preparation of project report prepare your own report
TRANSCRIPT
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
