VALUER FOR CIRP

WORKING AS A REAL ESTATE VALUER FOR THE CORPORATE INSOLVENCY RESOLUTION PROCESS (CIRP)

Is Working with Corporate Insolvency Resolution Process very tough?

I have been working as a Valuer and Faculty for 50 Hours Mandatory Training for IBBI Examinations and so keep travelling across India and meet different Valuers and discuss about the valuation field. I was surprised that most of the Valuers are afraid of doing works for CIRP as an IBBI Registered Valuer.

Valuers feel it is very hard and also many risks are involved. One mistake and IBBI will cancel their registration. Also there is a wrong understanding that Valuers don’t get payments or get delayed payments in this process. Valuers are also confused as to what format shall be used for valuation as Resolution Professionals ask valuations as per IVS. Banks gives their formats but here Valuers need to make their own format.

Let me tell you. I have done many assignments for CIRP. And my views are entirely different. Firstly about payments, the waterfall mechanism of payments in Resolution Process gives the First priority towards the expenses towards Resolution Process i.e. Resolution Professional and Valuers are paid First. The payments are always secured. For CIRP valuations Valuers don’t need to follow any Bank Format or standard format and hence Valuers can add whatever caveats, limitations, departures he feel is required and hence the liability as such will be less and valuers are more safe with CIRP Valuations than normal Bank Valuations where Valuers are not allowed to write too many caveats.

There is no standard format given anywhere for CIRP valuation reports but Valuers have to follow IVS. Valuers are free to design their own format but include all necessary information as to Scope, Purpose, client information, Interest valued, Basis of Valuation, Sources of Information, assumption, Departures, Limitations, Caveats etc.

IBBI training has brought a very valuable knowledge insight to all valuers and I see a very huge scope of Valuers in the coming years. IBBI training has changed the way the valuations were being done previously. With knowledge upgradation through IBBI training, now the valuation field has become more interesting and now Valuers have started using different approaches of valuations in correct manner rather than just doing all valuation assignments with Market Approach.

The Valuers who have not taken the 50 hours training or have taken the training and not appeared the examinations, I would advice that this is high time for them to clear the exams and get registered as IBBI Valuers as many changes are expected to come in IBBI Examination process.

Author:-

Er. Vimal Shah (Surat )

Membership no. CEV/SM/1139/CIVIL/FM