International Convention on Insolvency Resolution and Valuation

CA. Ranjeet Kumar Agarwal

President, ICAI

The landscape of insolvency and valuation has evolved dynamically in recent years. Coupled by the profound impact of the Insolvency and Bankruptcy Code of 2016, its resounding success in fostering economic stability has been remarkable, bolstering confidence within the business ecosystem and its stakeholders. The Code which seamlessly encapsulates the different frameworks on insolvency is a one-stop solution for companies in distress. As per the annual report 2022-23 of IBBI, as a percentage of admitted claims, realisation by creditors has increased to 36% in 2022-23. Overall, resolution plans have yielded 169% of liquidation value and 84% of fair value for creditors. The above-stated statistics are reflective of the fact that IBC has not only enhanced the operational efficiency but has also built the blocks for a economically empowered ecosystem of the nation.

The fabric of insolvency and valuation are closely knitted and valuation is the cornerstone for a successful resolution of the stressed assets. For the IBC, as the objective is to maximize the value of the assets and that too in a time bound manner, it is the valuation that determines the actual worth of the assets under stress thus being the important and crucial metric on which the success of the whole process depends. As far as valuation is concerned for the proceedings under IBC, there should not be any room for subjectivity, and thus a uniform set of rules are always desirable.

In this regard, The Institute of Chartered Accountants of India (ICAI) has long been committed to promoting and understanding global best practices. The Institute has developed Valuation Standards in the asset class Securities or Financial Assets which has strengthened and streamlined the valuation ecosystem. These standards serve as guiding principles, ensuring transparency, consistency, credibility and uniformity in valuation practices, thereby fortifying the insolvency framework in the country. By adhering rigorously to these standards, stakeholders are able to navigate the complexities of insolvency proceedings with confidence, facilitating smoother resolutions and optimizing value extraction from distressed assets.

As we witness the exponential rise of Insolvency and Valuation Professionals, it becomes increasingly evident that they hold the key to economic resilience. In light of this, the Institute of Chartered Accountants of India (ICAI) is proud to present RESOLVE-2024, Second edition of our prestigious International Conference on Insolvency and Valuation on the 12 th and 13 th of July 2024 at the capital city of New Delhi.

Organized by ICAI through its Insolvency & Valuation Standards Board (I & VSB) in association with the Indian Institute of Insolvency Professionals of ICAI and the ICAI Registered Valuers Organisation and hosted by Northern India Regional Council (NIRC) of ICAI, RESOLVE-2024 promises to be a beacon of knowledge and networking. On the theme "Enabling Resolution, Maximizing Value," this event is meticulously designed to cater to the evolving needs of insolvency and valuation professionals within our industry, offering insights into the existing as well as emerging global best practices amidst prevailing economic uncertainties.

As we navigate through the ever-evolving landscape of insolvency and valuation, RESOLVE- 2024 stands as a pivotal platform for igniting and fostering impactful narrative. With speakers and thought leaders, this conference aims to equip attendees with the knowledge, insights, and connections necessary to thrive in this dynamic regime.

I extend a heartfelt invitation to each of you to join us at RESOLVE-2024, where knowledge intertwines with networking, and deep insights follow. Let us go ahead together, empowering professionals to navigate the evolving insolvency and valuation landscape with unwavering confidence, ultimately shaping a future that is resilient and promising.