Valuation Certificate for buy back of shares by a Private company

[Jaya Singh]

Dear All,

Is it mandatory for a company to get a valuation certificate for buy back of equity shares? If yes, please provide the reference.

Thanks & Regards,

Jaya Vinay Singh

Practising Company Secretary

[Mukesh Kanazariya]

Yes, read rule 17 in that

-Basis of Valuation that means Valuation certificate

I visited ROC for the same and they people asked me to submit Valuation certificate.

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Mukesh Kanazariya

(Company Secretary)

Contact: +91 9998911190

[Jaya Singh]

Thanks a lot Mukesh.

Thanks & Regards,

Jaya Vinay Singh

Practising Company Secretary

[K.Muthusamy]

Though the basis of valuation to be given, nowhere it is said a valuation certificate to be obtained.

However auditor certificate is mandated for determine the quantum (total amount) of buyback based on financial prepared upto a period not more than 6 months.

Hence in my opinion, it is board to decide the basis of valuation, which may be based on valuation certificate.

Valuation is not the sole criteria for buyback, other factors like liquidity of shares plays a major part.

However, when buyback price is excess of book value, valuation based on future earning may a guide 

contrary vies solicited

On Wed, Feb 14, 2018 at 6:52 PM, Mukesh Kanazariya <mukeshkan...@gmail.com> wrote:

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With regards

 

K.MUTHUSAMY BCom,FCMA,FCS

JMACS ASSOCIATES 

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