Two large Indian real estate conglometates had business interests in a large parcel of land, located at a prime location in one of the metro cities of the country, the said land parcel was lying vacant due to a dispute between the two interested parties, teh court ordered a verdict to settle the dispute by carrying out an independent valuation of the same. With unavailability of similar sale transactions in teh market, the skill set of the valuere to estimate the fair value became all teh more important.
RNC carried out a thorough market study and submitted a comprehensive report with all back up data and documents of the court to settle the said dispute. A large consideration was at stake which was to be paid based on out valuation report.
An automotive component manufacturer in West India, which had started operations in late 1980s. RNC had advised the client to get a Reinstatement valuation for their company assets. However, the company followed its usual practice of insuring buildings at Gross book value and plant & Machinery at a nominal escalation every year.
Few years later, an unfortunate incident of fire occurred at its plant resulting in a loss of Rs. 15 crores. The insurance surveyors estimated an underinsurance to the extent of 75% leading to a deduction of Rs. 11.25 crores from the claim amount.
Having suffered such a huge loss on account of Underinsurance, teh company formulated a policy for periodic valuation and appointed RNC to carry the valuation of all its plants across the country.