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Consulting Engineers, Surveyors & Loss Adjusters,
Valuation Consultants

 
 

Valuation Consultancy & Risk Inspections

Valuations

Our competence in this field is well established in the country and our clients give valuation assignments to us with great confidence. We are on the panel of Pakistan Banks' Association as an approved Valuer with one of the highest ratings in Pakistan. The work includes evaluation of fixed assets of Industrial, Commercial & Private properties with respect to their present condition, value and expected remaining life. In case of industrial machinery, comparison is provided with new developed technologies & obsolescence.

Valuation of land & building:

For the valuation of land we ask the prospective  client to provide us with a copy of land purchase/registration documents. We have made this mandatory to ensure that the valuation has been carried out for the just owner of the land.

For buildings of any sort we get details of covered areas and the specifications of construction. In the light of this data, present day new construction value of structures is calculated which is then depreciated to get the present market value of buildings.

Valuation of Assets like Plant & Machinery etc.

Valuation Based on Purchase Price of Assets:

A purchase invoice is issued by a seller of a commodity to the buyer. Tax(es) levied are also mentioned on this invoice. If purchase is made from some other country then it mentions the C & F values and the FOB etc.

When such an invoice is available, our valuation is based on this invoice. Date of purchase is important in determining the asset value on any desired date. Since depreciation is applied on the asset from the date it was purchased. We depreciate assets on Written Down Value basis and the depreciation ranges from 03 to 10% per annum depending upon the kind and condition of the asset.

If the asset has been procured from abroad, essence of  the valuation remains same, C&F value mentioned on the purchase document i.e. invoice is converted into Pak rupees by applying present rate of exchange, custom duties and taxes are calculated in accordance  with tariff of the day and added to the amount earlier obtained. Amount thus obtained is depreciated on the lines previously mentioned. State Bank of Pakistan has made it mandatory that the valuer give a forced sale value of the asset. To fulfil this requirement we survey the market, asset belongs to, and deeply examine what value the asset would fetch if disposed in a distress scenario? Present market value earlier arrived-at is then reduced by a percentage we deem fit and assured that Bank/DFI will not suffer any loss disposing the asset.

Valuation Based on Capitalized Cost of the Asset:

When purchase documents are not available we ask for capitalized cost of the asset. Once we have the capitalized cost of the asset say capitalized some 20 years ago, we endeavor to calculate its present day price by multiplying it with various factors like inflation, local as well as international, escalation in prices due price hike of crude oil, increased transportation cost etc.
After application of these determining factors, we arrive at a value which is then depreciated to get the present fair depreciated market value of the asset.

Valuation Based on Present Market Values and our Experience :

When none of the above mentioned data is available we inspect the asset very thoroughly, collect its over-hauling/maintenance schedule (in case of machinery) and try to get maximum possible details of it.

With this data in hand, markets are surveyed, help is sought from internet and prevailing rates are obtained from as many sources as possible. We then contact field experts of the relevant field and get their opinion about the value of the asset.

Our own experience in the related field is then also included and the present value of the asset thus arrived-at.

Overall Process of Valuation in Our Company :

We have competent and experienced staff and associates to carry out valuation of assets. Our engineering inspectors collect maximum possible data about the asset to be valued which is then very minutely processed by any of the above mentioned methods.

Our clients include Banks and Financial Institutions, Insurance Companies, Re-Insurers, Industrial and Commercial concerns including Textile, Process and Chemical, Manufacturing and Engineering, Sugar, Oil and Pharmaceutical Industries, Electrical Installations, Power Plants, Grid Stations etc.

Risk inspections

Pre-insurance Inspection for Risk evaluation is also carried out, especially on request of International Re-Insurers. We have carried out risk surveys in energy sector and also in the textile and agro based industries and sample risk survey reports can be provided to our clients on request.

 

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