Project Appraisal & Financing
Finance Domain :Project Appraisal & Financing
Teacher
Dr.Girija Nandini
Category
Core Courses
Course Attendees
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Course Reviews
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CUFM2354(2+1+1)
Course Objective
- To provide students an understanding of the commercial, financial, and socio-economic aspects of a project.
- To prepare a detailed project report and business plan.
Course Outcomes
After completion of the course students will be able to
CO1 Prepare a detailed project report and business plan.
CO2 Do project risk analysis.
CO3 Take capital budgeting decision
CO & PO Mapping
| COS | COURSE OUTCOMES | MAPPING COS WITH POS (High-3; Medium-2; Low-1) |
| CO1 | Prepare a detailed project report and business plan.
|
PO1(3)PO2(3)PO3(3)PO6(3) |
| CO2 | Do project risk analysis.
|
PO1(3)PO2(3)PO3(3) |
| CO3 | Take capital budgeting decision
|
PO1(3)PO2(3)PO3(3)PO6(3) |
Course Syllabus
Module I:
Project appraisal: Project: Definition, characteristics, types, Appraisal: Marketing, Technical, Political, Financial, Social, Project Identification, project Preparation, Pre-feasibility study, Feasibility study, Preparation of detailed project report. Licensing/clearances: type of licenses, clearances involved, Procedure and documentation required for getting a license in India.
Module II:
Financial Analysis: Estimation of cost of project & Means of financing, Arrangement of Funds, Traditional sources of financing: Equity shares, preference shares, Debentures/bonds, loan from Financial institutions, Alternative sources of financing: FDI & FII, Private Equity, Securitization, Venture Capital, Different business/project support government schemes in India, Government funding for projects, Startup schemes of government, Projected cash flows of project, Appraisal Criteria, NPV,IRR, PI, PBP, ARR, preparation of business plan.
Module: III
Social Cost Benefit Analysis: Rationale, UNIDO, Little and Mirrlees Approach, Public Private Partnerships (PPP): Forms, Guidelines, Problems and Issues.
Module: IV
Project Risk analysis: Types of risk, External stakeholders-related risks: customers, consumers, suppliers, Internal risks: project team members, top-management, Project-related risks: technological or logistic risks, Event-related risks: economic (e.g. financial crisis), sociopolitical, Simple estimation of risk: Sensitivity Analysis, Monte Carlo Simulation, Decision Tree Analysis, Project audit.
Projects:
1. Preparation of DPR on Generation Eolica India Private Ltd.
2. Project on 100 Bed Cancer Hospital
3. Students will do business plan group wise. Other groups will do the appraisal as a financer
4. Project proposal for medical college
5. Project on mini rice mill
6. Project on Dairy Farming
7. Project on Infrastructure
8. Project on Risk analysis
Books Recommended:
1. Projects: Planning, Analysis, Financing, Implementation & Review, Prasanna Chandra
2. Introduction to Project Finance: An Analytical Perspective, H R Machiraju
3. Project Management, Maylor
4. Project Management : By Jeffery Pinto
5. Project Management, K.Nagarajan, New Age International Publisher
Session Plan
Session 1
Project appraisal: Project: characteristics, types
Session 2
Types of project - Lecture
Types of project
Project Types
Session 3
Appraisal: Marketing, Technical, Political, Financial, Social- Practice
Project Appraisal
Technical Appraisal
Session 4
Project Identification, project Preparation – Presentation by students
Project Identification
Session 5
Pre-feasibility study
Case on pre -feasibility Study
Session 6
Feasibility study – Presentation by students
Session 7
Preparation of detailed project report
Preparation of DPR
DPR
DPR
Session 8
Licensing/clearances: type of licenses, clearances involved, Procedure and documentation required for getting a license in India.
Licences
Approval/Clearances Required for New Projects
Session 9
Presentation of project by students- Project on 100 Bed Cancer Hospital
Project on 100 bed cancer hospital
Session 10
Presentation on projects Preparation of DPR on Generation Eolica India Private Ltd
DPR for Generation Eolica India Private Ltd.
Session 11
Financial Analysis: Estimation of cost of project
Estimation of cost
Estimation of cost 1
Session 12
Arrangement of Funds, Traditional sources of financing: Equity shares, Preference share
Long term sources of finance
Session 13
Practice class
Sources of finance
Session 14
Debentures/bonds, loan from Financial institutions
Debentures, Bonds
Session 15
Alternative sources of financing: FDI & FII
FDI & FII
FDI,FII
Alternative source of financing
Session 16
Private Equity, Securitization, Venture Capital
Venture capital & Private equity
Securitization
VC & Private equity
Session 17
Different business/project support government schemes in India, Government funding for projects, Startup schemes of government
Government scheme
Government Schemes in India
Important Government Schemes- Stand Up India
Important Government Schemes - FAME India Scheme
Session 18
Projected cash flows of project in Excel
Projected cashflow in Excel
Session 19
Appraisal Criteria PBP, ARR- Problem Solving
Capital Budgeting
Capital Budgeting Techniques
ARR
Pay back & ARR
Session 20
Calculation of NPV in Excel
NPV
NPV 1
Case on Walmart
Session 21
Calculation of PI & IRR in excel
IRR
Session 22
Session 23
Presentation by students on business plan
Format of business plan
Session 24
Presentation by students on business plan
Session 25
Presentation by students on business plan
Session 26
Social Cost Benefit Analysis: Rationale
Social cost and benefit
Session 27
UNIDO Approach
Social cost benefit analysis
Session 28
Little and Mirrlees Approach
Session 29
Social Cost-Benefit Analysis – A Case Study of Tata Steel Coal
Case on social cost benefit analysis
Session 30
Public Private Partnerships: Forms, Guidelines
Public private partnership
Session 31
PPP- Problems and Issues
PPP-1
Session 32
Practice class
PPP
Session 33
Presentation by students - Project proposal for medical college
Project propopsal for medical college
Session 34
Presentation by students - Project on mini rice mill
Project on mini rice mill
Session 35
Presentation by students - Project on SCBA
Session 36
Project Risk analysis: Types of risk
Project Risk analysis
Session 37
External stakeholders-related risks: customers, consumers, suppliers
Project Risk
Session 38
Internal risks: project team members, top-management
Project Risk Management
Session 39
Project-related risks: technological or logistic risks - Practice class
Session 40
Event-related risks: economic (e.g. financial crisis), sociopolitical
Session 41
Simple estimation of risk: Sensitivity Analysis
Sensityvity Analysis
Sensitivity analysis
Sensitivity analysis in Excel
Sensitivity analysis
Session 42
Decision Tree Analysis
Decision tree analysis
Decision tree analysis 1
Session 43
Monte Carlo Simulation
Monte Carlo Simulation
Monte Carlo Simulation 1
Session 44
Presentation by students - Project on Dairy Farming
Project on Dairy Farming
Session 45
Presentation by students - Risk analysis in Infrastructure Project
Case Studies
Case Studies
Social Cost-Benefit Analysis: A Case Study of Tata Steel Coal
Our Main Teachers
Dr.Girija Nandini presently working as an Associate Professor (Finance) in the School of Management Studies, CUTM, Bhubaneswar. Completed her MBA from Biju Pattnaik University of Technology having specialization in Finance. She has completed her M.Com from Ravenshaw University. Done her Ph.D. entitled “Indian Stock Market: Study of seasonal effects in the present era” from Utkal […]