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,……..
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