10-01-2009, 08:43 PM
Dear,
You have wrote following in the third last para of your post;
"For such revaluation independent valuer will be used whose report will also be required to be certified by a firm of CAs (Capital Issue Rules, 1996)."
My understanding is given below;
As per Rule 8(iv) of Companies (issuance of share capital) Rules, 1996, the report of independent valuer is not required to certify from firm of CAs. Exact wording is given below;
"certificate from a practising Chartered Accountant shall be obtained to the effect that the above mentioned conditions have been complied with."
It is clear from the wording of Rules that CAs is only required to certify that the (four) conditions mentioned in Rule 8 have been fulfilled. One of them is independent valuation by valuer (under discussion)
Report of independent valuer (register with Pakistan Engineering Council) is itself a certification which may not require recertification from CAs.
CAs are only required to ensure that valuation has been made by registerd valuer and written report exists for the valuation made.
Regards,
*
You have wrote following in the third last para of your post;
"For such revaluation independent valuer will be used whose report will also be required to be certified by a firm of CAs (Capital Issue Rules, 1996)."
My understanding is given below;
As per Rule 8(iv) of Companies (issuance of share capital) Rules, 1996, the report of independent valuer is not required to certify from firm of CAs. Exact wording is given below;
"certificate from a practising Chartered Accountant shall be obtained to the effect that the above mentioned conditions have been complied with."
It is clear from the wording of Rules that CAs is only required to certify that the (four) conditions mentioned in Rule 8 have been fulfilled. One of them is independent valuation by valuer (under discussion)
Report of independent valuer (register with Pakistan Engineering Council) is itself a certification which may not require recertification from CAs.
CAs are only required to ensure that valuation has been made by registerd valuer and written report exists for the valuation made.
Regards,
*
