Module 7 Project Appraisal, Planning and Control

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Presentation By: Abdul Faiz Mulla

Outline
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Project financing Means of project finance Norms & policies of financial institutions SEBI Guidelines

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Project Financing:

It refers to the raising of funds required to finance an economically separable capital investment proposal in which the lenders mainly rely on the estimated cash flow from the project to service their loans.

Means of project finance:

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Preference shares Ordinary / equity shares Debentures Bonds Term Loans

Cont.

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Unsecured Loans Public Deposits Lease Financing Deferred Credits Capital Investment Subsidy

Term Loan procedure:

Submission of loan application

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Initial Processing of Loan application Appraisal of the proposed project Issue of the letter of sanction

Cont.
Execution of loan agreement Creation of security Disbursement of Loans Monitoring

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Norms & policies of financial 5/25/12 institutions

Raising of resources Exposure norms Lending operations Prudential & capital adequacy guidelines

SEBI Guidelines for mutual funds

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MF shall be established in the form of trusts under the Indian trust Act and managed by separately formed AMC MMMF would be regulated by RBI and other MFs would be regulated by SEBI 50% members of the board of AMC must be independent director

The AMC should have min net worth of Rs10 cr SEBI has the authority to withdraw the authorization of AMC AMC cannot act as the AMC for another MF The min amt to be raised with each close-end and open-end scheme should be 20cr and 50cr respectively

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Sample Financing Plans

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Project Cost Financial Plan Operation and financial projections Summary of financial viability and sensitivity scenarios

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