i. Consumption: Indifference curve, consumer surplus, elasticity
ii. Price mechanism: determinants of price mechanism; individual and
market demand schedules; conditions, exceptions and limitations of
law of demand; individual and market supply schedules; conditions
and limitations of law of supply; highest, lowest and equilibrium
price; importance of time element
iii. Pricing of products under different market conditions: perfect and
imperfect competition, monopoly etc.
iv. Factors of production and their pricing: land, labour, capital,
entrepreneur and other factors
v. Theory of rent
vi. Capital and interest: types of capital, gross interest, net interest
Organisation and profit: functions of entrepreneur; meaning of profit
and theories of profit

i. Functions and role of money
ii. Inflation: types of inflation; causes and effects of inflation;
Inflationary gap
iii. Control of inflation: monetary, fiscal and direct measures
iv. Deflation: causes and effects of deflation; deflationary gap; measures
to control deflation; deficit financing
v. Savings and investment: savings and types of savings; determinants
of savings; investment and types of investment; determinants of
investment; relationship between savings and investment
vi. Components of economy: primary sector, secondary sector, tertiary
sector; informal sector in urban economy; parasitic components in
urban economy
vii. Concepts of gross domestic product and gross national product;
capital formation etc.
viii. Definition of parallel economy; causes of parallel economy and
effects on use of land and its valuation
ix. Impact on real estate market and construction industry

i. Meaning and objects of book-keeping; double entry book-keeping
ii. Books of prime entry and subsidiary books: cash book, bank book,
journal, ledger, purchase and sale books, debit and credit notes
register; writing of books; posting and closing of accounts
iii. Trading account; profit and loss account; income and expenditure
account
iv. Preliminary analysis of financial statements
v. Cost and costing; elements of cost – fixed expenses, variable
expenses, break-even point

i. Indian legal system: salient features of the Indian Constitution,
fundamental rights, directive principles of state policy
ii. Government: executive, legislature and judiciary
iii. Laws of contract: formation of a contract, parties, void, voidable and
unenforceable contract, contingent contract, misrepresentation, fraud
and effect thereof, termination of contract, remedies for breach,
performance of contract, indemnity and guarantee, law of agency
iv. Tort: general principles of tort, tort affecting valuation
v. Law of arbitration and conciliation: salient features
vi. Auction: authority of auctioneer, duties of vendor, purchaser and
public, mis-description and misrepresentation, advertisements,
particulars and catalogues, statements on the rostrum, conduct of sale,
reservation of price, right to bid, bidding agreements, memorandum
of the sale, deposit, rights of auctioneer against vendor and purchaser
vii. Laws of evidence: burden of proof, presumptions, conclusive proof
viii. Salient features of the Insolvency and Bankruptcy Code, 2016
concerning valuation
ix. The Companies Act, 2013: Section 192(2), 230 (1), 230 (2), 230 (3),
231, 232, 247 and 281(1)
x. Salient features of the Companies (Registered Valuers and Valuation)
Rules, 2017
xi. Salient features of the Securitisation and Reconstruction of the
Financial Assets and Enforcement of Security Interest Act, 2002
(SARFAESI Act, 2002) concerning valuation
xii. Section 5(n) of the Banking Regulation Act, 1949 on “secured loan or
advance

i. Data classifications and processing, graphical representation of data,
frequency distributions
ii. Measures of central tendency, dispersion and skewness
iii. Elementary theory of probability and probability distributions,
sampling and sampling distributions
iv. Simple test of significance, regression and correlation, multiple
correlation coefficient
v. Time series
vi. Index numbers

i. Environment and valuation – differences between the market price
and the negative value consequent on environmental impact
ii. Environmental issues of air pollution, water pollution, environmental
factors and their effects, measures to restore the damage, cost to cure
iii. Outlines of environmental legislations: the Indian Forest Act, 1927,
the Water (Prevention and Control of Pollution) Act, 1974, the Air
(Prevention and Control of Pollution) Act, 1981, the Environment
(Protection) Act, 1986
iv. Laws related to industrial health and safety

i. Model code of conduct under the Companies (Registered Valuers and
Valuation) Rules, 2017: professional competence and due care,
independence and disclosure of interest, confidentiality, information
management, gifts and hospitality
ii. Integrity and fairness, remuneration and costs, occupation,
employability and restrictions, business ethics
iii. Ethical considerations under terms of engagements: engagement
letter, management representation, guidance on use of work of
experts, independence and conflict of interest, quality review process
of valuers, rights and responsibilities of valuers.

i. Sale of goods and agreements to sell; seller’s obligations as to
delivery time, title, description, fitness, quality and quantity;
exclusion of obligations; sales by sample; passing of property in
goods; transfer of title by non-owner; breach of contract and
remedies; rights of unpaid seller against goods
ii. Licensing of Industries and regulation of industrial activities under
various industrial licensing laws etc.
iii. Salient features of various acts such as the Factory Act, 1948, the
Electricity Act, 2003, Labour laws with regards to regulatory
measures for industrial undertakings

i. Role, functions and responsibilities of a plant and machinery valuer
ii. Cost, price, value and valuation
iii. Types of market
iv. Annuities; capitalisation and rate of capitalisation; years purchase;
sinking fund; redemption of capital; reversionary value
v. Construction and use of valuation tables
vi. Definitions of the various terms: plant, machinery, furniture, fixtures,
fittings – judicial interpretation of these terms; market value, highest
and best use value
vii. Basis of valuation: value in use, value in exchange, value to the buyer,
value to the seller, value to the occupier, value in existing use insitu/ex-situ, value in alternative use in in-situ/ex-situ, liquidation
value in-situ/ex-situ, orderly liquidation value, forced sale value
viii. Characteristics and approaches to value investment property,
marketable non-investment property and non-marketable noninvestment property
ix. Factors having direct bearing on value (valuation maxims) like
physical, legal, social, economic, utility, marketability, transferability,
scarcity; present worth of future benefits; intangible rights

i. Inventory (listing of machinery) and data to be collected while taking
inventory
ii. Importance of technical specifications of PME in valuation exercise
iii. Assessment of condition of PME based on visual inspection
iv. Comparing inventory with plant and machinery records maintained
by the company
v. Ascertaining discrepancy
vi. Identification of productive, non-productive, surplus and off-balance
sheet assets
vii. Age, effective age, total economic life, economic balance life,
physical life and their importance in valuation
viii. Factors affecting life, both in terms of years or hours of use,
depending on type of assets and maintenance
ix. Definition and distinction of the terms – historical cost, acquisition
cost, book cost, written down value and net book value
x. Items in the nature of buildings to be treated as plant and machinerylike chimneys to the boiler, brick, concrete or RCC foundation for
plant and machinery, Water and Sewerage installations, Effluent
treatment plant etc.

i. Depreciation under the Income Tax Act, 1961 as well as the
Companies Act, 2013
ii. Useful lives to compute depreciation as per Schedule II of the
Companies Act, 2013
iii. Factors to be considered for componentization of asset
iv. Installed capacity of the plant and actual production; raw material
availability and level of technology used such as current or obsolete,
issues if any regards to these
v. Part, fraction and whole valuation
vi. Relationship of earnings and assets
vii. Difference between business specific economic viability and
economic obsolescence
viii. Efficiency of plant layout, imbalances in different production sections
and their relevance in valuation

i. Reproduction cost new; replacement cost new; depreciated
reproduction cost/depreciated replacement cost (DRC); Difference
and similarity in DRC and market value
ii. Difference between reproduction cost new and replacement cost new
iii. Methods of computation of reproduction cost new
iv. Market inquiry of current cost of brand: new machine with identical
specifications from same manufacturer i.e. replica indexation and its
limitations; cost to capacity method and its limitation
v. Methods of computation of replacement cost new when identical
machine/plant is not available and factors to be taken into
consideration.
vi. Direct and indirect costs for estimation of reproduction new
/replacement cost new
vii. Meaning of the term depreciation for wear and tear; Factors
influencing depreciation, its measurements and application by valuers
viii. Salvage value and scrap value along with the basis of the same
ix. Methods of depreciation: observed deterioration; straight line;
diminishing balance (written down value)
x. Difference between accounting and technical depreciation
xi. Factors to be taken into consideration for selection of depreciation
method
xii. Obsolescence: technological, functional and economic
xiii. DRC subject to potential profitability
xiv. Limitations of cost approach

i. Data collection
ii. Elements of comparability and application of appropriate weights to
identified comparable to estimate value of subject asset.
iii. Instances when sales comparison method is not feasible and
limitations of sales comparison method

i. Concept of income approach
ii. Gross income-outgoings; net income and years purchase
iii. Actual income Vs potential income
iv. Terminal income
v. Remunerative and accumulative rates of interest and various methods
of determining the same
vi. Capitalization of earnings method
vii. Discounted future earnings method (Discounted cash flow- DCF
technique)
viii. Pitfalls of DCF technique

i. Check list for valuation of plant and machinery; documents to be
studied prior to plant visit/inspection; ABC analysis
ii. Items to be treated as plant and machinery
iii. Items to be treated as land and buildings
iv. Physical verification (survey and inspection)
v. Data collection and valuation analysis for replacement cost new
Method (cost approach)

i. Valuation of a machine for which current cost of identical brand-new
machine is available
ii. Valuation of a machine for which current cost of identical brand-new
machine is not available
iii. Valuation of a machine which is no longer manufactured
iv. Reasons for difference in price of machines with same technical
specifications and features by different manufacturers
v. Factors to be considered while adopting cost approach
vi. Data collection and valuation analysis under: cost, market and income
approaches

i. Definition of lease
ii. Leasing, Hiring and Renting
iii. Obligations of supplier of asset, user of asset, hire purchase
company/lessor in cases of loan; supplier’s credit; hire purchase and
leasing
iv. Leasing as an instance of bailment; nature of the bailment agreement;
features of bailment; contracts law on bailment.
v. Leasing rules
vi. Types of leases and their characteristics
vii. Structure of a lease agreement and steps in structuring a lease contract
viii. Leasing from point of view of lessor/lessee
ix. Limitations of leasing
x. Treatment of leased assets in company accounts – accounting practice
for leased plant and machinery as per Indian Accounting Standards
xi. Assessment of lease related risk
xii. Risk and return trade-off
xiii. Valuation of leased plant and machinery

i. Mergers and Acquisitions (including purchase price allocation)
ii. Financial statements
iii. Impairment
iv. Auction
v. Insurance
vi. Leasing
vii. Disposal
viii. Capital raising
ix. Corporatization and privatization
x. Stamp duty
xi. Any other purpose
xii. Valuation Standards as per the provisions of the Companies Act, 2013
xiii. Indian Accounting Standards (Ind AS 16, Ind AS 36, Ind AS 105, Ind
AS 113, Ind AS 116) as applicable to valuation
xiv. Valuer as an expert witness in Court
xv. Valuers’ functions and responsibilities, error of judgement and
professional negligence

i. Machine Tools: milling, turning, cutting, drilling and threading,
grinding, shaping, casting, plastic deforming, powder forming, sheet
metal, welding, fabrication
ii. Factory equipment: material handling and fire protection
iii. Utility equipment for energy generation, energy consuming devices,
for energy utilisation
iv. Electrical installations

i. Factory planning and layout: types of plant layout; production
techniques; automation; mass production, batch and one-off
production
ii. Principles of industrial processes: material flow, process sequences,
automation and process control
iii. Industrial processes: Normal processes, Methods of manufacture,
Plant and machinery utilised, Flow diagrams and Inventory
compilation for the following specific industries: Iron, Steel, Nonferrous metal Production, Power, Cement, Petro-chemicals, Chemical
and Pharmaceutical, Plastic and Rubber, Paper and paper Products,
Printing, Binding and Publishing, Textiles, Dairy, Vegetable Oil, Food
and Drink
iv. Nature and function of trade specific machinery in the above
industries

i. Principles and legal concepts in relation to insurance of Plant and
Machinery; contract of insurance; insurable interests; liability to
insure; duties of the insurer and the insured
ii. Types of fire policies; reinstatement value, indemnity policies and
policies for other perils; terms and conditions; perils, beneficial and
restrictive clauses
iii. Value at risk, sum insured and condition of average, over and under
insurance; provisions regarding inflation, depreciation, obsolescence
and betterment; other provisions
iv. Preparation of claim for damages due to insured perils
v. Obligations and rights of insurer and insured

i. Reports: Quality, Structure, Style
ii. Report writing for various purposes of valuation: sale, purchase,
purchase, mortgage, taxation, insurance, liquidation etc
iii. Contents of the report: instructions (including basis of valuation)
received from the clients showing scope of work; date as on which
valuation is made and date of report; site inspection; purpose of
valuation; location of assets; valuation definition considered;
approach/method of valuation; procedure adopted; summary of
valuation; assumptions and limiting conditions including caveats;
schedule of plant and machinery with make, model, description, year,
condition, values

i. Holland Vs. Hodgson (1872) L.R.7 C.P.328 at 335 (Australia)
ii. Duncan Industries Ltd. Vs. State of U.P. and Other AIR 2000 SC 355
iii. Westinghouse Elect. Corporation 93 NC App. 710, 379 S.E.2D
37(1989) (U.S.A)
iv. Sirpur Paper Mills Pvt. Ltd. Vs. The Collector of the Central Excise,
Hyderabad AIR (1998) 1 SCC 400: (1998 AIR SCW 366: AIR 1998
SC 1489)
v. Official Liquidator Vs. Sri Krishna Deo and Ors. (AIR 1959 All 247)
v. Symex Holdings Ltd. Vs. Commissioner of State Revenue, Supreme
Court of Victoria, Australia- (2007) VSC 159

Three case studies on valuation of plant and machinery:
i. One case study with six 2-mark questions, for 12 marks
ii. One case study with four 2-mark questions, for 8 marks
iii. One case study with three 2-mark questions, for 6 marks

(This section will have case studies for application of valuation techniques.
For each case there will be a comprehension narrating the transaction based
on which questions will be asked from the case)

Including Whole Syllaby