orrect assessment of working capital and long term fund requirement, selecting right financial instrument, proper management of cash flows and deployment of funds are some of the issues organizations face these days. Also, many of them deploy funds raised for short term purposes in long term assets, which leads to short fall of working capital and ultimately impacting to growth of company. Identifying these loopholes is Mumbai based LKG Corporate Advisory Services, a company that provides fundraising and management consultancy services.
LKG Group was started by professionals with strong background in the field of finance and law. The company believes that long term sustainability of any business organization depends on development of efficient financial system, which supports executive or top management decisions. “The promoters at times do not have knowledge of all debt products / instruments available. Hence, selecting wrong products sometimes leads to higher cost of fund for organization. Our objective behind setting up this company was to assist our clients in making right financing decision, through our financial and technical analysis,” speaks Susil K Gupta, MD and CEO, LKG Corporate Advisory Services.
LKG assists their clients in preparing business plan and understanding project viability. The analysis includes various aspects including the payback period of project, the Internal Rate of Return (IRR), sensitivity analysis for sustainability in case of change in assumptions, amongst others. Upon understanding the need and selecting the instrument through which funds to be raised, the company assists in identifying likely lenders and investors to raise funds through debt syndication and equity advisory services.
Experience of founders in the field of audit, finance and law and team work underlines the successful journey of LKG
The debt syndication services offered by LKG include both structured and unstructured finance syndication including working capital and long term funds like channel credit, discounting future cash flows, buyers credit (WC and Capex), bridge finance, acquisition finance, Packing Credit (Rupee and Foreign Currency), Bill Purchase (FBP / FDBP / FUDBP), Factoring, Letter of Credit, Bank Guarantee, External Commercial Borrowings, Asset Backed Loans for small, medium and large corporates. Additionally, the equity advisory services help in raising equity through venture capitalist, private equity. “We assist the clients in maintaining a balance between equity and debt funds, which helps company in keeping its cost of fund low and profitability high, improving credit rating in long term by better management of funds and achieving long term financial sustainability,” says Susil.
The Road to Success
Experience of founders in the field of audit, finance and law and teamwork underlines the successful journey of LKG. Majority of the promoters are qualified chartered accountants and have long experience in audit of banks which helps them to understand the perspective from financers side on risk management, credit policies, reserve bank of India guidelines and thrust of government. “Our core team meets every week and if needed twice in a week to understand the changes in areas in which companies function. It all contributed in success of our company in the consulting industry,” he adds.
With profound services, LKG, over the years has successfully added names to its clientele, some of which includes Dlecta Foods Private Limited, Royal Realtor Group, G N Construction, 4 Genius Minds, Choco Circle, Wadhwa Buildcon Private Limited amongst others. Speaking of the future, Susil concludes, “At present we are located at Navi Mumbai and few other cities of India. We have plans to open offices across major financial centers in India in next 3 – 5 years.”