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IBBI Registered Valuer
SEBI Category-I Merchant Banker
Chartered Accountants
Tangible Asset Valuation Services

Independent Valuation of Plant, Machinery, Property and Other Tangible Assets

Tangible assets form a significant part of the value of many businesses and investment structures. We provide independent valuation of land, buildings, plant & machinery, equipment, vehicles, inventories, and other tangible assets for financial reporting, transactions, restructuring, taxation, insolvency, and regulatory purposes.

What is Tangible Asset Valuation?

Tangible Asset Valuation is the process of determining the fair value, market value, liquidation value, or other appropriate basis of value of physical assets owned or used by a business. The valuation considers the asset's age, condition, specifications, capacity, remaining useful life, marketability, location, replacement cost, depreciation, and prevailing market conditions to arrive at an appropriate value.

Your Company May Require Tangible Asset Valuation Services For

01

Land & Buildings

Valuation of commercial, industrial, residential, and specialised properties for transactions, financial reporting, and regulatory purposes.

02

Plant & Machinery

Determination of value of manufacturing equipment, production lines, heavy machinery, and specialised industrial assets.

03

Equipment & Fixed Assets

Valuation of office equipment, electrical installations, tools, laboratory equipment, and other fixed assets.

04

Vehicles

Valuation of commercial vehicles, passenger vehicles, specialised vehicles, and transportation equipment.

05

Inventory & Stock

Valuation of raw materials, work-in-progress, finished goods, and other inventories where an independent valuation is required.

06

Assets for Financial Reporting

Supports fair value measurement, purchase price allocation, impairment testing, and other financial reporting requirements under applicable Ind AS.

07

Mergers & Acquisitions

Determines the fair value of tangible assets forming part of a business being acquired, merged, or transferred.

08

Slump Sale & Business Transfer

Provides asset-level valuation support for business transfers, restructuring, and determination of consideration.

09

IBC & Liquidation

Determines fair value and liquidation value of tangible assets of companies undergoing insolvency or liquidation proceedings.

10

Insurance & Replacement Cost

Assists in determining replacement or reinstatement cost of assets for insurance and risk management purposes.

11

Tax & Regulatory Compliance

Provides independent valuation support for transactions and regulatory requirements under applicable tax and corporate laws.

Our Methodology / Approach

Understand the Valuation Purpose

Understand the purpose and basis of valuation to determine the appropriate scope, standards, and approach.

Review Asset Records

Review asset registers, ownership documents, invoices, specifications, and relevant technical records.

Physical Inspection

Conduct physical inspection of assets, wherever required, to assess their actual condition and characteristics.

Assess Asset Condition

Assess the age, condition, capacity, utilisation, and remaining useful life of the assets.

Market & Comparable Analysis

Analyse prevailing market prices and comparable transactions relevant to the assets being valued.

Replacement or Reproduction Cost

Determine replacement or reproduction cost, where applicable, based on relevant cost and market considerations.

Obsolescence Assessment

Consider physical, functional, and economic obsolescence that may impact the value of the assets.

Apply Valuation Methodology

Apply the appropriate valuation methodology based on the nature of the assets, purpose of valuation, and available information.

Valuation Report

Determine the value and prepare an independent valuation report presenting the findings and basis of valuation.

Key Valuation Approaches

Market Approach

Determines value using prices of comparable assets and recent market transactions.

Cost Approach

Determines value based on the current cost of replacing or reproducing the asset, adjusted for depreciation and obsolescence.

Depreciated Replacement Cost (DRC)

Estimates the current replacement cost of an asset and adjusts it for physical deterioration, functional obsolescence, and economic obsolescence.

Income Approach

Determines value based on the future economic benefits or cash flows attributable to the asset, where separately identifiable cash flows can be reliably estimated.

The appropriate approach depends on the nature of the asset, purpose of valuation, availability of market evidence, asset condition, and applicable regulatory framework.

Relevant Regulatory & Accounting Framework

Companies Act, 2013

Valuations undertaken in accordance with applicable provisions of the Companies Act, 2013.

Registered Valuers Rules

Consideration of the Companies (Registered Valuers and Valuation) Rules, 2017, where applicable.

Ind AS 16

Property, Plant and Equipment requirements relevant to tangible asset valuation and financial reporting.

Ind AS 36

Impairment of Assets requirements for assessing recoverable amounts and impairment considerations.

Ind AS 103

Business Combinations requirements relating to the valuation of tangible assets acquired in a business combination.

Ind AS 113

Fair Value Measurement principles applicable to determining fair value of assets.

Insolvency and Bankruptcy Code, 2016

Valuation considerations for tangible assets in insolvency and liquidation proceedings.

IBBI Regulations

Applicable IBBI regulations and valuation requirements, where relevant to insolvency and liquidation matters.

FEMA

Foreign Exchange Management Act requirements, where applicable to transactions involving tangible assets.

Tax & Regulatory Requirements

Applicable tax laws and other regulatory requirements relevant to the purpose and nature of the valuation.

Frequently asked questions

Answers for business owners who want to understand the process before speaking with an expert.

The valuation may cover land, buildings, plant and machinery, equipment, vehicles, furniture and fixtures, specialised assets, inventory, and other physical assets.

The Market Approach and Cost Approach are commonly used. The Depreciated Replacement Cost method may be appropriate for specialised assets where comparable market evidence is limited.

Physical inspection may be required depending on the asset type, valuation purpose, basis of value, and applicable regulatory requirements.

Yes. Tangible asset valuation may be required for Ind AS 16, Ind AS 36, Ind AS 103, Ind AS 113, and other financial reporting purposes.

Yes. Tangible assets can be valued to determine Fair Value and Liquidation Value under the applicable IBC and IBBI framework.

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