2.11.15 Collateral Revaluation

This topic provides information on Collateral Revaluation Details and Collateral Revaluation History summary.

  1. On Collaterals Maintenance screen, click the Revaluation tab.
    The Collateral Revaluation Details screen is displayed.

    Figure 2-38 Collaterals Revaluation Details


    Description of Figure 2-38 follows
    Description of "Figure 2-38 Collaterals Revaluation Details"

    For more information on fields, refer to the field description table.

    Table 2-39 Collateral Revaluation - Field Description

    Field Description
    Revaluation Type Select the type from the drop-down list. The available options are:
    • Automatic
    • Manual
    . If you select Manual all the fields in Revaluation Details and Holiday Processing are disabled.
    Revaluation Method Select the method from the drop-down list. The available options are:
    • Straight line method
    • Written down value method
    • Sum of years digit method
    • External
    • Custom
    Rate of Depreciation Specify the percentage. Rate of depreciation is applicable only when the revaluation method is straight line method or written down value method.
    Revaluation Frequency Select the frequency from the drop-down list. The available options are:
    • Daily
    • Weekly
    • Monthly
    • Quarterly
    • Half Yearly
    • Yearly

    This field is applicable only when revaluation type is automatic. Revaluation frequency can be of yearly only for sum of years digit method.
    Revaluation Start Month Select the start month from the drop-down list. The available options are:
    • January
    • February
    • March
    • April
    • May
    • June
    • July
    • August
    • September
    • October
    • November
    • December

    Revaluation start month and day get defaulted to the month/day on which collateral is created. If not modified, next revaluation date is arrived based considering the revaluation frequency from this defaulted date.

    However, you can specify the next revaluation date by modifying the revaluation start month/ day.
    Revaluation Day This is defaulted as date on which collateral is created and is modifiable. If modified, this revaluation day and revaluation start month settings defines the next revaluation date.
    Useful Life Useful life of the asset entered is considered for revaluation of the asset. If the useful life of the asset is less than collateral end date, then useful life end date is updated as collateral end date. If the useful life end date is after collateral end date, collateral end date entered is retained.

    Note:

    Whenever collateral value becomes zero even before useful life end date because of rate of depreciation, appropriate override message appears at the time of saving the record.

    Likewise, if residual value of collateral remains at the end of useful life period after depreciation as per rate signified, appropriate override message is displayed at the time of saving the record.
    Rate of depreciation Rate of depreciation is per annum rate. However, revaluation amount will be appropriately arrived at per frequency when the revaluation is done.
    Next Revaluation Date At the time of creation of collateral, next revaluation date is arrived duly considering the date of creation + frequency (considering revaluation start month/day is not modified) or signified start month/days as next revaluation date duly considering holiday settings as applicable.

    Next revaluation date is populated and shown to user at the time of saving the record.

    Note: Wherever holiday setting is applicable at the time of creation, and the next revaluation date arrived at based on frequency falls on holiday, the system considers the holiday setting and appropriately arrive at next revaluation date at the time of saving the collateral.

    Note: Even in case of collateral created with start date as back date, revaluation is considered from the date of creation of collateral.

    Last Revaluation Date The date on which last revaluation was done. At the time of creation this is blank.
    Ignore Holidays/Move Across Month/Cascade Schedules By default ‘Ignore Holidays’ check box is selected. If this check box is selected, then ‘Move Across Month’ and ‘Cascade Schedules’ check boxes are disabled.

    Holiday processing settings can be enabled for revaluation only when ignore holidays is not selected.
    Holiday Check Select the holiday check from the drop-down list. The available options are:
    • Currency
    • Local
    • Both

    The collateral currency holiday is considered if holiday check is currency/both.
    Schedule Movement Select the schedule from the drop-down list. The available options are:
    • Move Forward
    • Move Backward
    Revaluation Summary The system allows to query the revaluation summary of each collateral from the Revaluation sub-system by opting Revaluation Summary button.

    Note: Collateral revaluation history summary for a specific collateral type can be directly queried from the revaluation sub-system of that collateral record.

  2. Click Save to save the record.
  3. On the Home screen, specify GCDCOLRH in the text box and click theNext icon.
    The Collateral Revaluation History Summary screen is displayed.

    Figure 2-39 Collateral Revaluation History Summary


    Description of Figure 2-39 follows
    Description of "Figure 2-39 Collateral Revaluation History Summary"

  4. Click Enter Query and specify the necessary details.

    Table 2-40 Collateral Revaluation History - Field Description

    Fields Description
    Liability No Click the Search icon and select the liability number from the list.
    Collateral Code Click the Search icon and select the collateral code from the list.
    From Date Specify the start date of the period for which the revaluation details are required.
    To Date Specify the end date of the period for which the revaluation details are required.
    Collateral Revaluation Details Displays the following revaluation details of the collateral upon clicking Execute Query in the top left corner:
    • Mod No
    • Collateral Code
    • Collateral Description
    • Branch Code
    • Liability No
    • Liability Branch
    • Collateral Currency
    • Collateral Type
    • Collateral Category
    • Current Collateral Value
    • Previous Collateral Value
    • Revaluation Date
    • Revaluation Type
    • Revaluation Method
    • Revaluation Frequency
    • Rate of Depreciation

    Note:

    Rate of Depreciation is displayed only for automatic revaluation using straight line method and written down value method.
    Component Revaluation Details Select a record from the ‘Collateral Revaluation Details’ section and click this button. Component level details of the collateral are displayed for the selected record.

    Note:

    Collateral revaluation will be considered for net utilization calculation at facility level, since it affects the collateral contribution to the facility.

Parent topic: Collaterals Maintenance