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| Financial Restructuring |
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| When a company requires Financial Restructuring? |
 A company is required to balance between its debt and equity in its capital structure and the funding of the resulting deficit. The targets a company sets in striking this balance are influenced by business conditions, which seldom remain constant. When, during the life time of a company, any of the following situations arise, the Board of Directors of a company is compelled to think and decide on the company’s restructuring: |
- necessity for injecting more working capital to meet the market demand for the company’s products or services;
- when the company is unable to meet its current commitments;
- when the company is unable to obtain further credit from suppliers of raw materials, consumable stores, bought-out components etc. and from other parties like those doing job work for the company.
- when the company is unable to utilize its full production capacity for lack of liquid funds. Financial restructuring of a company involves rearrangement of its financial structure so as to make the company’s finances more balanced.
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| Our Services under Financial Restructuring of an entity |
Our firm assists in capital structuring of under-capitalized companies by taking one or more of the following corrective steps:
- injecting more capital whenever required either by resorting to rights issue/preferential issue or additional public issue.
- resorting to additional borrowings from financial institutions, banks, other companies etc.
- issuing debentures, bonds, etc. or
- inviting and accepting fixed deposits from directors, their relatives, business associates and public.
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Our firm assists in capital structuring of over-capitalized companies by taking one or more of the following corrective steps:
- Buy-back of own shares.
- Paying back surplus share capital to shareholders.
- Repaying loans to financial institutions, banks, etc.
- Repaying fixed deposits to public, etc.
- Redeeming its debentures, bonds, etc.
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