Valuation for NPA, IBC & Liquidation purposes
A nonperforming asset (NPA) refers to a classification for loans or advances that are in default or in arrears. A loan is in arrears when principal or interest payments are late or missed. A loan is in default when the lender considers the loan agreement to be broken and the debtor is unable to meet his obligations.
Insolvency and Bankruptcy Code (IBC)
Credit Risk Management
Tightening Credit Monitoring
Amendments to Banking Law to give RBI more power
Stricter NPA recovery
Corporate Governance Issues
Obtaining professional Valuation of the assets of an entity is quintessential for taking an “informed decision making” for any acquisitions under the Insolvency and Bankruptcy Code (IBC). As per the Companies (Registered Valuers and Valuation) Rules, 2017, every valuation under the IBC is to be conducted by a Valuer registered with the IBBI
BC, classifies valuation as “Fair value” or “Liquidation Value”. Fair Value is the estimated realizable value of the assets, if same were to be exchanged between a willing buyer and willing seller on an arm’s length basis, as on the insolvency commencement date. Whereas, Liquidation Value is the estimated realizable value of the assets of the corporate debtor, if the corporate debtor were to be liquidated on the insolvency commencement date”.
Transique Valuation Advisors is a sector agnostic, Valuation firm and holds leadership position in Valuation of Securities or Financial Assets with extensive experience in valuation of assets under IBC. We get the valuation of Real estate and Plant & machinery (through our affiliated entity which is an experienced and renowned valuer in these asset categories).
Liquidation valuation is the value of a company that is bankrupt or going out of business. It is the value of the company’s assets, according to what they would be worth if they are sold off in order to repay creditors. This is in contrast to going concern value, which assumes the company will continue to operate for the foreseeable future. The difference between going concern value and liquidation value consists of intangible assets and goodwill.
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