Impact of demonetisation on project financing

Project financing is an accepted mode of finance provided for large projects such as large power plants, industrial projects, infrastructure projects, and so on, which require an uninterrupted flow of funds for the project completion. Project financing is the method in which the capital paid by the lending company is paid back to the company using the revenues generated by the project. Due to the higher level of risk involved, project financing, in general, provides a higher margin of returns for the lender, as compared to regular lending.

In India, project financing is a major source of funding for long-term infrastructural and industrial projects. Project financing is provided from a variety of sources including share capital, bank loans, and debt. The recent demonetization of Indian currency notes has had a negative impact on project financing in the short term, although in the long run, financial experts state that demonetization can be a positive change for the industry.

Discussed below are ways in which demonetization has impacted key players in the project financing space:

  • Commercial banks

In the short term, banks have benefitted from the low-cost deposits, which has improved margins and reduced the cost factor. High liquidity can improve the treasury gains of the banks, along with increase in the balance sheets. A negative aspect of demonetization for banks has been lower loan disbursements and credit growth. In the long run, commercial banks stand to gain from higher savings and electronic forms of payments.

  • Share capital

Depending on the nature of business, the demonetization drive will either have a positive or negative impact on the company’s equity and share capital. The stock price of real estate companies, housing finance companies, and players in the high value luxury segments will be adversely impacted due to low liquidity. On the other hand, export-oriented and organized retail companies stand to benefit from demonetization.

  • Debt

Reduced inflation and likely interest rate cuts, due to demonetization, is likely to benefit investors in the debt market.

  • Impact on infrastructure funding

Infrastructure and construction companies face an adverse impact due to companies, because of cash flow problems and inadequate funds for labour wage payments. However, in the long run, demonetization is likely to have a positive impact due to reduced cash dependency and higher transparency.

In conclusion, demonetization is a positive change, despite its short-term inconveniences, as the Indian economy strives to become cash-free.

Benefits of Hiring Financial Advisor

First, the financial advisor will collect the copy of your statement and even though you won’t look at it, but they still will do it. A good financial advisor is proactive and reaches out to you along with all good or bad news, ideas and strategies. They work a lot behind the scenes and their work is the reason why financial advisors cost money and are considered as an investment in place of an expense. They often make a lot of the difference to your financial failure and success.

Second, there are many financial advisory services India that aims to reduce your financial stress and also makes it easy for you. They simplify your financial options and grind the focus on your short as well as long term goals

Third, a good financial advisor will supply you with knowledge and expertise that you may not have. Standard Deviations, Gamma, Beta, P/E ratios and risk weighting are many concepts that a lot of people haven’t read it since the SAT’s. Yet, an advisor will collect time to make you explain what they actually mean for you and how they can impact your further investment portfolios. These discussions with financial advisory services India helps people avoid taking needless risk and pay attention towards the long term goals.

Moreover, an advisor will put effort with both estate planning attorney as well as CPA to help you avoid taking unnecessary risks, reduce taxes as well as guard the things that you have accumulated you’re your hard work. There is a synergy that exists between all these professions and each of these lay an impact on towards your future legacy and overall financial health. In the process of hiring a financial advisor, you will be end up hiring a personal advocate dedicated towards pursuing your finest interests.

The art of managing financial assets and its long-term benefits

In today’s cut-throat and competitive world, each and every person invests a lot of time and hard work in earning the maximum possible amount of money that they possibly can. Therefore, it is worthwhile to ensure that this hard-earned money is invested with the maximum possible return on the investment. There are several avenues in which an investor can invest money in; both private and government institutions offer excellent plans to nurture and grow the investment in a time-bound manner. In the world of investment, only one mantra strikes a chord with investors: higher the risks, higher are the returns. Bonds and investment ventures of the government, although offer lower returns are definitely worth investing in as they are backed by the sovereign guarantee of the country, making them the least risk-prone investments. However, some higher-return-paying entities invest in high-risk institutions and opportunities. Depending on the risk appetite, investors need to ascertain the amount of money that they can invest in such schemes. Senior financial asset managers confirm that it is always a good idea to spread money across different risks, thereby resulting in averaged incomes. Mutual funds are investment funds that pool monies from various investors and invest these amounts in securities. The main advantage of a mutual fund is its inherent ability to diversify the investment in various risk structures, virtually reducing the risk of the investment. The other advantage is that these funds are usually professionally managed by veterans of the finance industry, thereby ensuring maximum return on investment in every structure. One disadvantage of mutual funds is that they are not modifiable by the investor, making them less flexible. Investments in life insurance policies, systematic investment plans, government bonds and policies, etc. are also good avenues for investing and securing your money. Along with nurturing the investing habits in the general populace, investments offer a way to save money in the form of tax benefits provided by the government from time to time on both the investment as well as the return. Some investment opportunities come bundled with life insurance and accident insurance plans, which are a bonus for the investors. The amount and avenue of investment will always depend on upon the investor, and the investors should always have the final say in investing their hard-earned money.

Why You Should Hire A Financial Advisor For Your Business

When you run a business, it is not just a job but it is also a way of life. Right from the moment you begin your business to the moment it becomes a success, you would need the help of someone who could help you with this 24 x 7 commitment. Here is why you should hire a financial advisor for your business.

Secure Your Future

It is easy for a business to be so engrossed in itself that it forgets to consider the wider implications of its business. A good financial advisor will be able to consider every aspect of your business and work through all the issues that would give you a secure and a stable financial future.

Manage Your Assets

If you have built up new investments and assets outside of your business, then you might have to find out whether they are working for you. If they are working for you, then you could rest assured that there are long-term returns on your investment that exceed inflation. However, you would need to remember that you could end up making unwise choices in terms of the local as well as the international market on your own. It is, therefore, advisable to take the help of a good financial advisor, who can help you secure your future.

Make Plans for the Unexpected

Nothing is certain and you can be sure of that one thing in your life. An early death or a severe illness is not the only problem that affects the lives of individuals, but also other problems. In such cases, a financial advisor can see to it that you have adequate protection in the form of a proper inheritance tax plan, insurances, and the like. This will not only protect your family, but also the fruits of your labour.

The Attributes of a Good Tax Consultant

One of the things you canoe escape is tax. In fact, taxes are essential for the development of a country. However, many people are afraid of the procedures involved in filing tax returns. This is because it includes various procedures like computations, filling forms, etc. Some people do not have enough time to file a tax return and so they seek the service of a tax consultant.

Becoming a tax consultant is not so easy. In fact, one who aspires to take up this profession needs to attend proper undergraduate courses and write the licensure examination, apart from constantly updating his knowledge. A tax consultant should have good numerical abilities as well which could be acquired only by means of constant practice.

Another quality essential for a good tax consultant is the attention to detail. Reasonable thinking ability is a must have in this profession in order to incorporate all the details. Further, one should also possess analytical abilities for becoming a good consultant. A considerable amount of creativity is required for a tax consultant in order to help the customers get tax exemptions and refunds. Moreover, he should be thorough with the tax legislation and should be able to use it in any given situation. This requires extraordinary memory power along with verbal abilities. These people need to have some social skills as well. They need to be pleasant and should maintain good working relationships for tasting success.

A tax consultant would have to deal different types of personalities in his career. Some people would be trustworthy while some others would want to hide some details from the eyes of law. A tax consultant should maintain equanimity with these personalities. Also, he should possess a probing mind to do well in his profession.

In short, a good tax consultant should have the above discussed attributes.

Hire professionals for dealing with taxes

For companies and individuals who are earning huge amounts of money one of the headaches that they have to constantly deal with is the omnipresent threat of income tax. These people are too busy to know all the tax laws and all the loopholes that they can use to avoid paying tax. That is why they are best advised to call on the services of professionals; these are the highly educated people who have been in this industry for a long time and know what it takes to get maximum benefits and that too at minimum cost.

Get financial consultants for better business practices

Whether you are a new company on its way to the establishment or a renowned company in the business for many years, you will need a financial consultant in your business cycle to help you clear your goals, give you the right guidance and assist you with tax and other payment options. Getting a consultant company with a thorough knowledge in finance and accounting will give your business the upper hand in terms of functioning without any hassles. You can easily concentrate on growing the business while your consultants can handle all the money matters.

Professional Aids to Financial Success

Getting your finances in order might seem like a mammoth task. However, with the right financial consultants, you can manage your business well and reach financial success in rather simple ways.

Choosing the right financial and management consultants is essential if you are to get the best results. You need the guidance of someone who is focused on your success, and who is well aware of current legal requirements and practices.

Getting professional accountancy services, such as that of Focus Financial & Management Consultants can cut out all the hassle. Check out their services and find out how you can benefit as an organization.

The Advantages of Utilizing Professional Accountancy Services

Whether you are an independently employed person or an enormous business owner, you will benefit vastly in case you utilize expert book keeping services. While it is correct that you have to spend money for attaining such help, your own particular time likewise has money related worth. Thus, if you spend more time on book keeping then you will not be able to devote time to other cash making activities, for instance conducting your business. Utilizing outsourced book keeping services may even reduce your costs, as you are consulting an expert with lots of experience to assist in something that might take you more time when you do it yourself.

Assuming that you decide to make your own records, you run the danger of committing errors, which could cost you considerably in attempting to find where the issue lies. By letting an expert administration deal with it, mistakes will be far less likely to happen. In the dire outcome imaginable, if the taxation or audit department spots vast inconsistencies, it could move you to being further investigated, which is an extremely stressful experience. Utilizing legitimate book keeping services additionally imply that you know your documentation will be submitted on time – and if you do not do so then it might expedite fines, making your business take an additional financial hit.

Utilizing this sort of administration implies that you are getting the best assistance. Moreover, qualified book keepers are instructed to be aware of any progressions in duty laws and enactment that may influence your tax returns and they will verify that you just pay the assessment that you’re obligated for.

Management consultants for better business

Management consulting firms are playing a very important role in developing your business. These firms help companies by providing training facilities, project planning, development and implementation, operation development and many others. Business owners who want to develop an effective project management strategy need to take the help of management consulting firm, as they have experts who can handle this in an efficient manner. The management consulting firms develops your business goal by implementing a variety of strategies. Moreover, they can guide you in the right direction by monitoring your skills and providing right solutions for all your business needs.

Managing the finance and funds of a business is one of the important services provided by management consulting firms. There are a number of websites that explain the pros and cons of business management. As a finance and management consulting firm, http://www.ffmc.co.in help you in developing your business. In short, finance and management consulting firms have become a primary choice for many businesses, as they can bridge the gap between clients and customers. The analysis experts from different fields and domains develop management strategies by considering the requirements of public and private organizations. Therefore, it is essential to hire management consulting firms to make your business grow.