Skip to content

CS Professional · Corporate Restructuring, Valuation and Insolvency · Valuation of Business and Assets for Corporate Restructuring

A registered valuer, Mr. Iyer, issues a valuation report for Sagar Foods Ltd. for a restructuring. He later learns that he had omitted a material liability from the working. Under the Companies (Registered Valuers and Valuation) Rules, 2017, which obligation relates to the conduct of the valuer in preparing the report?

The valuer is bound by the code of conduct in the 2017 Rules, which requires integrity, due diligence and no concealment of material facts. Signing the report does not remove accountability, and breach can attract disciplinary action by the authority.

  1. AHe is bound by a code of conduct to act with integrity, exercise due diligence and not conceal material informationCorrect
  2. BHe is free from any liability once the report is signed
  3. CThe company's auditor bears sole responsibility for the report
  4. DOnly a civil suit can be filed against him; no disciplinary action is possible

Explanation

The Rules prescribe a code of conduct requiring integrity, due diligence, and fair and true reporting, and the valuer is accountable for the report. Non-compliance can lead to disciplinary action by the authority, so statements that he is free from liability, that only the auditor is responsible, or that no disciplinary action exists are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Valuation of Business and Assets for Corporate Restructuring shows your real accuracy, how long you take and where you lose marks.

Practise Valuation of Business and Assets for Corporate RestructuringFree diagnostic mock

More Valuation of Business and Assets for Corporate Restructuring questions