Infrastructure Advisory Services

R. Dharmarajan
Advisor,
KAG Factors
Table of Contents

What is Infrastructure Adivory Services

 Financial Planning and Tools

 Project Financing

 Risk Management

 Investors/Investment

 Rating

 Working Capital Management

 Fees
What is Infrastructure Advisory
Services
Major Infra Projects is the cornerstone of a stable and productive growth to our
country.
Infra projects involves various challenges and Risks, however when carefully
planned and executed they create growth and further opportunities.

Keeping the practical requirements of the clients to help then in the process and
projects, we offer specialized advisory solution to the clients to enable them to
smoothly overcome the challenges, execution, project financing and project
monitoring.

Our Infra advisory practice works in a most value added and unique ways,
bringing our years of Infrastructure management handling and project monitoring
experience into assist the clients in their mission.

Project Planning
In the Project Planning stage, we help with the following Tools:-
Financial Model:

A well-crafted financial model helps in correctly representing the project cost,

revenue, timelines, various deliverables and we with our years of preparing accurate
and timely Financial models can assist in preparing a well-represented Financial
models for your projects.

Information Memorandum:

Information Memorandum or IM, represents a complete road map of the projects,

company, objectives and various other highlights of the company and the projects
to give a blueprint to investors/lenders a All in one concise and comprehensive
representation of the project/company and various other details. We have expertise
in drafting IM’s and will be able to assist in the preparation of IM.

Annual Operating Plan

Annual Operating Plan (AOP) is a complete walkthrough of the Annual budgeted

revenues, costs and the estimated projections of financials which aid in cash flow
and business planning.

Project Appraisal Guidance:

The project Appraisal refers to the various criteria used to evaluate a project,
winning bid, Tendering process guidance, financial evaluation of various cost factors
and their importance at the Bidding process.
Project Financing
The most important factor is to fund the Project. The process is very crucial to the
company/ Group and addresses crucial factors as below:

When to raise finance

How to Raise Finance
What is the rate at which it is feasible?
What is the Time taken to fund the project?
What are the major clauses addressed

Sourcing

We can assist sourcing of funds from our huge network of connections from lenders,
that include Banks, NBFC’s, ARC’s, Structured Funds, Fund houses, Government
Infra Institutions(IIFCL, etc.,), and International Agencies, where required.

Raising of Short-term financing where required.

Pre- Disbursement Clauses

Pre- Disbursement conditions in a loan/Finance Agreements is very crucial for the

progress of the project and it has to be carefully evaluated, where we have not been
involving in sourcing of Finance.

We will be able to vet and identify key clauses that are unfavorable to our clients
and that are bottlenecks despite having valid sanctions. Disbursement of funds at
the earliest appropriate time is very crucial in the completion of the project and
many projects have suffered due to stringent/impractical Pre- Disbursement
clauses, which have been overlooked often by the company officials.

Our vast experience in vetting and negotiating various contracts/agreements will be

added value to negotiate the Pre- Disbursement clauses to ensure that the funds
are seamlessly provided to the projects without delays.
Risk Mana gement
One major ailment in the Infra segment is the lack of Risk Assessments before
planning a major/significant project and often the costs suffered due to the Risks
not being factored or managed far exceeds the likely benefits to be derived.

We with our Resourceful storage and knowledge of Risk Management processes and
the practical exposure of having dealt with various Risk factors and their related
Risk mitigation controls, will be able to provide a detailed Risk Management studies
in the process and offer practical solutions to the Risks covered and their mitigation,
control, monitoring and follow up.

Review of Existing Controls

It is crucial to assess the existing controls and check points and as a process of our
Risk Management Services will review some of the key controls and offer
recommendations and corrective actions, the areas reviewed include;

• Key Managerial positions, their duties and Responsibilities

• Statutory Auditors and their Reports

• Internal Auditors, where required will add /enhance the services

• Staffing and the related positioning of Key Staff

• Company Policies and Procedures

• Internal Reporting and their effectiveness

• MIS System, where required will implement enhanced reporting systems

Investors/Investment
When to raise Equity or how to raise Equity is a major decision for the management
to make.

We with our large network of Private Equity market, Institutions, Funds, Hedge
Funds and various other avenues will be in a position to help in raising Equity for
the projects, as well as structuring the equities to ensure that there are no major
dilutions to the Business Owners.

IPO Readiness

We with our capital market exposure of having handled various IPO’s from the
starting stage till the closure of the public issue will be able to prepare the company
towards the goal of the IPO, and the various processes, procedures and pre planning
required.

Due Diligence

Due- Diligence (DD) is a very pivotal process for any sort of funding arrangements,
and we will get the company prepared for all sort of Due-Diligence process to be
initiated by various agencies and thus perform a PRE- Due Diligence process to get
the company DD ready.
Rating
A good credit rating is a prerequisite for getting the desired funding at the most
appropriate time and at the lowest cost-efficient terms.

We with our ability, networking and past dealing with various agencies, their
process, controls and their systems, will be able to work towards getting a better
credit rating for the company.

The services include;

• Identification of the company’s requirements

• Sourcing for the most appropriate Rating Agency

• Initial discussions on the Rating desired

• Engaging with the Rating Agency consultants

• Assist the company in replying to the queries raised by the Raring Agencies

• Networking and pressing for the desired rating

Follow up with the Rating Agency on the final Rating to be awarded

Review the process during the Annual Rating Reviews

Working Capital Management
The Working Capital Management, is the backbone of the company in managing the
cash flows and the operations of the company and to this effect, we assist in the
following areas:

• Review of Working capital cycle and offer Recommendations

• Review of Vendor selection systems and the related process

• Preparation of CMA for Banks/Lenders

• Review of Fixed Assets Registers and Recommendations for better controls

• Review of receivables and help in follow up where required

• Review of Inventory systems, where applicable and recommendations for

better systems

Fees
Our Fees will be in line with the services to be provided, after getting a clear
understanding of the deliverables to be implemented. Fee charged is linked with the
value additions provided and not just for the services and fee is never a criterion for
the quality of deliverables that we propose to offer

Thanking you, please feel free to get in touch with us to discuss more.

R. Dharmarajan

KAG, Factors