THE VALUATION JOURNEY

From Engagement to Signed P&M Certificate

A structured six-step process combining site inspection, technical assessment, RCN research, DRC computation and prescribed certificate preparation for every major plant and machinery assignment.

STEP 01 → INITIAL BRIEF

Brief & Equipment Schedule

Asset list obtained from the fixed asset register or site inventory; context confirmed for SARFAESI, IBC, IT search, insurance or M&A; valuation basis established as MV, DRC, Fair Value or Liquidation Value. Timeline and scope are confirmed, with a fee estimate within 24 hours.

Asset Schedule Valuation Basis Fee Estimate

STEP 02 → FORMAL ENGAGEMENT

Engagement Letter

A written engagement confirms the equipment list, Section 34AB Category IV basis, IBBI P&M credentials where applicable, valuation basis, professional fee, turnaround period and the required independence declaration.

Scope Credentials Independence

STEP 03 → TECHNICAL INSPECTION

Civil Engineer Site Inspection

Each major equipment item is physically inspected for make, model, serial number and year. Maintenance logs, operating hours and utilisation records are reviewed, followed by mechanical and electrical condition assessment and RUL estimation.

Integrated systems are assessed for the building-versus-P&M boundary, including lifts, HVAC, EOT cranes and process utilities. Nameplate, overall-condition and defect photographs are recorded.

Physical Inspection Condition RUL Asset Boundary

STEP 04 → COST RESEARCH

Replacement Cost New Research

OEM and authorised distributor price enquiries are undertaken for major equipment categories. For imported equipment, import duty and GST are considered, together with applicable freight, installation and commissioning costs.

The result is an item-level Replacement Cost New (RCN) supported by the available procurement and technical evidence.

OEM Research Import Cost Installation RCN

STEP 05 → VALUATION COMPUTATION

DRC & Market Cross-Check

For each item, RCN is adjusted for physical depreciation based on the RUL assessment, followed by functional obsolescence covering capacity, technology, energy efficiency and environmental compliance.

Where applicable, economic obsolescence is also considered. Market evidence such as CarWale, CarTrade and EquipmentBazaar may cross-check standard categories, while Liquidation Value is derived by applying the appropriate specialisation-spectrum discount.

RCN − Physical − Functional − Economic = DRC / Fair Value

STEP 06 → FINAL CERTIFICATION

Signed Certificate in Prescribed Format

The final certificate is issued on A2Z Valuers letterhead and personally signed by Nitesh Shrivastava, Civil Engineer, Government Approved Valuer, Section 34AB Category IV, with IBBI P&M Registered Valuer credentials where required.

The report includes official stamp and registration details, with SARFAESI MV and DSV stated per item, or Fair Value and Liquidation Value for IBC assignments. Reports are prepared for the applicable requirements of banks, SARFAESI Authorised Officers, NCLT, IT Department and statutory auditors.

Signed Certificate Official Stamp MV / DSV Fair Value / LV

READY TO START?

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