President of the Institution of Valuers, P.K. Thiagarajan, has highlighted the social responsibility of valuers and cautioned them against under/over valuation of assets.
Speaking at a two-day seminar on “ Valuation of Assets—Present Scenario”, organised at the Federation of the Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) here on Monday, he said there were 20 categories of valuers relating to land and building, plant and machinery, agriculture and farms, coffee plantation, accounts, jewellery, precious stones and ornaments, among others.
Referring to under/over valuation, he said while the client's fair and just interest needed to be kept upper most in mind, under-valuation would deprive the State of its legitimate revenue which was required to be spent for social cause, and over valuation would tend to misdirect available funds which otherwise would have been utilised appropriately.
He said professional valuers should have clear knowledge of the need for valuation, purpose of valuation, for whom it was required and have to go about the profession of valuation, professional code/ethics, report writing based on facts supported by documents.
“Valuation is a techno-legal subject and the valuation report should stand the test of scrutiny, audit and appeal. This can be achieved only with proper collection of data and adopting appropriate methods of valuation suiting to the various conditions,” he added.
FAPCCI president, V.S. Raju, E. Subba Rao and Chairman, Institution of Valuers, A.P. Branch also spoke.