When you invest your time and money into a startup organization, incurring a loss at some point is the harsh truth an individual needs to grasp and make peace with.
Your meticulously planned business may at times face a blow of great magnitude, where, recovery may be a debatable concept. The very real problems that close in on an unsuccessful business organization are:
Even the strongest of entrepreneurs are bound to balk under the pressure and quit. But facing a rough patch or hitting a road block doesn’t have to be an end game endeavor. It can easily be revamped to a momentary setback from which you rise to the occasion and perform some damage control. This damage control enforcer is called an asset reconstruction company. Asset reconstruction comes under the fundamental financial services proffered by investment banking firms and mergers and acquisition companies. Asset reconstruction companies are the link between a trust and a promoter. Companies, on the verge of bankruptcy, possess under performing assets that fail to curb the unsettled obligations. Asset reconstruction sine qua non includes making these assets profitable and helps provide a plausible solution to the debt accumulated. The ARC helps in the ridding the non performing asset acquisition to more worthy contenders from the troubled organization. The non-performing assets are given a revalued amount which is paid to the promoter (the organization in debt) by the trust (the more worthy competitor capable of up keeping the obligations) The backlog of NPAs can be relieved hence increasing the feasibility of incurring a profit by the unsuccessful business in question. The ARCs perform the following:
The ARCs also perform the following financial services which includes
JM Financial is one of the leading integrated finance service groups with over three decades of experience under its belt and a massively diverse clientele. Owing to these stellar credentials, asset reconstruction is performed with competent efficiency by this investment banking service.
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An Asset Reconstruction Company is a company which is registered under Section 3 of the Secularization and Reconstruction of Financial assets and Enforcement of Security Interest Act, 2002. These companies come under the jurisdiction of the Reserve Bank Of India as a Non-Banking Financial Company.
Most of the businesses in India are unsuccessful and close down due to the inability of the owners to deal with the financial pressures of the business. In these unsuccessful businesses, there is generally poor management or even sometimes mismanagement of the capital. Some of the other causes include pressure from banks, legal action and penalties. It is at this point that these businesses should take the help of asset reconstruction companies. One such prominent and highly skilled company is that of JM Financial. They offer their services in asset management and in alternative asset management. They help in the generation and development of both the existing assets and also further assets and convert them into profits for the company. These asset management companies in India lik JM Financial direct and oversee several forms of strategies which they device so as to enhance and develop a company’s assets and resources and to restore it to their former glory. The main goal of the asset reconstruction company, India is to oversee, strategies, enhance and develop assets of the company or business an do make them profitable in the long run. However, one of the demerits which these asset reconstruction companies face is the loss of income as they deal mostly with companies who are themselves facing losses in the business. But if they are able to reconstruct the company and restore them to their former glory, then they get to have a part of the profits. However, in order to be successful all the details and data of the stocks, bonds, profits and losses as well as management issues and the history of the country over the years are taken into consideration too before strategies and plans are worked upon. |
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