preparation of project report prepare your own report

PREPARATION OF PREPARATION OF PROJECT REPORTPROJECT REPORT

PREPARE YOUR OWN REPORTPREPARE YOUR OWN REPORT

ABOUT THE PROJECTABOUT THE PROJECT

CONCEPT CONCEPT PRODUCT / SERVICES (what you are PRODUCT / SERVICES (what you are

going to do) going to do) CAPACITY or size of activity levelCAPACITY or size of activity level PROMOTERS’ DETAILSPROMOTERS’ DETAILS MARKET OPPORTUNITYMARKET OPPORTUNITY LOCATIONLOCATION

PROJECT COST-1PROJECT COST-1

LAND & LAND DEVELOPMENTLAND & LAND DEVELOPMENT BUILDINGBUILDING MACHINERY / EQUIPMENTMACHINERY / EQUIPMENT FURNITURE / MISC. ASSETSFURNITURE / MISC. ASSETS ELECTRICALS / BOILER ETCELECTRICALS / BOILER ETC

PROJECT COST-2PROJECT COST-2

PRELIMINERY / PREOPERATIVE PRELIMINERY / PREOPERATIVE EXPENSESEXPENSES

CONTINGENCIESCONTINGENCIES =CAPITAL COST=CAPITAL COST + MARGIN FOR WORKING CAPITAL + MARGIN FOR WORKING CAPITAL

(2ND YEAR)(2ND YEAR) =PROJECT COST=PROJECT COST

MEANS OF FINANCEMEANS OF FINANCE

1.EQUITY =1.EQUITY = PROMOTER’S FUNDS +PROMOTER’S FUNDS + SUBSIDY, IF ANYSUBSIDY, IF ANY

2.LOANS (DEBT)2.LOANS (DEBT)

1+2=PROJECT COST1+2=PROJECT COST

DEBT EQUITY RATIODEBT EQUITY RATIO

SALES TURNOVERSALES TURNOVER

11STST YR 2 YR 2NDND YR 3 YR 3RDRD YR YR

AMOUNT OF AMOUNT OF

SALES / INCOMESALES / INCOME

COST OF PRODUCTION / COST OF PRODUCTION / ACTIVITY ACTIVITY

PER YEAR -1PER YEAR -1STST 2 2NDND 3 3RDRD

MATERIAL COST(RM + SPARES)MATERIAL COST(RM + SPARES) OPERATING COST(POWER,WATER)OPERATING COST(POWER,WATER) MANPOWER COST(SALARIES)MANPOWER COST(SALARIES) ADM+SELLING EXPENSESADM+SELLING EXPENSES FINANCIAL COST FINANCIAL COST DEPRECIATIONDEPRECIATION

PROFITPROFIT

PROFIT= SALES – PRODUCTION COSTPROFIT= SALES – PRODUCTION COST LESS TAXESLESS TAXES =NET PROFIT AFTER TAX=NET PROFIT AFTER TAX + DEPRECIATION+ DEPRECIATION =FUNDS AVAILABLE=FUNDS AVAILABLE

WORKING CAPITAL- 1WORKING CAPITAL- 1

FINANCE AVAILABLE ONFINANCE AVAILABLE ON

RAW MATERIALRAW MATERIAL WORK IN PROGRESSWORK IN PROGRESS FINISHED GOODSFINISHED GOODS AMOUNTS TO BE RECEIVED FROM AMOUNTS TO BE RECEIVED FROM

CUSTOMERSCUSTOMERS

WORKING CAPITAL -2WORKING CAPITAL -2 PER YEAR 1 PER YEAR 1STST 2 2NDND 3 3RDRD

AMOUNT UNDER EACH HEADAMOUNT UNDER EACH HEAD LESS MARGIN (ie. PROMOTER’S LESS MARGIN (ie. PROMOTER’S

FUNDS)FUNDS) = FUNDS AVAILABLE FROM BANK FOR = FUNDS AVAILABLE FROM BANK FOR

THAT HEAD AS WORKING CAPITALTHAT HEAD AS WORKING CAPITAL

WORKING CAPITAL -3WORKING CAPITAL -3 CALCULATION CALCULATION

Eg AMOUNTEg AMOUNT RAW MATERIAL 15 DAYS STOCKRAW MATERIAL 15 DAYS STOCK W-I-P 1 DAYW-I-P 1 DAY FINISHED GOODS 7 DAYS STOCKFINISHED GOODS 7 DAYS STOCK DEBTORS 45 DAYS SALESDEBTORS 45 DAYS SALES

SECURITY FOR BANKSECURITY FOR BANK

MORTGAGEMORTGAGE HYPOTHECATIONHYPOTHECATION PERSONAL GUARANTEEPERSONAL GUARANTEE

VALUATION OF SECURITY WILL BE VALUATION OF SECURITY WILL BE MORE THAN BANK EXPOSURE MORE THAN BANK EXPOSURE

BANK FINANCEBANK FINANCE

AVAILABLE FOR FIXED ASSETS AS AVAILABLE FOR FIXED ASSETS AS WELL AS WORKING CAPITALWELL AS WORKING CAPITAL

DURATION TO BE DEPENDENT ON DURATION TO BE DEPENDENT ON AMOUNT AVAILABLE FOR REPAYMENT AMOUNT AVAILABLE FOR REPAYMENT OUT OF PROFITS OF PROJECT OUT OF PROFITS OF PROJECT

PROMOTER’S CONTRIBUTION %IN PROMOTER’S CONTRIBUTION %IN THE PROJECT: THE PROJECT:

AS PER NORMS OF THE SCHEME OF AS PER NORMS OF THE SCHEME OF BANKBANK

MANPOWERMANPOWER

NO. YEARLY COSTNO. YEARLY COST UNSKILLEDUNSKILLED SKILLEDSKILLED

DEPRECIATIONDEPRECIATION

REDUCTION IN ASSET VALUATION REDUCTION IN ASSET VALUATION OVER A PERIODOVER A PERIOD

eg Value 100, after depreciation of 10 in a eg Value 100, after depreciation of 10 in a year, becomes value 90 for the next yearyear, becomes value 90 for the next year

AS PER INCOME TAX STIPULATIONAS PER INCOME TAX STIPULATION AMOUNT AVAILABLE FOR ADDING TO AMOUNT AVAILABLE FOR ADDING TO

PROFITPROFIT

ALSO WRITE - UP ONALSO WRITE - UP ON

MACHINERY SUPPLIERSMACHINERY SUPPLIERS CUSTOMERSCUSTOMERS EXISTING BANKER EXISTING BANKER PERMISSIONS OBTAINED / APPLIEDPERMISSIONS OBTAINED / APPLIED SOURCES OF PROMOTER’S FUNDSSOURCES OF PROMOTER’S FUNDS AGREEMENT DETAILS IF PLACE IS ON AGREEMENT DETAILS IF PLACE IS ON

RENTAL BASISRENTAL BASIS

ALL THE BESTALL THE BEST

IF YOU KEEP THIS INFORMATION IF YOU KEEP THIS INFORMATION READY, YOU WILL INTERACT MORE READY, YOU WILL INTERACT MORE CONFIDENTLY ABOUT YOUR CONFIDENTLY ABOUT YOUR PROPOSED VENTUREPROPOSED VENTURE

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