ANNEXURE SFA.xlsx

	A	B	C
1	ANNEXURE TO BE ATTACHED WITH ALL VALUATION REPORTS SECURITIES OR FINANCIAL ASSET CLASS
2	1	Questions relating to compliance with Rule 8(3) of Companies (Registered Valuers & Valuation) Rules, 2017 & Code of Conduct:
3	1.1	Has the valuer stated "background information of the asset being valued" in the valuation report?	Rule 8(3) of CA
4	1.2	Has the valuer stated the "Purpose of Valuation" in the valuation report?	Rule 8(3) of CA & IVS 101 20.3
5	1.3	Has the valuer mentioned the "Appointing Authority" in the valuation report?	Rule 8(3) of CA & IVS 101 20.3
6	1.4	Has the valuer mentioned the "identity of the valuer" in the valuation report?	Rule 8(3) of CA & IVS 101 20.3
7	1.5	Were "Other Experts of Valuers" involved in the valuation assignment?	Rule 8(3) of CA & IVS 101 20.3
8	1.6	Has the valuer mentioned the "identity of the other valuers engaged" in the valuation report?	Rule 8(3) of CA & IVS 101 20.3
9	1.7	Does the Valuation Report fully disclose the details of the inputs from other registered valuer?	Rule 8(2) of CA
10	1.8	Does the valuer have any other interest or Conflict in the said assignment? If yes, has the valuer disclosed the said interest or conflict in the valuation report?	Rule 8(3) of CA
11	1.9	Has the valuer mentioned the "date of appointment" in the valuation report?	Rule 8(3) of CA
12	1.10	Has the valuer mentioned the "Valuation Date" in the valuation report?	Rule 8(3) of CA & IVS 101 20.3
13	1.11	Has the valuer mentioned the "Date of the Report" in the valuation report?	Rule 8(3) of CA & IVS 103 30.1
14	1.12	Has the valuer specified & elaborated on the "inspections and/or investigations undertaken" in the valuation report?	Rule 8(3) of CA
15	1.13	Has the valuer specified/ listed the "nature and sources of the information used or relied upon" in the valuation report?	Rule 8(3) of CA
16	1.14	Has the valuer specified & elaborated on the "procedures adopted in carrying out the valuation" in the valuation report?	Rule 8(3) of CA
17	1.15	Has the Valuer Maintained written contemporaneous records for any decision taken, the reasons for taking the decision, and the information and evidence in support of such decision?	Clause 21 of Code of Conduct
18	1.16	Has the valuer mentioned the Valuation Standards followed in the valuation report?	Rule 8(3) of CA
19	1.17	Has the valuer mentioned any restrictions or limitations on use of the report in the valuation report?	Rule 8(3) of CA & IVS 101 20.2
20	1.18	Has the valuer specified & elaborated on the "major factors that were taken into account during the valuation" in the valuation report?	Rule 8(3) of CA
21	1.19	Has the valuer specified the Conclusion on Valuation drawn from his analysis in the valuation report?	Rule 8(3) of CA & IVS 103 20.2/30.1
22	1.20	Has the valuer mentioned any caveats, limitations and disclaimers in the valuation report?	Rule 8(3) of CA
23	1.21	Has the valuer mentioned any caveats, limitations and disclaimers in the valuation report for the purpose of limiting his responsibility of the valuation report?	Rule 8(3) of CA
24	1.22	Does the Valuer have a written contract/ document/ email with the person to whom he would be rendering service stating his/ her fee or charges for the said assignment?	Clause 21 of Code of Conduct
25	2	Questions relating to "Guidelines on Use of Caveats, Limitations and Disclaimers by the Registered Valuers in Valuation Reports" issued by IBBI dated 1.9.2020 (Not mentioned above):
26	2.1	Has the Valuer clearly stated the "Basis/ Bases of Value" in the Valuation Report?	Guidelines on CLDs & IVS 101 20.3
27	2.2	Is the "Basis/ Bases of Value" stated in the Valuation Report accurate based on the purpose of the report?	Guidelines on CLDs & IVS 104 20.2
28	2.3	Has the Valuer clearly stated the "Premise of Value" in the Valuation Report?	Guidelines on CLDs & IVS 104 80.2
29	2.4	Is the "Premise of Value" stated in the Valuation Report accurate based on the purpose of the report?	Guidelines on CLDs
30	2.5	Has the Valuer mentioned "The Intended Users" of the Valuation Report?	Guidelines on CLDs & IVS 101 20.3 & IVS 103 30.1
31	2.6	Has the Valuer elaborated and discussed the "Business Interest & Ownership Characteristics" in the Valuation Report?	Guidelines on CLDs
32	2.7	Has the Valuer elaborated and discussed the "Significant Assumptions" & "Special Assumptions", if any, in the Valuation Report?	Guidelines on CLDs & IVS 101 20.3 & IVS 103 30.1
33	2.8	Has the Valuer elaborated and discussed the principle procedures adopted by him/ her in carrying out the valuation in the Valuation Report?	Guidelines on CLDs
34	2.9	Has the Valuer mentioned/ discussed the performance of following procedures in his/ her report?	Guidelines on CLDs
35	a	Review of Past financials	Guidelines on CLDs
36	b	Review and analysis of financial projections (For SFA)	Guidelines on CLDs
37	c	Industry analysis	Guidelines on CLDs
38	d	SWOT analysis	Guidelines on CLDs
39	e	Comparison with similar transactions	Guidelines on CLDs
40	f	Comparison with other similar listed companies (For SFA)	Guidelines on CLDs
41	g	Discussions with the management	Guidelines on CLDs
42	h	Review of principal agreements/documents etc	Guidelines on CLDs
43	i	Site visit (external, internal or both) or desktop valuation	Guidelines on CLDs
44	j	Any assumption made for internal condition	Guidelines on CLDs
45	k	Process of site identification (self-identified/ with the help of clients representative/ client itself)	Guidelines on CLDs
46	2.10	Has the Valuer mentioned/ included in his/ her report?	Guidelines on CLDs
47	a	An affirmative statement that information provided and assumptions used by management/ others in developing projections have been appropriately reviewed, enquiries made regarding basis of key assumptions in context of business being valued and the industry/economy (SFA)	Guidelines on CLDs
48	b	An affirmative statement on adequacy of information and time for carrying out the valuations	Guidelines on CLDs
49	2.11	Has the Valuer mentioned/ included in his/ her report, "Key Factors" which have a material impact on the valuation?	Guidelines on CLDs
50	2.12	Has the valuer included in the report, the following factors, where applicable?	Guidelines on CLDs
51	a	Size of Number of the assets or shares of the company, its/their materiality or significance, minority or majority holding and changes on account of the transaction	Guidelines on CLDs
52	b	Any impacts on controlling interest, diminution or augmentation therein and marketability or lack thereof	Guidelines on CLDs
53	c	Prevailing market conditions and government policy in the specified industry	Guidelines on CLDs
54	d	Impact on the value due to faulty structural design or contamination	Guidelines on CLDs
55	2.13	Has the Valuer included in his/ her report, any of the following or similar Caveat, Limitation or Disclosure?	Guidelines on CLDs
56	a	Business Plan/forecasts received from client: RV giving a disclaimer for the business plan/forecasts received from client without applying test of reasonability and due diligence.	Guidelines on CLDs
57	b	Physical Verification: RV giving a disclaimer that he has not physically verified the tangible assets in case where engagement is for providing liquidation value.	Guidelines on CLDs
58	c	Market related data: RV giving disclaimer for the market related data employed in his reports e.g. beta, discounting factor, comparable companies, comparable transactions, valuation metrices without testing appropriateness of the same.	Guidelines on CLDs
59	d	Historical analysis: RV giving disclaimer that he has not done any historical analysis while conducting valuation exercise of listed/unlisted entities although the historical data could have been arranged with reasonable effort.	Guidelines on CLDs
60	e	One approach: RV giving valuation conclusion based on only one approach without giving any reasoning as to why the other two approaches were not considered in his valuation.	Guidelines on CLDs
61	f	Another expert: RV giving disclaimer for work done by any other expert and the findings of the same does not form part of report of RV.	Guidelines on CLDs
62	g	Due Care: RV giving general disclaimer for liability for his expertise or deny his duty of “due care”	Guidelines on CLDs
63	3	Questions relating to "Must" requirements listed in IVS (Not mentioned above) (For all Asset Classes:
64	3.1	Has the valuer disclosed the specific legislative, regulatory or other authoritative requirements, if any applicable on the said valuation, and the significant ways in which they differ from the requirements of IVS?	IVS Framework (60.3) Page 7
65	3.2	Is the Valuation Report and the work undertaken in its preparation appropriate for the intended purpose?	IVS 101 20.1 Pg. 9
66	3.3	Is the "Subject Asset being valued" clearly identified in the Valuation Report?	IVS 101 20.3
67	3.4	Does the Valuation Report clearly state the "Valuation Currency"?	IVS 101 20.3
68	3.5	Has the Valuer in the report identified any limitations or restrictions on the inspection, enquiry and/or analysis in the valuation assignment? If Yes, then has the valuer stated necessary assumptions and special assumptions made as a result of the restriction?	IVS 101 20.3
69	3.6	Are the Investigations made during the course of valuation assignment appropriate for the purpose of the valuation assignment and the basis(es) of value?	IVS 102 20.1
70	3.7	Has the Valuer assembled sufficient evidence by means such as inspection, inquiry, computation and analysis to ensure that the valuation is properly supported?	IVS 102 20.2
71	3.8	Has the Valuer kept a record of the work performed during the valuation process and the basis for the work on which the conclusions were reached?	IVS 102 30.1 & IVS 103 20.2
72	3.9	Does the Valuation Report provide the intended users with a clear understanding of the valuation?	IVS 103 10.1
73	3.10	Does the Valuation Report provide the intended users with a clear understanding of the scope of work performed in the valuation assignment?	IVS 103 20.2 & 30.1
74	3.11	Does the Valuation Report clearly convey "the approach or approaches adopted" in the valuation process?	IVS 103 30.1
75	3.12	Does the Valuation Report clearly convey "the method or methods applied" in the valuation process?	IVS 103 30.1
76	3.13	Does the Valuation Report clearly convey "the key inputs used" in the valuation process?	IVS 103 30.1
77	3.14	Does the Valuation Report clearly convey "the principal reasons for any conclusion reached" in the valuation process?	IVS 103 30.1
78	3.15	Does the Valuation Report cite the source of definition of any basis of value used or explains the basis used?	IVS 104 20.3
79	3.16	In case of "Market Value" Basis, has the valuer applied the said definition correctly with respect to the following Conceptual Framework?	IVS 104 30.2
80	a	"Estimated Amount"
81	b	"An asset or liability should exchange"
82	c	"On the valuation date"
83	d	"Between a willing buyer"
84	e	"And a willing seller"
85	f	"In an arm's Length Transaction"
86	g	"After Proper Marketing"
87	h	"Where the parties had each acted knowledgeably, prudently"
88	i	"And without compulsion"
89	3.17	Is the nature and source of the Valuation Inputs consistent with the Basis of Value?	IVS 104 30.5
90	3.18	Does the Valuation report elaborate on the data available and circumstances relating to the market for the asset being valued and how the Valuer Determined the Relevance and appropriateness of using the suitable Valuation Method or Methods?	IVS 104 30.6 & IVS 105 10.1
91	3.19	In case of the existence of any lease with respect to the Asset being valued, has the Valuer Identified and understood the frequency and basis of calculating variations in the rent?	IVS 104 40.4
92	3.20	In case the Valuer has performed valuation using "Highest and Best Use" Premise, has the valuer elaborated on how the said use is Physically Possible, Financially Feasible, Legally Allowed and Result in Highest Value?	IVS 104 140.2
93	3.21	In case the Valuer has performed valuation using "Highest and Best Use" Premise, has the valuer considered if the Contribution of individual assets as part of a group of assets is different when compared to Standalone Basis?	IVS 104 140.4
94	3.22	Are all the Assumptions and Special Assumptions stated in the Valuation report Reasonable under the circumstances?	IVS 104 200.5
95	3.23	Are all the Assumptions and Special Assumptions stated in the Valuation report supported by evidence?	IVS 104 200.5
96	3.24	Are all the Assumptions and Special Assumptions stated in the Valuation report relevant having regard to the purpose for which the valuation is required?	IVS 104 200.5
97	3.25	Has the Valuer performed appropriate analysis to evaluate the inputs and assumptions and their appropriateness for the valuation purpose?	IVS 105 10.7
98	3.26	In case the Valuation report places reliance on Market Approach, does the use of Market Approach justify the circumstances?	IVS 105 20.2 & 20.3
99	3.27	In case, comparable market information does not relate to the exact or substantially the same asset, has the valuer performed a comparative analysis of qualitative and quantitative similarities and differences between the comparable assets and the subject asset?	IVS 105 20.5
100	3.28	In case, comparable market information does not relate to the exact or substantially the same asset, has the valuer made adjustments based on the comparative analyse after documenting the reasons for the adjustment and how they were quantified?	IVS 105 20.5