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When industrial assets are offered towards collateral security for additional loans such as working capital term loans, why is the value of machinery not considered in the valuation of assets ?

April 26, 2017additional assets collateral industrial Loans offered security term working capital

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When industrial assets are offered towards collateral security for additional loans such as working capital term loans, why is the value of machinery not considered in the valuation of assets ?

1 Answer

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For the purpose of collateral security, our Corporation considers value of only land and buildings. The value of plant and machinery is not taken for the purpose of fulfillment of collateral security as per the policy of Corporation.