Recovery Model for Non-Performing Loans, Debt to Share Swap and Valuation of Start-up

Recovery Model for NPL's

Recovery model for NPLs for an AMC in line with the proposed strategy. The model was delivered with flexibility to alter 'realisations' and 'allocation' of portfolio. Strategies included portfolio sale, foreclosures, restructuring and debt to asset swaps. The model was built after considering following characteristics of the portfolio.

1. Property type;

2. Nature of portfolio (alive vs provision vs written off);

3. Category of asset based on return-risk profile;

4. Description of Industry, Sector, Sub-Sector;

5. Personal guarantees, guarantees backed by government;

6. Terminated and Non-Terminated status;

7. Age of the borrower;

8. Possibility of restructuring; and

9. Quality of collateral.

Debt to Share Swap between listed bank and India's largest airport.

Higher delinquency rates have forced banks to convert their loans and participate as shareholder for turnaround. Umesh was part of valuation team doing the loan to share swap between a listed Indian bank and operator of Mumbai International Airport. His role involved doing analysis of aeronautical/non-aeronautical revenue, other adjoining real estate, understanding business model (single till/dual till/hybrid), macro-economic factors, passenger traffic, expected rate of return. Later, Valuation Model was built using Income (Free Cash Flow to Firm) and Market approach.

Valuation of start-ups in various stages

Umesh has performed valuations for more than 80 start-ups in early stage, growth phase, expansion and mature phase, based in United States (AICPA guidelines), Singapore, Republic of Ireland and India. The total value is more than USD 300 million.

Globally accepted valuation methodologies were used with understanding of micro and macro-economic outlook. I have liaised with venture capitalist, entrepreneurs and fund managers at various stages to manage the project in terms of time and quality. The deliverables were for Investment decision, sale of stake, management buy-outs, ESOPS and tax planning purpose.

Data Analytics and Application Development

Microsoft Power BI and Tableau

Transforming the data fields into something meaningful and engaging has become a necessity for every big organisation. I have delivered a real-time dashboard to a bank with all key performing indicators (KPIs) assisting them to manage the risk of the loan portfolio book amounting Euro 7.8 billion. The KPI's will be used to drive the strategy over the 10 year horizon.

I have used Tableau to automate the reporting of portfolio for a US listed social media giant making it accessible to all the colleagues globally within the designated team.

Post Covid - Fully integrated financial models with sensitivity and scenario analysis for commercial properties.

A fully integrated model with flexibility to determine sale date of each of the property was delivered for a property fund. The model also incorporated scenarios of sale date, refinance option, refinancing cost, dividend and surplus for investors.

The model was built with high precision to evaluate the effect of pandemic on the value of commercial properties and was dynamic in sensitivities around future rental yields and valuation.

Application Development for Start-up

I dedicate my time for start-ups in understanding their challenges and assisting them in prioritising strategies.

I have used my experience to manage application/website development projects assisting start-ups to quickly turnaround in the post-covid world. It is important for start-ups to have a clear vision of their target market and the problem they are trying to solve.

Indeed, a through scientific analysis of their market size and commercial nature of the product has to be performed.