Professional Documents
Culture Documents
PROJECT GUIDES
Mr. SUNIL MEHTA (COMPANY GUIDE)
Dr. S. K. MITRA
By
AMIT KHANDELWAL
2009043
PGDM- 2009-11 BATCH
AGENDA
• Objectives
• Process Chart
• Expansion Decision
• Drawdown Schedule
• Proposal Files
• Project Timelines
• Bibliography
•
OBJECTIVES
• Assistance in development of Projections for Proposed Project
– Breakeven Analysis
– Scenario Analysis
• How?
PARTICULARS PROPOSED
TEXTURISING (10 CAPACITY
4200 MTPA UNDER
WINDERS)
POY (96 WINDERS) EXPANSION
32400 MTPA
DRAWDOWN SCHEDULE
• To get tentative dates of important activities and events
3. Selection and Ordering of Plant & 1st Qtr of 2010-11 1st Qtr of 2010-11
Machineries
5. Installation & Erection of Plant & 4TH Qtr of 2010-11 1st Qtr of 2011-12
Machineries and Utilities
•
COST OF THE PROJECT
(Rs. in Cr)
•
PROJECT ASSUMPTIONS
Cost of Project
TEXTURISING
POY
CMA
CMA
DECISION MAKING INDICATORS
PROPOSED PROJECT PROFILE
• PERFORMANCE EVALUATION
• ASSOCIATE CONCERNS
• TECHINICAL EVALUATION
• COMMERCIAL EVALUATION
– RISK ANALYSIS AND MITIGATION
RISK REFLECTS MITIGATION
PHASE 1: DURING IMPLEMENTATION OF PROJECT
Cost Increase and Increase in Prices of Not Material as would
Price Escalation
Currency Risk RM
Appreciation or be undergoing
Not Material. No
Force Majeure Occurrence ofofUn- contracts
Depreciation FCTLs for
have
Possibility fixed
is been
Foreign Currency
expected
PHASE 2: POST IMPLEMENTATIONand in pricing
demanded RISK
negligible
OPERATIONAL
Availability Risk case of FCTLs natural No hindrance had
uncontrollable
Availability/Non-
Currency Risk and/or man-made
availability
Appreciation oforRM been
In observed.
case of LCs, Many
disaster(s)
Depreciation of indigenous
company wouldas well
be as
Foreign Currency foreign suppliers
going for Hedge
when L/Cs facility present
Agreements
availed
RISK REFLECTS MITIGATION
Throughput Risk Fluctuation in Technologically most
Technology Risk Production
Risk of technology advanced machines.
Most advanced
Operating Risk gettingissues
Labor obsolete
and 100% Efficiency
machines
Plenty of
in the and
of skilled
availability
PHASE 3: POST IMPLEMENTATION Machines
industry are being
semi-skilled
SELLING RISK labor
Market(Demand) risk Demand decline imported
available
Expansionaround
was area
Revenue Risk planned collection
Reflects Impact on Prudent only because
revenue because of of risingfollowed
policies and un-met
bad debts demand from
religiously by a long
time
companies. Client
include giant
Corporate
Conglomerates
PREPARATION OF PROPOSAL FILE(S)
• Covering Letter
• Assumptions
• Project Write-Up
• Annual Reports
– Guarantor Company
PROJECT TIMELINE
RECOMMENDATIONS
• Tax Gains should have been taken into consideration for Calculation of
NPV
• Sensitivity Analysis Overview should have been done for other key
indicators too
• Term Loan Tenor should be analysed, i.e., Sensitivity Analysis for the
Tenor should be done
•
•
BIBLIOGRAPHY
• FINANCIAL MANAGEMENT, Theory and Practice, Author: Prasanna Chandra, 7th Edition
• www.investopedia.com
• www.financial-dictionary.thefreedictionary.com
THANK YOU!!