Immovable Assets (Real Estate)
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- Valuation of Land, Building Residential / Commercial / Industrial Estates
The process of determining the current saleable cost of a building or property is known as valuation. The value of a property built on freehold land is higher than that of a property built on leasehold land. For buyers, a precise assessment allows them to purchase a property at the most cost-effective market value, ensuring that they do not overpay for an asset.
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- Valuation of Infrastructure Assets, Expressways / Toll Ways & Specialized Assets
The valuation of unlisted infrastructure assets is done by independent experts. To arrive at the net present asset value, these professionals apply discounted cash flow valuation methods. The method of determining the transaction property price is known as special property valuation. It involves the appraisal of specialized assets such as ships, windmills, factories, and power plants, among other things.
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- Valuation for Capital Gain Tax, Stamp Duty, Litigation & Dispute
The capital gain tax is determined depending on the market value of the property at the time of sale. The capital gain is calculated using personal income as well as the profit made by the seller on the asset sale. For determining tax liability, capital gain valuation is critical.
The cost of stamp duty is approximately 5-7 percent of the property’s market value, while the cost of registration is approximately 1% of the property’s market value.
Litigation and dispute valuations are performed for a variety of situations, including mergers and acquisitions disputes, buy/sell agreement disputes, shareholder disputes, breach of contract-related proceedings, and bankruptcy litigation, among others.
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- Impairment Studies for Financial Reporting, PPA, Cash Generating Units
Impairment studies are crucial for management, stakeholders, and investors. It is a crucial adjustment to correct the value of the assets as per the prevailing market conditions to show the acceptable value. The studies have evolved as a statutory requirement to be part of financial reporting. We have advised our clients on numerous occasions to identify and isolate cash-generating units, understand the impact of obsolescence and arrive at the correct value by reporting Impairment.
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- Mines, Mineral Advisory and Valuation
A mining asset’s value is determined by constructing a Discounted Cash Flow (DCF) model based on a mining plan outlined in a feasibility study report. Price to Net Asset Value, Price to Cash Flow, and Total Acquisition Cost are some of the valuations approaches utilized for mineral advisory valuation.
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- Valuation under Insolvency & Bankruptcy Code (IBC)
We are a Registered Valuer Entity with Insolvency and Bankruptcy Board of India as an authority, under section 247 of Companies Act 2013. Under IBC-2016, we have handled more than 100 cases to date with the accuracy of valuation estimates reaching 90% of the open market price at which resolution was accepted.
Insolvency & Bankruptcy Code – 2016, is an innovative step envisioned by the government to reorganize businesses and comes to the rescue of failing entrepreneurs. The prime objective being the value maximization of assets and promote entrepreneurship.