Project Finance Module (Intermediate) Practice Exam
Project Finance Module (Intermediate) Practice Exam
Project Finance Module (Intermediate) Practice Exam
The Project Finance Module (Intermediate) Exam assesses your in-depth understanding of project financing concepts and practices. Earning this certification demonstrates your ability to analyze, evaluate, and participate in project financing transactions, particularly relevant for individuals seeking careers in infrastructure development and corporate finance.
Who Should Take This Exam?
Project Finance Analysts
Investment Bankers (Infrastructure)
Corporate Finance Professionals involved in Project Financing
Credit Analysts specializing in Project Finance
Students of Management and Commerce
Finance Professionals
Employees with banks, public/private sector companies, financial institutions, and infrastructure companies
Investment Banker (Infrastructure): Originating, structuring, and executing project finance deals for infrastructure projects.
Credit Analyst (Project Finance): Assessing the creditworthiness of project financing deals and managing associated risks.
Financial Modeling Specialist (Project Finance): Developing and analyzing complex financial models for project financing transactions.
Exam Details
Duration: 120 minutes
No. of questions: 60
Maximum marks: 100, Passing marks: 60 (60%); There is negative marking for incorrect answers.
Course Outline
The Project Finance Module (Intermediate) examination covers the following topics:
1. Project Finance Background
Evolution of project finance
Project Types
Critical steps in a project
2. Market Analysis
Background
Market Sizing:
Demand function estimation
Rule of Thumb
Experts’ Pol
Demand function estimation
Rule of Thumb
Experts’ Poll
Consumer, Customer and Influencer
3. Market Insight areas
Market Research Approaches
Business Model, Competencies and Promoter Analysis
Business Model
Competencies: (i) Core competency (ii) Competency Match
Promoter Analysis: (i) Track Record (ii) Financial Standing (iii) Integrity
4. Estimating Cost of Project
Project specifications
Estimating Fixed Capital Investment in Project
Estimating working capital investment in the project
5. Project Feasibility Analysis
Background
Net Present Value (NPV)
Profit v/s Cash Flow
Discount Rate
Tax-Shield on Interest
Tax-Shield on depreciation
Internal Rate of Return (IRR)
XIRR
MIRR
Project IRR and Equity IRR
Payback Period
Discounted payback period
Economic IRR
6. Financial Projections
Background
Assumptions
Cost of Project & Means of Financing
Projected Profit & Loss Account
Next, Projected Balance Sheet
Projected Funds Flow
Project IRR
Equity IRR
Loan Servicing Capability: (i) Interest Coverage Ratio (ICR) (ii)
Debt Service Coverage Ratio (DSCR) (iii) Long Term Debt Service
Coverage Ratio (LDR)
Sensitivity Analysis
Building Scenarios
7. Project Finance and their Sources
Prudence in Mix of Long Term and Short Term Finance
Forms of Long Term Project Finance
Forms of Short Term Project Finance
Lease
Role of Non-Banking Finance Companies (NBFC)
Loan Documentation
8. Infrastructure and Public Private Partnerships
Background
PPP Models
Parties to a PPP Model
PPP Process
Model Concession Agreements (MCA): (i) Highways (ii) Greenfield
Airports (iii) Transmission of Electricity
9. Novel Structures in Infrastructure Finance
Background
Take-out Financing
Securitisation
Viability Gap Financing (VGF)
Infrastructure Debt Fund
High Level Committee on Financing of Infrastructure
10. Taxation and Incentives
Taxation: (i) Depreciation (ii) Amortisation of Preliminary Expenses (iii) Amortisation of Telecom License Fees (iv) Interest on borrowed capital (v) Disallowances under the Act (vi) Expenses, in General (vii)