21 May 2014
Can anybody provide me solution to end the problem that i actually came across.............. There is a individual who invested all his assets in a Rice Mill of worth Rs.8 crores (approx.) in the year 2011.Then the business continued for 1.5 years continuously. Suddenly the business lacks working capital due to abscondance of cash by the person involved in construction, who was the friend of the individual in the 2013. There is no specific evidence to prove the fraud. Thus, the business discontinued. On the other hand, as there is no profits, the bank debts (neither the principle sum nor interest) of Rs.4 crores(approx.)could not cleared as there is no cash availability. As the business organisation is not paying any sum to bank. The bank considered the debt as NPA and is going to conduct auction on or before 06.06.2014.All the assets were struck in the bank as securities for the loan whereas the individual has Rs.4 crores of bank loan and Rs.2 crores of unsecured loan. Banker valued the mill value for Rs.1.63 crores and other securities for Rs.60 lakhs only whereas the valuation report by the Approved valuer valued the mill for Rs.5.35 crores (approx.). There is a heavy pressure from the creditors as the auction amount does not cover their debts. Please provide a probable and suitable solution for the above query.................
23 May 2014
One way to find a investor who has knowledge and experience in the rice mill business. May be even a successful mil owner in the nearby area.
That way if some of the dues of the bank are paid the bank might allow to give some more time to repay. Also the creditors will be ready to become partners in the business rather than to write off the entire amount.
CAclubindia
