We are Empanelled with Indian Banks’s Association as Agenices for Specialised Monitoring.
Public sector banks (PSBs) have made significant progress with respect to improvement of credit underwriting and monitoring process in the PSB Reforms EASE Agenda. Ease of Access Service Excellence (EASE) was launched to encompass a synergistic approach to ensure prudential and clean lending, better customer service, enhanced credit availability and better governance. Accordingly, Department of Financial Services, Government of India, indicated several action points, one of which is “Tie up with Agencies for Specialized Monitoring (ASM) for clean and effective post sanction monitoring and follow up on Common engagement basis in case of consortium lending, having large credit exposure (above ₹ 250 crore) and exposure of a specialized nature. In October 2018, Indian Bank’s Association (IBA) has released a framework for the appointment of ASMs qualified for monitor the technical, financial and legal aspects of project loans above ₹ 250 crore.
ASM audit involves complete credit assessment of the borrower including assessment of his ability to repay the loan. It also involves monitoring the financial operations of the borrower to track or identify any diversion/misuse of the borrowed fund. The Scope of work shall include:
- Concurrent Review and Monitoring Procedures (for Working Capital)
- Concurrent Review and Project Monitoring Procedures (for Term Loan); preferably deployed in when there is delay in implementation – ASMs for large accounts should be engaged in order to ensure proper monitoring of project implementation as per schedule and utilization of funds.
- Concurrent cash monitoring which includes the following:
- Cash Inflow Monitoring
- Cash Outflow Monitoring
- Fund Flow Analysis
- Non-Cash Parameters
We are specialized in monitoring of the business/project, accounting and analyzing, evaluating and monitoring the borrowal account/project financially to offer a conduct root cause analysis of the incipient sickness/stress in the borrowal account and suggest remedial measure to branch360 degree overview to the lenders, with regard to their exposure to large borrowers. We can monitor the progress of the implementation/operation of projects on real time basis. Simultaneously, we can monitor the operating and non-operating financial transactions of the debtor, including cash flow monitoring. We can take into account the concern areas from bank as well as Promoter and suggest remedial measure during the term of engagement.