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A good bank of assets acts as a cushion to fall back on during bad times while having a controlled liability base is essential in aiding liquid cash availability. All top asset management companies in India would focus a lot on this element as it can even lead to unplanned liquidation of the organisation.
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Benefits of Asset and Liability Management www.avendus.com/india
Enhances Productivity of Employees The quality and quantum of assets available in a firm has a direct impact on the functioning of employees. It is therefore necessary to manage your assets well. Having insufficient assets can cause delays in work and thereby reduce the productivity of your employees. www.avendus.com/india
Prevents Duplication of Assets Just like it is undesirable to have insufficient assets, it is important to not have them in excess either. This is because asset acquisition and maintenance often involve huge costs that can be covered only when the return on the asset is higher than such costs. Any asset that isn’t in use or does not generate revenue, will only act as a burden on the finances of a firm. Having assets and liabilities managed well can prevent such a situation. www.avendus.com/india
Reduces Risk Of Failing To Meet Obligations Unless a firm has a good balance of assets and liabilities, it’s likelihood of faltering obligations becomes higher. A good bank of assets acts as a cushion to fall back on during bad times while having a controlled liability base is essential in aiding liquid cash availability. All top asset management companies in India would focus a lot on this element as it can even lead to unplanned liquidation of the organisation. www.avendus.com/india
Increases the success rate of bank loan portfolios and pension plans Having a well-balanced asset and liability ratio often leads to attractive bank loan portfolios and pension plans. It makes acquisition of credit easier and ensures longevity of pension plans. www.avendus.com/india
Reduces a Mismatch in Assets & Liabilities Change in interest rates, illiquidity, inflation and changes in accounting procedures can lead to a mismatch in the asset and liability balance. Although some can be adjusted, others may require severe cost cuts and disinvestment to rectify. It is therefore advised to manage your assets and liabilities well and avoid such situations. www.avendus.com/india
Thank You www.avendus.com/india