VIGNANA JYOTHI INSTITUTE OF MANAGEMENT

Batch XVII 2009-2011

COURSE TITLE: PROJECT APPRAISAL AND FINANCING

Learning outcomes:
1. Adopt the techniques used for preparing a good project
2. Analysis of projects with respect to its feasibility
3. Assess the impact of uncertainty on project
4. Examine the risks involved in the projects through appraisal methods
5. Preparation of detailed project report
6. Explain the project appraisal criteria adopted by Financial Institutions.

Abstract of the course: The projects and operations are often considered similar as both are
planned, implemented and controlled to produce results within specified resource constraints.
But a project is undertaken to produce unique deliverable. The course enables the students to
learn the techniques adopted by Financial Institutions for project appraisal and equips them with
skill of preparation of detailed projects for the projects planned based on the criteria of financing
of projects.

Session plan:

Session
Topic & Issues Reading Reference
no.
1 Introduction of the course, its Scope; Project Management Chap 1, Merdith,
& Project financing in Practice Kerzner, Harold & Lock,
Dennis

2-4 Concept of a Project; Project characteristics Types & Chap 1&2: (Meredith)
Objectives of a project, Project vs Programme. Strategic
decisions for undertaking project

5-6 Project selection models Criteria for selection of models, Chap 2 (Meredith)
nature and types of selection models, factoring scoring
model

7-9 Implementation of Investment Opportunities & Chap 2 : (Meredith)

Generation of Project ideas Pre-feasibility analysis Handout

10-12 Project Life cycle & Generic phases Chap 7 (PMPWiley)

 13-20 Project cost estimation, Means of Project finance Chap 4,5 & 6 (Lock,
Projected Financial statement; Sensitivity analysis Dennis)
Feasibility Analysis

21-23 Self appraisal and Preparation of Detailed Project Report, Chap 5 (PCA)
Project appraisal by FIs and Financial agencies,
Techniques and steps

24-25 Management appraisal, Technical appraisal, Market Chap 4,5 &6

appraisal, Financial appraisal, Commercial appraisal, (K.R.Sharma)
Economic appraisal

26-27 Social Cost Benefit Analysis Project risk analysis Risk Chap 13 (PCA)
mitigation; Project Audit Chap 2 (PMP – Wiley)

28-29 Project implementation practices, Scheduling - . Project Chap 15 Lock, Dennis

cost Overrun, causes and remedies, Project control, Chap. 3 & 4 – (Merdith)
Project Monitoring and Information system

30 Presentation of Individual & Group Project Ideas

Pedagogy:

The Pedagogy consists of right blend of the various methods for effective teaching of the course
- a mix of lectures on conceptual basics, exercise and real life situation analysis, discussion of
case studies, Panel Discussion

Recommended text:

Project Management : Jack.R. Meredith, Samuel.J

(Merdith)

Additional references:
Project Management : Lock, Dennis
Practical Project Management : Ghattas R.G. & Sandra
Project Management : PMP Wiley Edition
Project Report & Appraisal : Pahwa. H.P.S (6th Edition)
Project Financing : Pahwa. H.P.S (4th Edition)
Project Finance of the Total Project Management : Joy. P.K. (PKJ)
Project Management : Patel, Bhaveh
Projects – Preparation, Appraisal, : Chandra, Prasanna (PCA)
Budgeting Implementation
Project Management : Sharma. K.R
Students are free to refer any book on the subject

Journals & Dailies : Project -ICFAI, Chartered Accountant, Chartered Financial Analyst,
Business Analyst, Money and Finance, Business India, Business World, Business Today,
Business Standard, Economic Times, Business line.

Evaluation:

Mode of Evaluation Weightage

Quizz 15%
Selection of project idea using 10%
Project rating Index & SWOT
analysis .
Preparation of DPR 25%(15% for the project +10 % for
presentation)
End –Term Examination 50 %
Total 100%

• Quizzes to be conducted during the 8th session, 16th session and 25th session of the course
for a duration of 20 minutes each. Quizzes are to be conducted only sin the written form.

• Individual assignment has to be submitted on the 20th session of the course.

Each student has to pick up 5 project ideas of both Manufacturing(2) and service
industry(3) and should do SWOT analysis for all the projects ideas selected,
Rating and Ranking to be done using common parameters

• DPR to be submitted not later than the 25th session of the course.

Evaluation Criteria for the Group Project

• Conceptual clarity
• Self analysis with reasoning and drawing results from various tests
• Ability to relate and draw inferences from various experiences and incidences
• Relevance of the content( no superfluous or irrelevant information)
• Information source, suitable referencing and bibliography
• Format and language: clear division into sections, page numbering, language etc.
• Student’s original contribution and creativity
• Any plagiarism shall be viewed seriously and the students have to rework.

Attendance: Students are required to have a minimum of 80% attendance in each course during
the term. Those who fall short of attendance are not permitted to take the end-term examinations.