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CIRP Valuation Services India

Quick answer: CIRP valuation requires two independent IBBI Registered Valuers to determine the fair value and liquidation value of the corporate debtor under Regulation 35 of the CIRP Regulations. These confidential values anchor the committee of creditors' evaluation matrix for resolution plans and are tested by the NCLT and appellate forums.

Looking for expert cirp valuation services india? Virtual Auditor provides practitioner-grade ibc services in India, led by CA V. Viswanathan — IBBI Registered Valuer (IBBI/RV/03/2019/12333) | Fellow Chartered Accountant (FCA) | Associate Company Secretary (ACS). We combine deep regulatory expertise with hands-on execution to deliver results within your timeline.

What We Deliver

IBBI-compliant valuation report — fair value and/or liquidation value as required under CIRP/liquidation regulations. Resolution plan viability assessment with going concern and break-up analysis. Compliance certificate for NCLT filing confirming adherence to IBC valuation standards. Detailed methodology documentation with assumptions and sensitivity analysis. Expert opinion / testimony support for NCLT hearings.

Last reviewed: July 2026 by CA V. Viswanathan (FCA, ACS, CFE, IBBI Registered Valuer)

The Two Values Every CIRP Turns On

A Corporate Insolvency Resolution Process does not run on a single number. Under Regulation 35 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, every corporate debtor must be measured against two distinct figures, both anchored to the insolvency commencement date — the day the National Company Law Tribunal admits the application. Fair value is the estimated realisable value of the assets if exchanged between a willing buyer and a willing seller in an arm's-length transaction after proper marketing, with both parties acting knowledgeably and without compulsion. Liquidation value is the estimated realisable value if the corporate debtor were to be liquidated on that same date — a distress figure that assumes the going concern is broken up and sold under time pressure.

The gap between the two frames the entire resolution: fair value tells the Committee of Creditors what the business is worth kept whole, while liquidation value sets the statutory floor below which no resolution plan can pay dissenting financial creditors or operational creditors less than they would receive in liquidation under Section 53's waterfall. Getting either wrong distorts the vote, invites litigation before the Adjudicating Authority, and can collapse an otherwise viable plan.

Regulation 27 and the Two-Valuer Rule

The Code deliberately removes single-valuer discretion from the process. Under Regulation 27, the resolution professional must, within seven days of appointment but no later than the forty-seventh day from the insolvency commencement date, appoint two IBBI-registered valuers for each asset class to determine fair value and liquidation value. The asset classes are Land and Building (L&B), Plant and Machinery (P&M), and Securities or Financial Assets (SFA), and a company with all three requires up to six valuers working in parallel.

Regulation 35 then governs how the two estimates are reconciled. Both valuers submit independent estimates computed to internationally accepted valuation standards, after physical verification of inventory and fixed assets. Where the two estimates are significantly different, the resolution professional may appoint a third registered valuer, and the average of the two closest estimates is taken as the value. This design is deliberate: it prevents any one appraiser from anchoring a distressed sale and gives the CoC a defensible range rather than a single contestable point.

The Three Asset Classes and Who Values Them

Asset classIBBI codeTypical contentsLead method
Land & Building (L&B)01Freehold/leasehold land, factory sheds, offices, godownsSales comparison / DRC
Plant & Machinery (P&M)02Production lines, utilities, tooling, moulds, vehiclesDepreciated replacement cost
Securities or Financial Assets (SFA)03Equity, the business as a going concern, investments, receivables, intangiblesDCF / comparable-company / NAV

Our practice holds IBBI registration in the Securities or Financial Assets class (IBBI/RV/03/2019/12333), which covers the enterprise-level and going-concern valuation that usually decides a resolution. For full-scope CIRP mandates we deploy a coordinated panel that adds registered L&B and P&M valuers, so the resolution professional receives a single, internally consistent set of fair and liquidation values across every class rather than three disconnected reports.

Confidentiality Is Not Optional

Regulation 35(2) requires that fair value and liquidation value be kept strictly confidential. They are disclosed to members of the CoC only after each signs an undertaking of confidentiality, and they must not reach any prospective resolution applicant. The logic is simple: a bidder who knows the liquidation floor will price to it, and a leaked fair value caps the upside of the whole process. Our engagement protocols mirror this — sealed reports, restricted circulation, and version control that lets the resolution professional demonstrate to the Adjudicating Authority that no value figure escaped before resolution plans were received.

Working Inside the Clock

CIRP is a race against a statutory calendar — 180 days, extendable by 90, with an outer limit of 330 days including litigation — and valuation cannot become the bottleneck. Our CIRP workflow:

  1. Days 1–7: engagement, conflict check under the Code of Conduct, and the confidentiality architecture agreed with the resolution professional.
  2. Days 7–20: site visits and physical verification of assets alongside the RP's team, data-room access, and reconciliation of the fixed-asset register to what is actually on the ground.
  3. Days 20–35: draft fair value and liquidation value per asset class, cross-checked between the paired valuers and, where estimates diverge materially, escalation for a third valuer.
  4. Days 35–47: final signed reports delivered inside the Regulation 27 deadline, with working papers supporting the Information Memorandum.

We also support the resolution professional after submission: explaining the range to the CoC, responding to a prospective applicant's technical queries within the confidentiality perimeter, and providing an addendum where a material event (a fresh charge, a machinery breakdown, a title defect) surfaces after the first report.

Deliverables and Fees

A CIRP mandate delivers paired fair-value and liquidation-value reports per asset class, a physical-verification note, working papers keyed to the Information Memorandum, and standby support for CoC meetings. Draft values within three weeks of full site access.

ServiceFee (from)
SFA / going-concern valuation (single corporate debtor)₹90,000
Full-scope CIRP — all three asset classes, coordinated panel₹2,50,000+
Third-valuer estimate (Regulation 35 divergence)Scoped per matter
Post-report addendum / CoC support₹30,000

Why Choose Virtual Auditor

Virtual Auditor is led by IBBI Registered Valuer CA V. Viswanathan (IBBI/RV/03/2019/12333) with direct experience in insolvency valuations under the IBC 2016. We provide fair value and liquidation value reports for CIRP proceedings, liquidation processes, and Section 7/9 NCLT applications. Our reports are accepted by Resolution Professionals, CoC members, and NCLT benches.

With physical offices in Chennai (Spencer Plaza), Bangalore (MG Road), and Mumbai (Goregaon West), we offer both in-person and remote engagement models.

Insolvency valuations under the IBC 2016 have specific requirements: Regulation 27 mandates two registered valuers for CIRP, Regulation 35 requires fair value and liquidation value determination, and the valuers must be IBBI-registered. Our valuation reports address going concern value for resolution plan assessment, orderly liquidation value, and forced sale value with detailed assumptions for each scenario. Reports are formatted for CoC presentation and NCLT filing.

Our Process

Step 1: Engagement with RP/applicant — scope, timeline, valuation date. Step 2: Data collection — financials, asset schedules, claims register. Step 3: Multi-method valuation — going concern, orderly liquidation, forced sale. Step 4: Draft report review with RP/CoC. Step 5: Final IBBI-compliant report delivery for NCLT filing.

Timing is critical in insolvency proceedings. The CIRP timeline of 180 days (extendable to 330 days) leaves no room for delays in valuation. We prioritise IBC engagements and can deliver preliminary valuation estimates within 5 working days for urgent NCLT filing requirements, followed by the detailed report within the standard timeline.

Get Started Today

Ready to engage Virtual Auditor for cirp valuation services india? Contact us for a free initial consultation:

Call/WhatsApp: +91 99622 60333

Email: support@virtualauditor.in

Offices: Chennai | Bangalore | Mumbai

No obligation. We will assess your requirements and provide a clear scope, timeline, and fixed-fee quote within 24 hours.

Strategic Business & Compliance Insights

Frequently Asked Questions

What is the difference between fair value and liquidation value in a CIRP?
Fair value is the estimated realisable value of the corporate debtor's assets if sold between a willing buyer and willing seller in an arm's-length deal after proper marketing, with both acting knowledgeably and without compulsion. Liquidation value is the realisable value if the debtor were liquidated on the insolvency commencement date — a distress figure assuming a broken-up, time-pressured sale. Both are fixed to the commencement date. Fair value indicates going-concern worth; liquidation value sets the statutory floor for what dissenting creditors must receive under Section 53.
Why does a CIRP need two registered valuers for each asset class?
Regulation 27 requires the resolution professional to appoint two IBBI-registered valuers per asset class to independently estimate fair and liquidation value. The two-valuer design removes single-appraiser discretion from a distressed process where the numbers drive the creditors' vote. Under Regulation 35, if the two estimates differ significantly the RP may appoint a third valuer, and the average of the two closest estimates is adopted. This produces a defensible range rather than one contestable figure, reducing the risk of challenge before the Adjudicating Authority.
What are the three IBBI asset classes?
The IBBI recognises three registration classes: Land and Building (L&B), Plant and Machinery (P&M), and Securities or Financial Assets (SFA). A registered valuer is registered in a specific class and may only value assets falling within it. A corporate debtor holding real estate, a factory and a going-concern business needs valuers across all three, appointed in pairs. Our firm is registered in the SFA class, which covers enterprise and going-concern valuation, and we deploy panel L&B and P&M valuers for full-scope mandates.
When must the valuation be completed in a CIRP?
Regulation 27 obliges the resolution professional to appoint the valuers within seven days of appointment and no later than the forty-seventh day from the insolvency commencement date, so the reports must be ready well inside that window. Because the whole CIRP runs to a 180-day timeline extendable to 270, with a 330-day outer limit including litigation, valuation cannot be allowed to become the bottleneck. Our workflow completes site verification and draft values within roughly three weeks of full access to the assets and data room.
Are the CIRP fair value and liquidation value disclosed to bidders?
No. Regulation 35(2) requires both figures to be kept confidential. They are shared with Committee of Creditors members only after each signs a confidentiality undertaking, and they must never reach a prospective resolution applicant. A bidder aware of the liquidation floor would simply price to it, and a leaked fair value would cap the entire upside of the process. Valuers and resolution professionals maintain sealed reports and restricted circulation so the confidentiality can be demonstrated to the Adjudicating Authority if questioned.
What happens if the two valuers' estimates are very different?
Regulation 35 anticipates this. Where the two registered valuers' estimates of fair value or liquidation value are significantly different, the resolution professional may appoint a third registered valuer to submit an independent estimate computed the same way. The average of the two closest of the three estimates is then adopted as the fair or liquidation value. This mechanism resolves genuine divergence — common with specialised plant or contested real estate — without reopening the whole exercise, and gives the CoC a figure that is hard to attack later.
How does the CIRP valuation support the Information Memorandum?
The Information Memorandum circulated to prospective resolution applicants must give a fair picture of the corporate debtor, and the fair and liquidation values underpin it — though the confidential figures themselves are not printed in the version issued to bidders. Our working papers reconcile the fixed-asset register to physically verified assets, flag encumbrances and title issues, and quantify each asset class, giving the resolution professional a defensible evidentiary base for the IM, for CoC discussions, and for any subsequent scrutiny of how the values were arrived at.