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Start now! Your big opportunity may be right where you are!

Consultancy

VALUATION

VALUATION is the process of estimating what something is worth. Items that are usually valued are a financial asset or liability. Valuations can be done on assets (for example, investments in marketable securities such as stocks, options, business enterprises, or intangible assets such as patents and trademarks) or on liabilities (e.g., bonds issued by a company). Valuations are needed for many reasons such as investment analysis, capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability, and in litigation.

Valuation of financial assets is done using one or more of these types of models:

1. Absolute Value Models That Determine The Present Value Of An Asset's Expected Future Cash Flows. These Kinds Of Models Take Two General Forms: Multi-Period Models Such As Discounted Cash Flow Models Or Single-Period Models Such As The Gordon Model. These Models Rely On Mathematics Rather Than Price Observation.

2. Relative Value Models Determine Value Based On The Observation Of Market Prices Of Similar Assets.

3. Option Pricing Models Are Used For Certain Types Of Financial Assets (E.G., Warrants, Put Options, Call Options, Employee Stock Options, Investments With Embedded Options Such As A Callable Bond) And Are A Complex Present Value Model. The Most Common Option Pricing Models Are The Black–Scholes-Merton Models And Lattice Models.


Common terms for the value of an asset or liability are market value, fair value, and intrinsic value. The meanings of these terms differ. For instance, when an analyst believes a stock's intrinsic value is greater (less) than its market price, an analyst makes a "buy" ("sell") recommendation. Moreover, an asset's intrinsic value may be subject to personal opinion and vary among analysts.


Real estate appraisal, property valuation or land valuation is the process of valuing real property. The value usually sought is the property's market value. Appraisals are needed because compared to, say, corporate stock, real estate transactions occur very infrequently. Not only that, but every property is different from the next, a factor that doesn't affect assets like corporate stock. Furthermore, all properties differ from each other in their location - which is an important factor in their value. So a centralized Walrasian auction setting can't exist for the trading of property assets, such as exists to trade corporate stock (i.e. a stock market/exchange). This product differentiation and lack of frequent trading, unlike stocks, means that specialist qualified appraisers are needed to advise on the value of a property. The appraiser usually provides a written report on this value to his or her client. These reports are used as the basis for mortgage loans, for settling estates and divorces, for tax matters, and so on. Sometimes the appraisal report is used by both parties to set the sale price of the property appraised.


In some areas, an appraiser doesn't need a license or any certification to appraise property. Usually, however, most countries or regions require that appraisals be done by a licensed or certified appraiser (in many countries known as a Property Valuer or Land Valuer and in British English as a "valuation surveyor"). If the appraiser's opinion is based on Market Value, then it must also be based on the Highest and Best Use of the real property. For mortgage valuations of improved residential property in the US, the appraisal is most often reported on a standardized form, such as the Uniform Residential Appraisal Report. Appraisals of more complex property (e.g. -- income producing, raw land) are usually reported in a narrative appraisal report.

PROJECT APPRAISAL

PROJECT APPRAISAL is a generic term that refers to the process of assessing, in a structured way, the case for proceeding with a project or proposal. In short, project appraisal is the effort of calculating a project's viability. It often involves comparing various options, using economic appraisal or some other decision analysis technique. Before undertaking any activity every entrepreneur has to first make a project report whether his project is self-financed or is being financed by a bank or a financial institution. This needs to be a detailed analysis. It has to be a very scientific research oriented endeavor. It is suggested that one must take the help of an expert in this. It is not only our suggestion but it is our recommendation. Project report must be made with an objective that the appraisal of the project and its financing becomes easy and smooth. Project appraisal is the assessment of the project by the concerned appraising authority in terms of its technical, economic, financial and social viability. Every lending financial institution before lending any assistance in the form of finance would like to make an objective assessment of the various propositions of the project. And only when it is completely satisfied of the fact that the project is economically viable and socially acceptable, it will lend finance to the project.

Process

• Initial Assessment

• Define Problem And Long-List

• Consult And Short-List

• Develop Options

• Compare And Select Project Appraisal


Types Of Appraisal

• Technical Appraisal

• Project Appraisal

• Commercial And Marketing Appraisal

• Financial / Economic Appraisal

• Organisational Or Management Appraisal

• Cost-Benefit Analysis

• Economic Appraisal

• Cost-Effectiveness Analysis

• Scoring And Weighting


Industry And Market Analysis: The project appraisal report should highlight the detailed industry and market analysis. It must indicate the strength of the products being manufactured by the company. What kind of technology the company is implementing? What is the industry position? Is it a growing and sun rising industry? Are the products and technology being adopted is competitive? Is the technology being adopted is a green technology and is upgradeable? Is there a scope for further growth? Are there growth opportunities available? Is the project scalable and are there scalable opportunities in the future? Is the project economically and commercially sustainable for a longer period of time? Is there a proper allocation of resources? What is the status on demand and supply analysis? What about the identification of the target market and choice of the marketing strategy? Is there a technical analysis of selection of the appropriate technology and acquisition of technology? What is the process of procurement of raw materials? What is the process of manufacturing and value addition? Is there a design and layout of the facilities of the project site? What is the choice of location of the project? What about the environmental appraisal of the project?

The project must give the details of the financial projection on:

a. The cost of the project

b. The means of finance

c. Estimation of working capital

d. Profitability projections and estimations

e. Balance Sheet projections

f. Projection of sources and uses of funds

g. Social Cost Benefit Analysis

What is the outlook of the business for at least 20 years from now?


Finance Objective The objective of the course is to ideas Detailed An Overview of Project Finance: Introduction to project finance and overview of the project finance market, A of a Proper Allocation of Resources, Process of Resource Allocation at the Corporate Level, Process of Resource Market And Demand Analysis: Identification of the Target market, choice of the Market Strategy, Projection Models. Technical Analysis: Selection of Appropriate Technology, Acquisition of Technology, Process of Procurement of Materials, Choice of a Good Location for the Project, Design of the Layout of the Facilities at the Project Site. Financial projections: The Cost of the Project, The Means of Finance, Estimation of Working Capital, Profitability Estimations, Balance Sheet Projections, Projections of Sources and Uses of Funds. . : The Rationale for SCBA, Different Approaches to SCBA, methodology of SCBA Structuring Budgeting Valuing Projects: Appraising a Project by Discounting and Non Discounting Criteria, Appraising Projects with Special Features, FCF Approach, ERR Approach, Real Options – Issues in valuing long term Project Managing Financing Projects: Syndication, Islamic Finance, Leverage Leases, Various debt instruments and innovative Risk Analysis in Capital Investment Decisions: What is Risk, Types of Risk, Measurement of Risk, Method Multiple the Detailed Cases Faculty An A Allocation Market Technical Analysis Financial projections Environmental Social Structuring Projects Valuing Projects Project Negotiation Managing Project Risks Financing Projects Risk Multiple Detailed Project Reports.

TEV STUDIES

THE FEASIBILITY STUDY is an evaluation and analysis of the potential of a proposed project which is based on extensive investigation and research to support the process of decision making.

Feasibility studies aim to objectively and rationally uncover the strengths and weaknesses of an existing business or proposed venture, opportunities and threats present in the environment, the resources required to carry through, and ultimately the prospects for success. In its simplest terms, the two criteria to judge feasibility are cost required and value to be attained.

A well-designed feasibility study should provide a historical background of the business or project, a description of the product or service, accounting statements, details of the operations and management, marketing research and policies, financial data, legal requirements and tax obligations. Generally, feasibility studies precede technical development and project implementation.

A feasibility study evaluates the project's potential for success; therefore, perceived objectivity is an important factor in the credibility of the study for potential investors and lending institutions. It must therefore be conducted with an objective, unbiased approach to provide information upon which decisions can be based. The acronym TELOS refers to the five areas of feasibility - Technical, Economic, Legal, Operational, and Scheduling.

Technology and system feasibility: The assessment is based on an outline design of system requirements, to determine whether the company has the technical expertise to handle completion of the project. When writing a feasibility report, the following should be taken to consideration:

• A Brief Description Of The Business To Assess More Possible Factors Which Could Affect The Study

• The Part Of The Business Being Examined

• The Human And Economic Factor

• The Possible Solutions To The Problem

At this level, the concern is whether the proposal is both technically and legally feasible (assuming moderate cost).

Legal Feasibility: Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts.

The operational feasibility assessment focuses on the degree to which the proposed development projects fits in with the existing business environment and objectives with regard to development schedule, delivery date, corporate culture, and existing business processes.

To ensure success, desired operational outcomes must be imparted during design and development. These include such design-dependent parameters such as reliability, maintainability, supportability, usability, producibility, disposability, sustainability, affordability and others. These parameters are required to be considered at the early stages of design if desired operational behaviors are to be realized. A system design and development requires appropriate and timely application of engineering and management efforts to meet the previously mentioned parameters. A system may serve its intended purpose most effectively when its technical and operating characteristics are engineered into the design. Therefore operational feasibility is a critical aspect of systems engineering that needs to be an integral part of the early design phases.

Economic Feasibility: The purpose of the economic feasibility assessment is to determine the positive economic benefits to the organization that the proposed system will provide. It includes quantification and identification of all the benefits expected. This assessment typically involves a cost/ benefits analysis.

Technical Feasibility: The technical feasibility assessment is focused on gaining an understanding of the present technical resources of the organization and their applicability to the expected needs of the proposed system. It is an evaluation of the hardware and software and how it meets the need of the proposed system.

Schedule Feasibility: A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Schedule feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. It is necessary to determine whether the deadlines are mandatory or desirable.

Market And Real Estate Feasibility: Market feasibility studies typically involve testing geographic locations for a real estate development project, and usually involve parcels of real estate land. Developers often conduct market studies to determine the best location within a jurisdiction, and to test alternative land uses for given parcels. Jurisdictions often require developers to complete feasibility studies before they will approve a permit application for retail, commercial, industrial, manufacturing, housing, office or mixed-use project. Market Feasibility takes into account the importance of the business in the selected area.

Resource Feasibility: This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, and developmental procedures with company revenue prospectus.

Cultural Feasibility: In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered and these factors are to be well known. Further an enterprise's own culture can clash with the results of the project.

Financial Feasibility: In case of a new project, financial viability can be judged on the following parameters:

• Total Estimated Cost Of The Project

• Financing Of The Project In Terms Of Its Capital Structure, Debt Equity Ratio And Promoter's Share Of Total Cost

• Existing Investment By The Promoter In Any Other Business

• Projected Cash Flow And Profitability

The financial viability of a project should provide the following information:

• Full Details Of The Assets To Be Financed And How Liquid Those Assets Are.

• Rate Of Conversion To Cash-Liquidity (I.E. How Easily Can The Various Assets Be Converted To Cash?).

• Project's Funding Potential And Repayment Terms.

Sensitivity in the repayments capability to the following factors:

1. Time Delays.

2. Mild Slowing Of Sales.

3. Acute Reduction/Slowing Of Sales.

4. Small Increase In Cost.

5. Large Increase In Cost.

5. Adverse Economic Conditions.

Market Research Study And Analysis: This is one of the most important sections of the feasibility study as it examines the marketability of the product or services and convinces readers that there is a potential market for the product or services. If a significant market for the product or services cannot be established, then there is no project.

Typically, market studies will assess the potential sales of the product, absorption and market capture rates and the project's timing.

The feasibility study outputs the feasibility study report, a report detailing the evaluation criteria, the study findings, and the recommendations.

LENDER ENGINEER

LENDER`S ENGINEER (LE) is a representative of lending institutions such as banks and NBFCs. His function is to audit a project from the technical standpoint when a developer seeks funding for it. This is a process which risk/compliance teams have, over time, hard-wired into funding proposals by developers. The obvious intention behind this requirement is to identify, mitigate and hedge the lending institution’s risks with regards to the technical aspects of construction.

The key risks include:

• The Developer`S Potential Inability To Service The Debt;

• The Potential Use Of The Funds For Purposes Other Than What They Were Allocated For;

• Construction Progress Not Keeping Pace With Disbursement

The requirement of a Lender’s Engineer is a factor of the risk and compliance parameters of individual lending institutions. To safeguard the interests of all concerned, lenders have to ensure that the appointed LE has performed a sufficiently detailed review, provided the correct information and reviewed all the construction risks.

Meanwhile, there is a recurring question in the minds of developers - what is the value they derive from paying for a lenders engineer? Is the mandatory rubber stamp all that they can expect? The fact is that they can - and should - derive a lot more value than this from such professional services.

A knowledgeable, involved and neutral Lender Engineer can bring tangible and definite advantages that go beyond the stamp of approval to the developer`s table. The benefits of such a LE`s services in terms of project monitoring are, in fact, not limited to providing security to lending institutions - they are also an important component of risk management and value addition for the developer himself. Backed by sound technical knowledge, the LE plays a vital role in overall project monitoring and coordination by providing steady technical feedback. These inputs can help developers to present a more accurate and convincing picture of the project`s progress at construction control meetings. Also, these expert inputs can help reduce the chances of project failures due to:

• Conflict Among The Various Project Participants;

• The Project Manager`S Lack Of Information Or Knowledge;

• Indecisiveness Among Project Participants On Key Decisions.

A professional project development and monitoring agency brings in best practices on processes which developers might not have adopted yet, and increased efficiency in the development process will always lead to a better product. Also, proactive identification of risks can lead to better planning / early value engineering, which can subsequently lead to savings upto 10% on the project costs. It is recommended for lenders to involve a LE at the pre-investment stage, since this will ensure that risks like labour availability, uncovered project costs and overall specification and project cost can be identified in time. This is particularly relevant in light of the fact that new construction technologies are emerging constantly. Both the lending institution and the project developers must aware of these technologies and the cost benefit analysis before they can be leveraged for a more efficient project development. Social factors like environmental, health and safety practices are factors which require far greater emphasis than they are currently being accorded in the Indian construction industry. Only a neutral, qualified person whose concerns extend beyond mere time and cost savings can provide impartial guidance on these concerns. In these areas, the LE can by virtue of his function and expertise - is in a position to provide inputs that can have a significant impact. To illustrate - in the case of a large residential construction, a LE helped a major developer to manage labour attrition by providing value-adding facilities such as on-site crèche and medical aid centre.

• Ethics Is The Key Quality. Innumerable Areas In A Construction Project Can Remain Invisible To The Untrained Eye And Can Only Be Identified With Technical Involvement. These Areas Must Not Only Be Brought To Light But Also Brought To The Notice Of All Stakeholders.

• A Construction Project Has Various Components To Success. The Technical Aspects Range From Geological Factors, Architectural Design Aspects, Civil Construction And The Use Of The Most Efficient Mechanical And Electrical Equipment & Services. The Appointed LE Must Be Able To Understand These Complexities And Help Ensure That The Project Has The Benefit Of An Optimal Mix Of Architects, Civil Engineers And Mechanical And Electrical Engineers.

• A Technical Analysis Is Incomplete Without Use Of Technology. The LE Must Be Proficient In The Use Of Technology To Be Able To Ensure Sound Risk Management And Progress Mapping.

• The LE Must Be Able To Translate Technical Information Into Inputs That Are Relevant To The Financial Participants In The Project These Could Include Payback Period And Factors That Impact Returns.

• The Primary Scope Of A LE Includes Providing Expert Insights On The Availability And Applicability Of Statutory Approvals For A Project. The LE Must Have Deep Knowledge Of Statutory Aspects And Approvals, And Must Utilize A System To Review Such Approvals Through Predefined Checklists.

CLUSTER DEVELOPMENT

CLUSTER DEVELOPMENT (or cluster initiative or Economic Clustering) is the economic development of business clusters. The cluster concept has rapidly attracted attention from governments, consultants, and academics since it was first proposed in 1990 by Michael Porter. Many governments and industry organizations across the globe have turned to this concept in recent years as a means to stimulate urban and regional economic growth. As a result, a large number of cluster initiative organizations were started during the 1990s, and the trend continues. A follow up study in 2005 covered more than 1400 cluster initiative organizations across the globe

While the purpose of cluster initiative organizations is to promote economic development within the cluster by improving the competitiveness of one or several specific business sectors, it is important to differentiate these public-private organizations from policy-making organizations at different levels. More specifically, cluster initiatives are organizations or projects that are organized as collaborations between a diverse number of public and private sector actors, such as firms, government agencies, and academic institutions. Whereas lobbying policymakers may be one of the cluster initiative’s activities, cluster initiatives generally are involved in a broad range of activities, e.g. supply-chain development, market intelligence, incubator services, attraction of foreign direct investment, management training, joint R&D projects, marketing of the region, and setting technical standards.

NPA MANAGEMENT

A Non-performing asset (NPA) is defined as a credit facility in respect of which the interest and/or installment of principal has remained ‘past due’ for a specified period of time.

NPA is a classification used by financial institutions that refer to loans that are in jeopardy of default. Once the borrower has failed to make interest or principle payments for 90 days the loan is considered to be a non-performing asset. Non-performing assets are problematic for financial institutions since they depend on interest payments for income. Troublesome pressure from the economy can lead to a sharp increase in non-performing loans and often results in massive write-downs.

With a view to moving towards international best practices and to ensure greater transparency, it had been decided to adopt the ‘90 days’ overdue’ norm for identification of NPA, from the year ending March 31, 2004. Accordingly, with effect from March 31, 2004, a non-performing asset (NPA)is a loan or an advance where;

1. Interest And/Or Installment Of Principal Remain Overdue For A Period Of More Than 90 Days In Respect Of A Term Loan,

2. The Account Remains ‘Out Of Order’ For A Period Of More Than 90 Days, In Respect Of An Overdraft/Cash Credit (OD/CC),

3. The Bill Remains Overdue For A Period Of More Than 90 Days In The Case Of Bills Purchased And Discounted,

4. Interest And/Or Installment Of Principal Remains Overdue For Two Harvest Seasons But For A Period Not Exceeding Two Half Years In The Case Of An Advance Granted For Agricultural Purposes

5. Any Amount To Be Received Remains Overdue For A Period Of More Than 90 Days In Respect Of Other Accounts.

6. Non Submission Of Stock Statements For 3 Continuous Quarters In Case Of Cash Credit Facility

7. No Active Transactions In The Account (Cash Credit/Over Draft/EPC/PCFC) For More Than 90 Days.

Banks are required to classify non-performing assets further into the following three categories based on the period for which the asset has remained non-performing and the realisability of the dues:

1. Sub-Standard Assets: A Sub Standard Asset Is One Which Has Been Classified As NPA For A Period Not Exceeding 12 Months.

2. Doubtful Assets: A Doubtful Asset Is One Which Has Remained NPA For A Period Exceeding 12 Months.

3. Loss Assets: Where Loss Has Been Identified By The Bank, Internal Or External Auditor Or Central Bank Inspectors. But The Amount Has Not Been Written Off, Wholly Or Partly.

Sub-standard asset is the asset in which bank have to maintain 15% of its reserves. All those assets which are considered as non-performing for period of more than 12 months are called as Doubtful Assets. All those assets which cannot be recovered are called as Loss Assets.

NPAs result from what are termed “Bad Loans” or defaults. Default, in the financial parlance, is the failure to meet financial obligations, say non-payment of a loan installment. These loans can occur due to the following reasons:

1. Usual Banking Operations /Bad Lending Practices

2. A Banking Crisis (As Happened In South Asia And Japan)

3. Overhang Component (Due To Environmental Reasons, Business Cycle, Etc)

4. Incremental Component (Due To Internal Bank Management, Like Credit Policy, Terms Of Credit, Etc)

NPAs do not just reflect badly in a bank’s account books, they adversely impact the national economy. Following are some of the repercussions of NPAs:

1. Depositors Do Not Get Rightful Returns And Many Times May Lose Uninsured Deposits. Banks May Begin Charging Higher Interest Rates On Some Products To Compensate Non-Performing Loan Losses

2. Bank Shareholders Are Adversely Affected

3. Bad Loans Imply Redirecting Of Funds From Good Projects To Bad Ones. Hence, The Economy Suffers Due To Loss Of Good Projects And Failure Of Bad Investments

4. When Bank Do Not Get Loan Repayment Or Interest Payments, Liquidity Problems May Ensue.

NPAs results in

1. Decrease Profitability.

2. Reduce Capital Assets And Lending Limits.

3. Increase Loan Loss Reserves.

4. Bring Unwanted Attention From Government Regulators.

SARFAESI ACT 2002 The full form of SARFAESI Act as we know is Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Banks utilize this act as an effective tool for bad loans (NPA) recovery. It is possible where non-performing assets are backed by securities charged to the Bank by way of hypothecation or mortgage or assignment.

1. Upon Loan Default, Banks Can Seize The Securities (Except Agricultural Land) Without Intervention Of The Court.

2. SARFAESI Is Effective Only For Secured Loans Where Bank Can Enforce The Underlying Security Eg Hypothecation, Pledge And Mortgages. In Such Cases, Court Intervention Is Not Necessary, Unless The Security Is Invalid Or Fraudulent. However, If The Asset In Question Is An Unsecured Asset, The Bank Would Have To Move The Court To File Civil Case Against The Defaulters.

The SARFAESI Act, 2002 gives powers of "seize and desist" to banks. Banks can give a notice in writing to the defaulting borrower requiring it to discharge its liabilities within 60 days. If the borrower fails to comply with the notice, the Bank may take recourse to one or more of the following measures:

1. Take Possession Of The Security For The Loan;

2. Sale Or Lease Or Assign The Right Over The Security;

3. Manage The Same Or Appoint Any Person To Manage The Same.

The SARFAESI Act also provides for the establishment of Asset Reconstruction Companies (ARCs) regulated by RBI to acquire assets from banks and financial institutions. The Act provides for sale of financial assets by banks and financial institutions to asset reconstruction companies (ARCs). RBI has issued guidelines to banks on the process to be followed for sales of financial assets to ARCs.

The above observations make it clear that the SAFAESI act was able to provide the effective measures to the secured creditors to recover their long standing dues from the Non performing assets, yet the rights of the borrowers could not be ignored, and have been duly incorporated in the law.

1. The Borrowers Can At Any Time Before The Sale Is Concluded, Remit The Dues And Avoid Loosing The Security.

2. In Case Any Unhealthy/Illegal Act Is Done By The Authorised Officer, He Will Be Liable For Penal Consequences.

3. The Borrowers Will Be Entitled To Get Compensation For Such Acts

4. For Redressing The Grievances, The Borrowers Can Approach Firstly The DRT And Thereafter The DRAT In Appeal. The Limitation Period Is 45 Days And 30 Days Respectively.

The Act stipulates four conditions for enforcing the rights by a creditor.

1. The Debt Is Secured;

2. The Debt Has Been Classified As An NPA By The Banks;

3. The Outstanding Dues Are One Lakh And Above And More Than 20% Of The Principal Loan Amount And Interest There On.

4. The Security To Be Enforced Is Not An Agricultural Land.

According to this act, the registration and regulation of securitization companies or reconstruction companies is done by RBI. These companies are authorized to raise funds by issuing security receipts to qualified institutional buyers (QIBs), empowering banks and Fls to take possession of securities given for financial assistance and sell or lease the same to take over management in the event of default. This act makes provisions for two main methods of recovery of the NPAs as follows

1. Securitisation Is The Process Of Issuing Marketable Securities Backed By A Pool Of Existing Assets Such As Auto Or Home Loans. After An Asset Is Converted Into A Marketable Security, It Is Sold. A Securitization Company Or Reconstruction Company May Raise Funds From Only The QIB (Qualified Institutional Buyers) By Forming Schemes For Acquiring Financial Assets;

2. Enacting SARFAESI Act Has Given Birth To The Asset Reconstruction Companies In India. It Can Be Done By Either Proper Management Of The Business Of The Borrower, Or By Taking Over It Or By Selling A Part Or Whole Of The Business Or By Rescheduling Of Payment Of Debts Payable By The Borrower Enforcement Of Security Interest In Accordance With The Provisions Of This Act.

Further, the act provides Exemption from the registration of security receipt. This means that when the securitization company or reconstruction company issues receipts, the holder of the receipts is entitled to undivided interests in the financial assets and there is not need of registration unless and otherwise it is compulsory under the Registration Act 1908. However, the registration of the security receipt is required in the following cases:

1. There Is A Transfer Of Receipt; And

2. The Security Receipt Is Creating, Declaring, Assigning, Limiting, Extinguishing Any Right Title Or Interest In A Immovable Property.

3. However, Debt Recovery Tribunals have been empowered to entertain appeals against the misuse of powers given to banks. Any person aggrieved, by any order made by the Debts Recovery Tribunal may go to the Appellate Tribunal within thirty days from the date of receipt of the order of Debts Recovery Tribunal.

The Chief Metropolitan Magistrate or District Magistrate has been mandated to assist secured creditor in taking possession of secured asset. These officers will make sure that once the creditor has given him in writing that all other formalities of the act have been done, the CMM or DM will take possession of such asset and documents relating thereto; and forward such assets and documents to the secured creditor. Now, here, you have to note that such an act of the CMM or DM can not be called in question in any court or before any authority.

The act allows taking the matter to high courts only in some matters related to the implementation of the act in Jammu & Kashmir. However, High Courts have been entertaining writ petitions under article 226 (Power to issue writs) of the constitution of India. The government had approved bill to amend the act. The Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill, 2011, amends two Acts — Sarfaesi Act 2002, and Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (DRT Act). Via these amendments:

1. Banks And Asset Reconstruction Companies (ARCs) Will Be Allowed To Convert Any Part Of The Debt Of The Defaulting Company Into Equity. Such A Conversion Would Imply That Lenders Or ARCs Would Tend To Become An Equity Holder Rather Than Being A Creditor Of The Company.

2. The Amendments Also Allows Banks To Bid For Any Immovable Property They Have Put Out For Auction Themselves, If They Do Not Receive Any Bids During The Auction. In Such A Scenario, Banks Will Be Able To Adjust The Debt With The Amount Paid For This Property. This Enables The Bank To Secure The Asset In Part Fulfillment Of The Defaulted Loan.

3. Banks Can Then Sell This Property To A New Bidder At A Later Date To Clear Off The Debt Completely.

However lenders will be able to carry this property on their books only for seven years, as per the Banking Regulation Act, 1949.

Our Jobs

• Pre – Takeover Examination Of Identified Units / Assets Including Survey;

• Facilitating Bank In Seizure Of Securities / Taking Possession Of Movable & Immovable Assets;

• Obtaining Assistance Of District Magistrate / Chief Metropolitan Magistrate As And If Required, For Taking Over Possession Of The Securities;

• To Prepare Panchanama, Inventory Etc., As Desired By The Act;

• To Act As Custodian Of Secured Assets;

• To Act As ‘Manager’ To Manage The Secured Assets, Possession Of Which Has Been Taken Over; Providing Security / Watch & Ward For Preservation And Protection Of Secured Assets Including Insurance Etc.;

• Valuation Of Various Types Of Secured Assets;

• Assisting Bank In Sale Of Assets Through Auction / Otherwise (Though 60-70% Of The Cases Crack Down On Taking Possession Itself) And Other Allied Jobs;

• AND Providing Assistance For Collection / Recovery From Borrowers / Debtors.

Work Experience

We have handled / are handling the jobs for various banks since 2003 and our exercises have brought wonderful results in various fields, viz.:

1. The Defaulters Have Started Maintaining The Financial Discipline;

2. We Had Received A Business Of More Than 2,500.00 Crore Till Date;

3. We Have Been Instrumental In Recovering Dues To The Tune Of ` 250.00 Crore Approximately During Every Financial Year;

4. We Have Been Instrumental In Getting The SARFAESI Act’2002 Implemented In The State Of J&K. We Are The Only One Carrying Out The Implementation Of The Act In The Troubled State Of J & K.

5. We Have Taken Approximately 50,000 Physical Possessions Of Various Properties Viz. Residential Houses, Commercial Buildings, Educational Institutes, Industrial Buildings, Filling Stations, Vehicles, Tractors Etc.

Start now! Your big opportunity may be right where you are!


GATS INDIA LIMITED

Contact Us

 SCO 1-3,B, Swami Vivekanand Vridhashram Market,B-Block, Model Town Extension, Ludhiana - 141002

 1st Floor, Jandu Tower, G.T. Road, Miller Ganj, Ludhiana - 141003

 A-104, LokVihar, Pitampura, New Delhi

 +91-90666 66684, 0161-2457681,2545220, 4610234, 5000940

 info@gats.in