We help convert ideas into viable projects. Our expert project support services team deals with every aspect of any given project and helps find the best applicable solutions and then follow this up with providing the necessary support services through various stages of projects, developmental as well as operational, to make the project a reality. Any client can engage us for our project support services by paying the applicable fee and professional charges.
Subcontracts India offers:
Identification of projects with a Cash Flows Generating component and bankability potential;
Support of project development to achieve bankability;
Preparation and structure of transaction by leveraging our consulting, financial and legal expertise;
Finding the right investor and achieving financial close;
Support to the client through the project execution and construction phases.
We can be present with our services across the entire project lifecycle:
Strategy and planning: Assisting long-term planning of individual projects or a portfolio by focusing on feasibility, alignment with corporate objectives and governance procedures in order to maximize return on investment. Financing and procurement: Raising project finance; establishing and managing the procurement process to acquire services, material or equipment to deliver the project, and prioritizing capital allocation between projects. Project organization, execution and construction: Setting up the project for success and strengthening client capabilities to deliver on time and to budget. Operations and maintenance: Assessing ongoing lifecycle costs and providing insights around optimizing the performance and value of assets in operation. Asset recycling, concession maturity & decommissioning: Determining when and how to discontinue investing in an asset, and transaction advisory services for investors in infrastructure assets.
WE CONDUCT THE DETAILED FEASIBILITY STUDY (DFS)
Any project, whether infrastructure, power, real estate, communications, retail, logistics and supply chain, healthcare, hospitality, tourism, education, transport, energy, research & development, information technology, needs a detailed feasibility study prior starting. Without the Feasibility Study Report (FSR), a project would be extremely ill conceived and would never reach its true potential. Conducting a detailed feasibility study (DFS) is one of the key activities within the project initiation phase. It aims to analyze and justify the project in terms of technical feasibility, business viability and cost-effectiveness. The study serves as a way to prove the project’s reasonability and justify the need for launch. Once the study is done, a feasibility study report (FSR) should be developed to summarize the activity and state if the particular project is realistic and practical. The DFS aims to identify, explore, and evaluate a project’s solutions to save time and money.
The Feasibility Study Report (FSR) is a formally documented output of detailed feasibility study (DFS) that summarizes results of the analysis and evaluations conducted to review the proposed solution and investigate project alternatives for the purpose of identifying if the project is really feasible, cost-effective and profitable. It describes and supports the most feasible solution applicable to the project. The report gives a brief description of the project and some background information. Formally this document is the starting point for running the Pre-Charter Sub-Phase. In practice, it signifies that the sponsor can proceed with deciding on project investment and make necessary assignments to the project manager. It provides legal and technical evidence of the project’s vitality, sustainability and cost-effectiveness. The reporting process allows the senior management to get the necessary information required for making key decisions on budgeting and investment planning.
WE PREPARE THE DETAILED PROJECT REPORT (DPR)
As the identification and intention for the implementation of the project grow, the depth of the study for the probable project increases. Further analyses of the details relevant to such a project become imperative. The feasibility study report (FSR) contains sufficient detailed information. It is from the study of the pre-feasibility or feasibility study report that approval is made by the project owner / sponsor / investor for the investment on the project or for a request to prepare the DPR. Preparation of DPR is a costly and challenging process that may extend to long period of strenuous work by experts, and requires reports of specialists from different streams such as market research, engineering (civil, mechanical, metallurgical, electrical, electronics), finance, etc. carefully considered prior the final drafting of the DPR which must minimize technical uncertainties going forward. A good DPR must be based on attested Technology and Design to minimize the risk of failure. Our expert project support team relies on our extensive data and global connections to formulate the most cost effective DPR with attested technology and design. Project location benefits, availability of easily accessible resources, project capacity, etc. are extremely important aspects of any detailed project report and we take full care to make sure these have been assessed accurately while preparing the DPR. Similarly, government policies (both at the state as well as central levels), public attitude towards projects, rehabilitation concerns, etc., must be squarely dealt with since most projects are planned over a long term horizon. The below are included in a DPR we prepare:
Project Summary
Market Report
Technical details with the process involved and the plant layout,
Plant and Machinery and other equipment as required for the project,
Project Schedule
Organization/ Management Structure
Financial details of project costs, source of financing
Cost of Production,
Projected Profit and Loss Account,
Projected Balance Sheet,
Projected Cash Flow Statement,
Interest and Commitment Charges,
Working Capital Requirements
Debt Service Coverage
WE DRAFT EPC CONTRACTS AND SUCCESSFULLY CONCLUDE OFF-TAKER AGREEMENTS FOR PROJECTS
It is important to have the contracts in place for the contractors ready to take on the project construction phase. These can be an assortment of contracts for Engineering, Procurement, and Construction necessary for the project to be production ready or operational. We help formulate contract strategy and then draft the contracts on behalf of our clients keeping in view costs, quality, and legal aspects.
We also assist our clients enter off-taker agreements such as concessions, power purchase agreements, supply contracts, etc. These off-taker agreements are the backbone of any planned project and are instrumental in securing investor funds for any project.
WE DEVELOP THE FINANCIAL MODEL
A vibrant, bankable financial model is the heart of every project. The task of building an abstract representation (a mathematical model designed to represent the performance of any project) of a real world financial situation is a job cut out for the specialists and experts. Applications of a financial model include:
Business valuation, especially discounted cash flow, but including other valuation approaches
Scenario planning and management decision making
Capital budgeting, including cost of capital (i.e. weighted average cost of capital or WACC) calculations
Financial statement analysis / ratio analysis (including of operating- and finance leases, and R&D)
Project finance modeling
Cash flow forecasting and ALM-related
Credit decisioning: Credit analysis and Consumer credit risk; impairment- and provision-modelling
The project's finance team can't be agile with a manual, error-prone and fragmented financial planning and analysis (FP&A) process. To ensure real time reaction and financial decision making, we provide the ability to synthesize information from all data sources, uncover trends and deliver insights faster than ever. We help accelerate your FP&A by automating data collection, aggregation and validation. We help align operational tactics with financial plans to understand what's truly going to drive a project and to steer project performance. Our expert project support services team, with its access to cutting edge technology, provides dynamic solution to devise financial models that takes care of every financial aspect of any project. This is a highly technical and analytical work involving financial analysts, economists, accountants, engineers, and legal & taxation experts.
WE ASSIST IN STRUCTURING PROJECTS
The structuring is a framework in which ownership structure, project structure, risk structure, and financial structure decisions are made and tied together in the project's legal structure which, in turn, forms a foundation for funding the project on a limited recourse basis.
Ownership Structure: The ownership structure is how the special purpose vehicle/company (SPC/SPV) is organized; that is, as a corporation, unincorporated joint venture, limited liability partnership, etc. Depending on the type and size of projects, our expert project support services team provides complete guidance for most suitable project ownership structure.
Team Structure: The way a project team is structured can play a major role in how it functions. Different styles of team will have different characteristics. Careful consideration of team composition and reporting relationships can make a big difference to the results. The various roles in the team will depend on the nature of the project. Project roles and resources needs to be identified as part of the planning, estimating and resourcing process. The resources and optimum way of working normally change during the project. Often an initial high-powered team will define the business solution, followed by a much broader team to deliver it, and then a fine management and operational team to operate it. There needs to be a core team that would remain fully involved throughout the project, but others that will need to be brought in as required. Team structure will probably be adjusted at each stage to meet the evolving nature of the project. The right structure for a small, high-powered, business-design team is unlikely to work for a large applications development team.
Risk Breakdown Structure (RBS): The risk breakdown structure (RBS) is a hierarchical framework of potential sources of risk to a project. Risks include anything unplanned and unforeseen that can have a negative impact on the project’s costs, timing or quality. Our expert project support services team helps manage the risks effectively and get the project on track by formulating a project specific Risk Breakdown Structure (RBS). RBS is a hierarchical representation of risks, starting from higher levels and going down to finer levels of risks. To sum it up, we help structure the prioritization and mitigation of risks after the identification, assessment, and allocation process is completed.
Capital Structure: This is required for financing any project through a combination of debt, equity and other sources. Some of these sources maybe external, such as lending institutions, and the proportion of funding from such sources is called the gearing ratio. We help capital structuring of projects by putting in place a variety of forms of finance, the availability of which depend on several factors. We compile a budget for the project you plan to execute (estimates from material suppliers, quotations from contractors, and calculate the amount of time it will take).This includes costs of licenses and permits, staff overtime payments, payroll taxes and employee benefits for the duration of the period. We identify the value of the equity your company holds by calculating the total value of all assets, including unexercised stock options, inventory value and retained earnings enabling you to determine how much finance you can raise against your project by offering an investor a share of it. A higher percentage of financing obtained from equity means a lower gearing ratio or percentage that needs to be obtained through creating debt. We also help calculate how much of your equity you can afford to risk on financing the project. Equity finance has a lower borrowing cost than debt financing does but may carry a higher risk. We help you make a resource allocation decision, which means deciding how much of your company’s value to offer to an investor. Our expert project support services team works out the return on investment you can expect from the project, also called the internal rate of return (IRR) to help you convince all external lenders whom you approach that the project is viable. We make sure the capital structure yields a return that is higher than the minimum acceptable rate of return, also known as the hurdle rate. We help you choose a combination of financing options that together help to reduce the hurdle rate as much as possible. Lenders will need conclusive proof that the project will yield a satisfactory return. If the project’s risk profile is high and the anticipated return on investment lower than the lender find acceptable, we help you source your capital through alternative funding methods.
Financial Structure: The way in which a company's assets are financed, such as short-term borrowings, long-term debt, and owners equity. Financial structure differs from capital structure in that capital structure accounts for long-term debt and equity only. A considerable cost associated with the project is the cost of capital or the costs of obtaining the financial resources to implement the project. To correctly estimate these costs, the financial model must accommodate a fundamental problem in project finance where the required money for the initial investment will come from. Our expert project support services team assist project sponsors with the financial structuring of their projects.
Legal Structure: The project's legal structure is the web of contracts and agreements negotiated to make financing possible. Financial structure refers to the mix of financing used to fund a project, which includes equity, short‐ and long‐term loans, bonds, trade credits, etc. and the cash flows to equity providers and the lenders.
Interested Clients may fill the below form and send to us to request our Project Support Services
Thank you for contacting us! We are reviewing the information you have sent us and one of our executives will get in touch with you soon.