How did we efficiently & effectively overcome this problem?
Based on our information request list, we got some information. We carried out inspections as per the provided asset register, to verify the assets & inventories.
WHAT WE DISCOVERED
A substantial chunk of high-value Plant & Machinery was not offered for verification.
- Assets were intentionally not offered for inspection by the company to reduce the value
- Lenders were not informed if these assets were actually sold or available with the company
HOW WE TACKLED THE SITUATION
- We want ahead and valued these missing assets since they were appearing on the company’s book
- Not valuing these assets which were created from the bank’s funds may have resulted in a loss for the bank.
The lenders got an offer considering the increased valuation of these assets due to which the recovery of their loan got better.