Working capital from banks including loans through commercial papers Debentures Bonds Credits from suppliers Trade deposits Public Deposits Deposits and loans from directors, their relatives and business associates Deposits from shareholders GDRs, ADRs, FCCCBs

> Financial restructuring and its need **Meaning** --Corporate financial restructuring is any substantial change in a company’s financial structure, or ownership or control, or business portfolio, designed to increase the value of the firm. If you want to increase the value of your firm, you may need to reorganize your financial assets in order to create the most financially beneficial environment for the company. --What does financial restructuring entail? In the case of excessive debt, we negotiate directly with creditors and vendors to create repayment plans that are acceptable to both parties. Through limited asset liquidation and accounts receivable funding, we secure capital that the company can use to expand. We also help create a business plan that details the financial direction of the company and the steps needed to achieve success. **Need for financial 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, brought – 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 structure of a company comprises of: ---------------------------------------------- - Paid up equity and preference share capital - Reserves - Borrowings in the form of - Long term loans from financial institutions - Working capital from banks including loans through commercial papers - Debentures - Bonds - Credits from suppliers - Trade deposits - Public Deposits - Deposits and loans from directors, their relatives and business associates - Deposits from shareholders - GDRs, ADRs, FCCCBs - Funds raised through any other local instrument. Need for financial restructuring -------------------------------- 1. Necessity for injecting more working capital to meet the market demand for the company’s products or services. 2. When the company is unable to meet its current commitments 3. When the company is unable to obtain further credit from suppliers of raw materials, consumable stores, brought – out components etc. and from other parties like those doing job work for the company. 4. When the company is unable to utilize its full production capacity for lack of liquid funds.