PRESENTATION ON “FINDINGS OF THE PEER REVIEW OF VALUATION REPORTS FOR THE YEAR 2021-22” BY ALL REGISTERED VALUERS ORGANISATIONS IN ASSOCIATION WITH THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (IBBI) On 21ST APRIL, 2022

PRESENTATION ON

“FINDINGS OF THE PEER REVIEW OF VALUATION REPORTS FOR THE YEAR 2021-22” 

BY ALL REGISTERED VALUERS ORGANISATIONS

IN ASSOCIATION WITH THE INSOLVENCY AND BANKRUPTCY BOARD OF INDIA (“IBBI”)

HELD ON 21ST APRIL, 2022

Peer Review

 In general, the term “Peer Review” would mean a review of the work done by a professional, by another member (peer) of the same profession with similar standing.
 Valuers Peer Review is the evaluation of the work by one or more Registered Valuer (RV) members with similar competencies as of the
Valuer under review.
 The key dual objective of the Peer Review exercise is to enhance the quality of valuation as well as Valuation Reports.

Scope of Peer Review

 A Valuer’s peer review focuses on the performance of Valuers, with a view to improving
 quality,
 upholding ethical standards,
 adherence with valuation standards,
 relevant laws, regulations, rules, guidelines, and amendments made thereunder from time to time,
 methodologies and approaches adopted for conducting valuation and preparation of valuation report.

Peer Review Exercises in the Past

 Under the guidance and mentorship of IBBI, all RVOs have been conducting Peer Review exercises for all the asset classes for the past three years.
 Two Peer Review workshops have been organized by ICAI RVO in association with IBBI to share the findings of the Peer Review of
Valuation Reports for the three asset classes:-
 On 17th February 2021 through video conferencing
 On 14th February 2020.
 This workshop is the third installment in the series of workshops organized by ICAI RVO to share the findings of the Peer Review of Valuation Reports for the three asset classes.

KEY CONSIDERATIONS TO BE REFERRED BY THE REVIEWER

Extent and Scope of Peer Review

• Compliance with the provisions to be verified by the Reviewer of
• Companies (Registered Valuers and Valuation) Rules, 2017
• ICAI VS and IVS
• Other applicable rules, regulations, and guidelines

  • Decided by IBBI & RVOs
  • Communicated to Reviewer

General Terms of Reference (ToRs) for the Reviewers

 To give an opinion on the quality of the Valuation Report under review basis the “ Key Aspects to be reviewed” as decided by ICAI RVO”
To review compliance with the
 Rule 8 of the Companies (Registered Valuer and Valuation) Rules, 2017
 Specific Rules, Regulations and Guidelines issued by related Regulators

Not to give opinion on the Conclusion of Value
 To maintain confidentiality;
 Not to accept any such review assignments where reviewer might have any interest either in the Valuer or the Valuation Report under
Review.
 To provide the Review summary in the format supplied by ICAI RVO.

Key Peer Review parameters included in Peer Review Report
 Name of the Registered Valuer
 Assignment received in the name of RV/Partnership/Firm/LLP/Pvt Ltd Co/Ltd Co
 Name of the Corporate Debtor under reference
 Name of IP/IRP
 Date of Receipt of Assignment
 Date of submission of Valuation Report
 The Valuation Date
 Approach/approaches adopted
 Method or methods applied
 Key inputs used
 Fees Received
 Any Other Comment by Valuer

Key Aspects Considered in the Peer Review of the Valuation Reports

Valuation Report contains
 Background information of the asset being valued
 Purpose of Valuation & Appointing Authority
 Identity of Valuers and other experts involved
 Disclosure of conflict of interest
 Date of Appointment, Valuation Date and Date of Report
 Inspections/investigations undertaken
 Nature, source of information used or relied upon
 Restrictions on use of the report, if any
 Major factors considered
 Conclusions
 Caveats, limitations and disclaimers explaining or elucidating the limitations faces by Valuer, without restricting his responsibility for
the valuation report

Requirements of Rule 8 met-utilization of
 ICAI VS,
 other VS,
 Scope of work VS 201 or otherwise covered

 Reliance placed on Valuation Report conducted by another RV of different asset class- SFA
Variation from Standards including Relevant ICAI VS referred if any
 Comprehensive Narrative Report or Abbreviated Summary Report

Information for intended users for Valuation Report
 Clear and accurate description of
 Scope, purpose & intended use of assignment

 Disclosure of assumptions including special assumptions, if any
 Significant uncertainty impacting valuation
 Limiting conditions directly impacting Valuation
 Base of Value

Compliance sufficient to communicate to the intended users
 Scope of a valuation assignment,
 work performed,
 conclusions reached,
 principal reasons for conclusions reached,……..

TO READ THE FULL REPORT KLICK THE LINK BELOW

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