Agency For Specialised Monitoring

DMA got Empanelled with Indian Banks's Association as Agenices for Specialised Monitoring in Year 2020.

PSB Reforms Agenda – Ease of Access Service Excellence (EASE) was launched to encompass a synergistic approach to ensure prudential and clean lending, better customer service, enhanced credit availability and better governance. Accordingly, Department of Financial Services, Government of India, indicated several action points, one of which is "Tie up with Agencies for Specialized Monitoring (ASM) for clean and effective post sanction monitoring and follow up on Common engagement basis in case of consortium lending, having large credit exposure (above Rs,250 crore) and exposure of a specialized nature.Indian Banks were reeling under a Distress Debt of around USD 200 Billion and were in dire need of debt restructuring and infusion of fresh capital.

ASM will be applicable for all debtors where exposure is above INR 250 Crore. The Scope of work shall include:

  • Concurrent Review and Monitoring Procedures (for Working Capital)

  • Concurrent Review and Project Monitoring Procedures (for Term Loan); preferably deployed in when there is delay in implementation-ASMs for large accounts should be engaged in order to ensure proper monitoring of project implementation as per schedule and utilization of funds.

  • Concurrent cash monitoring which includes the following:

  • Cash Inflow Monitoring

  • Cash Outflow Monitoring

  • Fund Flow Analysis

  • Non-Cash Parameters

DMA specialized in onsite as well as off-site monitoring of the business/project, accounting and analyzing, evaluating and monitoring the borrowal account/project financially as well as technically with its strong techno-financial capabilities, is rightly placed to offer a conduct root cause analysis of the incipient sickness/stress in the borrowal account and suggest remedial measure to branch360 degree overview to the lenders, with regard to their exposure to large borrowers. We can monitor the progress of the implementation/operation of projects on real time basis. Simultaneously, we can monitor the operating and non-operating financial transactions of the debtor, including cash flow monitoring. DMA can take into account the concern areas from bank as well as Promoter and suggest remedial measure during the term of engagement.