Name :- Kaushal chopra (11803123)

Roll no. B40

Question 1 a) What is sustainable development in Infrastructure development?

b) What is PRI and ULB?
c) What is Valuation of Assets, explain with example?
d) What is PPP? e) What is the difference between FEZ and EPZ?

Ans.A. Sustainable construction, in line with the stipulations for development outlined in the
Brundtland Commission’s report “Our Common Future” from 1987, aims to meet present day
needs for housing, working environments, and infrastructure without compromising the
ability of future generations to meet their own needs for shelter, spaces for work, and service
provision. In meeting these needs now and over time, sustainable construction, in other
words, can become more socially supportive in the long run by reducing its overall ecological
footprint, while also being innovatively responsive to the ever-increasing demand for built
space.

Ans.B. Panchayati Raj Institutions (PRI) as units of local government have been in
existence in India for a long time, in one form or another. However, it was only in 1992, on
the recommendations of the LM Singhvi Committee (1986), that it was granted constitutional
status as the third level of India’s federal democracy through the 73rd Amendment Act,
whereas

Urban Local Bodies (ULBs) are small local bodies that administers or governs a city or a
town of specified population. Urban Local Bodies are vested with a long list of functions
delegated to them by the state governments. These functions broadly relate to public health,
welfare, regulatory functions, public safety, public infrastructure works, and development
activities.

Ans.C. Asset valuation is the process of determining the fair market or present value of
assets, using book values, absolute valuation models like discounted cash flow analysis,
option pricing models or comparable. Such assets include investments in marketable
securities such as stocks, bonds and options; tangible assets like buildings and equipment; or
intangible assets such as brands, patents and trademark

Ans.D. Public-private partnership (PPP) is often defined as a long-term contract

between a private party and a government agency for providing a public asset or service, in
which the private party bears significant risk and management responsibility (World Bank,
2012). It relies on the recognition that public and private sectors each have certain advantages
relative to other in performing specific tasks. The responsibilities of the private sector could
entail finance, design, construction, operation, management and maintenance of the project.

Ans.E. Free economic zones (FEZ), free economic territories (FETs) or free zones (FZ) are a
class of special economic zone (SEZ) designated by the trade and commerce administrations
of various countries. The term is used to designate areas in which companies are taxed very
lightly or not at all to encourage economic activity. The taxation rules are determined by each
country. The World Trade Organization (WTO) Agreement on Subsidies and Countervailing
Measures (SCM) has content on the conditions and benefits of free zones. Export Processing
Zones(EPZ) in India was set up by the government of India with the aim to initiate
infrastructural development and tax holidays in various industrial sectors in the country. EPZ
has incessantly accelerated the economic growth of the country by ensuring a flourishing
export production.

Question2
a) What are the top 5 Infrastructure companies in India as per there Turnover recent year, it
should be in the decremental order (i.e. Highest at 1 and lowest at 5)? (Reference)
b) What is (MSME), write at least 3 examples for each?

Ans2a.

1) Larsen & Toubro Infrastructure Development Projects Limited (L&T IDPL)Larsen

& Toubro is the leader among infrastructure companies in India. Larsen & Toubro
Infrastructure Development Projects Limited is a part of L & T Group. The company was
founded in Mumbai in 1938 by two Danish engineers, Henning Holck-Larsen and Soren
Kristian.Larsen & Tubro today is one of the largest construction companies in India, and their
project portfolio includes road constructions worth more than Rs 18,000 Crore
the revenue of Larsen & Toubro's infrastructure business was over 730 billion
Indian rupees.

2.Tata Projects Ltd is a top construction company in India. The company has expertise in
taking up large infrastructural projects for the urban and industrial area. Tata Projects bein
one of the top construction company that provides infrastructure solutions for construction of
roads, bridges, fully integrated rail & metro systems, commercial buildings & airports and
setting up of power generation plants, power transmission & distribution systems, chemical
process plants, water and waste management and complete mining and metal purification
systems. Rs 16,000 crore worth of revenue this fiscal.

3.Hindustan Construction Co. Ltd is a popular construction firm in India founded in the
year 1926. The company's headquarters are in Mumbai, Maharashtra, India. It is one of the
oldest construction companies in India and has taken up some of the major infrastructure
projects in the country such as expressways, bridges, tunnels and power etc..
the revenue of Hindustan Construction Co. Ltd business was over 39,751.85 million Indian
rupees.

4.Simplex Infrastructures Ltd. is one of the best construction companies in India founded
in the year 1924 and has taken up projects in various sectors such as Transport (roads,
railways, bridges), Energy & Power, Mining, Buildings, Marine, industry, Real Estate, etc.. .
Rs 3,904.48 crore worth of revenue.

5.Jaiprakash Associates Limited is a public listed infrastructure company and it is a part

of Jaypee Group of Indian Corporation. JAL was founded in 1979. It undertakes various
infrastructure projects like Power, roads, hospitality, real estate and sports etc..
Rs 2,845.50 crore worth of revenue.

references:- https://business2business.co.in/article/2095/top-10-construction-companies-in-
india-in-2020

Ans2 b)

MSME stands for Micro, Small and Medium Enterprises. In a developing country like India,
MSME industries are the backbone of the economy. The MSME sector contributes to 45% of
India’s Total Industrial Employment, 50% of India’s Total Exports and 95% of all industrial
units of the country and more than 6000 types of products are manufactured in these
industries (As per msme.gov.in). When these industries grow, the economy of the country
grows as a whole and flourishes. These industries are also known as small-scale industries or
SSI’s. Examples-

1. DFM foods, location:- Delhi

2. Ankur scientific energy technologies, location:- Vadodara
3. Mynd Solutions, location:- Gurugram
4. SL packaging, location:- Kolkata
5. Star agri warehousing and collateral management, location:- Jaipur
6. Molecular connections, location:- Bangalore

references:-

https://msme.gov.in/
https://www.quora.com/What-are-the-examples-of-MSME-companies-in-india

Question 3. What is Evolution of a Project Finance Model and what are the Most Important
Financial Model Outputs. Explain by the example, take any one company which is listed in
the
stocks and compare with the Output.

Ans.3
What is Evolution of a Project Finance Model and what are the Most Important
Financial Model Outputs. Explain by the example, take any one company which is listed in
the
stocks and compare with the Output. (Reference)

Project Finance Model

a) Project finance modelling is an excel based analytical tool used to assess the risk-reward of
lending to or investing in a long-term infrastructure project based upon a complex financial
structure
b) Project finance involves a structure under which groups of investors can easily work
together, thus easily enabling the risk of the investment to be divided up.
c)Project finance is a method of raising long-term debt financing for major projects through
‘financial engineering,’ based on lending against the cash flow generated by the project
alone; it depends on a detailed evaluation of a project’s construction, operating and revenue
risks, and their allocation between investors, lenders, and other parties through contractual
and other arrangements. In 2012, at least $375 billion of investments in projects around the
world were financed or refinanced using project-finance techniques.

Financial model outputs include balance sheet forecasts, cash flow

forecasts, DCF valuations, and so on.
In order to build an ideal model, users should:
• Make outputs modular, so the end users can choose which outputs they wish to
review. For example, one can keep the balance sheet, income statement, and cashflow
forecast in separate groups or worksheets.
• Consider creating a summary output sheet that allows users to review the key model
outputs without having to go through the entire model.
• Utilize colours to clearly categorize and indicate output formulas and cells.
• Consider protecting your output cells and worksheets to maintain data integrity.

JSW Energy :- Financial Model Outputs

references
https://www.wallstreetprep.com/knowledge/project-finance-model-structure/
https://corporatefinanceinstitute.com/resources/knowledge/modeling/financial-modeling-
best-
practices/#:~:text=Financial%20model%20outputs%20include%20balance%20sheet&text=T
he%20balance%20sheet%20displays%20the,forecasts%2C%20cash%20flow%20forecasts%2
C%20DCF
https://skemman.is/bitstream/1946/33820/1/Final%20MSc%20Thesis%20Report_Chagaka
%20Kalimbia.pdf
research paper :-
https://www.sciencedirect.com/topics/economics-econometrics-and-finance/project-
finance#:~:text=Project%20finance%20has%20evolved%20during,risk%20and%20low%20co
untry%20risk.