Industry

Infrastructure Engineering, Procurement and Construction (EPC) Company for an underground Metro Project.

Project Layout

Rs.2150cr.

Exposure (proposed)

Rs.260cr Fund Based and Rs.540cr is Non-Fund Based.

Service/Purpose

FDD on behalf of Nationalized Bank to have additional third party view.

Objective

  • Company Blacklisted with BMC/MCGM impact on the future project given by MMRC on EPC basis.
  • Validation of financials, Adequacy of controls, Technical capabilities, Legal issues and Compliance management.
  • Study of future financials and assumption for the same.
  • Cash flow and funding gap, Assess working capital requirement (Fund Based and Non Fund Based).

Challenges faced

  • Creating confidence with management and data extraction and confirmation with system/records.
  • Study of vital terms of contract & implication in case of failure to meet the deadline.
  • To get historical data and project wise breakup of Revenue, Cost and Contribution.
  • Technical competency assessment with past projects which were much smaller in size.

Outcome

  •  Successful FDD and Technical DD within timeline.
  •  SWOT analysis to support decision making by bank.
  •  Identification of grey areas and suggesting check points for the bank for future monitoring.

Industry

Power-Independent power Plant (IPP)

Total Debt

Rs.3300cr

Service/Purpose

FDD for an Asset reconstruction company (ARC) to support their decision for takeover of Debts from existing Banks.

Objective

  • To assess the terms of PPA with major customers/State electricity Boards(SEBs) adhering to the terms & deviation
  • Reasons for lower Offtake, under-utilisation of plant, frequent shutdown and plant availability factor (PAF).
  • Long term Sustainability of plant and reliability of power supply commitment to existing /future customer.
  • Validation of past financials, draw a restructured financials linked to cash revenue and true liabilities.
  • Derive future EBIDTA based on proposed Pant Load Factor and underlying assumptions.
    Also check for long term arrangement for procurement of Coal, its logistics and pricing.
  • Environment aspects and its future implication.

Challenges faced

  • Data Extraction & management level interaction.
  • Critical review of terms of PPA with various SEBs.
  • Deriving fuel efficiency and cost of fuel per unit of power.
  • Revenue and Cost break up for each PPA.

Outcome

  • Successfully derived adjusted /cash EBIDTA for review period.
  • Analyse the gaps in future assumption.
  • Reworking of future financials and deriving sustainable level of EBIDTA
  • Sensitivity based on committed power Offtake and likely Offtake under different scenario.