Section 247 of the Companies Act provides that “where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other asset or net worth of a company or its liabilities under the provisions of this Act, it shall be valued by a person having such qualifications and experience and registered as a valuer in such manner and on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company”.

Valuation required under Companies Act, 2013 for unlisted companies:

Section Particulars
39(4) Allotment of securities for consideration other than cash
54 [rule 8] Issue of sweat equity shares
177(4)(iv) For valuation of undertaking or assets of company
42 Private Placement of shares
62(1)(c) Further issue of shares- Preferential issue of shares
67[rule 16] Provision of Money by Company for Purchase of its Own Shares by Employees or by Trustees for the Benefit of Employees.
191 [rule 17] Payment [other than in cash] to directors by way of compensation
192(2) Non Cash transaction involving directors
230(2)(c)(v) Valuing under a Scheme of Corporate Debt Restructuring
230(11) Offer of takeover of an unlisted co. as a result of Compromise or Arrangement
230(3) Under scheme of Compromise or Arrangement with creditors and members [including swap ratio]
232(2)(d) For reconstruction of com involving Merger, Amalgamation or Demerger .
232(3)(h) Valuation may be required by the Tribunal to provide exist for dissenting shareholders of transferor co.
236(2) Purchase of minority shareholding [For Valuing Equity Shares held by Minority Shareholders]
281(1) Valuing assets for submission of report by Company liquidator to NCLT
- Exclusions from deposits – Rule 2(c)(ix) of the Companies (Acceptance of Deposit) Rules, 2014
- Creation of security- Rule 6(1) of the Companies (Acceptance of Deposit) Rules, 2014


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