VALUATION

Rane Engineers & Surveyors Pvt. Ltd. (RE&S): Delivering Global Excellence in Valuation and Beyond

At Rane Engineers & Surveyors Pvt. Ltd. (RE&S), we deliver specialized project management, engineering, and valuation services, drawing on over 45 years of proven expertise. With a nationwide presence in India and a track record of more than 40,000 successfully completed assignments across diverse sectors—including infrastructure, manufacturing, logistics, real estate, and renewable energy—we bring unparalleled experience to every engagement, serving clients both domestically and internationally.

Our commitment to excellence is supported by a highly skilled team of engineers, architects, and valuation experts. Recognized as a preferred independent engineer and valuer by leading corporations and financial institutions worldwide, we hold empanelments with national banks, government authorities, and prominent private entities.

Understanding Valuation: An Expert Perspective for Professionals and Laypersons

Valuation is a fundamental economic principle, representing the estimated price at which a good or service is most likely to transact at a given time, based on a specific definition of value. It is essential to recognize that value is not an absolute fact but a professional estimate, informed by market dynamics, technical insights, and expert judgment.

At RE&S, we specialize in comprehensive technical valuation and chartered engineering services, encompassing:

Valuation of land, buildings, plant, and machinery.

Technical evaluation and inspection reports.

Certification for imports and compliance with export promotion schemes.

Valuations compliant with insolvency and bankruptcy regulations, such as those under the Insolvency and Bankruptcy Board of India (IBBI). Our directors and core technical team include IBBI-registered valuers and chartered engineers with extensive experience in assessing movable and immovable assets.

The Imperative of Accurate Valuation

Precise valuation is indispensable for a range of critical applications, including:

Financial reporting and purchase price allocations.

Mergers, acquisitions, and strategic divestitures.

Securing funding from banks, non-banking financial companies (NBFCs), and investment funds (secured lending).

Insurance assessments to determine appropriate coverage or support claims.

Dispute resolution, arbitration, and litigation.

Management information systems and strategic planning.

Key Concepts and Approaches in Valuation

Market Value: The cornerstone of property valuations, Market Value is defined as the estimated amount for which an asset would exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction, following adequate marketing, with both parties acting knowledgeably, prudently, and without duress. It embodies collective market perceptions and adheres to the principle of substitution, whereby a prudent buyer would not exceed the cost of an equivalent alternative.

Fair Value vs. Market Value: While often aligned, Fair Value is an accounting construct, representing the price at which an asset could be exchanged or a liability settled between informed, willing parties in an arm's-length deal. When Market Value is ascertainable, it aligns with Fair Value. For specialized assets lacking an active market (e.g., those typically sold as part of a business), alternatives like Depreciated Replacement Cost (DRC) serve as proxies.

Valuation Approaches and Methods: Our professionals employ internationally recognized methodologies, including:

Cost Approach: This evaluates the cost to replicate or replace an asset, deducting depreciation. It is vital for insurance valuations of plant and machinery, ensuring coverage reflects current replacement values.

Market Approach (Sales Comparison): This compares the subject asset to recent transactions of similar properties in open markets, ideal for assets with active secondary markets.

Income Capitalization Approach: This converts projected income and expenses into value via capitalization rates, akin to yield-based assessments in bond markets.

Highest and Best Use: A core principle in real estate, this identifies the most probable, physically viable, legally permissible, financially feasible, and value-maximizing use of a property.

Utility: Central to valuation, utility assesses an asset's ability to fulfill needs, influenced by legal, physical, functional, economic, and environmental factors.

Our Expertise in Plant & Machinery Valuation

Valuing industrial assets such as plant, machinery, and equipment is a specialized discipline, often more intricate than real property assessments. These assets typically have shorter lifecycles and vary in value depending on context—whether in situ as part of an operational entity or as standalone items for relocation. We meticulously consider depreciation, technological obsolescence, and prevailing market conditions to deliver accurate, defensible valuations.

Our Integrated Approach

RE&S provides end-to-end solutions, integrating project advisory, technical evaluation, cost assessment, monitoring, and critical area analysis. We blend technical acumen with financial expertise, leveraging a nationwide network and a multidisciplinary team of seasoned professionals to deliver domain-specific insights and on-ground proficiency. Beyond valuation, we undertake construction projects, infrastructure developments, and other engineering initiatives, ensuring holistic support for clients' diverse needs on a global scale.

At Rane Engineers & Surveyors Pvt. Ltd., we view accurate valuation as both an art and a science, combining rigorous analysis with nuanced market intelligence. Through meticulous research and adherence to international standards, we produce reliable, insightful reports that empower informed decision-making and safeguard asset value.

For a trusted partner offering transparent, dependable valuation services backed by decades of global experience, we invite you to connect with Rane Engineers & Surveyors Pvt. Ltd.