Insolvency
Acting as IRP/RP as per IBC,2016- Acting as Interim Resolution Professional (IRP) or Resolution Professional (RP) under the Insolvency and Bankruptcy Code, 2016:
The Insolvency and Bankruptcy Code, 2016 (IBC) introduced a comprehensive framework for the resolution of insolvency and bankruptcy cases in India. Under this framework, the roles of Interim Resolution Professionals (IRPs) and Resolution Professionals (RPs) are pivotal. Chartered Accountants often take on these roles, which involve overseeing and managing the insolvency process for distressed companies, aiming to achieve a fair and timely resolution.
SFA Valuation as per IBBI – The Insolvency and Bankruptcy Board of India (IBBI) plays a crucial role in regulating and overseeing insolvency proceedings in India. As part of the insolvency process, valuation of assets becomes a critical aspect to determine the value of assets involved in the proceedings. “SFA Valuation” refers to the valuation of securities or financial assets conducted under the Securities and Financial Assets Valuation and Realization (SFAVARE) regulations established by IBBI.
Preparation and Vetting of Resolution Plan-Â a resolution plan is a crucial element that outlines the proposed strategy for reviving a financially distressed company. Chartered Accountants play a significant role in both preparing and vetting resolution plans to ensure their feasibility, compliance with regulatory requirements, and alignment with stakeholders’ interests.
Claim Verification of Financial and Operational Creditors:
the verification of claims submitted by both financial and operational creditors is a crucial step to ensure accurate distribution of available funds to creditors. Chartered Accountants play a significant role in this process, meticulously examining claims, validating their authenticity, and determining the extent of the debt owed to each creditor.
Transaction and Forensic Audit under IBC, 2016:
The Insolvency and Bankruptcy Code, 2016 (IBC) introduced a comprehensive framework for the resolution of insolvency cases in India. As part of the insolvency process, transaction and forensic audits play a crucial role in assessing the financial transactions and uncovering potential fraudulent activities of the corporate debtor. Chartered Accountants often undertake these audits to provide accurate insights into the financial affairs of the distressed company.
Preparation of Information Memorandum in the Context of Insolvency:
In the realm of insolvency and bankruptcy proceedings, the preparation of an Information Memorandum (IM) holds significant importance. The IM serves as a comprehensive document that provides detailed information about the distressed company’s financial, operational, and legal aspects. Chartered Accountants often play a key role in crafting accurate and informative IMs that aid potential resolution applicants, investors, and stakeholders in making informed decisions.