21CV484 Project Finance syllabus for CV

Introduction to Project Finance:

Introduction, Project Financing Advantages and Disadvantages, Project Development Obstacle, Project Finance Features, Business models, Project Cycle Management, Financial and Economic Feasibility, Overview of Economic Development and Growth, Measures of Economic Development, Analysis of Project Environmental Technological Feasibility, Economic Analysis of Project

Financing of Project:

Principle and Components of Financial Analysis, Ratio Analysis, Optimal Capital Structure, Weighted Average Cost of Capital – WACC, Cost of Equity, Capital Asset Pricing Model, Internal Rate of Return (IRR), Viability Gap Funding (VGF), Take-out financing, Sources and Uses of Cash, The Statement of Cash Flows, Cash Flow, Benefits from using Cash Flow, Managing Short-Term Net Cash Flows, Liquidity Management, Managing Inventory, Managing Accounts Receivable, The Cash Operating Cycle, Forecasting Working Capital, Theory of Cost Benefit Analysis, Importance of Cost Benefit Analysis.

Project Analysis and Management:

Introduction, Purpose of Projective Analysis, Techniques/Tools of Project Analysis, Project Analysis and other Techniques of Optimizing Behaviour, The Break-Even Chart, Break-Even Method of Investment Analysis, Appraisal of Break-Even Analysis, Liquidity Management, Managing Inventory, Managing Accounts Receivable

Project Finance Risks and their Mitigations:

Risk Basics, Risk Types and Mitigants, Risk Identification, Quantitative Risk Analysis, Financial Risks, Political Risk, Social Risk, Risk Mitigation, Risk Options, Mitigation options, Cost of Mitigation Planning, Monitoring Mitigation plan, Public Sector Guarantees and Insurance, Private Sector Insurance and External Credit Enhancement, Grants and taxation, Exit Policy

Legal and Taxation :

Depreciation, Tax Exemptions and Incentives, Project Legal Aspects, Project Contract Basics, Due Diligence Report, The Term Sheet, Project Documents.

Course outcome (Course Skill Set)

At the end of the course the student will be able to:

1. Prepare financing and Legal reports for projects

2. Perform analysis of projects for feasibility and viability

3. Provide details on risk management and funding

4. Manage and maintain projects with confidence

Assessment Details (both CIE and SEE)

• The weightage of Continuous Internal Evaluation (CIE) is 50% and for Semester End Exam (SEE) is 50%.
• The minimum passing mark for the CIE is 40% of the maximum marks (20 marks out of 50).
• A student shall be deemed to have satisfied the academic requirements and earned the credits allotted to each subject/ course if the student secures not less than 35% ( 18 Marks out of 50)in the semester-end examination(SEE), and a minimum of 40% (40 marks out of 100) in the sum total of the CIE (Continuous Internal Evaluation) and SEE (Semester End Examination) taken together

Continuous internal Examination (CIE)

Three Tests (preferably in MCQ pattern with 20 questions) each of 20 Marks (duration 01 hour)

1. First test at the end of 5th week of the semester

2. Second test at the end of the 10th week of the semester

3. Third test at the end of the 15th week of the semester

Two assignments each of 10 Marks

1. First assignment at the end of 4th week of the semester

2. Second assignment at the end of 9th week of the semester

Quiz/Group discussion/Seminar, any two of three suitably planned to attain the COs and POs for 20 Marks (duration 01 hours)

The sum of total marks of three tests, two assignments, and quiz /seminar/ group discussion will be out of 100 marks and shall be scaled down to 50 marks

Semester End Examinations (SEE)

• SEE paper shall be set for 50 questions, each of 01 mark.
• The pattern of the question paper is MCQ (multiple choice questions).
• The time allotted for SEE is 01 hour.
• The student has to secure minimum of 35% of the maximum marks meant for SEE.

Suggested Learning Resources:

Books

1. VikasShrivastava, V Rajaraman. “Project and Infrastructure Financing”, Oxford University Press Publication.

2. Stefano Gatti. “Project Finance in Theory and Practice. Designing, Structuring, and Financing Private and Public Projects”, Elsevier Science Publications, Sabre Foundation.