was also permitted to determine the FMV of such equity shares. However, with effect from 24th May 2018, this right of Chartered Accountant is taken away and therefore only Merchant Banker is authorised to determine the FMV of such equity shares.
Typically, a merchant banker would need around 10 – 15 days to issue a valuation report. And, the merchant banker charges approximately INR 50,000 – 65,000 for the same. Note that a merchant banker valuation report is not required if you are issuing the shares to the existing shareholders through a rights issue.
Can CA issue valuation certificate?
23/2018 dated 24th May, 2018 it is provided that now only merchant banker can do valuation of unquoted equity shares under Discounted Free Cash Flow method and Chartered Accountants are no more allowed to do the same.
Can a CA be registered valuer?
Any Chartered Accountant, having three years of Post-Qualification experience as a Chartered Accountant can become a Registered Valuer. Now, a Chartered Accountant is not required to be a Graduate to become a Registered Valuer.
Section 247 of the Companies Act explains that “where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other asset or net worth of a company or its liabilities under the provisions of this Act, it shall be valued by a person having such …
Who can issue valuation certificate under FEMA?
Under FEMA & its Regulations.
The valuation shall be duly certified by a Chartered Accountant or SEBI Registered Category I Merchant Banker, where the shares or the capital instrument are not listed on any recognized stock exchange in India.
Yes you can issue shares at face value and there won’t be any issue.
29 May 2020 In case of transfer of unquoted shares by a person at value lesser than fair market value as defined in above rule 11UA (1)(c)(b) and 11UA (1)(c)(c), the fair market value as defined in these rules shall be considered as sale consideration for such transaction.
The Bangalore Income Tax Appellate Tribunal (ITAT) said that auditors of a company cannot double up as accountants especially in situations while dealing with “share valuation for the purpose of excess share-premium taxability.”
How do I get a CA valuation certificate?
Process Of obtaining Ca Certificate for Visa
- To Get A Ca Certificate For Visa You Need to Contact Any CA Consultant firm and Submit documents Related to Assets and Liabilities.
- The Chartered accountant will review the information provided by you and will create Networth certificate and will certify The certificate.
Can CA do property valuation?
The Chartered Accountants shall be eligible to conduct valuation of stocks, shares, debentures, securities or goodwill or any other assets (herein referred to as the assets) or net worth of a company or its liabilities .
Who can be a registered valuer?
Subject to meeting other requirements provided in rule 3 and rule 4 of the Rules, an individual is eligible to be a registered valuer, if he (i) is a fit and proper person, (ii) has the necessary qualification and experience, (iii) is a valuer member of a Registered Valuer Organisation (RVO), (iv) has completed a …
Listed below are the steps to determine the value per share under the income-based approach: Obtain the company’s profit (available for dividend) Obtain the capitalized value data. Calculate the share value ( Capitalized value/ Number of shares)
The necessity for valuation of a share arises in the following circumstances: a) For Estate Duty and Wealth Tax purposes b) For Amalgamation and Absorption schemes c) For Gift Tax purposes d) For discharge of debts and liabilities, in exceptional nature e) Purchasing shares for control f) For selling shares of a …
Let us make in-depth study of the five methods of valuation of shares, i.e., (1) Asset Backing Method, (2) Yield-Basis Method, (3) Fair Value Method, (4) Return on Capital Employed Method, and (5) Price-Earning Ratio Method.