PLANT AND MACHINERY VALUATIONS

An Introduction

M/s. An Appraiser

www.anappraisergroups.com

Dear Sir,
M/s. An Appraiser is a firm of specialist plant and machinery valuers with many individual
personal years of experience throughout all areas of industry, and includes most major trades and
industries. We have built up a team of experienced engineers and associates with many professional
experts in the field of Plant and Machinery in India and overseas with, local firms.
We are qualified members of the Institution of Engineers (IEI) and all work undertaken is
carried out in accordance with the code of Professional conduct of the IEI. Plant and Machinery
valuations cover a wide range of different trades and industries. An Appraisers Individuals have
experience
of
working
in
most
major
industries
including:i.
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Heavy and Light Engineering.

Pharmaceutical and Research Laboratories.
Petrochemical and Oil Refineries.
Cement and /fertilizer Production.
Food Processing and Packing.
Brewing, Bottling and Canning.
Printing, Publishing and Reprographics
Paper and Pulp Processing Industry.
Woodworking & Furniture Production
Foundries, Forging and Steel Rolling Mills
Power Stations and Power Transmission
Plastics and Rubber Extrusion, Molding & Processing Boot and Shoe Manufacturing
Electronics, Computing and IT Services
Contractors Plant and Commercial Vehicles
Glass Production and Processing
Schools and Colleges Hospitals
Hotels, Sports Clubs & Leisure Centers

In addition to our Indian base, we are in process to be a member of the ArcaLaudis Network
of companies. This affiliation allows us to combine the benefits of our streamlined and efficient
operation in INDIA with a worldwide network of offices. This is particularly beneficial when a
valuation needs to be coordinated across a number of continents, for a global client.
VALUATIONS AND LOSS ASSESSING:
Insurance Valuations:
We appreciate the differing needs of our clients and are able to tailor a valuation to specific
requirements. The service that we recommend will depend on the level of detail required by
the client. The cost of ensuring you have adequate insurance cover need not be high. We can
provide a low cost insurance check based on an inspection of the major items of plant with a
single figure for the whole site. However, if required we can provide a full inventory of all
items with individual replacement costs. Although most plant insurance is based on new for
old there may be assets where it is not appropriate to insure for the full replacement cost. We
would offer advice on ways of reducing the insured value whilst avoiding the danger of under
insurance.
Loss Assessing:
Following an insurance loss it is important to quantify the loss as soon as possible. The
insurance company will normally employ a loss adjuster and if you rely on their assessment
of the loss you may receive less compensation than you are entitled to. Appointing valuers to
act on your behalf can help to maximize your claim.

GOD PROFESS SAFE PEOPLE

PLANT AND MACHINERY VALUATIONS

An Introduction

M/s. An Appraiser

www.anappraisergroups.com

FINANCIAL VALUATIONS:
Balance Sheets:
The net book value of assets is not an indication of their true worth. Value is determined by
current market conditions and is based on the price that a prospective purchaser would be
prepared to pay to acquire a particular asset. In many cases the Net Book Value of assets will
seriously understate the true value of those assets to the company. The recently published
FRS 15 deals with this issue and suggests that reported asset values should be more relevant.
An accurate statement of asset value can also help to reduce the risk of an unsolicited
takeover below the true value of a company and reduce the potential for asset stripping.
Mergers and Acquisions:
Following a merger, acquisition or joint venture it is advisable to include the assets in the
companys financial statements at fair values as outlined in the Institute of Chartered
Accountants FRS 7. An accurate assessment of plant value can reduce the element of
goodwill and maximize the capital allowance tax benefits.
OPEN MARKET VALUATIONS:
Valuations prior to Sale:
When buying or selling plant assets it is advisable to have an independent valuation carried
out to ensure that you maximize your return when selling and avoid paying more than
necessary when buying. This principal applies whether it is a complete factory or smaller
consignments surplus to requirements.
Insolvency:
Insolvency practitioners rely on a fast and professional service from their valuers and M/s. An
Appraiser understand the demands of the insolvency business. We are able to provide a fast
and efficient valuation service and handle any subsequent sale of plant and machinery that
may be required.
Security for Loans:
Open market valuations may also be required if loans are secured against plant assets. UK
banks have in the past been reluctant to secure loans against plant but international
competition is likely to change this philosophy.
Auctions, Tenders and Private Treaty Sales:
From time to time companies need to dispose of surplus plant & machinery assets. The
correct approach to marketing and conducting the sales can have a dramatic effect on the
realization that is achieved. Our experience enables to advice on the best method of disposal
whether this is by auction, tender or private treaty. We will draw up sales particulars and
coordinate advertising, mail shots and other marketing considerations.
ASSET MANAGEMENT
Asset Registers:
Although most companies have some form of asset register it is often difficult to relate this to
physical assets. Asset disposals and transfers are often poorly monitored resulting in
considerable inaccuracies over a period of time. M/s. An Appraiser has many years of
experience working with assets and are able to create registers that make asset identification
far easier. Additional data can be recorded in specific fields to enable the data to be sorted and
grouped in different ways.

GOD PROFESS SAFE PEOPLE

PLANT AND MACHINERY VALUATIONS

An Introduction

M/s. An Appraiser

www.anappraisergroups.com

Capitalization
Careful analysis of capital expenditure can ensure that items entered onto the asset register are
as accurate as possible. Expenditure on large projects can be apportioned to individual assets
with each having the correct share of installation and design costs. Reconciliation is often
necessary to relate two asset databases. For example a company adopting a new asset register
may require a reconciliation to the existing one. We have developed a bespoke software system
that enables us to group all partial acquisition and upgrade costs under a single asset, or
apportion a compounded cost to individual assets.
Asset Tagging:
The best way of ensuring clear identification of assets is the use of an asset identification tag.
There are numerous different types of tag available many incorporating a bar code M/s. An
Appraiser can offer advice on the most suitable form of tag and carry out the tagging operation
in a consistent and efficient way.
OTHER VALUATIONS
Capital Allowance:
The correct allocation of purchase cost between buildings and plant can result in substantial
tax savings. This is particularly relevant where plant and machinery is acquired as part of a
complete business. The net book value of assets will usually understate the true value of
assets and a valuation to arrive at the correct apportionment between the goodwill, plant &
machinery, land and buildings elements of the purchase price can produce significant tax
savings.
Compensation and Compulsory Purchase:
A professional valuation can significantly improve the compensation payable following the
compulsory purchase of a business. M/s. An Appraiser can provide detailed valuations, liaise
with other interested parties and give evidence in court as an expert witness.
Rating of Plant & Machinery
M/s. An Appraiser can provide all necessary valuations of plant and machinery that is deemed
to be ratable.

Regards,

Gururaj Kulkarni.
CEO & CMD
An AppraiserGroup.

GOD PROFESS SAFE PEOPLE