“ The Making of a CFO” Sources of Finances October 11th, 2013 Mumbai.

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“ The Making of a CFO” Sources of Finances October 11th, 2013 Mumbai

2  Primarily responsible for financial planning, record keeping and financial reporting  Ensure all financial reports are accurate and completed in time  Significant role in the strategic business decisions to be taken by assisting the CEO  Overseeing operations, many times directly handling procurement  Manage and materially support information technology, investor relations, lenders relations and joint venture managements  Responsible for managing the financial risks, cost controls, and maintaining liquidity  In the Course of Financial Management, undertakes a lead role in resourcing funds

3  EQUITY  Mezzanine Debt / Quasi Equity  DEDT

4  EQUITY (including quasi)  GRANT  DEDT (including mezzanine)

5  DEBT : EQUITY – 2 : 1  Period of funds  Cost of funds  Marketability of instruments  Ratings –  Rating of the debt  Rating of equity

6  Proprietary Funds  As Solitary investments or in Partnerships  Public Funds  As listed companies on SEs,  As trusts – Charitable or Business  Private Equity Funds

7  Listing  Could be done at various exchanges like BSE, NSE, AIMS, International Stock Exchanges in forms like GDRs / FCCBs  Charitable  By building corpus by way of donations and grants  Business Trusts  Private Equity Funds

8  IPOs and FPOs  Appointment of Merchant Bankers  Preparation of the Red Herring Prospectus  Identifying anchor investors  Issue opening  Periodical compliance with SEBI and the Exchanges

9  Significantly gaining popularity  Presently destination is Singapore  Debt and equity funds are replaced by Trust Funds  Contributors to the fund are long term investors with expectation of fixed yield

10 ► Business Trust (BT) offers investors an option to invest in cash-generating assets (including infrastructure assets, real estate, transportation assets, etc.) ► The main parties involved in a BT structure are the BT, unit holders and Trustee-manager (TM) ► TM is both the trustee and the business manager. ► BT is a “pure” cash flow structure ► Certainty on distributing cash flows ► A yield play valued by cash flows plus growth ► Unlike a company, accounting profits are not required to make distributions to unit holders ► Established BT regime - There are numerous listed BTs on SGX in various sectors (including Property Trusts, Shipping Trusts, & Infrastructure /Port Trusts) BT Investors SPVs Trustee Manager Sponsor Distributions Investment in units of BT Management fees Management Service Fees Asset management Ownership of assets (vested in Trustees) Cash flow repatriation Dividend/ interest/ etc Asset Sponsor 100% >=26%<=74% Revenues generated from asset

11  Private equity is a collective investment scheme which are typically limited partnership funds with a general horizon of 10 years  Looking for a return of 15% - 22%  Exit options  Appointment of Merchant bankers  Process of Valuation  Term Sheet  Appointment of Diligence teams  Appointment of Lawyers  Signing of Share Holders Agreement  Compliances of Conditions precedent

12  Short Term  Working Capital Loans  Commercial Papers  Long Term  Term Loans  Mezzanine Term Loans  ECBs / FCCBs  Debentures  Bonds  Take out finance  Credit Enhancement Schemes

13 Promise Less Deliver More

14 THANK YOU