Project Appraisal And Financing

The era of nineties has created a new breed of entrepreneurs whose quest for finance is unending. The lending institutions, on the other hand, have become choosy due to, among other reasons, mounting Non-performing Assets (NPAs). All this has led to increased pressure on the availability of finance to the entrepreneurs. In this setting, careful consideration of Project Appraisal and Financing holds the key to survival.

Designed in this context, the book begins with explaining the project’s fundamentals—features, identification, and project life cycle. It goes on to explain and analyze project formulation, appraisal of promoters and management, market appraisal, technical appraisal, financial appraisal, project report, institutional risk assessment and financing decision. The book also focuses on the concepts of project management, overruns, post-completion performance evaluation and contemporary issues like infrastructural financing, and environmental impact assessment. All through the book, the emphasis is on critical analysis and decision-making.

Primarily intended for the students of MBA/PGDM/PGDBM and other allied courses such as MFC and MBE, the book will also be of immense value to the students of CA, CWA, CS, CFA, CPA and CAIIB. Besides, it will be equally beneficial for the executive development and in-company training programmes on project appraisal and financing. Project finance executives in consulting firms and lending institutions and banks will also be benefited from the book due to its practical orientation.

Part 1: Foundation

1 Project Fundamentals: Features, Identification and Life Cycle

Part 2: Promoters and Management

2. Assessment and Appraisal of Promoters and Management

Part 3: Market Analysis and Appraisal

3. Market Analysis and Appraisal

4. Demand Forecasting

5. Product Pricing Decisions

Part 4: Technical Analysis and Appraisal

6. Technology and Know How Selection

7. Infrastructural Facilities and Inputs of Production

Part 5: Financial Analysis and Appraisal

8. Assessment of Cost of Project

9. Sources of Project Finance

10. Capital Subsidies and Incentives Available to New Projects and Taxation

11. Capital Structuring and Arranging Means of Finance

12. The Process of Marketing Projected Financial Statements

12A. A Project on Financial Projections and Appraisal: Merry-Con Aluminium Composite Panels Ltd.

13. Overall Financial Evaluation

13A. Project of Merry-Con Aluminium Composite Panels Ltd. Continued for Overall Financial Evaluation

14. Risk Management in Project Finance

14A. Project of Merry-Con Aluminium Composite Panels Ltd. Continued for Risk Management Through Sensitivity Analysis

Part 6: Project Report, Institutional Risk Assessment and Financing Decision

15. Project Report

16. Institution’s Overall Risk Assessment and Financing Decision

16A. Project of Merry-Con Aluminium Composite Panels Ltd. Continued for TLRAM and Term Loan Pricing

Part 7: Project Management, Overruns and Post-Completion Performance Evaluation

17. Project Management

18. Time and Cost Overruns and Over Run Financing

19. Post-Completion Performance Evaluation

Part 8: Some Specific and Contemporary Issues

20. Some Specific Issues

21. Issues in Infrastructure Financing

22. Environmental Impact Assessment

Index