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Managing Financial Health in Challenging Times

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We help you design solutions and overcome financial challenges

With COVID-19, businesses of all sizes are forced to assess at their financial health and survival. Current crisis has impacted companies w.r.t. liquidity issues, resistance from banks on extending credit lines, over dependence on single source of funding, nature of debt and overall capital structure which is needed for long term growth. 

can we help?

How are you evaluating and addressing the impact of COVID-19 on these financial reporting areas?

Short Term and Long Term Capital Needs

Pending debt or bond issuance for your long term cash position

Debt Covenants

Receivables / credit losses

Hedging

Compliance control modifications for process changes

Financial forecasting and Scenario analysis

Restructuring and Asset impairment

Inventory and Financial asset valuation

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Major parameters where Zeolyt Advisory will be able to do deep dive and help enterprises achieve tangible financial targets

Relook at Existing Capital Structure

WHY

  • To ensure right mix of debt to make it more tax efficient
  • Capitalize the opportunity to set the business for growth in the long run
  • Benchmark with similar industry / similar size companies

ZEOLYT PERSPECTIVE

  • Change current debt mix – ST vs LT, domestic vs foreign depending upon the nature of the business
  • Refinancing opportunity to reduce the cost of funding, extend the term given current business cycle
  • Exit non-core investments / businesses to focus on the core

Broaden the Source of Funding

WHY

  • Current liquidity crisis, banks going out of the business, reluctance to extend credit lines
  • Reliability for the long run, better mix of debt and optimize cost of funding

ZEOLYT PERSPECTIVE

  • Explore opportunities beyond bank funding and leverage on new age NBFCs / start ups
  • End to end guidance on exploring capital markets – both commercial papers and NCDs

Rating Advisory / Governance

WHY

  • Easy access to financing, better terms if firm is rated by either CRISIL/CARE/ICRA
  • Bring governance and best practices to retain / improvise rating

ZEOLYT PERSPECTIVE

  • End to end guidance / step wise help to management to get its firm rated
  • Explore the different financing opportunities available once optimum rating is achieved

Optimize Working Capital Cycle

WHY

  • Current crisis has made firms think about its inventory, receivable and creditors risk management
  • Relook at the current arrangements with each counter party / financing before business is set for long term growth

ZEOLYT PERSPECTIVE

  • Explore receivable financing / dealer financing opportunities to reduce the collection risk
  • Explore the supply chain financing to reduce the working capital cycle
  • Provide end to end guidance on procurement to achieve best practices on inventory management

Foreign Exchange / Interest Rate Risk Management

WHY

  • Many firms will get opportunity to explore export market given resistance to import from China
  • Need to look at efficient FX / financing options to make the business profitable and sustainable in the long run in ever volatile markets

ZEOLYT PERSPECTIVE

  • Help design FX risk management policy
  • Suggest remix of debt given FX receivables / payments
  • Fixed vs floating interest rate loans to mitigate interest rate risk in the long run

Guidance on Ever Changing Regulations

WHY

  • Govt regulations / policies will keep changing to overcome the current crisis
  • Various benefits given to firms under regulations are wage and need to be interpreted to get the right context

ZEOLYT PERSPECTIVE

  • First point of contact / provide through understanding on impact of any changes in FDI/ RBI/ Government policy

COVID-19 Playbook

Have you explored few other areas we can help. Check them out.