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    Question

    Outstanding is ₹60 crore. Realisable value through

    SARFAESI after 2 years is ₹35 crore (NPV ₹28 crore). Borrower offers OTS of ₹30 crore upfront. What is the financially correct decision?
    A Reject OTS Correct Answer Incorrect Answer
    B Accept OTS Correct Answer Incorrect Answer
    C Go for litigation only Correct Answer Incorrect Answer
    D Defer decision Correct Answer Incorrect Answer
    E Convert to equity Correct Answer Incorrect Answer

    Solution

    OTS 30 > NPV of recovery 28 → Accept OTS

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