Agencies for Specialized Monitoring (ASM)
Agencies for Specialized Monitoring (ASM)
Agencies for Specialized Monitoring (ASM) audits are mandated by banks and financial institutions, particularly for borrowers with significant credit exposure or stressed accounts. These audits provide lenders with an independent and ongoing evaluation of fund utilization, cash flows, and compliance with sanctioned loan terms and covenants.
By enabling continuous oversight, ASM audits help identify early warning indicators, curb diversion of funds, and reinforce credit monitoring frameworks. They serve as a critical risk management tool for lenders, promoting financial discipline among borrowers and safeguarding the banking system against potential defaults and fraudulent activities.
About This Service
Our ASM services are structured to deliver independent monitoring of borrower accounts in line with RBI guidelines and lender-specific requirements. We monitor fund movements, verify end-use of disbursements, and assess compliance with sanction terms and covenants, enabling banks to gain assurance over the borrower’s financial discipline and repayment capability.
We carry out periodic reviews of stock statements, receivables, related-party transactions, and high-value payments to identify inconsistencies or red flags. Our scope includes detecting fund diversion, round-tripping, and other practices that may weaken the lender’s security or credit position.
By using technology-driven tools and data analytics, we provide lenders with actionable insights and early warning indicators of financial stress. This proactive monitoring supports timely interventions such as restructuring, recovery measures, or legal action.
Through our ASM audits, we assist financial institutions in strengthening credit oversight, reducing risk exposure, and improving governance within borrower–lender relationships.
Key Features / Scope of Work
Independent monitoring of borrowers as per RBI and lender mandates
Verification of fund utilization and end-use of loan disbursements
Review of compliance with sanction terms and loan covenants
Periodic analysis of stock statements, receivables, and fund flows
Detection of fund diversion, round-tripping, and other irregular practices
Identification of early warning signals for potential stress or default
Use of analytics and monitoring tools for continuous oversight
Timely and actionable reporting to banks for corrective action
- Investigative & Other Audits
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