Finance Domain :Project Appraisal & Financing

Teacher

Dr.Girija Nandini

Category

Core Courses

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Project Appraisal & Financing

 

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.
COS COURSE OUTCOMES MAPPING COS WITH POS (High-3; Medium-2; Low-1)
CO1 Will able to do project appraisal for any project PO1(3), PO2(3), PO3(3)

 

CO2 Can prepare business plan and DPR for a project PO1(3), PO2(3), PO3(3)

 

 

CO3 Will be able to do financial appraisal of any project PO1(3), PO2(3), PO3(3)

 

CO4 Can do social cost benefit analysis for the project PO1(3), PO2(3), PO3(3)

 

CO5 Will be able to do project risk analysis PO1(3), PO2(3), PO3(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

https://drive.google.com/drive/u/0/my-drive

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

Feasibility study
Feasibility Study
Feasibility study 1

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

Practice Class
IRR
PI

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

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

PPP

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

Session 42

Session 43

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 […]