OUR SERVICES
As one of India’s growing NBFCs, we’ve quickly made a mark in the financial restructuring space.
We focus on truly understanding the needs of our clients and investors to build strong, successful partnerships.
Our goal is to revive struggling SMEs and mid-sized companies, helping them get back on track and grow. These turnarounds not only support businesses but also protect jobs and uplift communities—making a real social and economic impact.
We operate through two main business verticals, always following the rules and regulatory guidelines that apply to each.
AQUISITION
At Ashutosh Finsec Ltd, we follow a strong and structured approach for acquiring Non-Performing Loans (NPLs).
We purchase NPLs at fair, realistic prices from lenders and focus only on accounts with genuine potential for revival.
With a nationwide network of expert consultants and advisors from banking and diverse industries, we identify cases where businesses can be successfully restructured. Our experienced team then conducts thorough checks—both legal and operational—before moving forward.
Each proposal is reviewed in detail and presented to our internal committee of senior professionals (CARFA), who have rich experience in stressed asset resolution. Only after their approval is the acquisition finalized.
Key factors we consider before acquiring any NPA:
Clear recovery/resolution potential – Businesses with realistic chances of turnaround and sustainability.
Strong asset backing – The account must have reliable primary or collateral security, or personal guarantees from individuals with good net worth.
Expected resolution period of 3–5 years – We plan with long-term outcomes in mind.
Focus on MSMEs and mid-sized corporates – Especially those with loan exposure between ₹1 crore and ₹1000 crore.
Sole-banking NPAs preferred – For simpler resolution and cleaner structuring.
Opportunity for revival through last-mile funding – If a business can be turned around with a final infusion of capital, we consider it an ideal acquisition.
RESOLUTION
At Ashutosh Finsec Ltd, our core focus in asset resolution is to maximize recovery from every distressed account we acquire.
Our mission goes beyond recovery—we aim to revive and turnaround distressed companies, giving them a fresh start and helping preserve the livelihoods of the workers and employees dependent on them.
As per current Reserve Bank of India (RBI) guidelines, NBFCs and ARCs are permitted to use various strategies—individually or in combination—for asset reconstruction:
🔄 Approved Resolution Strategies:
Change in or takeover of borrower’s management
Rescheduling loan repayments
Settlement of dues with the borrower
Enforcing the pledged security
Sale or lease of part or full business
Debt-to-equity conversion (converting debt into shares)
🔧 Our Preferred Strategy: Revival Through Fresh Funding
Our primary approach is reviving viable companies by arranging last-mile financing, whether it’s for working capital or critical capital expenditure. With strong connections in the banking, NBFC, and investment community, we help secure this essential funding—often the key to a company’s revival.
🤝 Secondary Approach: Structured Settlements
In many cases, we work out a mutually agreed settlement with the borrower after acquiring the account. This includes giving them an extended and more flexible repayment plan—aligned with the company’s cash flows.
This approach helps the borrower reinvest earnings into business growth, ultimately maximizing the long-term value of the company.🔚 Last Resort: Enforcement & Asset Sale
Enforcing security or selling the business is a last resort. We choose this route only when the company revival is not possible or when the borrower is non-cooperative despite multiple resolution attempts.
DILIGENCE & EVALUATION OF THE FINANCIAL ASSET
At Ashutosh Finsec Ltd, we conduct a thorough due diligence process before acquiring any financial asset (FA). In line with RBI guidelines, we are provided with a minimum of two weeks to perform all necessary evaluations before bidding on stressed assets.
Our diligence covers legal, financial, borrower-related, and collateral-specific checks, customized based on the nature of the asset.
📑 1. Legal Due Diligence (LDD)
We assess the enforceability and validity of legal documents related to the asset, including:
Review of loan and security documentation
Verification of collateral creation and enforceability (primary & collateral)
Scrutiny of guarantor obligations and any legal proceedings
Check for title clarity, encumbrances, or attachment orders (e.g., tax authority actions)
👤 2. Borrower Diligence
We evaluate the borrower’s profile, reputation, and operational health through:
Independent background checks and market intelligence
Site inspections of the borrower’s premises, conducted internally or via external agencies
Assessment of business viability and cooperation potential
💰 3. Financial Due Diligence
This step helps determine the viability and pricing of the acquisition:
In-house or third-party valuation of the financial asset based on its size, risk category, and likely resolution path
Use of alternate benchmarks like Ready Reckoner rates in case of real estate-backed assets
Review of historical financials, projected cash flows, and stress scenarios
🏢 4. Collateral Due Diligence
If the resolution strategy involves realization through asset sale, we undertake:
Site visits to assess property condition, location, and marketability
Updated valuation reports from certified professionals (if the existing report is over 12 months old)
Review of legal access, encroachments, or dispute-related concerns regarding the asset
Our diligence ensures that each acquisition is backed by facts, valuations, and legal clarity—minimizing risk and maximizing recovery potential.
*In case-of acquisition-via- IBC-process-in which-the ARG acts as a-Resolution Applicant; the-diligence of the Domestic/International investor is also undertaken