NPA Management

1. Success stories Specific Engineering Pvt. Ltd. One of our happy client, Mr. Kantekar, was running a Company, Specific Engineering Pvt. Ltd., involved into advanced engineering products. The Bank had classified the account as Non Performing Asset (NPA) even though it was not eligible for such classification. On classification of the account as NPA, the bank sold the account to Reliance ARC. Despite having adopted proper legal measures by the Promoter of the Company, the ARC oppressed and suppressed the law and was threatening and resorting to unreasonable recovery mechanisms to repay the dues. The Borrower-cum-Promoter had no money for even survival. In such circumstances, Dr. Visswas and his team guided and helped the client through proper legal mechanism safeguarded his properties from the aggressive and unreasonable methods and practices adopted by the ARC. This gave him tremendous relief and an opportunity to fully focus on the revival of his business and stand on his feet for his survival. Our client often says Dr. Visswas has given me a rebirth and even today seeks all timely guidance for even smallest of business decisions that are important and crucial. Dr. Visswas has always believed that out of the 4 factors of production, i.e. land, labour, capital and enterprise/entrepreneur, whereby enterprise/entrepreneur and labour are the only active factors of production which have to be utilised to the best of one’s capability and ability. Even though the ARC has obtained an order for physical possession of the mortgaged assets, they cannot execute it. The same ARC officers who were ruthlessly

2. treating the client are on back footing and will have to compromise in settlement. That would mean profit in loss for our client. Here, it is important to note that every borrower turns to be a defaulter post NPA, but it is important to differentiate between defaulter by circumstances but having good intention to repay vis-à-vis a defaulter who is an intentional/ wilful defaulter. Barnala Steel Industries Ltd. Barnala Steel Industries Ltd. established in the year 1983 was a pioneer in Steel Industry having its manufacturing facility at Muzaffarnagar in Uttar Pradesh. The Company expanded its operations by further setting up fully functional plants in Bhuj, Gujarat and Bangalore, Karnataka. From north to south and east to west, the product steel bar and TMT manufactured by the Company was well known and had its own brand value. However, due to adverse market scenario, the account of the company with their sole banker, Bank of Baroda became NPA. When the account of the Company became NPA with the banker, the esteemed borrower, who had relationship solely with Bank of Baroda from the year 1983, became to be termed as a defaulter for the bank. All relations, goodwill and credit worthiness of the borrower came to a standstill and the tag of NPA made the account and the borrower wilful defaulters in the bank. Recovery actions under SARFAESI Act, Insolvency and Bankruptcy Code, Banking Regulation Act 1949, freezing of bank account of the borrower by the banker began which brought the business to a complete standstill. Since there was no business, further liabilities also kept on mounting and the promoter was in great distress. The promoter then learnt about name of Dr. Visswas and came to Mumbai along with his team to meet Dr. Visswas. After the first initial visit itself and the guidance given by Dr. Visswas, the promoter then realized that there is a ray of hope for his revival. Dr. Visswas and his young team overviewed everything and meticulously guided the

3. borrower by bringing the banker and the borrower on a practically realistic platform and settled the account by way of One Time Compromise Sanction with the banker. Bank had taken action by filing under Section 7 of IBC whereby the resolution plans received were lesser than the liquidation value. Having accepting those plans would be a loss to the banker also and the promoter also as he would completely lose on his business. Dr. Visswas intervened and convinced the top management of the banker through the borrowers to settle the total dues of about Rs.180 Crores at Rs.31.50 Crores. By doing so, the client who was in deep dilemma that he will lose his house and other assets, he will lose his business, today not only repaid the dues of the bank but also is ready to be in mainstream banking as the market forces are now supportive. The promoter today on personal front is relieved not only of the bank borrowing or bank dues for the company but also of the personal and other corporate guarantees extended by him. The promoter of the company often now refers Dr. Visswas as a God in his crisis to sail him out through troubled waters from the ocean. Dr. Visswas has always believed that bank is for the business and business is for bank has to be read in totality and not partly. He always affirms that capital is nothing but discounting of future profit and money is always a by-product. We are very happy at NPA Consultants that under the exemplary leadership of Dr. Visswas, we serve our clients with full commitment and sail them out of their problems. Consolidated Dynamics Pvt. Ltd. Consolidated Dynamics Pvt. Ltd. was a company having credit facilities from the bank from the year 2010. The promoters were engaged in manufacture of specific electrical equipment

4. and ancillary electrical panels. During the time the company was in operations, the company was a reputed brand in its area of operation. However, due to the global turmoil and economic downtrend, the company faced lack of demand in the manufacturing facility as it was underutilized. The promoters desperately tried to work out various alternatives but failed as the overall sector was in dilemma. During this period, since the promoter was not in a position to fulfil its interest obligation towards the banker, instead of restructuring and helping the promoter, who was a genuine borrower, the banker declared the account of the promoter as NPA. This declaration of account as NPA freezed the banking facility, which always plays a pivotal role in any business. The survival of the company, the people working in the company all came to a standstill and in question. During this period, the promoter of the company approached Dr. Visswas to help him. Dr. Visswas meticulously understood and guided him at each and every step at how to survive in the crisis of NPA and not only safeguarded his property but also made the bank realize that by coercive recovery or just stopping the business, the bank is also causing loss to the borrower as well as eroding its capital. Dr. Visswas and his team brought the bankers and the borrower at a common platform of settlement whereby not only the account of the borrower was settled at 50% of principal borrowings but despite being a defaulter in repayment of the dues, the banker cooperated and extended all possible help under the provisions of law to the defaulting borrower. Even though the account is settled today and the promoter is in the process of restarting his business, he has not left the hand of Dr. Visswas and takes all major business decisions under the aide and guidance of Dr. Visswas. Here, it is absolutely clear that Dr. Visswas has always been instrumental in resolution and revival not through coercive recovery but amicable and practical approach. Dr. Visswas being on the panel and an advisor to all India MSME Association and also on several platforms has time and again

5. emphasized that the replacement cost of an existing unit is far beyond the revival cost of a present unit as it is always not the asset value but the enterprise value. Vishal Malleables Ltd. One of our happy clients was M/s. Vishal Malleables Ltd., an established foundry industry from the year 1977. The company was solely banking with a public sector bank for over more than 4 decades and did not have a single day of default in any of its obligations. However, due to serious downtrend in market operations, demand and slowdown in auto sector, the account of the company became NPA in 2013. Soon after the declaration of the account as NPA, the same borrower to whom the bankers gave red carpet treatment started terming them as defaulter and took coercive recovery action to recover the dues of the bank despite availability of adequate securities. The promoter of the company from an Article in Economic Times about Dr. Visswas approached Dr. Visswas to help him in this crisis. As our publications rightly speak “your guide in crisis”, the promoter of the company got a ray of hope that he will be able to survive, he will be able to do business and he will be able to repay his banking obligation after meeting Dr. Visswas. The same promoter whose properties were about to be sold by the bankers by taking physical possession and coercive threatening steps were not only safeguarded by Dr. Visswas and his team by applying proper legal mechanism, but Dr. Visswas was instrumental in helping the promoters enter into a 1-time settlement/compromise settlement with their bankers, that too with the payment terms in a phased manner so that the borrower/promoter can sell his assets in a phased manner and repay the banker. The promoter of the company always used to say that Dr. Visswas is the actual doctor because if the company runs and the people and stakeholders of the company are happy, then the promoter need not take any heart

6. medicine. At NPA Consultants, it is not only the problem of the company but the representatives and team of Dr. Visswas go one step further in understanding all problems of the clients and try to provide the best possible solution as at NPA Consultants we firmly understand that the promoter coming to us is already in problem, it is we who can provide him with appropriate oxygen which will let him breathe and live with his problems. Multiple litigations including Chief Metropolitan Magistrate, DRT, DRAT, High Court that were faced by this company were roadmap to resolve by Dr. Visswas. GGS Infrastructures Pvt. Ltd. GGS Infrastructures Pvt. Ltd is one of the unique case that was resolved under the expert leadership of Dr. Visswas was. This company was a pioneer and a well-established brand in heavy duty fillings all over the country. The company had a fleet size of more than 120 cranes involved into road construction, EPC infrastructure development and also port expansions. During the global turmoil when the entire economy was diminishing and undergoing a downtrend, on the one hand where the infrastructure segment was badly affected, on the other hand the companies engaged into activities associated with infrastructure started bleeding. Huge infrastructure companies like Hindustan Construction Company and big shipyard companies like ABG and Bharati Shipyard including structural designing companies like major structural joints in India were all in doldrums. Due to the severe adverse market condition, the account of this company too became NPA. The promoter of the company had a legacy of always delivering the best and had a firm commitment towards the business. They believed in the philosophy of simple living and high

7. thinking, but when the bank account of the company got classified as Nonperforming Asset, the banker started giving the same draconian treatment to the company and the promoters by stopping the business and freezing all the bank accounts. Dr. Visswas has always believed that whenever the account of the company becomes NPA, the borrower needs time to put its business on track and repay its obligation to the banker rather than fresh money or capital alone. Due to the pessimistic approach of the bankers and the deficiencies in the system designed to govern the banking system, a theory of once a defaulter always a defaulter comes into existence and a borrower who has tremendous future potential for growth and prosperity is completely destroyed. During this period of turmoil in this company, Dr. Visswas not only safeguarded all the cranes from getting sold at an aggressive distress value by the banker, but also guided the promoters of alternative mechanisms to run the business and re-establish themselves. During the same period, there was an introduction of Insolvency and Bankruptcy Code and taking appropriate measures, the promoters on the guidance of Dr. Visswas filed an application under Section 10 of the IBC before National Company Law Tribunal. After detailed representation and argument, the Petition of the company got admitted and after due resolution process by building appropriate comfort and by bringing its stakeholder on a common platform including the banker and the Resolution Professional, Dr. Visswas was instrumental in the resolution of the account of the company whereby despite aggressive declaration of wilful defaulter of the account by the banker, the banker not only approved the resolution plans, but today the promoter has repaid its obligation to the banker and restarted its own business.

8. Each activity was monitored by Dr. Visswas and his team and we at NPA Consultants were available 24 x 7 during the entire crisis phase faced by the client. This is a unique case in the history of IBC whereby not only the bankers were satisfied by the resolution, but the borrower who was completely shattered and felt dejected in life, today has restarted the business. Dr. Visswas always believed and has spoken at various platforms that by closure of one business, it is not one business or family that is affected but the peripheral loss is of all dependents directly and indirectly on that particular business. To kill the business, it takes just one declaration as Nonperforming Asset of an account, but to create a business and to make it profitable, it takes years and generations of hard work. Mumbai District Central Co-operative Bank Ltd. One of our effective clients is Mumbai District Central Cooperative Bank. On the introduction of the Insolvency and Bankruptcy Code, 2016, there were several cases that got admitted for Corporate Insolvency Resolution Process (CIRP) whereby the banker was a Financial Creditor. Dr. Visswas was approached by Mumbai District Central Cooperative Bank for its accounts that were admitted under CIRP for effective guidance so that appropriate measures can be adopted by the bank and since the IBC code being new, the bankers can take prudent steps in recovery process.

9. Dr. Visswas and his team not only attended the Committee of Creditors meeting on behalf and along with Mumbai District Central Cooperative Bank officers, but also assisted the bank in filing of several applications before the National Company Law Tribunal for various procedural requirements, etc. Right from drafting of letters, communications, applications, appointments of Resolution Professionals and liquidators and most important and main, bridging the gap between the borrower and the banker by effective resolution mechanism. Avoiding aggressive recovery mechanism is the main and sole aim of Dr. Visswas who is striving for the rebirth of entrepreneurship in this country on a large extent. Today, the relationship between Mumbai District Central Cooperative Bank and Dr. Visswas and his team are so strong that for every guidance, Dr. Visswas and his team are just a phone call away and are sought of officially inducted into the advisory panel of the bank for providing assistance and guidance to the bank and its officers on complicated issues and for resolution framework.