Project Appraisal & Finance

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ST. JOSEPH’S COLLEGE COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – OCTOBER 2013
M. COM. – III SEMESTER
PROJECT APPRAISAL & FINANCE
Time: 3 Hrs. Max. Marks: 100
Note – Your Answers should be brief & related to the Marks allotted
SECTION – A
I) Answer ANY SIX Questions in brief. (6×5= 30 )
1) What do you understand by Recourse & non-recourse Funding?
2) Outline the Importance of Asset Creation as part of a Major Project.
3) Explain in brief the difference between D / E Ratio & DSCR.
4) List out any two types of Equity & Three types of Debt.
5) Briefly outline the possibility of Conflict between Ownership & control.
6) List out any Five Valuation Issues.
7) What do you understand by Passive Equity ?
8) List out any Five Risks which Banks would not accept for Approval of Funding.
9) List out any Five Factors which are considered for Investment Appraisal.
SECTION – B
II) Attempt ANY TWO of the following, with details of a Practical Project you are
referring to: (2×10= 20 Marks )
10) Explain with a Sketch a typical Model of either “ Balance Sheet Financing “ or “
Financing through an SPV Route “.
11) Prepare a table indicating different Entities which would be willing to absorb
Finance-related Risks connected with Debt, & Operations.
12) Explain with a table to highlight the Differences between Project Finance &
Corporate Finance.
SECTION – C
III)MS PROJECT – Attempt any Four of the following: ( 4×5=20)
Choose a TOURIST RESORT as an example & with ref. to the MS Project Software,
outline with a sketch any four of the following Processes:
13) Scheduling
14) Budgeting
15) Building of Resources – Members, Equipment etc.
16) Attaching a file to an activity
17) Adding Comments, Constraints
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SECTION – D
IV) CASE STUDY – Attempt any Five of the following: ( 30 Marks )
A Major city is planning to improve Traffic Conditions & is considering the following
Options:
a) Entrusting the entire Project to a single Company
b) Identifying one Company for Elevated Roads & Flyovers & another for Underpasses
& Widening of Roads.
c) Identifying one Big Company for Elevated Roads & Flyovers & two small
companies for Under-passes & Widening of Roads.
Analyse & recommend the best combination for Financing the Project through any Five
of the following Methods:.
1) Balancing between Offtake & Input Supply Contracts
2) Proper financing Structure ( with the help of a Diagram )
3) Investment appraisal ( with the help of a Diagram )
4) Value of Flexibility ( with the help of a Table / Diagram )
5) Inclusion of O&M ( to secure Equity & maintain Continuity of revenue )
6) Approach IFC by extending the Project to five cities in India ( Five benefits to be
listed out )
7) Analysis of Return Variance Vs. Size of Project ( with the help of a Graph )