Valuation of stressed assets requires the valuation of non-performing assets that might be hindering the growth of a business.
Non-Performing Assets is defined as a loan or an advance in respect of which the interest & / or installment of principal remains “overdue” for more than 90 days in respect of a term loan or remains “out of order” for more than 90 days in respect of an Overdraft / Cash Credit.
Any amount due to the Bank under any credit facility, if not paid by the due date fixed by the bank, becomes ‘overdue’. An asset, including a leased asset, becomes non-performing when it ceases to generate income for the bank.
Sapient has an extensive team assisting Private Equity Lenders / Banks / Financial Institutions in evaluating fixed assets of running / closed NPA accounts.
