A2Z VALUERS · P&M VALUATION PROCESS

How the Engagement Works

A structured six-step engagement for Plant & Machinery Valuation, from the initial brief through site inspection, DRC computation and the final signed valuation certificate.

01 THE APPROACH

From Initial Brief to Signed Certificate

Every engagement follows a defined professional sequence. The process establishes the valuation context, identifies the equipment, assesses physical condition, determines Replacement Cost New (RCN), applies relevant depreciation and obsolescence considerations, and culminates in a documented valuation certificate.

01
STEP 01 · INITIAL BRIEF

Brief

The engagement begins with a concise discussion of the valuation requirement and the equipment involved. Contact A2Z Valuers at +91-9999992343 or info@a2zvaluers.com and provide:

Equipment categories and major asset types
Valuation context — SARFAESI, IBC, IT search, insurance or M&A
Approximate number of major equipment items
Documents available for the valuation
Required valuation timeline
Fee estimate within 24 hours, subject to the information available for the initial brief.
02
STEP 02 · FORMAL ENGAGEMENT

Engagement Letter

Once the scope is established, the engagement is formally documented through a written letter setting out the valuation assignment and professional basis.

Equipment list and agreed scope
Section 34AB Category IV basis
IBBI P&M credentials where applicable
Valuation basis — MV / DRC / Fair Value + Liquidation Value
Professional fee and agreed scope
Turnaround time and deliverables
Independence declaration
03
STEP 03 · PHYSICAL ASSESSMENT

Civil Engineer Site Inspection

The physical inspection establishes the identity, condition and operating context of the major equipment. Where possible, operating condition is checked during the inspection.

Equipment make, model, serial number and year identification
Maintenance log review
Operating condition assessment
Remaining Useful Life (RUL) estimate
Building vs P&M boundary determination for integrated systems
Inspection photographic documentation
04
STEP 04 · VALUATION COMPUTATION

RCN Research & DRC Computation

The valuation computation establishes the relevant Replacement Cost New (RCN) and applies physical depreciation and relevant forms of obsolescence to arrive at the DRC.

RCN from OEM / distributor quotations for domestic equipment
Imported equipment: customs duty + IGST computation
Physical depreciation based on RUL assessment
Functional obsolescence considering capacity and technology
Energy efficiency and environmental compliance considerations
Economic obsolescence where applicable
Market comparison cross-check for relevant equipment categories
05
STEP 05 · VALUE DETERMINATION

Certificate Preparation & DSV

The final valuation calculations translate the assessed Market Value (MV) into the applicable Distress Sale Value (DSV) and, where applicable, establish the IBBI valuation outputs.

DSV computed from MV using the relevant specialisation-spectrum discount
SARFAESI MV and DSV calculated per item and in aggregate
IBBI Fair Value where applicable
Liquidation Value where applicable
Valuation outputs documented in the applicable IVS 105 format
REFERENCE

The applicable specialisation-spectrum discount is referenced in the detailed methodology at Government Approved Plant & Machinery Valuers.

View P&M Methodology
06
STEP 06 · FINAL DELIVERABLE

Signed Certificate

The completed valuation certificate is issued on A2Z Valuers letterhead and signed personally by Nitesh Shrivastava, Civil Engineer and Government Approved Valuer.

Nitesh Shrivastava Civil Engineer
Government Approved Valuer Section 34AB Category IV — Plant & Machinery
IBBI P&M Credentials Where applicable to the assignment
Official Stamp Final signed valuation certificate
CERTIFICATE USE
Banks SARFAESI Authorised Officers NCLT IT Department Statutory Auditors
START YOUR VALUATION ENGAGEMENT

Need a Plant & Machinery Valuation?

Share your equipment details, valuation purpose and available documents. Speak directly with A2Z Valuers to discuss the appropriate valuation basis and engagement process.

Facebook Instagram LinkedIn WhatsApp Phone Call