PROJAP-P08

PROJAP-P08
PGDM 2007-09 : TERM - V

PROJECT APPRAISAL
Credit-1.5

Instructor: Prof. P.K. Lath
Course Outline

Course Objectives :

1. Facets of Capital Expenditure Decisions ( Individual Projects & Multiple Projects)
2. Due Diligence of Business opportunities/ Formulation of Projects with emphasis on the financial aspects.
3. Formulation of the Project including study of Bankability of the Projects.
4. Appraisal Practices and the Methodology applied by Financial Institutions
5. Infrastructure Projects and financing of such projects.

PEDAGOGY :

1. Interactive Sessions in the Class Room
2. Sessions to start from Concepts of Capital Budgeting to Formulation of Projects with aid of excel.
3. Case Studies discussion with Creative Ideas from Students to formulate bankable projects.
4. Group Assignments and Presentations of the Projects.

COURSE CONTENTS

1. Capital Expenditure Decisions and Cash Flows

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

2. Stages of Business opportunity/ Project Development and approaching

appropriate authorities.

(Introduction to Projects, Stages of development of business opportunities/projects, Approaching appropriate authorities.)

3. Types of Business Opportunities
i. Corporate Entrepreneurship ( Intrapreneurship)
( Introduction of New product or operations)
ii. Independent Entrepreneurship

(Starting your own firm – profit motive)

iii. Social Entrepreneurship

( New or developing existing not-for-profit or community service oriented firms)

4. 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 FIs)

: 2 :

5. Due Diligence of Projects - Appraisal Criteria, Procedures and Sequence followed by Financial Institution
- Management
- Technical
- Marketing
- Financial
- Economic
- Credit Rating of Proposal by Banks and FIs.
- APPRAISAL STUDIES FOR INTRAPRENEURSHIP AND INDEPENDENT ENTREPRENEURSHIP ( Case Study on Services Sector and Manufacturing Sector)

6. Multiple Projects and Practices

(Multiple Projects & Constraints & Appraisal Practices.)

7. 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 Venture Capital, Project Financing Structures )

8. Infrastructure Projects :

( Types of such projects and Formulation of the Infrastructure Project like BOT basis of Roads )

9. Risk Analysis of Projects:

( Categories of Project risks and their mitigation)

Reference Books

1. Project Planning Analysis Selection Implementation & Review

- Prasannachandra

2. International Project Analysis & Financing - Gerald Pollio
3. Project Report & Appraisal - H P S Pahwa
4. Practical Techniques for Effective Project Investment

- Tiffin Ralph

Basis of Evaluation

Quizzes and Mid Term : 50%

Presentation/Group Assignments/Participation : 20%

End Term : 30%

XIMB PGP XIMB

PROJECT APPRAISAL

Schedule of 10 Sessions of 90 minutes each

Session	Content	Basic Reading Materials	Activity in the class	Remarks
Session 1 -2	Capital Investment Decisions & Characteristics, Viewing Projects from different basis of Cash Flows Stages of Project Development	Capital Budgeting, Handout on Cash Flow Case study: Magnum Technologies	Class Discussion And Case Discussion	Recapitulation of Capital Budgeting and Viewing Project Cash Flows in a different perspective
Session 3- 4	Financial Analysis & Formulation of Project	2.3.4, 2.3.5 & 2.3.6 + Ref 1.1 Case Study Vegetron Ltd. & Rice Mill Case	Class Discussion & Case Study	Learn how to go about and formulate a project
Session 5- 6	Formulation of Project – Viability, Project Planning & Implementation	Rice Mill Case on independent entrepreneurship contd. Section 2.4	Practice Sessions Class Discussion & Case Study	Live Projects formulation and the diligence parameters
Session 7- 8	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	Expose to Practical aspects of evaluation of projects
Session 9	Credit Rating of Projects	Section VI	Presentation - Methodology of Credit Rating in practice	To know about the actual credit risk rating methodology
Session 10	Infrastructure & Other Projects & Financing,	Section VII and Case Study on BOT/Power Project	Class Discussion and Case Study	Formulation of Infrastructure and other Projects and Due Diligence thereof

The course may preferably be completed in a time frame of maximum two months instead of the total three months available.
Created By: Debasis Mohanty on 07/29/2009 at 11:04 AM
Category: PGDM-II Doctype: Document

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