Asset Quality Analyzer
Strip window-dressing from financial statements. Calculate quality-adjusted liquidity by applying forensic haircuts to over-valued inventory and disputed receivables.
Forensic Asset Haircuts
A company’s Current Ratio (CR) is often artificially inflated through **slow-moving stock**, **disputed receivables**, or **non-trade advances**. 2026 Audit standards mandate a quality-adjusted evaluation where haircuts (hair-cuts) are applied to convert "Book Value" into "Realizable Value." If the quality-adjusted CR drops below 1.0, the unit is technically illiquid regardless of the audited figures.
Banking Wisdom Series: Asset Valuation & Provisioning
Read the Part 6 case study of Standard Motors, where asset haircuts, BIFR hearings, and a final Shriram Group real estate sale enabled a 100% provisioning write-back.
Read Part 6 Case Study →Audited vs Quality
Asset Exposure Analysis
| ASSET CATEGORY | AUDITED VALUE (CR) | FORENSIC HAIRCUT (%) | NET QUALITY VALUE (CR) |
|---|---|---|---|
| Inventory / Stock | 20% | ₹800.00 | |
| Sundry Debtors | 25% | ₹900.00 | |
| Cash & Bank | 5% | ₹190.00 | |
| Associate Advances | 75% | ₹75.00 | |
| Current Liabilities (Reference) | Quality Adjusted Net Worth (Liquid)₹0.00 Cr | ||
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