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PROJAP-X10
PGDM-PT 2010-13: Term-VII

Course Name : PROJECT APPRAISAL (PROJAP)
Credits3
Faculty Name Pradip K Lath
ProgramEx PGP
Academic Year and Term Term VII : Year 2012-13







1. Course Description

i. Capital Expenditure Decisions and Cash Flows(Recap of Capital Budgeting, Introduction to Capital Expenditure Decisions and Viewing Projects from different basis of Cash Flows)

ii. Stages of Business opportunity/ Project Development and approaching appropriate authorities. (Introduction to Projects, Stages of development of business opportunities/projects, Approaching appropriate authorities.)

iii. Technical, Marketing and Financial viability of any Proposed Venture.

(Due Diligence/Appraisal of the Project on various aspects and making of a Project Report – Entrepreneurs view point and simultaneously keeping in mind the Project Finance criteria of Banks/ FIs)

iv. Due Diligence of Projects - Appraisal Criteria, Procedures and Sequence followed by Financial Institution

- Management
- Technical
- Marketing
- Financial
- Economic
- Credit Risk Rating of Proposal by Banks and FIs.
- APPRAISAL STUDIES FOR INTRAPRENEURSHIP AND INDEPENDENT ENTREPRENEURSHIP ( Case Study on Services Sector and Manufacturing Sector)

v. Regulatory framework with reference to Industrial Policy.

vi. Multiple Projects and Practices : (Multiple Projects & Constraints & Appraisal Practices.)
vii. Financing of Projects – Various Sources : ( Equity Capital, Preference, Debentures and other sources, Schemes of finance available and study of various schemes of different FIs, Special focus on Project Financing Structures )
viii. Infrastructure Projects : ( Formulation and Financing of the Infrastructure Projects)
ix. Sick units and rehabilitation of sick units : ( Methodology how a sick unit has to go for rehabilitation )
x. Risk Analysis of Projects: ( Categories of Project risks and their mitigation)
xi. Social cost benefit analysis and environmental appraisal of projects. ( Rationale of social cost benefit analysis, LM and UNIDO method, adjustment for shadow prices, NOC and Consent from Pollution Control Board for operating any industry/enterprise having impact on pollution)

2. Student Learning Outcomes (typically 3-5 bullet points)

· Be able to understand facets of Capital Expenditure Decisions ( Individual Projects & Multiple Projects)
· Due Diligence of Business opportunities/ Formulation of Projects with emphasis on the financial aspects.
· Be able to prepare Feasibility Report – Study of Bankability of the Projects.
· Learn Appraisal Practices and the Methodology applied by Financial Institutions
· Understand and apply Credit Risk Rating of Projects
· Understand Infrastructure Projects and financing of such projects.
· Regulatory Framework and tax considerations affecting projects
· Sick Units and its rehabilitation
· Social Cost Benefit Analysis

3. Required Text Books and Reading Material

i) Project Planning Analysis Selection Implementation & Review

ii) International Project Analysis & Financing - Gerald Pollio
iii) Project Report & Appraisal - H P S Pahwa
iv) Practical Techniques for Effective Project Investment v) Handbook on Project Appraisal & Follow up - D P Sarda
vi) Project Appraisal and Planning for Developing Countries 4. Tentative Session Plan:
Session
Content
Basic Reading Materials
Activity in the class
Remarks
Session
1
Capital Investment Decisions, Viewing Projects from different basis of Cash Flows
Capital Budgeting, Section I of the
Handout, Case study on Cash Flows: Magnum Technologies
( 9.16 onwards of the textbook)
Minicase: Metaland Ltd
Class Discussion
And
Case Discussion


Hands on Practice on case
Recapitulation of Capital Budgeting, Viewing Project Cash Flows in a different perspective
Session
2
Characteristics & Project Finance Structure in case of Infrastructure projects;
Infrastructure Projects- BOT Model;
Stages of Project Development, Financial Analysis & Prefeasibility study of projects, Parameters for formulation of Project
Section VII and Case Study on BOT and case on Cash Flows

Section II 2.3.4, 2.3.5 & 2.3.6 + Ref 1.1
Class Discussion
and Case Study
Formulation of Infrastructure Projects and Due Diligence thereof

How to go about a project and the parameters for formulation of project
Session
3
Formulation of Project
Case Study Vegetron Ltd. Appendix VI A of the Textbook
Case Study discussion
Learning formulation of project
Session
4
Financing of Projects –
Loan syndication of Infrastructure Project
Formulation of Live Project
Syndicating Loan for Hongkong Disneyland
Group
Work
Live Project formulation and Financing
Session
5
Formulation of Project – Contd.
Rice Mill Case on independent entrepreneurship
Self Practice Sessions
Live Projects formulation & due diligence
Session
6
Viability, Project Planning & Implementation
Section 2.4
Class Discussion
Live implementation of projects and due diligence
Session
7
Due diligence and study of bankability of the projects
Facets of Project appraisal
Section III and IV and Appraisal Memorandum
Practical Case Study giving industry interface
Exposure to Practical aspects of evaluation and Live appraisal format
Session
8
Due Diligence contd.
CMA Data
Infrastructure Project : Case Study to be given in class
Group
Work
Understanding appraisal by way of CMA Format
Session
9
Credit Risk Rating of Projects
Section VI,
Ref 2.5 & 2.6
Presentation - Methodology of Credit Rating in practice
Understanding the application of credit risk rating methodology
Session
10
Regulatory Framework Tax Considerations affecting projects
Industrial Policy and Direct and Indirect Tax Provisions
Class discussion and application of legal framework
Learning about various industrial policy benefits and tax laws & their implications on projects
Session
11
Sick Units and its rehabilitation
Handbook on Project Appraisal
Class Discussion
Criteria of sick units/ NPAs and management thereof
Session
12
Sources of Finance & Venture capital Financing
Section V
Class discussion
Understanding various sources
Session
13
Social Cost Benefit Analysis
Text Book
Case study
Class discussion
& Case study
Learning the social aspects of projects and measurement thereof
Session
14
Multiple Projects and Constraints and Evaluation of Projects,
Sanctions, Documentation, Disbursement and Monitoring of projects
Ref. Materials 1.2


Main Handout
Class and application thereof

Class Discussion
Learning evaluation of projects of multiple projects
Learning the practical approach to sanctions and procedures thereafter
Session
15
Learning different projects formulation- including existing projects – expansion and diversification
Case studies to be given in classroom
Class and Case discussion
Learning various types of projects formulation and diligence

5. Evaluation - Tentative

Created By: Debasis Mohanty on 05/09/2012 at 03:34 PM
Category: ExPGP-III Doctype: Document

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