Tools

Attachment carrying cost

Returns what a provisional attachment of an unencumbered asset costs to carry over its first year, through confirmation to a first appellate hearing.

Prevention of Money-laundering Act, 2002, sections 5 and 8

The figures

Set to the worked example in the note. Figures entered stay in this browser: nothing is sent, nothing is stored.

Value of the attached asset (INR)

INR 10,00,00,000

Loan to value the asset would support (per cent)

Premium on replacement unsecured funding (per cent a year (300 basis points is 3))

Operating contribution of the asset (per cent of value a year)

Share of that contribution lost to lender and counterparty reaction (per cent)

Record production, valuation and representation (INR)

INR 20,00,000

Result

INR 50,00,000 over the first year, on the figures entered

5.0 per cent of the attached value: lost borrowing capacity INR 18,00,000, lost contribution INR 12,00,000, records and representation INR 20,00,000.

Window modelled: 365 days, being 180 days to confirmation and 185 days to a first appellate hearing365 daysPrevention of Money-laundering Act, 2002, sections 5(1) and 8(3)
Use of attached immovable property is preserved; the asset is frozen for transfer, not for useThe asset is not counted as lostPrevention of Money-laundering Act, 2002, section 5(4)
Secured borrowing the asset would support at 60 per cent loan to valueINR 6,00,00,000An assumption stated in the note, not a provision
Premium on replacement unsecured funding: INR 6,00,00,000 x 3.00 per centINR 18,00,000An assumption stated in the note, not a provision
Operating contribution at 8 per cent a year of valueINR 80,00,000An assumption stated in the note, not a provision
Contribution lost to lender and counterparty reaction: INR 80,00,000 x 15 per centINR 12,00,000An assumption stated in the note, not a provision
Record production, valuation and representation through adjudication and first appealINR 20,00,000An assumption stated in the note, not a provision
One year carrying costINR 50,00,000Arithmetic on the lines above
As a share of attached value5.0 per centArithmetic on the lines above

Up to 180 daysfrom the provisional attachment orderPrevention of Money-laundering Act, 2002, section 5(1)
Within 30 daysfrom the attachment, for the complaint to the Adjudicating AuthorityPrevention of Money-laundering Act, 2002, section 5(5)
Not less than 30 daysfrom the Adjudicating Authority's notice, for the replyPrevention of Money-laundering Act, 2002, section 8(1)
Up to 365 days, or the pendency of proceedingsfrom confirmation of the attachmentPrevention of Money-laundering Act, 2002, section 8(3)(a)

The asset is unencumbered and immovable, and its use is preserved while it is attached; only transfer is frozen.
The window is the 365 days the note models: 180 days to confirmation, then 185 days to a first appellate hearing. The tool does not change the window.
The lost borrowing capacity is costed as the premium on replacement unsecured funding for the year, on the secured borrowing the asset would support.
Every rate and amount entered is an assumption. Change the loan to value and the figure moves; the note says the shape does not.

A figure returned here takes no account of the facts of any matter. It is information, not advice.