Bhubaneswar: X-FIN, the Finance Association of XIMB organized its annual business conclave ‘Finomics-2019’, here in the institution campus on Sunday. The theme of the discussion was “Insolvency: The End or a New Beginning?”
Vishal Jain, Insolvency Professional, Proprietor of Vishal G. Jain and Associates, Uday Patil, Director, Investment Banking, Keynote Corporate Services Limited, Somjeet Behera, Deputy VP, RBL Bank, and DebasisPanigrahi, Executive Director, Nomura India Investment Banking were the esteemed speakers of the occasion. XIMB Professor of accounting D. V. Ramana moderated the discussion.
Professor D. V. Ramana started the session by briefly elucidating on the topic.
Vishal Jain said that the Insolvency and Bankruptcy Code (IBC) is a sound legal framework which will reduce information asymmetry and maximize value in a time-bound manner. He emphasized on the fact that when a business fails, the best arrangement is to go through a quick negotiation.
Uday Patil dwelled on the historical evolution of insolvency laws in India and what lead to the formulation of the IBC. He shed some light on the SARFAESI Act which provided banks and various financial institutions leeway to auction residential and commercial properties without the interference of the court. Patil went on to explain Strategic Debt Restructuring (SDR) scheme which allowed loans to be converted to equity to allow banks to take control over the company if it acquired a major stake. “The goal of IBC is not to lead the company into liquidation, but to try to find value buyers and facilitate the revival of the company,” he added.
Somjeet Behera termed the IBC as one of the government’s ‘landmark’ policies. He explained the concept of Twin Balance Sheet problem and how IBC is solving it. He further gave insights about Tata Steel’s resolution plan and acquisition of debt-ridden Bhushan Steel in which he was directly involved. “IBC is a revolution which would improve India’s position in Ease of Doing Business,” he added.
Debasis Panigrahi said that IBC has reduced the time to resolve stressed loans from 4.3 years to 1-1.5 years. And, he added, the recovery rate has jumped from 26% to 48%.
X-FIN’s annual magazine ‘Finshastra’ was released on this occasion. The winners of the ‘Financius’, an annual intra-college article writing competition and ‘Budgewiser’, an inter-college budget analysis competition were felicitated. Shivam Jolly, the student coordinator of X-FIN delivered the vote of thanks.