Overview

It is an evaluation for long term capital investments projects; it entails appraising project investment proposal from risk and return perspective and hence guides the decision on whether to invest or not in a particular project. This course is all about determining the viability or profitability of the project that one thinks to invest in. Various projects can be compared and then choose the one that produces more benefits or profit than the other(s).

Objectives

Project appraisal and financing course aims to make the participants to understand about the various financial aspects in a project analysis and planning also able to appraise projects financially. In the course, the participants will learn various spreadsheet models for project financial risk and return analysis. Participants will also learn about various measures to monitor the progress of a project.

Learning Outcomes

• Participants will be able to estimates financials for project financial analysis.
• Appraising the project based on various financial parameters.
• Quantification of risk by using various spreadsheet models in project financial appraisal.
• Project cost and schedule analysis.    

Pedagogy

Delivering the content would involve a well-balanced combination of lectures, class discussions, case studies, and exercises.

Who May Attend?

• Finance Professionals
• Employees with banks, public / private sector companies, financial institutions and infrastructure companies
• New entrepreneurs

Content of the Programme

Module 1: Project fundamentals

Module 2: Assessment of cost of the project

• Land and site development cost
• Building, civil work & township
• Plant and machinery
• Miscellaneous fixed assets
• Provision for contingencies
• Preliminary expenses
• Public issue expenses
• Security deposit with government deposit
• Technical know-how & engineering fees
• Pre-operative expenses
• Margin money for working capital
•  Cash losses

Module 3: Sources of project finance

Module 4: Capital subsidies and incentives available to new projects and taxation

Module 5: Capital structuring and arranging means of finance

Module 6: The process of projected financial statements (This chapter involves spreadsheet application)

Module 7: Overall Financial Evaluation

• Primary evaluation criteria
• Further comprehensive ratio analysis

Module 8: Risk management in project finance

• Sensitivity analysis
• Scenario analysis
• Simulation analysis
• Decision tree analysis
• Real option analysis

Module 9: Earned value management

Programme Director

Dr. Harnesh Makhija

Dr. Harnesh Makhija is an Assistant Professor in the Finance and Law department at K.J. Somaiya Institute of Management. He is a MBA Finance from Mumbai University, holds a NET certification from UGC and completed his Ph.D from Mumbai University. He is working as an academician for the past fourteen years. He has published research papers in reputed International ABDC category journals and peer reviewed Scopus indexed journals. He is a reviewer for many prestigious ABDC category journals. He conducted various trainings for companies like Arkema, Godavari Biorefineries Ltd., Sujan CooperStandard AVS Pvt. Ltd., Mahindra & Mahindra Ltd., NSE-SIMSR certified programs and INS Hamla in the area of project finance and corporate finance. His core teaching areas are corporate finance, project finance, corporate valuation, project management and financial modeling.