1. ICSI Bhubaneswar 1st September 2018 Golden Jubilee 46th National Conference & 6th International Conference 1

2. Role of Valuation Professionals under IBC 2

3. Faculty Rammohan N. Bhave
Google map ConsultIFRS.com
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Enquiries: +(91)
Facebook: friends
LinkedIn: connections

4. Faculty Rammohan N. Bhave
Address: 10, Sundersringar, Gulmohar Road, Chunabhatti (East), Mumbai
Google map ConsultIFRS.com
Contact & Whatsapp: +(91)
Enquiries: +(91)
Facebook: friends send friend request to Rammohan Bhave
LinkedIn: Rammohan Bhave contacts send connection request

5. Rammohan N. Bhave and on way to Guinness book Record Collegian
B Com – 1976
LL.B. (G) – 1981
Professional
CA – 1980
CMA – 1984 CS
Strategic
IIM (A) – M & A – 2005
SAP
Global
IFRS London – 2009
Six Sigma – 2009
IFRS ICAI – 2009
and on way to Guinness book Record

6. My Journey – Laxmi (M) follows Saraswati
30 Years of Industry experience; & 8 years of IFRS, Valuation
Consulting / training
Reliance InfoComm – Business Controller
Crompton Greaves, Nasik to Started career
Blue Star & Blue Star InfoTech – – Mumbai – CFO
Mittal Europe MD & Chief Finance Director, Europe
Mafatlal – – 1994 (Surat) (Mumbai)
Foundation software – USA 2000, Singapore 2001, Australia 2002
Gammon India –
Last 8 years - IFRS/Ind AS, Valuation Consultant & Faculty, M&A, ECB, FDI, Listings on Foreign Stock Exchange

7. Current achievements
Ind AS Implementation Committee (ICAI) Member (past 17/18 16/17 10/11)
Independent Director on LIC MF Trustee Co Ltd
13 LECTURES IN LAST 2 MONTHS IN REGD VALUERS COURSE
Flag-bearer of the profession award from ICSI 2015
LECTURE no on IFRS/Ind AS completed in Aug 2018
Empaneled with IVSC (International Valuation standards council) thru BVA – PVA Tie-up
Valuation Advisory Committee, ICSI
“IFRS simplified“ book
Publisher : CNBC TV 18 world over
Author Rammohan Bhave & Dr. Mrs. Anjali Rammohan Bhave
Students in 25 countries & 101 cities

8. Some Contribution to ICSI
Founder Secretary Nasik chapter 1991
Founder secretary Surat chapter
SPEAKER at 13 chapters of ICSI Pune, Nasik, Surat,
Vadodara, Kochi, Chennai, Hyderabad, Indore, etc.
Some Contribution to ICSI

9. Some Contribution to ICSI.
Chairman Task force on Valuation
Faculty at Regd Valuers course
speaker at National conference Hyderabad
speaker at regional conference Indore
Some Contribution to ICSI

10. Some Contribution to ICSI
Limca record holder with ICSI on IFRS Webinar
Taught at SMTP & MSOP for last 10 years
Speaker at Golden Jubilee PCS Conference, Mumbai
Panel coordinator at launch of Valuers program
Some Contribution to ICSI

11. VALUATION: QUINTESSENTIAL PART OF RESOLUTION PROCESS
VALUER’S APPOINTMENT AND RESPONSIBILITY
VALUER’S CHALLENGES
ROLE OF VALUATION PROFESSIONAL UNDER INSOLVENCY AND BANKRUPTCY CODE (IBC)

12. VALUATION: QUINTESSENTIAL PART OF RESOLUTION PROCESS
Valuation of assets - core features of CIRP
Interpreting term 'liquidation value‘ : Clarity needed
Multitude - terminology in valuation adds confusion
Fair market / realizable / distressed sale value ?
Valuation methods accuracy - Key to correct Liquidation Value
Errors in Liquidation value may reverse Resolution Plan
Evidenced criminal case in private securitization company against
Officers Resolution Professionals
(Hotel Gaudavan Private Limited)

13. VALUER’S APPOINTMENT AND RESPONSIBILITY
Crucial role - Registered Valuers along-with Resolution Professionals
Resolution Professional to appoint 2 Registered Valuers
Liquidation value – Vital part – Information Memorandum
Estimate of liquidation value :
In compliance with Valuation standards
Adequate verification of assets
Valuers to submit Estimates to RP
Differences in estimates : Appoint third Valuer : RP
Average of the two closest estimates as liquidation value

14. VALUER’S CHALLENGES Procedure to realize assets poses challenge
Auction Sale - Slum / Standalone / set of assets collectively
Private sale : Perishable, deteriorating assets
Notional reserve price : Applicable in auction sale
Identification of assets : Crucial Stage

15. Hair cut or bald head

16. Bhushan steel – Tata steel
35200 cr purchase price 72.65% shareholding
37.5% hair cut OUT OF O/S LOANs of cr
Sahibabad plant running started
2000 cr syphoning case by SFIO

17. Amtek auto – Liberty House
4400 cr purchase price 60% shareholding
65% hair cut OUT OF O/S LOANs of cr

18. Alok industries – Reliance JM Fin
5050 cr purchase price 72.65% shareholding
83% hair cut OR BALD HEAD OUT OF O/S LOANs of cr
IBC Amendment 75% to 66% lenders approving amendment
Banks officers protesting

19. Adhunik metallic – Liberty House
410 cr purchase price
92% hair cut OUT OF O/S LOANs of 5370 cr

20. Electrosteel steel - Vedanta
5050 cr purchase price 72.65% shareholding
60% hair cut OUT OF O/S LOANs of cr

21. Uttam Galva - SBI
50% hair cut OUT OF O/S LOANs

22. Essar steel – Numetal vs Arcelor mittal
Related parties offers – not valid
????

23. Monet Ispat – Aion Capital / JSW
75% hair cut
cr vs 2850 cr

24. after all this ------ BANK’s Valuations
Who will do?
And what will be hair cuts for depositors – common man

25. Hair cut or bald head

26. BUT STILL
TURNOVER IS VANITY
PROFIT IS SANITY
CASHFLOW IS REALITY

27. Some pertinent questions
Business valuation will be done by who, after 30th Sept
Are there sufficient regd valuers passing out by sept end
Can we come up with Valuation issues

28. Can we be? CAN WE EMBARK ON GLOBAL VALUATIONS & BECOME
Infotech created BPOs
India is Computer Engineer & consultant of the world
80%
IFRS created KPOs, India is now Accountant & CFO of the world
So far 30% expected 80%
CAN WE EMBARK ON GLOBAL VALUATIONS & BECOME
GLOBAL VALUERS 80%

29. THANK YOU
RAMMOHAN BHAVE