Share Valuation Certificate under Rule 11UA — NAV Method Format
CERTIFICATE OF FAIR MARKET VALUE OF UNQUOTED EQUITY SHARES
[Net Asset Value method — Rule 11UA of the Income-tax Rules, 1962]
We have been requested by {{client_name}} (PAN: {{client_pan}}), having its registered office at {{client_address}}, to certify the fair market value (FMV) of its unquoted equity shares as at {{as_at_date}} for the purpose of {{certificate_purpose}}, on the net asset value (book value) method prescribed under Rule 11UA of the Income-tax Rules, 1962.
Prescribed Formula
The fair market value of unquoted equity shares on the NAV method is computed as:
FMV = (A − L) × (PV) / (PE)
- A = Book value of the assets in the balance sheet, as reduced by (i) income-tax paid (net of refund claimed) and (ii) any amount shown as an asset which does not represent the value of any asset, e.g. deferred expenditure or accumulated losses carried as an asset.
- L = Book value of liabilities shown in the balance sheet, but excluding: paid-up equity share capital; amounts set apart for dividends not declared before the transfer/valuation date; reserves and surplus (by whatever name called), other than those set apart towards depreciation; provision for taxation to the extent it exceeds the tax payable with reference to book profits; provisions for unascertained liabilities; and contingent liabilities other than arrears of cumulative preference dividends.
- PV = Paid-up value of the equity shares being valued.
- PE = Total amount of paid-up equity share capital as shown in the balance sheet.
Computation of FMV as at {{as_at_date}}
Based on the balance sheet of the company as at {{balance_sheet_date}}:
| Particulars | Amount (₹) |
|---|
| Book value of total assets as per balance sheet | |
| Less: Income-tax paid, net of refund claimed | |
| Less: Amounts not representing the value of any asset (deferred expenditure, etc.) | |
| A — Adjusted book value of assets | |
| Book value of liabilities as per balance sheet | |
| Less: Exclusions under the Rule (equity capital, reserves and surplus, excess tax provision, unascertained/contingent provisions) | |
| L — Adjusted book value of liabilities | |
| (A − L) | |
| PE — Total paid-up equity share capital | |
| PV — Paid-up value per equity share (face value ₹ {{face_value}}) | |
| FMV per equity share = (A − L) × PV / PE | |
| Number of equity shares outstanding | {{number_of_shares}} |
Scope and Basis of Certification
The computation above is based on the balance sheet of the company as at {{balance_sheet_date}}, the books of account, the income-tax records and the schedules of assets and liabilities produced before us. The valuation is a formula-driven book value computation as prescribed by Rule 11UA and does not involve an independent revaluation of the underlying assets except as the Rule requires. This certificate is an attestation issued in accordance with the Guidance Note on Reports or Certificates for Special Purposes (Revised 2016) issued by the ICAI; it is not an audit opinion under the Standards on Auditing, and it does not constitute investment advice or an indication of the price at which the shares may actually be transacted.
This certificate is issued for the stated purpose and should not be used for any other purpose without our prior written consent.
Place: __________________
Date: 31 July 2026
For {{firm_name}}
Chartered Accountants
Firm Registration No.:
_______________________________
{{engagement_partner}}
Partner
Membership No.: {{icai_membership_no}}
UDIN: ____________________
