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ASSIGNMENT
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
1 Write short notes on:
 Role of project sponsors
Answer : Role
 The Project Sponsor is the individual (often a manager or executive) with overall
accountability for the project.
 The Project Sponsor is primarily concerned with ensuring that the project delivers the
agreed business benefits.
 The Project Sponsor acts as the representative of the organisation, and plays a vital
leadership role through:
 providing 'championship' for the project, selling and marketing the project throughout the
organisation
 providing business expertise and guidance to the Project Manager
 acting as the link between the project, the business community and perhaps most
importantly, management decision making groups
 acting as an arbitrator and making decisions that may be beyond the authority of the Project
Manager
 acting as chairperson of the Steering Committee.
 Project Sponsors Responsibilities
Typically the Project Sponsor will be responsible for:
DRIVE WINTER 2013
PROGRAM/SEMESTER MBADS (SEM 3/SEM 5) MBAFLEX/ MBAN2 (SEM 3) PGDPMN
(SEM 1)
SUBJECT CODE & NAME PM0012 – PROJECT FINANCE AND BUDGETING
BOOK ID B1238
CREDITS 4
MARKS 60

2.  ensuring that the business need is valid and correctly prioritised
 ensuring that the project is properly launched
 ensuring that the project remains a viable business proposition
 ensuring changes to the project are properly managed
 ensuring risks are managed
 establishing the project organisation, roles and reporting structure
 ensuring the project is under control
 approving key project deliverables
 initiating project reviews and supporting the process of review
 resolving issues (typically competition for resources and priority clashes) that are
beyond the control of the Project Manager
 resolving conflict and removing obstacles to progress
 overall quality of the project, both the methods used to develop it and the end
product.
 Importance of project budget
Answer : Cost Control
The foremost benefit to budgeting project tasks is the increased control and detail that the
manager obtains when creating the budget. When managing the budget on an overall
project level, the manager is unable to account for differences in resources needed between
very different tasks.
 Debt financing
Answer : Debt financing includes both secured and unsecured loans. Security involves a form of
collateral as an assurance the loan will be repaid. If the debtor defaults on the loan, that
collateral is forfeited to satisfy payment of the debt. Most lenders will ask for some sort of
security on a loan. Few, if any, will lend you money based on your name or idea alone.
Here are some types of security you can offer a lender:
 Financial feasibility of a project
Answer : Financial feasibility refers to a study conducted with regards to a project in order to
determine if it is viable after careful assessment of its total costs and revenues. For a project
to be considered feasible, if the revenue is more than the cost. Companies often conduct a
financial feasibility before starting a project to determine if it is a good investment.
A financial feasibility study is
2 Describe the Engineering , Procurement Construction (EPC) contract.
Answer : Brief description of Engineering, Procurement and Construction

3. 3 Explain the different risk assessment techniques in detail.
Answer : Risk-Analysis Techniques
It is important to keep in mind that when a company analyzes a potential project, it is forecasting
potential not actual cash flows for a
4 Write short notes on:
 Risk audit
Answer : Audit risk (also referred to as residual risk) refers to the risk that an auditor may
issue unqualified report due to the auditor's failure to detect material misstatement either
due to error or fraud. This risk is composed of inherent risk (IR), control risk (CR) and
 Types of working capital
Answer : Working capital is broadly classified into two-permanent working capital nd
variable working capital.
1. Permanent Working Capital
There is always a minimum amount of working capital which is continuously required by the
enterprise to carry
 Types of BOOT projects
Answer : BOOT (build, own, operate, transfer) is a public-private partnership (PPP) project
model in which a private organization conducts a large development project under contract
to a public-sector partner, such as a government agency. A BOOT project is often seen as a
way to develop a large public infrastructure project with private funding.
Here's how the BOOT model works: The public-sector partner contracts with a private
developer - typically a large corporation or consortium of businesses with specific expertise -
to design and implement a large project. The public-sector partner may provide limited
funding or some other benefit (such as tax exempt status) but the private-sector partner
assumes the risks associated with planning, constructing, operating and maintaining the
project for a specified time period. During that time, the developer charges customers who
use the infrastructure that's been built to realize a profit. At the end of the specified period,
the private-sector partner transfers ownership to the funding organization, either freely or
for an amount stipulated in the original contract. Such contracts are typically long-term and
may extend to 40 or more years.
BOOT is sometimes known as BOT (build, own, transfer). Variations on the BOOT model
include BOO (build, own, operate), BLT (build, lease, transfer) and BLOT (build, lease,
operate, transfer).
 issues in project insurance
Answer : Project management is supposed to be about risk management. Identify the risks. Monitor
them. Mitigate them. Insurance is a time-tested mitigation strategy. So why can’t I insure my
projects?

4. Consider film production. It’s a creative
5 Explain the role played by engineering advisors in project finance.
Answer : It is increasingly important for lenders and borrowers alike to fully understand the risks to
which they are exposing themselves in pipeline project financing. This article explores the role of the
Independent Engineer (IE) in identifying and mitigating these risks and suggests how prospective
investors are able to maximize the value of this role during all stages of the pipeline project financing
process.
The role of the IE is one of risk identification
6 Explain the different types of management contracts.
Answer : A contract is an exchange of promises between two or more parties to do, or refrain from
doing an act, which resulting contract is enforceable in a court of law.
In the project or program context, contracts typically involve the exchange of money in return for
goods or services.
Types of Contracts
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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or
Call us at : 08263069601
(Prefer mailing. Call in emergency )