PMP Bank Ltd., received an application from a pharmaceutical company for the takeover of their outstanding term loans secured on its assets, availed…

Areas of analysis in order to ensure that the assets are not stated at overvalued amounts Over-Valued Assets are: Uncollected/uncollectable receivables.Obsolete, slow non-moving inventories or inventories valued above NRV, huge inventories of packing materials etc. with name of company.Underused or obsolete Plant and Machinery and their spares; asset values which have been impaired due to sudden fall in market value etc.Assets carried at much more than current market value due to capitalization of expenditure/foreign exchange fluctuation, or capitalization of expenditure mainly in the nature of revenue.Litigated assets and property.Investments carried at cost though realizable value is much lower.Investments carrying a very low rate of income / return.Infructuous project expenditure/deferred revenue expenditure etc.Group Company balances under reconciliation etc.Intangible assets of no value.