Pawan Bansal highlights the importance of Financial Restructuring

Financial Restructuring is essentially the process of reorganizing financial structure of a firm comprising equity capital and debt capital. This is done in order to comply with company’s financial situation or as a part of financial strategy. Under Financial Restructuring, financial assets and liabilities of a company are reorganized for the creation of the most beneficial financial condition for the firm. Pawan Bansal of Altius Finserv says that financial restructuring is a general practice, usually undertaken by the companies that are faced with tough economic situations. Giants like Kingfisher have resorted to Financial Restructuring in order to lend their financial situation a better stance.

The need for financial restructuring can be driven by various factors including Poor financial performance, external competition, and loss of market share or as a part of strategy to tap on to emerging market opportunities. Financial restructuring can be either from the assets side or the liabilities side of the balance sheet. Changes in one require alterations in the other to strike a balance.

Financial Restructuring involves two components:

1. Debt Restructuring: Involves rearranging the whole debt capital of the company. The balance sheets, for they contain the debt obligations of a company, are reshuffled. While doing this, Altius Finserv recommends it is important to mitigate the cost of capital and improve the efficiency of the company as a whole.
2. Equity Restructuring: Here, the equity capital of the company is reorganized. The shareholders’ capital and reserves appearing in the balance sheet are reshuffled. This is a matter involving legal know-how about the restrictions and regulation governing the equity restructuring. 

Altius Finserv talks about efficient ways to save money

As much as it may sound clichéd, there is no denying to the fact that it is important to save. Things are fine right now but one incident, one market fluctuation, one high tempered argument with boss or one natural calamity is enough to bring you to the days of hand to mouth and may be even worse. No, Altius Finserv does not want to scare you all but want to explain to you the importance of saving money. This does not mean you be a miser but only be wiser. Here are a few tips to help you save your money.

1. Start a retirement plan: You might just have started working but it isn’t too early to start with a retirement plan. The sooner you begin, the more you will have in the end. It is a wise advice to opt for a pension plan which does not charge too much of premium but offers relative good returns.
2. Save for a goal: This is important to follow. If you save as per a specific goal, your savings tend to be more effective and regular as you are driven by an objective.
3. Create a back-up fund:  If you have been working for over 4 months, then you pretty much would be able to track your finances. You would know your approximate monthly expenses. The time has come for you to start saving for emergency situations.  Pawan Bansal of Altius Finserv says that a contingency plan is the one which can survive you for 6 months, and by ‘survive’, we do not mean ‘just survive’.

It is recommended that you save at least 10% of your monthly income. Anything less than this simply means either you are being paid less or have higher expenses, both of which demand sincere concern.