Gen (Retd) Dr Vijay Kumar Singh, Hon’ble Minister of State, Ministry of Civil Aviation and Ministry of Road Transport & Highways was the Chief Guest at the Webinar on “Valuation under Disinvestment: Potential Avenues for Valuers” organised by Institution of Valuers (IOV) in association with IOV Registered Valuer Foundation (IOV-RVF)on 5 October 2021.
Gen (Retd) Dr Vijay Kumar Singh in his keynote address stressed on the inevitable role of Valuers and IOV, which has been working on the promotion of Valuation since its inception 52 years ago. While quoting the example of disinvestment of Hindustan Zinc, he stated that the deal would become more profitable for all stakeholders with the involvement of Valuers. Regarding Technology, Dr VK Singh was of the opinion that it can only assist India Inc but unable to provide valuation, also it can only assist the valuers but cannot replace them.
He further prompted the valuers that with the promotion and awareness about the importance of valuation in each and every area, the valuation profession can achieve greater heights in the coming time. The valuation can not only help the government in utilising the data being collected by various departments but can also lead to value addition for the government. The Hon’ble MOS also suggested IOV promote themselves along with the functions of policy advocacy and capacity building to get more recognition.
Mr Vinay K. Goel, Honorary General Secretary, IOV and MD & CEO, IOV-RVF moderated the Webinar and in his welcome address highlighted the celebration of Valuer’s Week on the occasion of 52nd Valuers Day on 2nd October. This is the day when IOVwas formed in 1968. With the formation of IOV, the foundation for the emergence of valuation as a profession happened in India for the first time. IOV-RVF was promoted by IOV aiming to provide structured education and training to bring in ‘valuation discernment’ in the overall hierarchy of the Indian economy.
He stressed upon that apart from the business needs of valuation, there are other new avenues for the Valuers such as Disinvestment. The Indian Government is pushing towards asset monetization by privatizing PSUs to fulfil its commitment of “Monetization and Modernization”. IOV on its part has always been indulging extensively in capacity building measures to help all the stakeholders in bridging the specialisation.
In the first Panel Discussion – Role of Valuation in Disinvestment Projects in achieving $5 trillion economy, Dr Navrang Saini, Whole time Member, Insolvency & Bankruptcy Board of India (IBBI); Mr. Rajeev R. Shah, Managing Director & CEO, RBSA Advisors and Mr P.K. Thiagarajan, President, IOVpresented their views.
Dr Navrang Saini highlighted that Indian valuation industry has grown significantly and valuers should continue to work with integrity and confidentiality in their reports. The government is continually seeking recommendations from IBBI regarding the valuers for their various valuation-related assignments. He suggested that Valuers, while doing the valuation assignments for disinvestment, should take it as a social responsibility towards the nation more than professional duty.
Mr Rajeev Shah mentioned that valuers should be aspired to take disinvestment projects as it is an exciting experience, though there is also an involvement of risk and cautions. The role of being an asset valuer involves lengthy procedures, working capital, moreover handling the sensalization created by the public at large. He explained the detailed procedure involved in disinvestment from application to approvals, to presentations and reports.
Mr P K Thiagarajanhighlighted that Valuation is a logical, defendable process of arriving at the opinion as to the worth of a business given the information available, assumption & limiting conditions as on the valuation date. He talked about the valuation’s procedures and the importance of underlying assumptions in Valuation.
In the second Panel Discussion – Role of Valuation in Disinvestment Projects in achieving $5 trillion economy, Mr David Nevin Panna, Partner, Deloitte Touche Tohmatsu India LLP; Mr R K Patel, Council Member, IOV &Monitoring Committee Member, IOV-RVF and Mr Sachin Garg, Council Member, IOV &Managing Partner, GAA Advisorywere the eminent experts.
Mr David Panna shared his experience of disinvestment of ITDC Hotels in 2013, when the cost approach was the most probably used methodology for the valuation. He suggested that valuers should remain cautious in the project in relation to the value being over or low along with the public allegations involved in the process.
Mr R K Patelhighlighted about various methods involved in valuation and the decision of selection of the best method regarding the different assets involved in projects. He also highlighted the operational aspects of Auctions/tenders of Government in alignment with the Valuer’s role. He also talked about the threats or challenges involved in the process such as capital investment, social responsibilities etc.
Mr Sachin Garg highlighted about turnover criteria mentioned in the government tenders and advised the valuers that with the right skills and experiences, these assignments are achievable. While talking about his experience, he gave some practical perspectives of the costs and toils involved in such projects.
Mr Tanuj Kumar Bhatnagar, Council Member, IOV & Governing Board Member, IOV -RVFgave the concluding remarks and proposed a hearty vote of thanks to the Chief Guest, Guest Speakers and Delegates for their gracious presence at the webinar. He highlighted that along with the challenges, there are various opportunities available in today’s world for Valuers and we should be highly motivated and prepared for taking such assignments.
The webinar concluded with an extensive Q and A session and received the participation of more than 400 participants.
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