AN APPROACH TO

ALUATION OF NPAS


POINTS COVERED

WHAT IS NPA?

REASONS FOR ACCOUNTS TURNING NPAS

VALUATION OF NPA

CASE STUDIES

REMARKS / SUGGESTIONS

 

WHAT IS NPA?

 

1. INTEREST AND/ OR INSTALMENT OF PRINCIPAL REMAINING OVERDUE FOR A PERIOD MORE THAN 180 DAYS IN RESPECT OF TERM LOAN

2. ACCOUNT OUT OF ORDER FOR MORE THAN 180 DAYS IN RESPECT OF OD/CC.

3. BILL REMAINING OVERDUE FOR MORE THAN 180 DAYS IN CASE OF BILLS PURCHASED OR DISCOUNTED

THIS PERIOD WILL BE REDUCED FROM 180 DAYS TO 90 DAYS FROM 31.03.2004.

REASONS FOR ACCOUNTS TURNING NPAS

LAPSES IN APPRAISAL WHILE FUNDING

RECESSIONERY TRENDS IN INDUSTRY

INCOMPETENCE OF MANAGEMENT

CHANGES IN TECHNOLOGY

UN-ECONOMICAL PLANT SIZE

DIVERSION OF FUNDS

DELAYS IN TAKING ACTIONS

(BANKERS / MANAGEMENT)

 

VALUATION:

 

REPLACEMENT VALUE

MARKET VALUE

DISPOSAL VALUE

DISTRESS SALE VALUE

INFORMATION TO BE COLLECTED

PROMOTER’S BACKGROUND

FEED BACK FROM INDUSTRY

FEED BACK FROM SUPPLIERS OF MACHINERY

FEEDBACK FROM CUSTOMERS

RECORDS IN THE OFFICE / WITH BANKERS

FEEDBACK FROM OLD EMPLOYEES

VALUER’S DATA BANK

PROBLEMS IN VALUATION

IDENTIFICATION OF MACHINERY

NON AVAILABILITY OF RECORDS

NON AVAILABILITY OF DRAWINGS

WORKING CAPABILITIES OF MACHINERY

SALE OF MACHINERY ON “AS IS” BASIS

USEFULNESS OF MACHINERY

DISMANTLING AND TRANSPORTATION EXPENSES

APPROACH TO MACHINERY FOR INSPECTION

AVAILABILITY OF BUYER

REMOVAL OF SOME MACHINERY

VALUATION OF DAL-SPICE MILL

 

MAIN PLANTS:

 

DAL MILL

Reel Grading Machine, Dust Aspiraion Unit, Dry Destoner, Pitting Machine, Surge Bin, Oil Mixing Worm, Hold Up Bins, Tempering Bins, Pealer, Sheller, Polishing Worm, Splitter, Elevators, Bagging Spout, Packing Machines

SPICE MILL

Fine Separator, Dry Destoner, Gravity Separator, Hammer Mill, Turbo Shifter, Pulse Jet Filters, Cyclones, Elevator

BESAN MILL

Pin Mill, Cyclone, Sieve, Pulsejet Filters, Conveyor

COLD STORAGE EQUIPMENT

UTILITIES, LABORATORY, WORKSHOP

VALUATION OF STEEL ROLLING MILL

MAJOR MACHINERY

ROLLING MILLS (2, 3, 4 STANDS)

FINISHING MILL

ROUGHING MILL

PREHEATING FURNACE

ARC FURNACE

EOT CRANES

CONVEYORS

TWISTING MACHINES

SHEARING MACHINES

COILER MACHINE

UTILITIES

REMARKS / SUGGESTIONS

EXTERNAL ASSISTANCE AT THE TIME OF FUNDING

PROPER MONITORING

TAKE UP BPR EXERCISE AT PROPER TIME

PROPER CARE WHILE DRAFTING OF MORTGAGE DOCUMENTS

UPDATING MACHINERY DATA AT REGULAR INTERVALS

KEEPING PROPER RECORD OF RELEVANT DOCUMENTS

INITIATION OF ONE TIME SETTLEMENT