Professional valuers should seek to combine competence with practical wisdom, according to Kerala Governor Justice P Sathasivam.
Judicial implications of the valuation process are becoming critically important in an era where investments in banking, real estate, taxation and corporate management are on the rise.
“Involvement of external agencies including the income tax department in valuation will bring more value to the valuation process,” he added.
Speaking on the occasion, PK Thiagarajan, president of Institution of Valuers (India), said that adaptability to newer technologies in valuation would bring more authenticity to the profession.
Among those who spoke during the inaugural session included B Kanagasabapathy, past vice-president; KG Nadarajan, chairman, Trivandrum Chapter; and George K Thomas, secretary.
This was followed by technical sessions during which presentations on the valuation process were discussed in detail.
Precautions In his presentation, Kanaga Sabhapathy said that valuers should take maximum precaution while doing valuation of flats for banks.
Information shared in the builder’s agreement or the construction agreement plays a crucial role in ensuring authenticity of the project, facilitating clear valuation.
Valuation of heritage buildings is a difficult task, according to RC Nair, founder chairman of the Trivandrum Chapter of the Institution. This is due to its complex methods under which they were constructed and maintained by its owners who lived in different periods.
Unlimited risk The risk period of valuers while giving reports is unlimited and it should be noted that the valuer has to pay penalty, said Vijaya Kumar Singh, treasurer, Institution of Valuers, Bihar. Major deceptions occur in the valuation of vacant plots and in third party securities.
Depreciation due to obsolescence in valuation of plant and machinery is an important factor, according to LS Kylas, chartered engineer and registered valuer. This should also be considered while calculating depreciation of any machinery, along with calculating depreciation due to age, he said.