A PROJECT REPORT ON

Project Finance
SUBMITTED BY

Mr. Ameya Anil Patil

MBA-II (FINANCE +BANKING & INSURANCE )

UNDER THE GUIDANCE OF

Mr. Shende Visiting Faculty, Bank of Maharashtra Maharashtra

Mrs. Mankar Director, Bank of

DEPARTMENT OF MANAGEMENT SCIENCES UNIVERSITY OF PUNE (PUMBA)

ACKNOWLEDGEMENT

I owe my gratitude to Mr. Shende, Bank of Maharashtra, for giving me this opportunity to work as a summer trainee. I am indebted to his constant co-operation and efforts in guiding me and providing immense support & enthusiasm throughout the project. Without his counseling and constant encouragement, this project would not have materialized. I would also like to put forth my heartfelt thanks to Mrs. Mankar, Bank of Maharashtra for his valuable time, support and inspiration throughout the project.. I also thank our HOD Dr. B. V. Sangvikar whose wisdom & foresight. I continually benefit from. .

Ameya Anil Patil, MBA++, (Finance and Banking & Insurance)

Project Description:
The Project involved analyzing the companies who approached the Bank to avail their funding requirements ,either Term loans or Cash credit facilities(in view of their Working Capital requirements).Feasibility Study for 2 such organizations was carried out during this period. The details cant be disclosed for confidentiality purposes. The feasibility study for financing these companies was done and a report prepared ,based on following parameters: 1. Project,Background and Promoters Profile: The product produced for which the loan has been proposed Cost of project,and means of finance The promoters,if having the required skills and expertise,and experience in dealing with projects of a similar type Presence of reqired management and manpower Promoter;s earlier track record of interest and term-loan payments 2. Technical Viability: The company ,if possesses the required technology or instruments. The implementation of technology,well within reach of the company The production process Availabity of required land ,power,human resources,transportation facilities ,suppliers and customers 3. Commercial Viability: Industrial Scenario Demand and Supply of Product Future Projections of its Sales

4. Economic Viability: Economic viability was estimated w.r.t. 1. Sales 2. Profits Various Ratios were calculated ,and the company analysis was done,based on it.To name a few, 1. Current Ratio 2. DSCR 3. Interest Coverage Ratio 4. Profitability Ratios 5. TOL/TNW Break-even Analysis Sensitivity Analysis 5.SWOT Analysis: Projects inherent strengths/weakness Aid/Obstruction to it by economic environment 6.Banking Aspects: Security Coverage Ratio Projects requirements w.r.t. MPBF