Thesis Synopsis

 Details of the student

Name: Wasim Ahmed

Batch: IIPM-KOL/PGP/SS 09-11/FIN
Specialization: Marketing & Finance
Phone No.: 9830486040
Email: wasim.ahmed0109@gmail.com

 Desired Area of Research

PROJECT APPRAISAL

 Title of the thesis

FINANCING STRUCTURE OF A PROJECT

 Problem definition /hypothesis /Research objectives

What should be the Optimum Capital Structure to fulfill the Project Cost.  An
optimal capital structure is the best debt-to-equity ratio for the project, which
minimizes the cost of financing and maximizes the value of the project. The research
objective is to calculate a point where the weighted average cost of capital is
minimum, and the ways to achieve it through various means of finance.

 Literature related to the research (In Brief)

In today’s world, many companies need to go for expansion to survive. In today’s

highly competitive market, if a company remains stagnant and don’t look for
opportunities to grow, it is very likely that the company will not be able to survive.
In order to remain competitive, the company may go for backward or forward
integration and take up new projects. Any new project requires some capital to
cover its cost. The biggest challenge lies in the identification of capital structure
and the ways to raise it. The company needs to decide whether to go for Equity,
Debt or Mezzanine financing. Once the company decides the capital structure, the
next step is the identification of the sources to raise the finance. The source of
finance is very important because it also involves cost and the burden of investor’s
expectations. In this study, we are going to find out the ideal capital structure for
different type of projects and the ways to raise the finance to cover the cost of the
project. The study will also cover the process to raise the required capital and the
cost of capital.
 Scope of the thesis work

Defining the optimum capital structure of a project and Identification of the

ways to achieve it.

 Research Methodology

COLLECTION OF DATA
1: Secondary Data: The secondary data was collected on the basis of
organizational file, official records, financial statements, Industry trend, and other
published reports.

2: Primary data: The external guide will be the main source of primary data. As he
is a professional in this field, he can provide the data which can be extremely
important and pivotal in the completion of this study.

The study will be done to identify the ideal Capital Structure of:
 Real Estate Project: The project will be a residential cum commercial real
estate project on land of 5 acres. The project will comprise of 70%
residential and 30% commercial space.
Land Area: 5 acres or 217800 sq. ft.
Floor Area Ratio (FAR): 2
Built up Area: 435600 sq. ft. with a mark-up of 18%
Saleable Area: 514000 sq. ft.

 Justification for choosing a particular research proposal

Every company is looking for opportunities to grow and survive in the competitive
world. They go for either organic or inorganic growth opportunities and take up
various projects. Irrespective of the nature of the project, it requires capital
infusion on a regular basis for survival. It is very important for the successful
completion of a project and its survival that the company identify the right mix of
Debt and Equity and infuse the required capital from right sources as it also
involves a cost. So, the identification of the Optimum Capital Structure to fulfill
the Project Cost is extremely important for a project to be successful.

 Summer Training Report (In brief)

The objective of the project is to comparatively analyze and find the market potential of
STANDARD CHARTERED BANK‟s products in a particular industry in Kolkata.
Standard Chartered bank got the research carried out to find what the current trends are in
the market and what the competitor’s product offerings are. Also, market share of
 different banks is to be found and the recommendations to increase the market share for
Standard Chartered bank are to be given.
The purpose of the study is to find out the market potential and position of
standard chartered bank as compared to other banks. Standard Chartered Bank is
interested in finding out its sales potential. For this purpose a primary research was
conducted in the region of Kolkata and its suburbs. The target consumers were related to
the bakery industry, either as a producer or supplier which include distributors,
wholesalers, and retailers.

Important Recommendations suggested are:

 Minimum balance for current account should be reduced, because as far as this
industry is concerned, it involves huge amount of liquidity and the bakers are
reluctant to commit themselves to maintain higher minimum amount balance.
 A lower minimum amount balance will enable the customers to open their
accounts, and I can infer from the research that after opening the account they will
end up maintaining a much higher balance.
 Relationship managers should give proper attention to this industry, this industry
looks unattractive to the RMs but it can be a great business prospect.
 This is industry often require loans and mortgages. RMs can entice the customer
by offering them low interest loans and can capitalize on them by providing other
services which can be profitable to the Bank.

 Details of the External guide

Name: Mitesh Demblani

Qualification: MBA Finance, IISWBM
Designation: Assistant Vice-President, LSI Financial Services Pvt. Ltd.

 Approval letter from External guide

Approval letter is attached as a separate file.