An electronic goods trading company turned into an NPA. The company had multiple operating showrooms with a large part of assets included under Inventories.
- Details and documents for all owned showroom buildings were available.
- Details of all current movable assets/inventories were made available however the list of assets as of the valuation date was not shared.
How to arrive at the value of showrooms and movable assets/inventories.
Answers written down
After several discussion held internally, we managed to conduct the exercise and provide the value of the assets and we also ensured that the assets are correctly valued. We answered to the question arouse by us:
- Value for showrooms were arrived Sales Comparable Method as area details and locations were available.
- Inventories were valued post reconciliation of the current asset list provided to us and reconciliation with all the sales invoice of goods sold out of the inventories post the valuation date. This way it was possible to create the list of inventories as on valuation date.