ELECTIVE SUBJECTS

4.2 FINANCE
4.2.1.PROJECT MANAGEMENT AND ANALYSIS
4.2.2.INTERNATIONAL FINANCIAL MANAGEMENT
4.2.3.DERIVATIVES AND RISK MANAGEMENT

4.2.1 PROJECT ANALYSIS AND MANAGEMENT

1. GENERAL INFORMATION

No. of Credits per week 4

No. of Hours per week 4

2. PERSPECTIVE OF THE COURSE

This course develops the competencies and skills for planning and controlling projects and understanding interpersonal issues
that drive successful project outcomes. A finance professional needs knowledge of Project management practices within the
organization which influences the profitability of the organization. A thorough understanding of all the components of project
planning and management will equip a project manager to make better and informed decisions while investing on projects.
Hence, the course on “Project Analysis and Management” which orients the learner all factors influencing financial and strategic
decisions of project management in a business enterprise is introduced.

3. COURSE OBJECTIVES AND OUTCOMES

OBJECTIVES

To know the project manager’s roles and responsibilities and financial projections.
To understand project selection and criteria and feasibility analysis
To understand UNIDO approach for Social Cost Benefit analysis
OUTCOMES

At the end of the course, student will learn project management design, development, and deployment by using project
management tools, techniques, and skills, to understand the implications, challenges, and opportunities of organizational
dynamics in project management.

4. COURSE CONTENT AND STRUCTURE

MODULE 1: INTRODUCTION 12 HOURS

Project: Meaning, ten subsystems of project, generation and screening of project ideas, types of projects, Feasibility of a project;
Market feasibility, Technical feasibility, Financial feasibility – Projected Cash flow Statement and Projected Balance Sheet;
relate capital budgeting concepts to investments on projects, role of a project manager.

MODULE 2: EVALUATION OF PROJECTS 8 HOURS

Project Organization, Project Planning, Project Control, Pre-requisites for successful Project Implementation – Network
techniques: Development of Project Network, Time Estimation, scheduling, PERT, CPM, Network Cost System.

MODULE 3: RISK ANALYSIS IN PROJECT MANAGEMENT 18 HOURS

Types and measure of project risk – simple estimation of risk – sensitivity analysis – scenario analysis – Monte Carlo simulation
– Decision tree analysis – Managing risk – selection of projects under risk – risk analysis in practice. Social cost benefit analysis:
UNIDO Approach, Little Mirrlees Approach. (Theory and Problems)-Special Decision Situations : Choice between mutually
exclusive projects, Adjusted NPV, Optimal Timing, Uniform Annual Equivalent (replacement period), and Adjusted Cost of
Capital.

MODULE 4: VENTURE CAPITAL PROJECTS 06 HOURS

Venture Capital and Private Equity – Meaning, Stages in venture capital financing, Venture capital investment appraisal process,
Valuation of venture capital, Venture capital financing in India, Private equity funding trends

Page | 56
 MODULE 5: PUBLIC-PRIVATE PARTNERSHIP PROJECTS 06 HOURS

Infrastructure Projects and PPP – Characteristics of infrastructure projects, Risks in infrastructure projects and managing such
risks, Typical structures, Financial evaluation of infrastructure projects, PPP – Meaning, Structures of PPP, Financing sources for
PPP projects.

MODULE 6: PROJECT NEGOTIATIONS 06 HOURS

Conflict and Negotiation, The Nature and Type of Negotiation, Project Review and Administrative Aspects, Post Completion
Audits, Abandonment Analysis.

5. PEDAGOGY

a) Lectures.

b) Demonstrations using Excel

c) Practical Exercises – Individual and Group

d) Case Studies.

e) Business Planning

6.TEACHING/LEARNING RESOURCES

ESSENTIAL READINGS

1. Prasanna Chandra, Projects: Planning, Analysis, Selection, Implementation & Review, Tata McGraw Hill.
2. Bhavesh M.Patel, Project Management, Vikas Publishing House, New Delhi.
3. Vasant Desai, Project Management, Second Revised Edition, Himalaya Publishing House

REFERENCES

1. P.C.K. Rao, Project Management and Control, Sultan Chand & Sons
2. Clifford F. Gray and Erik W. Larson, Project Management, Tata McGraw Hill
3. K. Nagarajan, Project Management, Third Edition, New Age International
4. Project Management: The Managerial Process – Gray& Larson
5. UNIDO SERIES on Project Management.
6. B.B. Goel, Project Management – Principles and Techniques, Deep and Deep
7. Gopalakrishnan P and Ramamoorthy, V.E., Project Management, Macmillan

Page | 57