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CS Professional · Compliance Management, Audit and Due Diligence · Due Diligence

Ashoka Infra Ltd's Board appoints a registered valuer to value shares of a target company. The valuer, while valuing, is required by the Companies Act, 2013 to do which of the following in addition to making an impartial, true and fair valuation?

The valuer must exercise due diligence while performing his functions, along with making an impartial, true and fair valuation under prescribed rules. Section 247(2) also bars him from valuing assets in which he has a direct or indirect interest.

  1. AExercise due diligence while performing the functions as valuerCorrect
  2. BGuarantee the price at which shares will trade after the deal
  3. CObtain approval of the Registrar for each valuation
  4. DValue only assets in which he holds a direct interest

Explanation

Section 247(2) requires the valuer to make an impartial, true and fair valuation, exercise due diligence, follow prescribed rules, and not value assets in which he has a direct or indirect interest. The other options are not duties or contradict the interest bar.

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