Client Profiles — Five P&M Valuation Engagements
Five practical examples showing how Government Approved Plant & Machinery Valuation supports banks, Resolution Professionals, tax authorities, corporate buyers and insurers across different industrial asset valuation situations.
How P&M Valuation Changes the Financial Picture
Plant and machinery valuation is rarely just about assigning a number to an asset. The valuation requirement changes depending on whether the purpose is SARFAESI renewal, IBC CIRP, an Income Tax Department search, a business sale or insurance renewal.
The following profiles demonstrate how condition, maintenance records, remaining useful life, replacement cost, market comparables, functional obsolescence, regulatory compliance and buyer pool can materially influence the final valuation.
The SME Factory Owner with a Bank SARFAESI Renewal
A Delhi engineering components manufacturer with a ₹6 crore working capital facility needs the biennial SARFAESI renewal certificate. The hypothecated P&M includes CNC turning centres, surface grinding machines, a VMC and a 500 kVA DG set.
The CNC turning centres were approximately 9 years old, with moderate utilisation and incomplete maintenance logs for the last three years. The grinding machines were seven years old and in excellent condition with complete maintenance records.
The six-year-old Vertical Machining Centre (VMC) had an OEM service contract confirming good maintenance, while the eight-year-old DG set was in fair condition with its last service 18 months earlier.
Valuation Finding
The bank’s ₹6 crore facility is supported by only ₹2.37 crore in P&M DSV. The bank is therefore advised to seek additional collateral.
The engagement also demonstrates the financial impact of maintenance documentation. Had the CNC maintenance logs been complete, the DRC and DSV would have been approximately ₹15–20 lakh higher.
The Construction Company IBC CIRP Fleet
A Pune construction company in CIRP has eight excavators, three tower cranes, two concrete batching plants and six transit mixers. The valuation requires both IBBI P&M Fair Value and Liquidation Value.
JCB & Komatsu
8 units • 5–9 years old
Liebherr & Potain
3 units • 6–11 years old
Concrete Equipment
2 units • 12 years old
Commercial Vehicles
6 units • 7–9 years old
The valuation uses equipment-specific evidence including EquipmentBazaar comparables, DRC calculations using Liebherr/Potain RCN, age depreciation, functional obsolescence and commercial vehicle secondary-market comparables. The IBBI-compliant report is delivered to the Resolution Professional.
The Garment Exporter’s IT Search & Unaccounted Embroidery Machines
A garment exporter’s factory in Noida is searched. The Authorised Officers identify 12 computerised multi-head embroidery machines from Tajima and Barudan that are not reflected in the fixed asset register.
A2Z Valuers is called the same day. Physical inspection identifies the machines through their Tajima and Barudan nameplates. Approximate years are assessed from the software generation visible on the control panels.
The machines are in good condition, with clean equipment, no apparent damage and active operation visible during inspection.
Certificate Delivered to the Authorised Officer
The valuation certificate was delivered on the same day and submitted to the Authorised Officer, providing an asset-specific valuation based on physical identification, current replacement cost and applicable depreciation.
The Pharmaceutical OSD Line Pre-Sale
Fette 3090
3 machines • 6 years • US FDA GMP facility • Inspected 2023
₹5.70 Cr Aggregate DRC RCN ₹2.4 Cr per machine • 28% physical depreciation • +12% GMP/FDA compliance premiumGlatt GPC
2 units • 8 years • Good condition
₹1.12 CrO’Hara Technologies
1 machine • 7 years
₹82L DRCUtility Infrastructure
Supporting pharmaceutical manufacturing infrastructure
₹48L DRCThe certificate captured a GMP + FDA compliance premium supported by the 2023 inspection and intact validation documentation. The resulting ₹90 lakh premium demonstrates how specialist pharmaceutical P&M knowledge can affect a pre-sale valuation.
The Logistics Company HCV Fleet Insurance Renewal
A Chennai logistics company is renewing insurance for a fleet of 32 Heavy Commercial Vehicles (HCVs) comprising Tata Prima, Ashok Leyland 4923 and Bharat Benz 2528 models from 2019–2022. The fleet is BS-VI compliant with an average age of 3.5 years.
Fleet insurance schedule based on 2022 onboarding values.
Current equivalent new-vehicle replacement cost.
Fleet Insurance Updated to Current RCN
A2Z Valuers’ current RCN fleet survey considered CarTrade HCV market values, vehicle model, year, BS-VI status, mileage and full service history. The fleet insurance was updated to a current RCN basis.
The Purpose of Valuation Determines the Evidence Required
Banking & SARFAESI
Collateral value depends on condition, maintenance, RUL and DSV.
IBC CIRP
Fair Value and Liquidation Value can differ materially by asset type and buyer pool.
IT Search
Physical identification and current replacement cost become critical where assets are unaccounted.
Business Sale
Specialist knowledge can identify compliance and operational premiums.
Insurance
Current replacement cost can expose a significant gap against historic insured values.
Get an Independent Plant & Machinery Valuation for Your Requirement
Whether you need a SARFAESI certificate, IBC/CIRP valuation, IT search valuation, pre-sale P&M assessment or insurance replacement cost review, discuss your requirement with the valuation team.